What would you do if you were 16 again, getting started in REI?

Question

Hey everyone, I’m 16, don’t have much money, and cant get qualified for a loan. However, I still have lots to learn about RE, and I was wondering if any of you had anything you wish you discovered at 16, whether it be a certain book, real estate strategy, investor group, or just good advice? Thanks!

Karl B. · Answer

I would tell my 16 year old self, stop wasting time talking to chicks on AOL messenger. Learn real estate and buy an income property with your summer job savings. By the time it's 2020 and you're old you'll have lots of properties and if you're still single you can use your cell phone to meet women on Bumble.

And my 16 year old self would be like What's Bumble?

And I would explain it to him and he would think that technology is pretty cool.

Most investors would tell a teenager to read real estate books, to work and save money and to get started as soon as possible. The earlier one gets involved with real estate, the better, for that's when the learning really begins.

Young people shouldn't let their age be a brick wall to getting started in real estate - they should consider it an opportunity for an early start.

Nick Pierce · Answer

@Dan Sheeks

I just finished reading your article, great stuff! I talked to a banker with my mom a couple months ago on what I could do at 16 to build credit, and they made it seem doubtful that much could be done. Your article gives me lots of hope though, as it shows there are ways I can start making progress.

Dan Sheeks · Answer

Hey @Nick Pierce! Congrats to you for your ambition! I am willing to help you out with some advice or even chat on the phone if you wish. But I recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. Best of luck and hope to chat soon!https://www.biggerpockets.com/...

Nick Pierce · Answer

@Karl B. Awesome advice, thanks a ton!

David Martin · Answer

@Nick Pierce Ask a parent to set up and UTMA account for you. You can do a UGMA, but UTMA will give you more flexibility later on, and additionally ask to set up a Roth IRA account for you. Once you get a job, and every chance you get for a small windfall (birthday/christmas/sales bonus at work), put away some in each of those, and get yourself in to some starting basics... Shoot for a broad index fund or something that pays a decent dividend. Let that grow for a few years in the background as you start your path to learning.

As far as building credit, just have mom add you as a authorized user for her card, which would issue a card in your name, and let her just shred it or something if she's concerned about usage... what will really matter is you get some credit history that matches her use of the card... caveat here is only if she's good at paying things off... if she has bad credit habits, you'll just inherit that... but yeah, then once you're at 18, you'll have 2 years of credit history that hopefully is good, and you can leverage that towards your first loan with much more favorable terms than your average 18 year old.

Recommended reads...Set for Life by Scott TrenchDrink from the fountain of information that is Investopedia.comAnd of course... keep up here on BP.

Christopher G. · Answer

Educate yourself as much as possible. Listen to podcasts, watch webinars, read books, join Facebook groups. Bigger Pockets Real Estate Rookie is a great new podcast to listen to. Read RICH DAD POOR DAD. Be conscious of what you spend your money on. You're already way ahead of the game, Great Job! But also, don't forget to be a kid. It's great you're getting ahead of the game, but you can't get these years back. Make sure you enjoy yourself. Good Luck to you!!

Corey Hawkinson · Answer

@Nick Pierce Welcome to BP. I grew up close to Wayzata in the Orono school district. (Maple Plain) My advice would be to research different real estate investment strategies. My personal recommendation would be to house hack. If you are able to accomplish this on a duplex, triplex, or 4-plex that is even better.

With that said, many investors have built up wealth through the BRRRR method, flipping, and other methods. Millions of people have tried to become wholesalers as well and 2 have been successful. (That’s a joke wholesalers, don’t hate me, though it is partly true)

Real estate investing can start slow but builds over time. Getting a good start can really be life changing.

When meetings occur again you should come to a few. Come on your own or with family. Many events are free.

Patrick Snyder · Answer

I wish i had known how money flows, and how it's easier to make it than it is to not spend it

What would you do if you were 16 again, getting started in REI?

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