Young, but Ambitious

[Dan Losh]

Im wondering how the REI world looks upon younger adults when it comes to starting out. For example, im an 18 year old, but very knowledgable. I have a feeling that if I do begin this career as early as I am, then of course I will be successful at a young age, but I fear that my age will make people unserious towards me, esp hard money lenders, sellers, etc. Any opinions?

[David Oldenburg]

Originally posted by @Dan Losh:

David Oldenburg feels good to know someone as young as me had started at this age. How did your first year of investing look about? What were your main problems/worries? And how did you manage to buy your first house at 19 (hard lenders, savings, down payment?) and lastly what did you end up doing with your first home

I wasn't a real serious investor at the age of 19. I mean I didn't have a lot of money, so my main focus was paying bills and working a regular job. When I bought my first home at 19, I bought with an FHA loan, and my father co-signed. I got a 10% rate and had to pay a point to get a rate that good :-). I sold the house for a 50% profit about 2 years later. I got my RE license and began learning the industry, working as a lender and Realtor. This helped a lot, and also allowed me to make good money over the years.

Let me tell you the real secret to becoming a great real estate investor.  Simply spend less than you make, and put everything in the bank.  The main reason I have money today is not because I made a lot of money. I know lots of people who made a lot of money, and then somehow proceeded to lose it for one reason or another.  I also know a lot of people who never made much money, yet they have money in the bank, they own their home free and clear and they have the ability to act when opportunity comes up. If you have no money, you will always be relying on others to loan you money, dealing with their terms, and allowing them to make decisions for you.

Another thing is to do a lot of research on each deal, and be picky. It's better to only do a few deals per year, but they are really good deals. I say "no" all the time, even when people are really pressuring me to do a deal, and telling me how much money is in it.  Good luck!