Noob Looking for Insight from Experienced Real Estate Investors

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Noob Looking for Insight from Experienced Real Estate Investors

Account Closed
New to Real Estate · Elkhart, IN · Member since 2018 · 3 posts · 19 votes

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.

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Ken Dunn
Member since 2019 · 36 posts · 36 votes
4y

@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

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  • Ken Dunn
    Member since 2019 · 36 posts · 36 votes
    4y

    @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

    2Reply
  • Ken Dunn
    Member since 2019 · 36 posts · 36 votes
    4y

    Correction - I joined the Army when I was 19…not 18.

    0Reply
  • Wesley B WilliamsPro Member
    Rental Property Investor · Louisville, KY · Member since 2017 · 107 posts · 77 votes
    4y

    @Jonniel Gaviola could you not get a mentor while you are in school? Or maybe get a job as a realtor and a mentor, kind of depends on what you want. Do you want to work in the field of your degree. Do you want to be full time real estate? A degree can definitely help you in any traditional job but isn’t necessary as an entrepreneur. Whatever path you choose now you can always change later. Sorry I couldn’t really answer but good luck whatever happens!

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    Hi @Account Closed, we all started from somewhere and you know yourself better than anyone else. Do some research and clearly define what you want and the best path or strategies that can get you there.

    Goodluck and go make it happen

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  • Buddy Holmes
    Investor · Daytona/Ormond Beach Fl, Charleston/Summerville SC · Member since 2017 · 156 posts · 73 votes
    4y

    @Ken Dunn has given you good advise. I might add:  Be sure your degree is something of value in the work place. Some work history is going to be required for any loan.  You might consider a house hike duplex or 4 plex where you live in one unit and get a loan at 3.5% down and use rental income with your job income for the loan.   But no need to rush, read as much about the subject as you can.

    Cheers

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  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    4y

    @Account Closed Stay in school. I have earned 4 degrees and they all have helped me with my REI journey. But business and entrepreneurial degrees are best. You can get a mentor after you graduate and have plenty of time to invest in REI. Your young and have already invested 3 years in school. Stay the course and finish. Otherwise you will regret it.

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