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Updated over 4 years ago on . Most recent reply

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Adam Hinman
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Start investing at a yong age

Adam Hinman
Posted

Hello i am 18 almost 19 I am super into real estate and would like to become an investor but I have no clue where to start I have around 20k saved up I also only make 15-20k a year another thing is that houses around me go for 150-250k i would like to know where to start or what to do first!

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Blaine Alger
  • Investor
  • Waco TX / Conroe, TX
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376
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Blaine Alger
  • Investor
  • Waco TX / Conroe, TX
Replied

I am not exactly sure what your situation looks like but I would first start off with education.  Having the knowledge and the ability to understand the industry is crucial to success. Luck for you, you have found a great resource with Bigger Pockets and there is more than enough info on here for you to lean all you need to know (Listen to all of the podcast, read the books, participate/ask questions in the forums DAILY).

Next I would suggest you go to school to get a degree or learn some type of trade (plumber, electrician, HVAC, construction). Doesn't matter what you choose to do but you need the ability to go out and get a w-2 that will pay you 40-60k. This is important because you need to be able to have access to financing which will make your investing journey 10 times easier. 

In your current position (making 15k-20k a year and only being 19), i find it very unlikely that you will be able to get pre-approved for a loan that is more than 105k. I had a friend in your same position and he was unable to get approved for anything over 95k. But I am not the be-all, end-all, so go to talk to every bank in your market and see if you can convince someone to give you a loan. 

After you figure out how you stand in the eyes of the bank, the next step is to network with all of the investors in your market. Tell them who you are, what you are trying to do and ask them if there is anything that you can help them with in their business. Some guys will tell you to kick rocks and won't give 2 s**** about you and others will want to give back and respect the hunger you have to succeed. If you put in the effort to build those relationships now, it will no doubt pay off ten-fold down the line.

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