How can I get started at 19?

[David Picou]

Hello! My name is David and I am 19 years old! I am going to be a real estate investor, and to get my first property I have looked into an FHA loan. The problem is that in the past I have not had full time jobs, or jobs that show I am making much income at all. Is there other ways to get started? Any information would help, and would be greatly appreciated!

[Andy Sabisch]

Take a look at your credit score . . . that will tell you if loans are an option. Hard Money Lenders can loan down into the 650 range so they are an option as they focus more on the property than the individual so if you have the right deal, they will loan the money. You can always refinance later and pull cash out as the property appreciates. Have you thought about "house hacking" where you find a duplex (or triplex) and use the income from the property to cover the mortgage expense allowing you to live rent free. After a year (you have to stay there for a year to get the low down through FHA), you can refinance and pull the equity to buy another property. If you can find a property that is for sale by the owner who is willing to carry the note for a year (or few), that will allow you to do the same thing without the hassle of a loan and points. Plenty of options if you are creative . . . just remember that the line "buy with no money down" is a con . . . you simply need to find a way to buy with someone else's money other than your own.

I see you are a BP Pro member.  There are webcasts and tools that will help you find deals to get started and analyze them to be sure they are good ones and not lemons . . . very inexpensive source of education and one "bad deal" woudl more than cover what you woudl have paid for an annual membership.