NEW MEMBER, SEEKING KNOWLEDGE

NEW MEMBER, SEEKING KNOWLEDGE

New to Real Estate · VA · Member since 2019 · 11 posts · 13 votes

Hello Biggerpockets!  I have been researching and exploring the real estate market for the lat 2-3 weeks and I am really looking forward to getting started, but I do not exactly have a plan right now.  I am only a senior in high school and plan on going to college because I want to be a physical therapist, however, after all of my school I will have around $60,000 in loans to pay off.  I do not want money to be an issue in my life and I am pretty sure I can use real estate as a means to achieve financial freedom I just need some help getting started.

Where I live now (Fredericksburg, VA) all the houses are way to expensive to invest in, but in the surrounding areas there are some rentals that sell for around 100K that have good potential for cash flow, which is what I want. I want to build a portfolio of rental properties. Preferably small multi- families, but I have no idea what will happen in the future of my real estate career.

I hope to start cash flowing as soon as possible, but I do not know how I will get someone to pay for the down payment on a house and and sign for it (as I will not qualify for a loan because I will be a broke and creating debt in college) even if I show them a great deal.  If someone was in my situation or has any advice on how to start a portfolio, preferably with little money, I would would be greatly appreciate it!  Also, should I wait til after college as there may be a drop in the real estate market approaching us?

Also, I would define a good deal that gives me at least $200 a month in cash flow and 15% ROI, but I was wondering if I should be more aggressive with my standards in the begging or if those are sufficient numbers?

Thank you,

Andrew

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  • Robb AlmyPro Member
    Investor · Fredericksburg, VA · Member since 2014 · 125 posts · 65 votes
    7y

    Hi Andrew and welcome to Bigger Pockets! Congrats on looking into Real Estate investment as a way to build wealth. Most real estate investors will tell you that one of their regrets is not starting earlier. You ARE starting early- so good for you. You ask some great questions. You are taking the right first steps to get connected to BP and to begin your RE education. Best wishes as you move forward. 

  • New to Real Estate · VA · Member since 2019 · 11 posts · 13 votes
    7y

    Thank you for the response and the wishes on my future RE carear.  I appreciate your time!

  • Wichita, KS · Member since 2018 · 29 posts · 9 votes
    7y

    Welcome to biggerpockets Andrew! You have chosen a great community to join, there is a wealth of quality information here and a positive atmosphere thanks to the hard work of the committed moderators. Best of luck!

  • Member since 2018 · 11 posts · 1 vote
    7y

    For sure, welcome to BP Andrew!

  • New to Real Estate · VA · Member since 2019 · 11 posts · 13 votes
    7y

    Thank you all for the welcome!

    I have been searching the forums and doing some more research and I have simply realized that markets near me are possible to work in but not ideal because I could get $1000/month rent on a $50,000 house in Detroit MI or I could pay $100,000 for a house in my local or surrounding areas and get the same rent.  

    Obvisouly this is generalizing a little bit but I still feel like inevesyiknh our of song area would be worth it.  

    I think I got everything ready to buy my first deal, except for a way to finance it.  

    If you were young and had limited money would you partner for your first deal or try to work a way to get private money on let’s say a $50,000 house?

    Thank you.

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    7y

    I have only come here seeking knowledge,

    Things they did not teach me of in college....

    Not sure why but the title took me back to that old song by the Police...

  • New to Real Estate · VA · Member since 2019 · 11 posts · 13 votes
    7y

    ..I can see the destiny you sold

    Turned into a shining band of gold...

    “Wrapped around your finger” is the song @Mark Sewell

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    7y

    @Andrew Wright yes that is the one!  Sorry I hijacked your thread briefly, thanks for understanding.

    So you are a HS senior right now?  Wow, there is some real irony here, that a HS kid is reminding old guys like me about songs from the 80s.

    Fun situation that you are in, and there is really no wrong answer. See if you can 'earn while you learn', maybe get in with some local REI types in your area there, and find out what they are doing. There might be some part-time role for a person with skills. Get a few dead presidents stashed away.

    Also if you are planning on racking up some school debt, learn about Coverdell tax free accounts.  That would be a place where you can stash away some funds that you can use to invest with, and then pay for school and related costs.  I am thinking of doing this for my kid, now a 9th grader.  Wish I'd done this for my oldest kid.

    I find that podcasts are a huge resource.  All those hours you spend driving down some freeway, to get to wherever?  Well that doesn't have to be dead time.  No more ESPN radio for me, no more classic rock (well almost none), now it is all about listening to Dave and Brandon on the BP podcast, and Don Costa and a handful of others.

    The market is going to turn at some point while you are in college and there will be some real opportunities to buy.  What can you do now to be in position to be ready when that happens?

  • Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    7y

    Another idea -- look into house hacking.  Get 3 bedroom place in your small college town, something that isn't super pretty, needs some work.  Fix it up, and rent out the other two bedrooms.  Reduce your cost of living this way while going to school.  You might figure out a way to live for a few hundred bucks a month, or even for free, if you really find a good one.  And then you when you graduate you have some rental property already building equity.

    You can refinance it later, after you have gotten your W2 job after college and have stable income to show the bank. 

    The question is how to finance that first one... the answer lies somewhere in your network, and/or it is here on these forums.

  • New to Real Estate · VA · Member since 2019 · 11 posts · 13 votes
    7y

    Oh your perfectly fine, I enjoy my 80’s music!

    But that was just what I needed to hear @Mark Sewell! Thank you.

    It’s funny that you mention house hacking because I have already talked to my parents about this.  Well actually they brought the idea up to me last year but I think they wanted to sell it after my college, but hopefully I can show them the befits of keeping it as a rental.

    I will definitely look into coverdell tax free accounts and work on getting some money so that I can invest when the market takes its upcoming turn down. 

     Such great ideas!  

    I really appreciate your feedback!  

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