What do think of this Idea?

[Tyler Bond]

Hey guys, glad i found Bigger Pockets. Looks like a lot of great stuff on here. So i'm 19 and I have a burning desire to succeed in this business. I know i can do it. I really want it. Anyway I tend to want to learn everything before I start doing something so I don't become a deer in the headlights when something arises. However, from research I find its just best to get a good base and get out there and do it! I just bought a house for myself. My plan with that is to paint all of the walls and fix the garage door which is all that needs to be done and occupy it for 6 mo- 1 year and then rent it out for a year and move back with ma and pa. Don't tell anyone. I am doing that because I can and to have someone in there will pay my payment while I focus on building capital and starting out. My Idea is to get educated in wholesaling for starters, I think this will get me into the know and into relations with essential people. I will start building a buyers list and finding the best ways to evaluate deals. (which i'm in the process of learning still so any advice there would be helpful) I think this will set me up to start learning what good deals are and when I have the capital I can buy a good opportunity for myself for a long term rental. I have a couple private lenders in mind to help me if I would like to rehab a deal myself. But i need to establish a track record first. Basically I want to wholesale first, lease option on mobile homes and then move up to rehabbing and building capital and then slowly buying rental properties. Is this a good idea? I still need to detail it out and decide excatly where i want to be in 1,2,3,5 years. When i buy rental should I just save up enough to but down 20-30% and then let the tenants take care of the mortgage (in a perfect world) and then save up another 20-30% from rehabbing and wholesaling and buy another income property. What do you guys think? I'm open for anything.
Thanks for your time,
Tyler

[Ben Leybovich]

Kyle B. I can tell you are new – GOOD! You don’t know what the limits are. Don’t ever let anybody tell you that you can’t do something. It is never - this can't be done; It is always - HOW can this be done!

You are right about the tenants buying your equity through their payments. I love giving students the following assignement:

Get into your car and drive though the downtown in your city. What are the names on the 5 biggest buildings? I bet it’s banks and insurance companies…What’s the magic – they make money in the spread. They borrow low and lend (or invest in some other way) at much higher rate. Spread…

Holding property is like that. You borrow money to buy the thing and you rent it out for much more than the costs. If you do it the right way for long enough, you become a rich man. What is the right way? As close to 100% financing as possible my friend!