I need guidance .

[Joseph Willis]

I’m 19 years old. I own a landscape construction company starting at age 13. I finally grew some balls and bought my first rental property cash back in April of 2023, completely rehabbed and plan on renting it out. I bought my second property in the same building cash for a steal IMO at $28,500. However, I am critically low on money. I have $20k in stocks and only about $30-40k max left to my name (including my stocks in that figure). 

My question is, I want to have a portfolio of about 50 properties by age 30. With a net cash flow of about $30,000/month (which may be unrealistic.. I’m a newbie) and $100k/month net passive income by age 40. I have two properties with no mortgage that will bring about $21,000 in net income annually after expenses. How do I utilize my current position financially and with my assets to grow my portfolio to my goal of $30,000 in net passive income? Am I investing incorrectly by paying cash? I need guidance!!!

Between my personal and business expenses, I have about $7k/month in overhead. I was able to reduce that by airbnbing my DT apartment and renting out one of my cars on Turo. So, it’s about $4800/month 

[Joseph Willis]

Quote from @Karl B.:

First off, congratulations for working hard from the age of 13 (I worked 40 hours a week during the summer starting at the age of 12 and so I give you lots of respect) and now beginning your real estate journey while still being a teenager. I wish I had started that early. 

Due to high interest rates there are still ways to buy with zero to little cash including seller financing. 

You could also use the money you make to grow your landscaping/construction company (hire workers or buy equipment that can make you more money) or simply branch out (such as getting construction/landscaping jobs and subcontracting the work out to good subcontractors so you can make a profit). 

Real estate investing is like a snowball and time works in your favor. As you make more money from rentals and your business you'll continue to stack cash and network for deals. Also, landscaping is a great way to 'drive for dollars' and locate value-add properties that can be had for a deal. 

You're ahead of most people your age; keep working hard and stacking cash. There are always hurdles and growing pains when you start out but as mentioned, real estate growth is like a snowball going down a hill. I'm confident you'll own a whole lot of properties. 

Hi Karl, thank you for the kind words. Should I remain purchasing cash, or should I get a HELOC and purchase a building? I, eventually want to step away from the landscape business, unless I find a way to fully autonomize it.