Funding? Yes. Experience? None. Drive? Plenty.

[Alexander Rogers]

Hello everyone!

I am a 20 year old sophomore in college who founded an investment club at my university. Through this club I have made connections with a professor who generously offered up to $50,000 in seed money to fund my first real estate deal. I have zero experience in real estate, other than what I watch/listen/read and aspire to do. This professor is willing to fund future deals if this one is successful, its an opportunity I cannot let pass by.

Although my professor & university are located in Michigan, we are looking to invest in Lancaster PA. I have lived in this area for my entire life (until attending university last year), and know it like the back of my hand. Driving around as a teenager I found the rural country landscape was slowly changing, and the city/suburbs were growing. Land in Lancaster county is king. As of now I have a 12 mile radius set where I am looking for deals. I believe and have seen proof of this area changing gradually overtime from a very poor area to the choice location for million dollar properties. 

Since I have a good idea of the area to invest in, I was wondering what the next steps I should take are? Here are some questions I have...

1) I hear a lot about the benefits of forming an LLC, is this truly something I should be creating before I do my first deal?

2) I plan on finding extra financing for the deal. I will be using the $50,000 as a down payment to leverage the deal. What is the best way for a 20 year old college student to secure financing? (with little credit, not bad, just not much history)

3) As of now I am focusing on vacant lots, with the idea of dividing the land up so multiple homes can be built. Since I don't have any experience, I find myself intimidated by the construction process. As a beginner do you think a new construction will put me over my head? If so what kind of "beginner" deals should I be looking for? (In your personal opinion)

 4) Lastly, if a deal does happen in the future, what is an appropriate percentage of profits to ask for? (I would be doing all day to day work and managing the properties, my professor's role will solely be the investor. (Sweat Equity if you will)

Thank you!