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Updated over 9 years ago, 08/06/2015
I am a 20 year old male, no idea where to start!
I am 20/m i have over 5k saved up, and no debt. I want to become a real estate agent but i have no idea where to even begin, or what to say if i am speaking to someone that can help me. i am not asking for anything more than for help on how to get started and what to look/ ask for in order to become an Agent.
The reason i want to become an Agent is because i am looking forward into investing most of my money (overall that I have and will be earning in the future) into real estate. In my opinion, it is the safest and most logical thing for me to do.
i live in Washington state, king county.
thanks in advance!
Alex-
Check out these two sites:
http://www.wikihow.com/Become-a-Real-Estate-Agent-...
https://www.realestateexpress.com/prelicense/wa/pr...
Steven
Kudos to you for having that much saved up at 20. I would probably look at Steven's links first and then go talk to some local agencies and try to find out what they're about and how you might or might not like it. That's what I did and I am in the process of getting my license now.
Hi Alex - The fact that you're here is certainly a great start! Search "house hacking" and give that some thought; if you're serious about real estate investing, this will likely be one of the easiest ways a young person with limited funds can quickly gain exposure to investment and property management while potentially living for free. It's basically the college scholarship of real estate investing.
$5,000 is a down payment on a $140k property financed with an 3.5% FHA loan. Not sure what your market looks like, so maybe you need $10k for a $280k property. The idea is that you find yourself a 2-4 unit property, live in one of the units and let rents from the remaining units cover your expenses.
Property expenses you would need to consider include P&I, Tax, Insurance, Heat, Electric, Water/Sewer, Trash, Maintenance/Repairs, Capital Expenditures and Vacancy. If you can find a property that allows you to live in one unit and remaining rents cover these expenses, you're pretty much golden. Lots of good info on this site about evaluating properties and considering expenses.
The other thing you want to consider is your income - you need to qualify for a loan. While there is money to be made as an agent, the most important thing you can do while you're young is to maximize your income, maximize your savings, and maximize your investing. Any job will do, but try to pick one that will best utilize your skill set and pay you the most for your time. If it happens to be as a real estate agent, that's great!
Best of luck,
Mike
congrats on saving money @Alex Dimov, at 20 years old if i had $5,000 saved up i would have spent $4,900 on car parts and ate ramen until the next paycheck!
If you want to be an agent i would take some of the money to pay for classes to go towards your license, and once you get it use some of those funds to market for sellers and buyers. This should bring in some new business and help that nest egg grow!
My high school son recently interviewed for a job at a real estate agency. It would be running documents around and low stuff like that, but great exposure. A W-2 job that is adjacent to your passion can go a long way in qualifying for loans and saving funds.
@Alex Dimov 20 and debt free? I remember those days.
Before you jump in and blow your life savings, please get educated. BiggerPockets is a good start. Now, join REAPS (Real Estate Association of Puget Sound) if you haven't already. There's tons of knowledge, people with experience and money available there.
I am an active, full-time real estate investor.. I live in Kent, WA if you'd like to connect.
Being a real estate agent has pros..... You get to see the MLS and get an idea of the market, but dont for a second think they make alot of money, they dont.
The real money is made investing. Coming in as an agent will give you opportunity to scout a market, however chasing after 3% on deals gets REAL OLD REAL FAST.
The money is in flipping and owning B rated multi family. Getting a brokers license is KEY
go to your local Keller williams. You need to make a wage income before you sets your sights on being an investor. They have great training programs and you will get exposed to real estate in general. From there make it a point to work with investors. Search these forums to see how most investors have trouble with agents. If you can become a good investors agent, then it's only a matter of time before you become a good investor yourself. Good luck.
Originally posted by @Mike Roy:
Hi Alex - The fact that you're here is certainly a great start! Search "house hacking" and give that some thought; if you're serious about real estate investing, this will likely be one of the easiest ways a young person with limited funds can quickly gain exposure to investment and property management while potentially living for free. It's basically the college scholarship of real estate investing.
$5,000 is a down payment on a $140k property financed with an 3.5% FHA loan. Not sure what your market looks like, so maybe you need $10k for a $280k property. The idea is that you find yourself a 2-4 unit property, live in one of the units and let rents from the remaining units cover your expenses.
Property expenses you would need to consider include P&I, Tax, Insurance, Heat, Electric, Water/Sewer, Trash, Maintenance/Repairs, Capital Expenditures and Vacancy. If you can find a property that allows you to live in one unit and remaining rents cover these expenses, you're pretty much golden. Lots of good info on this site about evaluating properties and considering expenses.
The other thing you want to consider is your income - you need to qualify for a loan. While there is money to be made as an agent, the most important thing you can do while you're young is to maximize your income, maximize your savings, and maximize your investing. Any job will do, but try to pick one that will best utilize your skill set and pay you the most for your time. If it happens to be as a real estate agent, that's great!
Best of luck,
Mike
This, this, this. I would be so much farther along had I done something like this. I have a license, but purely for the MLS access and listing my own flips. I think it is useful, but I would never make it my bread and butter, especially at 20. Get into a duplex buy/hold/live-in. Keep your day job. Then pay the money and get your license, just for your own investing. Although typing and thinking, you could get the license (it should only cost you about a $1,000.) Get into a good brokerage that has people that invest in it, not just a residential brokerage. Use the rest of your savings (plus what you save in the mean time) to use as a down payment. You'll get 3% back when you purchase your duplex. Then find your niche in real estate.
Mike I can just say 1 thing before you listen to ANYONE on here about ANYTHING....
A wise man said once to me
NEVER TAKE ADVICE FROM SOMEONE WHO'S NOT WHERE YOU WANT TO BE....
Let that sink in, and before you take any advice, full investigate the person and their claims.