Noob Looking for Insight from Experienced Real Estate Investors

[Account Closed]

Hey experienced real estate investors!

I'm caught at a crossroads and looking for some guidance. Scenario A and B are the 2 paths I believe are the best options I have for getting into real estate. Is there another option I'm missing? Your wisdom is much appreciated 🙏🏼

In scenario A, you choose to spend the next year going college to finish your degree and get a good paying job with long hours that allows you to buy a rental property within a year but you have never had a mentor so you're making mistakes along the way.

In scenario B, you leave college with only having 1 year left to start working to save your income. Meanwhile, working under a mentor for free and learning the experience firsthand so in 3 years when you get your first rental property. Because you learned from your mentor for the last 3 years, the experience of being a landlord was an easy transition and hit all your expectations.

[Ken Dunn]

@Account Closed - based on the info you gave, I’m going to turn back the clock, put myself in your shoes, and tell you what I would do. 

I want to preface this by telling you I’m in my mid 50’s, the youngest of 4 kids and the first and only one in my family to earn a college degree (Business Mgt) paid for by joining the military at the age of 18 (after earning 30 college credits over two full semesters). I used the Army College Fund and worked part time during college.

After moving to a nicer home and making my first original residence a rental in 2005, (which I still own) I started buying rentals in 2006. I currently have 18 rental properties that each have positive cash flow. 

My recommendation is to stay in school and finish your degree. It will be difficult to get a loan on an investment property if you do not have verifiable income and 20% to put down…especially if you are just starting off.

Having a good paying job will allow you to start saving and build a “war chest”. It is very difficult to invest if you have no money of your own to buy the investment. You should view real estate as a get rich slow and steady type of investment vehicle.

You can avoid a lot of mistakes through proper education - reading books, joining your local REI clubs, attending seminars, listening to podcasts, watching uTube videos…etc. Let these sources be your "mentor".

I never had a “live in person” mentor, but I have thousands of hours of listening to self improvement gurus, real estate investing experts and reading books.

Gotta run now…Hope this helps,

Ken