What can young new investors offer?

Question

Hello BP!  I have been more active on the forums recently and I have noticed a common thread present and that is people like myself or in similar situations.  I have asked this question and get the same response every time.  How can young investors get started?

The most common response is to find a mentor and offer them something that they don't have.  The three major factors are money, time, and skill/drive, and you always hear people say bring at least two of those factors to the table.  However, how does someone that is young bring any of those skills to the table?  In my position, I have limited cash, I have about $15k saved and on average am able to save roughly $1k a month.  The second is time.  I just graduated and now work a full time job so I only have a limited time after work and on weekends.  Finally is the skill/drive, which most people have if your serious about it.

How does someone in this position start investing?  Many of the local people I have spoken with are glad to answer questions but aren't really open to help any more than that.  I have offered to help on projects since I have some skills in trades, but people don't want someone that can only show up for a few hours a day.  Most people people are doing small flips or small multifamily investing, and are doing deals with their own capital or a conventional mortgage (Not using private money).  I have got a few response from people saying once I get some experience that they would consider maybe partnering on a larger deal (Larger for them).  But how does someone get to that point.

People that are in college, just graduate, or have been working for a year or so are all in the same position.  So how can we get started?

Courtney M. · Answer

Hi Jared, I'm in a similar situation and I've found people on this forum to be super helpful.

My opinion is when you are so new and inexperienced, it will be very difficult to find a mentor. After all, how do these people know that you're even going to still be interested in the business for a year? In my case, I'm not looking for a mentor at all. I don't really have anything to offer anyone at this point. What I'm doing instead is learning as much as I can through books and podcasts, and starting to evaluate deals on my own. Once you start to engage with your selected market, you'll start to pull in professionals like realtors and property managers. And even if you don't end up doing that specific deal, you'll learn a lot in the process.

I've also found almost everyone I reached out to in the markets I'm interested in is willing to meet up for lunch or coffee, or get on the phone. Most people love sharing their knowledge.

So to answer your question on getting started - I would pick a market and start thinking about what kind of property you can buy today, with your capital. Research those properties and the market, start evaluating properties, look for local market experts, and pull in those people when you look to make offers. You may find a mentorship grows naturally out of those efforts.

Karen Rittenhouse · Answer

@Jared Baker

You're starting where most investors start, no matter their age. Most have a w2 job and no knowledge, very few have much money. No one has enough money for this business - investing is expensive.

The best way to start is to learn - you must have knowledge to succeed in any industry. Network, network, network. Go to all your local real estate investment groups as often as you can. You can find your local meetings on MeetUp.com and NationalREIA.com. Also seek out landlord association meetings as these people already own investment real estate.

BiggerPockets is fabulous but real estate is very local. You must learn your local laws and regulations, know your local attorneys or title companies, contractors, subs, investors, lenders, etc. These are the people you meet and learn about at local meetings. And local meetings is where you will find out what investors in your area are up to - what they're buying, what they need, what they're paying, how they're finding leads, how they sell.

Set goals and make them happen. Plenty of people here and locally want to do this business and have been waiting years for it to happen to them. Don't be one of those people! Set goals and make it happen. If you want to buy 1, 2, or 3 houses this year, make a plan. Talk to sellers on craigslist. Call for-rent signs to speak with landlords. Call we-buy-houses signs and talk with investors. What are people looking for, needing, expecting? Learn this new language and how to communicate as an investor.

To be a successful real estate investor takes time, money, and effort. Nothing worth doing is fast or easy. Commit to learning every day and, in  a year, you'll be the one answering questions here on the forum.

Good luck to you and keep us posted with your successes.

Don Spafford · Answer

@Jared Baker I agree with what @Courtney M. said, you don't necessarily need a "mentor". BP is a mentor. From where I started about a year and a half ago, I knew very little. I spent my time during the day while I worked, listening to the podcasts. I watched/listened to all of them, a few multiple times. I also read lots of books, pretty much all the BP published books and some other highly suggested ones. Watched all the webinars. Then above all I started analyzing hundreds of properties to become familiar with the calculators and get to know a good deal when you see one. Do those things and also use the forums to ask more specific questions and you'll get lots of answers. Therefore BP is your mentor and is available on your time. Then search out if there is a local REIA meetup to go and listen and network. I got to the point where I knew a lot and have been the one answering questions on the forums. Along the way I found and purchased a 4 plex that cash flows very well for me. I used some creative financing methods so it only cost $6k out of pocket. I attend REIA meetings when I can and through those I met a private lender that I can use. So the knowledge and experience will come.

Most of us feel like we need to know it all right now. But you slowly learn and soak it in and keep searching for deals. The deals won't come to you but if you are actively trying to learn more and search, you will find them. You may find some local people that are doing deals and you can ask to go and just see something they are working on. I've met up with a few that have been very helpful and a few others that were just looking for someone to find deals for them. Whatever you are willing to do, there is a way to get involved. Just be patient. I started out wanting to do flips but quickly discovered that I like rentals better. You need to know what exactly you want to do to know what to ask and where to find the help you need.

Thomas S. · Answer

Money is the number one asset and the easiest to acquire. You have the time and income such that over the next couple of years you can save the  money to finance your first flip on your own. After that you will have two assets assuming your flip was successful.

At your age you have both the time and energy. A full time job will use less that 1/3 of your time allowing for a second part time job if available. You have everything you need to acquire the assets you need. If you are not sleeping you should be working and earning more money. Prioritise your financial goals for the next 5 years.

Courtney M. · Answer

I'm not as young as you likely think I am, but thanks for the warning...

Eric Adobo · Answer

The truth is new investors have little to offer.

You can learn.

Over time you will network.

A lot of what you get here is feel good rock n roll nonsense.

The 💰 guys @Rei meetings want to meet other guys with 💰. They not looking for kids to mentor.

There is one exception. They would bend over backwards to mentor a 👧 .

Eric Adobo · Answer

Young 👧 asking to meet up with strangers not a good 💡.

Rickey Rodriguez · Answer

Great advice from everyone. I wish I had someone as eager and energetic as you. Continue to devour as much information as you can about the business and suddenly you'll become an overnight success without even realizing it. What I mean is there is a crossover point when knowledge, hustle, and perseverance intersect at the ideal ratio. By that time, you will have created enough relationships to begin making and closing offers. Don't get to the point where you feel desperate and hopeless because that's about the time you'll strike gold as in Napoleon Hill's Three Feet from Gold story about perseverance.

Keep up the interaction and keep asking questions.

~ Rickey Rod

What can young new investors offer?

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