how to get into RE in your 20’s

Question

i’m in my 20’s looking at getting into RE i’ve been doing my research and started to build my credit but i’m in a non disclosure state (MS) so my question is should I get my RE license and try to work for a brokerage? i’ve emailed local RE agents asking for job shadowing to no response. also my girlfriend doesn’t like the idea of a house hack and we don’t plan on staying in the area for many more years should i wait and build my credit or try to get my first property and build my portfolio any advice would be appreciated!

Daniel Haberkost · Answer

@Damon Griffith I bought my first property to house-hack at 21 (duplex). Just getting started was one of the best things I ever did, I learned so much from that experience. You say your girlfriend doesn't like the idea of house-hacking? Does she (and do you) understand how much of advantage that eliminating your housing expense (and beginning to build equity, own an appreciating asset, etc.) will give you in the long run? Especially starting in your 20s? Just food for thought.

Aside from that, have you been attending any local RE meetups? I would highly advise offering to help an experienced investor (or a realtor who is an investor) over an average local realtor. Becoming a realtor takes very little effort and you'd be amazed how many realtors are completely clueless about investing. If you can make friends with a local investor and find a specific way that you can help them in their business that would be a great way to spend your time and kick start your RE career.

-Dan

Andrew R. Lucas · Answer

House hack for starting young and with little money.  My first unit was a SFH with $0 money down.  had roomates pay the mortgage and I rented it the moment my job moved me out of town.  That turned to the 50 units we have now...

The 1 thing I wish I did different.... I wish I had used those 1st time home buyer credits to buy a duplex or triplex instead of the SFH.

Good Luck @Damon Griffith

Damon Griffith · Answer

@Pat Heidingsfelder

Thanks for the advice i actually got a reply form a agent today, and i’m in columbia at the moment i work for a framing company in hattiesburg that only builds houses for Chris More maybe you’ve heard of him

Jonathan Bombaci · Answer

Househacking in my opinion is the best way to get started in real estate early on. At the time of my first househack I sold it to my then GF as would you want to split the rent on an apartment like this and have to deal with the neighbors, or own a building with the same apartment, get to pick the neighbors, oh and get paid to live there? And we only need to plan to live there for 1 year then we can move out and use that monthly income to get a better place if we don't like it.  That being said if househacking is out of the picture maybe becoming a part-time agent would be a good way to get into the industry and learn the ropes. If you go the part-time agent route then I would recommend looking to join a strong team in your area. That way if you can't make it to a showing or inspection you can tap into the team and have someone cover you. You'll have to pay for the support with lower commission splits (50/50 or 40/60) but since you're doing it for experience, and I assume you'll be stashing most of the commissions for a downpayment, paying a little more for the support is well worth it.

Getting started in real estate early is great. It will set you up for a very strong financial future. Best of luck!

Michael Noto · Answer

@Damon Griffith Save money and learn sales. Those would be my two pieces of advice.

Pat Heidingsfelder · Answer

Hey Damon, it might be tough for a busy agent to take time out to show you the ropes. Can you offer anything in return? Skills you might have that would be useful? Try providing some sort of value to the agents. Agents are paid on 100% commission.

What part of MS are you in?

Addam Driver · Answer

Hi @Damon Griffith,

You don't need a RE license to invest.  I won't hurt to get one though.  You will learn a lot about real estate and even be able to save on commissions as you are the agent.  Most RE investors I know don't have a license.  We normally partner up with someone like a business partner, friend, significant other, etc. This way we all can participate and work angles we are good at.

If your goal is to have rental properties for income, I recommend saving as much as you can for as long as you can, then purchase when you find a deal that makes sense.  Utilize tools at your disposal like BP to help you along the way and don't get stuck in analysis paralysis.  Like anything in life, the best education you can ever have is doing that thing.   So do the thing! :)

Hope this helps!

-Addam