Newbie -Buy and Hold

[Brandon Radford]

Hello all. I'm new to real-estate, and only 19yrs old. I'm in college and want to start out mentioning that I do not have money nor any assets of notable worth. However I know of some properties that are going to be more than quadrupling in value within the next 20 years (trust me on this) and I'm looking to get funding to potentially buy these properties now, rehabilitate them, and then as certain things happen that will make these properties worth a lot more then rent them out. But like I said I don't have any money or any experience in real-estate. What steps should I take to obtain the capital needed for such a venture I'm looking to buy multiple properties and want this to be my early retirement plan. I'm willing to learn anything I need to do as far as managing the property and being a landlord so any information regarding the business side would be helpful too.

[James Vermillion]

Brandon,

You said you do not expect to rent them for 10 years? Obtaining finance with little or no money down is very difficult these days. You are mention not renting them out for 10 years or so...what do you plan on doing for the next 10 years? Are you going to simply hold them and make payments on the loans? With most any financing with no money down you are looking at higher than average interests rates, which means higher payments...how will you make these payments? What about property taxes? And Insurance? When will you be fixing them up? How will you finance the rehab?

You mention additional monthly income, but that is likely a drop in the bucket unless these are insanely cheap properties? What price point are you looking at? How many are you trying to purchase?

Also, keep this in mind. While 4x you money back in 20 years is great, its not as great as it sounds. You need to think about things like inflation. Also, any investors money will be tied up, meaning they cannot invest in other things...and with no money coming in I do not see too many investors that would take that risk.

When you throw in the fact that you have zero real estate experience, no money (skin in the game), no other business background, very little credit history, you are going to have a hard time. I am not trying to nay-say, just pointing out some very basic things that any investor-to-be would also point out.