College Student Looking to Make First Investment

College Student Looking to Make First Investment

New to Real Estate · Colorado Springs, CO · Member since 2021 · 15 posts · 16 votes

Hello,

I currently attend one of the federal service academies. As a result, I spend limited time at home and have little time to travel to potential markets or to check out houses. I and some of my peers have looked at getting a property nearby the school, as there are constantly servicemembers rotating in and out of the academy who need somewhere to live. I've also looked at some properties in other college towns and am considering looking at some around a military post in another part of the country. Also as one might expect, our pay makes it hard to get a rehab loan, or really any sort of loan but cosigning with parents might solve that. I also have a good amount saved up for a modest down payment and might go in in a partnership with one of my peers.

I've listened to a few BP podcasts and have heard people buy into markets that were a ways away from their personal home, even across the country. But even in those cases, they recommended being able to travel to build relationships and getting to actually put "boots on the ground". Does anyone have any advice for anything that might help in this situation? Any tips for getting into a market I don't live in close proximity to and can't necessarily visit on a regular basis?

2Reply
24 views

Most Popular Reply

Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
5y

@Nick Kramer 

As long as you have your core 4 as David Greene calls it Realtor, Lender, PM, and contractor. If you have a team of core 4 it will make investing out-of-state possible. If you are investing out-of-state and you want to take a look around the city before you buy that's not a bad idea, but basing it on you have to be x amount of hrs away is pointless. The whole point of investing out-of-state is to get returns that you can't get where you live because prices are too high so go somewhere cheaper with better returns. As for the location, I would recommend the Midwest more specifically Columbus OH.

See this reply in the discussion

9 Replies

Jump to latestLatest
  • Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
    5y

    I would recommend you go grab David Greene book long distance real estate investing and Scott Trench book set for life to get started. They have great pointers in both books. I would start with your financial education and move on from their. In addition, I would recommend joining David Pere fb group From Military To Millionaire. It has lots of great gouge to help out. If you got any questions just PM me. I own two properties in Florida and I work out of Seattle/Hawaii. Good luck and welcome to the RE investing world. 

  • New to Real Estate · Colorado Springs, CO · Member since 2021 · 15 posts · 16 votes
    5y

    @Dimitri Paspalaris Sir, really appreciate the advice! I'll definitely go grab a copy of those, and will let you know if any questions come up!

  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    5y

    @Nick Kramer 

    As long as you have your core 4 as David Greene calls it Realtor, Lender, PM, and contractor. If you have a team of core 4 it will make investing out-of-state possible. If you are investing out-of-state and you want to take a look around the city before you buy that's not a bad idea, but basing it on you have to be x amount of hrs away is pointless. The whole point of investing out-of-state is to get returns that you can't get where you live because prices are too high so go somewhere cheaper with better returns. As for the location, I would recommend the Midwest more specifically Columbus OH.

  • Flipper/Rehabber · Sacramento, CA · Member since 2020 · 72 posts · 49 votes
    5y
    Originally posted by @Nick Kramer:

    Any tips for getting into a market I don't live in close proximity to and can't necessarily visit on a regular basis?

    As was already stated, a big tip is to read Long-Distance Real Estate Investing by David Greene. If I could boil that book down to four words it would be "Utilize technology. Build teams."

    Technology is, well, everyone's friend, but it is vital for the long-distance investor. Zillow, Redfin, and Trulia tap into the MLS's of many, many markets and allow you to scope out those markets before picking one to focus on (or a couple if you want to diversify). Then you'll get on the multiple listing service of your chosen market(s) with your agent(s) and that will go right to your smartphone too. Property tax records are online. You can get homeowner's insurance quotes (multiple) online. Schools are important to a property's value. You can find information on that for an area at greatschools.org and probably other sites. Increasingly, people like walkability metrics and walkscore.com covers that. Crime is important. Some or all the major MLS-pulling sites have crime stats as part of their platform. Rentometer.com does quick and dirty rent rates for you or you can comb through listings on Zillow and Craigslist and probably Facebook Marketplace and make your own estimate.

    On teams, the Core Four was already mentioned - deal finder (realtor or wholesaler), lender, contractor, property manager. Investing long distance you would probably need all four and some others too, but they're not in the "core." You're training to be an officer in the U.S. Armed Services. You are well suited to leading a team you get to select. 

    Read that book; it's great. I copied some stuff from an early chapter for my second paragraph but Greene goes into much more detail. The heart of the book is about working with the core four.  

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Nick Kramer:

    Hello,

    I currently attend one of the federal service academies. As a result, I spend limited time at home and have little time to travel to potential markets or to check out houses. I and some of my peers have looked at getting a property nearby the school, as there are constantly servicemembers rotating in and out of the academy who need somewhere to live. I've also looked at some properties in other college towns and am considering looking at some around a military post in another part of the country. Also as one might expect, our pay makes it hard to get a rehab loan, or really any sort of loan but cosigning with parents might solve that. I also have a good amount saved up for a modest down payment and might go in in a partnership with one of my peers.

    I've listened to a few BP podcasts and have heard people buy into markets that were a ways away from their personal home, even across the country. But even in those cases, they recommended being able to travel to build relationships and getting to actually put "boots on the ground". Does anyone have any advice for anything that might help in this situation? Any tips for getting into a market I don't live in close proximity to and can't necessarily visit on a regular basis?

    I too got started investing while I was in school. My sophomore year in Columbus at OSU I bought a duplex for $300k, put $50k into it, refinanced and got $90k back. Now im working on refing it agin to get another $50k and it cash flows $1800/month.

    That was big for me as I was working full time making $27k/ year.

  • New to Real Estate · Colorado Springs, CO · Member since 2021 · 15 posts · 16 votes
    5y

    @Patrick Drury Thank you, that makes perfect sense, I totally agree!

  • New to Real Estate · Colorado Springs, CO · Member since 2021 · 15 posts · 16 votes
    5y

    @Jon Catterson Thank you for all the great advice/ pointing me towards some resources. I'll definitely give that book a read!

  • New to Real Estate · Colorado Springs, CO · Member since 2021 · 15 posts · 16 votes
    5y

    @Steven Foster Wilson That's awesome to hear! Stories like those help show me I can do it too.

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Nick Kramer:

    @Steven Foster Wilson That's awesome to hear! Stories like those help show me I can do it too.

     You can absolutely do it. Key is to just get started

Join the conversationCreate a free account to reply, vote on answers and follow this thread.