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Updated about 5 years ago, 10/14/2019
I want to get started! ... but I'm 15.
I already have a job and I am saving as much money as I can from it. I listen to both BiggerPocket Podcasts during one of my jobs (im an electrician doing plugs and switches) I am also trying to have a rental game business but it has yet to pick up.
I want to put 20% down on a residential house (possibly a duplex) as an investment as soon as I get out of High School. I will then be leaving for 2 years for a mission for my church. The house will hopefully pay for itself and my mission while its being rented out.
Is this a good plan or do I need to rethink a few things? Any tips?
Wow! I'm impressed that a 15 year old is even having this thought process. Shouldn't you be playing Fortnite 5 hours a day? (Kidding.) You're on the right path. Keep saving and keep learning. If I were you, I would look for a local investor to shadow and learn from. Offer to help out part time and see how they work your market. He or she may even be able to get you in the game sooner than you think.
@JD Randall “Wow!” Is an understatement. I can only wish I would have been thinking what you are at that age. I can not give you advise because I am just starting to learn this myself. I can say that I wish you the best of luck and I have a feeling that we will be hearing a lot about JD Randall and all that he has accomplished in the future. Good Luck young man!!!
@JD Randall i didn’t have my head on straight until i was about 26 or 27, so good for you. i would be binging every educational avenue you can find (books, podcasts etc).
as someone who manages everything from 1500 miles away, you will need systems in place for your rental when you leave for your mission trip. it will not be as easy as renting a place out and collecting checks. you will have issues and you will need to be able to have someone remedy them as quickly as possible. make sure you have multiple people that you can count on. i have built a team of contractors, handymen, people to show vacant units etc.
let me know how else i can help you.
- Ryan Deasy
- [email protected]
@JD Randall is investing in real estate something that you came up with on your own or do you have family or family friends who invest in real estate? The reason I ask is because you can get started now if you have a family member (parent, grandparent, aunt or uncle) who understand real estate investing. I have created LLCs with each of my oldest kids and they each have an investment property in their LLC with me. I've done the bulk of the work with each property so far by they are learning and they are ages 10, 12, and 14.
This could be easier than you think depending on the market you want to invest in. I would suggest a market where you can find homes for under 150k.
My dad became a commercial real estate broker a year or so ago but he is still relatively new to the RE world. He is the one who introduced me to BP and the podcasts. I've already passed my ideas past him and what I posted is what we came up with together. He would be the person who would look after my rental since he has already owned residential rentals in the past and well... hes my dad. I'll definitely try to figure out a more detailed plan and system when I actually own the property but I don't want to get ahead of myself.
How do I get started with such limited time from schooling and next to no money? Is an LLC with my dad the answer?
What can I actively contribute if I make an LLC with my dad and start investing now? I don't have any experience and the only knowledge I have right now is what I've heard from podcasts, my dad or (starting soon) read in books.
Is owning rentals the way to go for me right now? I reasoned that flipping houses has too much risk along with a lot more time and money invested which I currently don't have.
Thanks for the tips you have given me so far!
Thanks for the tips! I go to a school that doesn't have Fridays so I work then and occasional Saturdays when my schedule allows. I talked to my dad and it sounds like right now is not a good time to buy a property so I am going to put that on the shelf while I earn more money for it, continue researching and let the market change.
@JD Randall you can contribute by looking for a property, running the numbers, and putting in sweat equity by working on the property with your dad in the evenings and on the weekends. All of the skills that you learn will be very useful to you as you grow up but could also be useful as you serve a full time mission when you give weekly service.
You could also ask your parents if you could home school for a year in order to have more time to work on your property. We home school our kids through middle school (usually because it’s not the best environment during that time in their lives and we can help our kids learn a lot more at home during that time including helping them develop their talents).