Good amount of money to start investing

Starting Out
6yFollow

Good amount of money to start investing

Keigen Hogan
Member since 2020 · 9 posts · 1 vote

Newbie: I have a couple thousand saved up, should I get a HML OR PML to help me get started? Or should I continue to work and save then get started? Very eager to start investing!

Would like to know what others opinions are a good money starting point?

0Reply
21 views

Most Popular Reply

Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
6y

@Keigen Hogan we need more info to give more suitable advice. What market are you in? Do you know any real estate investors personally? Do you have a full time job? Are you 20, 30, or 40 years old? Do you have a family that depends upon You for survival?

With only a few thousand saved up, the answer for most people is NO. Learn to manage money first or you could find yourself in a worse situation if you learn to make money in real estate without having strong financial basics down. Mo money, mo problems. 

480-206-1209Podcast Guest on Show #287
2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Arlan Potter
    Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
    6y
    Depends on your market. paying cash for your first deal would be a great way to start.
    0Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    6y

    @Keigen Hogan we need more info to give more suitable advice. What market are you in? Do you know any real estate investors personally? Do you have a full time job? Are you 20, 30, or 40 years old? Do you have a family that depends upon You for survival?

    With only a few thousand saved up, the answer for most people is NO. Learn to manage money first or you could find yourself in a worse situation if you learn to make money in real estate without having strong financial basics down. Mo money, mo problems. 

    480-206-1209Podcast Guest on Show #287
    2Reply
  • Keigen Hogan
    OP
    Member since 2020 · 9 posts · 1 vote
    6y

    @Shiloh Lundahl

    I live in St Joseph, MO. The market is decent, I do also know a couple investors personally, I am 20 years old so I do not have a family yet, but maybe in the future, and I do have a full time job.

    Thank you for reaching out and thanks for the advice!

    0Reply
  • Odie Ayaga
    Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    If it's literally a couple thousand it won't take you far. Build your network and options may present themselves. 

    1Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    6y

    @Keigen Hogan If you are 20 years old and you have a full time job, then that's a beginning.  Hopefully your job is flexible.  If it isn't, get a different job; preferably high pay and flexible. It doesn't matter if you like the job or not.  Plan on being there for 2 years and working hard.

    If you really, really want to learn start to invest in real estate then I would encourage you to live as cheaply as possible for the next 2 years.  Deny yourself of any type of unnecessary expense and save everything you can.  Then, start taking out investors to lunch in your area every week to network and find out what they are investing in and how they are investing.  

    As you take out each investor and network with them, ask them, "which part of your business isn't working as well as you would like." With the investor you feel you connect with the most, figure out how to solve that investors problem in order to learn and get an opportunity to associate with that investor and other investors. Also, you may be able to solve their problem by working for them part time.  If you are really hungry, you will be willing to do this for free.

    Continue to work and learn as much as possible.  Continue to live as cheaply as possible and save your money.  As you learn more about how to buy under market properties and build a network through your lunches and associations, the person you work for can help you get a good deal and learn how to stabilize the investment.  Then rent out the house by the rooms.  This should help give you the highest and best use of the property.  At this point, with so low of expenses and with work history and a W2 income, and with no debt, you should be able to get a mortgage on the property.  This is a way to get started if you are willing to make a dedicated sacrifice for the next 2 years.

    If you follow this, you will likely put yourself on a path to owning 10 - 20 units over the next 5-10 years and be a millionaire before the age of 30 (if that is something that you would like to do). Or you could do it some other way.

    480-206-1209Podcast Guest on Show #287
    0Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    6y

    @Keigen Hogan, @Shiloh Lundahl has some very wise words.  Life tip to freedom, with or without real estate, spend a lot less than you earn, and invest, invest, invest.  The sooner and faster you do this, the sooner and faster you will not have to rely on a job to live, although be cognizant that investments, again real estate or other, are a job in and of themselves.

    But adding to what has been stated, try to meet people who do what you want to be doing.  If you want to be a flipper, meet and talk to as many flippers as you can.  Multifamily investor, seek out those people. Don't be presumptuous though.  Don't assume they will have the time to meet with you.  (My wife got a message from someone that just assumed she would meet with her, and in the first message asked for days and time to get coffee.  She was very turned off by the tone, understandably).  Make sure you do your research on the people you are wanting to meet, have a few objectives for the meeting, and try not to tie up too much of their time.

    At this point you are getting an education.  What Shiloh mentioned about asking what their sticking point or headaches are is a great way to add value, if you actually can.  But, most of these people will be impressed with your initiative and hustle.  That work ethic and willingness to learn is hugely valuable, and that is where you can really add a lot of value to a lot of people's lives right now.

    0Reply
  • Keigen Hogan
    OP
    Member since 2020 · 9 posts · 1 vote
    6y

    @Evan Polaski

    Thank you so much for the advice! I appreciate it, I will definitely follow your advice the best that I can! Thank you for your time.

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    Save and reduce your expenses. Use this time to educate yourself more about deals, types of investments, etc rather than jumping into a deal. 

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    0Reply
  • Franky Aikens
    Wholesaler · Philadelphia, PA · Member since 2016 · 124 posts · 81 votes
    6y

    @Keigen Hogan Your market, product preference, etc does matter but your specific question is really about how much risk you should take since you're just starting out. The fact that you asked if you should save more money sounds like you are weighing risk against your eagerness to get started.

    Honestly ask yourself a question - what is your level of risk tolerance? The answer should tell you what direction you should go in.

    Good luck!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free