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Updated almost 4 years ago, 01/18/2021
Where would you start if you were 19?
Hello,
I am a 19 y/o from Texas currently in my first year of college working towards a finance degree... Im very interested in real estate and the endless possibilities included in the business. I have been heavily researching the business for roughly 2-3 months now. I want to ask investors what you would do if you were in my shoes.
What would you do if you were 19 and heavily interested in real estate? Any responses help, just looking for some words from the wise.
@Logan Taylor
I am also in my first year of college and recently learned about real estate investing. I am buying my first househack this year to start building my investing portfolio. With limited funds and time because of college it can be a slow start on your own.
That's why I'd say start working towards getting your first property (easiest way is to househack) and along the way keep educating yourself and networking with others. The more people you know the more options you will have. You can get involved in deals without your own money and learn a ton along the way.
And just remember it's a long term game so don't stress just start building momentum!
@Logan Taylor @Brandon Rush recommendation is very good. If you want to start now, you might want try buying your first SFR with a bunch of investors (with investors that have the money for the down payment, closing cost, reserves, and financial and credit strength to help you qualify). Structure the deal so the property is an LLC and allows you to have a piece of the ownership since you are putting the deal together and maybe managing the property. Make sure you have a Real Estate Attorney that will help you with the structure. It is like putting a syndicated deal together on a much smaller scale aka househack like @Devan Wilson. There is a lot of information on BiggerPockets about syndication/househack.
Lastly, a syndication/househack deal is the ability to sell yourself and your ideas. Work on fine-tuning your sales ability. For inspiration, I recommend watching "Undercover Billionaire" on Spectrum/Time Werner On Demand. The show is about how Real Estate Developer creates a million dollars in 90 days with only $100 dollars in his pocket, a truck and a phone with no contacts.
Good luck Logan.
@Dan Sheeks Hi I saw your comment and was very interested in what you are offering. I just turned 18 and am eager to learn as much as I can and would appreciate anyone in the field who can give me some tips.
@Logan Taylor
Wholesaling
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
@Logan Taylor I am in a similar spot as you. I am currently a sophomore in college and just taking the opportunity to learn as much as I can through podcasts, books, forums, etc. Recently, I have been thinking about reaching out to property management companies in my area to see if I could be of any assistance part-time. This would give me valuable experience when it comes to managing future rentals, and it would help them in areas they need it. After I graduate, I plan to buy a small multi-family to house hack and then, from there, funnel my W2 income into more rentals. So, for now, I'm saving up, building my credit score, and looking for ways to get more experience.
There is a lot to learn from everyone's posts on this thread, and there are a lot of great ideas for getting more experience. It's great to hear more young guys are out there doing similar things! Best of luck to you!
@Logan Taylor I would add another piece of advice that took me until almost the present day to learn, 6 months ago to be exact. However you choose to enter the field don't look at yourself as being THAT role only. For example, if you decide to flip houses don't look at only houses that you see as flip candidates. Rather look at ALL houses and deals and put on different lenses to see how it looks using different ideas.
You may look at one house and see there isn't really enough margin for a flip or wholesale, but it is a newer house in a fast growing urban area and will be way more valuable in 5 years so you buy it as a rental today. This wasn't your primary business model, but you saw and an opportunity and pounced on it. Personally I wasn't interested in class C/D or or Section 8 properties. I would never even look at them. Then an investor once told me "why don't you just buy it if it is a good deal and flip it to another investor that likes these properties, even if you only make $1,000 that is better than nothing at all for simply writing up an agreement!" I was stunned, such simple logic and I totally missed it. I was thinking "I" don't want to own it rather than HOW can I make money off it.
It occurred to me later that one way of thinking, i.e. does this fit my present business model is a rigid way of thinking. Thinking like this investor did is how true entrepreneurs think. I want to be the later, not the former. Learn MANY techniques and strategies, i.e. flipping, wholesaling, lease/options, buy & hold, notes, subject two deals, etc. and figure out when you look at ANY house what technique you could I use on this house to make money. Don't limit yourself by saying I don't want that deal.
This investor explained to me that having a ton of ways to put deals together and a large network of other investors and friends allowed you make money a ton of different ways as opposed to saying "I can't flip this house so I will pass" for example.
A much less wordy way of saying all this... don't be a one trick pony :)
@Michael Temple that’s a great tip, I appreciate it and will be adding this post to my notes!
@Logan Taylor I learned this thinking from some of the oldest investors in the business, some who are not with us any longer, including Jack Miller, Jimmy Napier, Larry Harbolt, Lonnie Scruggs, and Pete Fortunato as well as some others I have met over the years. When I first got into real estate, over 20 years ago, most investors referred to the field as "creative real estate" meaning finding a lot of creative ways to put deals together, using leverage, creative terms, seller financing, etc.
I feel some of that is going away as these older investors leave us. It feels like the business model of today is becoming much more traditional, meaning save up a down payment, find a house, get a bank mortgage, and rent it out. An alternative is using hard money to fix it up and then use a traditional mortgage to refinance out. I am not saying these tools aren't good or that it is wrong to use them. I am saying that there are a ton of additional tools in the box and ways of thinking to get there and I would encourage you to go seek them out as part of your education.
@Logan Taylor and @Joel Unick, @Michael Clevenger is right. Another idea to consider could be seller carry financing. You will have to do your due diligence but it could be a great way to start. If you finance via seller carry make sure you utilize a note servicing company to make sure all payments are applied towards the mortgage on the property, taxes and insurance. The note servicing company will also be able to provide a payment history and a payoff when it is time to refinance the property.
Keep on pushing towards buying a property, learning the business, and getting mentored by someone who is in the asset class you are looking to get into.
To be absolutely successful in life, we all have to put in those 10,000 hours.
It is a never-ending pursuit of excellence and self-education!
@Ola Dantis forgive me if I’m wrong, but I don’t remember us having a call? Maybe you are thinking of someone else
Hey Logan,
You are definitely have the right idea. I was in your shoes a couple years backj but didn't start getting serious about investing until a year and a half ago.
The biggest hurdle when trying to get into RE at a young age is that there will be a lot of people who don't take you seriously (lenders, sellers and other investors). It takes a while to build that confidence and knowledge to be able to prove to these people that you are capable.
I have been on BP for about 3 yrs now and I have found a ton of value from all of the resources they provide. So continue to immerse yourself into the community and try to find some local investors that you can talk to and see if you can help them out in any way.
Feel free to send me a message and we can chat some more. I always enjoy networking with other like minded individuals.
-BA
