Saving and Waiting to Buy a House at 16?

Question

Hi everyone, I’m a junior in high school (16) and finance is one of my hobbies. Right now I’m just learning everything I can about real estate before I start to house hack in a couple years. I currently have about $5,000 saved up from my part time job. Does anyone have any recommendations for how to make more money to save up for a down payment with an FHA loan? Any other tips for when I finally hit the real estate world? Thanks!

Joe Homs · Answer

@Sam Bob I would start learning about seller financing and sub-to deals which are coming back.  I would suggest that you attend some local meetup groups in your area and begin networking.  Always and never stop learning...

Good Investing...

Bruce Woodruff · Answer

Additionally, study and learn as much as you can about everything related to construction/building and the ins and outs of RE....

As a 16 yr old, you have the time and energy to get a lot of knowledge under your belt, which will be a huge advantage for you over your competition....

Wale Lawal · Answer

@Sam Bob

Welcome to BiggerPockets!You are definitely in the right place. Just make sure to consume contents here as much as possible and feel free to ask any questions you may have. We are here to help each other grow.Start by learning as much as you can.Get in touch with a local agent or investor and shorten your learning curve and save you a lot of headaches as they tend to understand the market better.All the best!

Sasha Mohammed · Answer

@Sam Bob first and foremost - kudos! most your age are not even THINKING about this stuff, let alone putting action into place. You should be very proud of yourself!

A couple things maybe already mentioned - keep scoping out BP, reading, learning, and growing your knowledge base. This community is absolutely incredible!

Another suggestion - if RE specifically is the goal, you could see if you could find an entry-level position in the field. Whether you start in title or escrow, as a loan processor, as a transaction coordinator.... hell, if you find an internship even! The more exposure you get to the world of real estate, the better. i'm about 12 years in and still learning EVERY SINGLE DAY because frankly, Real Estate is insane :) so many facets to it, and different strategies... and it's a market that is always evolving. Exposure and experience is a goldmine.

Lastly, maybe unpopular opinion - invest! it doesn't have to be real estate right this minute, maybe you take part of that $5k saved and start dabbling in stocks you feel good about. buy stocks based on things you and your friends like - Apple, Nike, Starbucks.... im not a huge fan of Robinhood (the platform) but i believe you can buy fractional stocks now as well, so even things like Google or Tesla which are expensive to buy 1 share, you could start with percentages.

You are so young, and have so much time on your side. USE it! MILK it. Your 30-year-old self will thank you.

Keep it up! and best of luck to you :)

Dan Sheeks · Answer

Hey @Sam Bob!

I would like to recommend a book to you that is from Bigger Pockets. www.biggerpockets.com/teen

It is specifically for teens who are exactly where you are right now - the beginning. This book is your launching point.

I am the author and have been a high school business teacher for 20 years. Let me know if you have any questions. Always happy to talk to beginners who are young like you!

Dan

Nicholas Coulter · Answer

Sounds like you have a great plan! When I was 16 I worked at a pizza shop which was alright for income! I had a friend run a tutoring service in subjects she was great in! That turned a good profit and good tips! Let me know if you want any advice! I love helping young investors educate themselves.

Sam Bob · Answer

Thank you so much for the help!

Klavish Faraj · Answer

Congrats on your savings!

I would look into different grant opportunities where you live (google: "down payment assistance in *insert state*"). First time homeowners can receive up to 15k in down payment assistance in areas and look into USDA loans which state you can purchase with 0% down and no penalties.

Also highly recommend reading Brandon Turner's Book on Investing In Real Estate with No (and Low) Money as well as Richard Paul's The 5 Lessons a Millionaire Taught Me.

Saving and Waiting to Buy a House at 16?

Most Popular Reply