22 year old student, can I still invest in real estate?

Question

Hi all, I have been educating myself on real estate investing for the better part of 2 years now, and hopefully plan on closing a deal sometime soon near Indianapolis, IN. I worked for 2 years before going to college, and have managed to save around $15k. I am now a full-time student, but would like to invest my money into a multifamily property. Because I am not currently seeking employment, I was hoping to rely on my father and his leverage to help. He has around $100k he's looking to also invest in real estate and a stable job he's maintained for 20+ years. Is there a way we could co-sign on a mortgage, or simply have the title to the home in his name and I transfer a potential down payment directly to him? I am interested in duplex's around the $60k range.

Michael Minor · Answer

@Ryan Mattson Yes, I was in the military stationed at Beale AFB, CA and the property I bought was in Marysville. I used the VA loan which was a pretty large advantage. One thing I would highly recommend is using the FHA 203(K) loan. You can get into a property for around 5% down and you can finance renovations into the loan. The loan is based on ARV and can give you the tools to essentially BRRRR without the refi step. Do this, buy a duplex, triplex, or fourplex if you can and house hack. It is such a powerful way to get started in your first investment in my opinion.

Michael Minor · Answer

Ryan you absolutely can. I bought my first house when I was 20. At the time I thought I was just being affordable when purchasing the home, but what I really did was do a "live in flip". I purchased the home in CA in 2011 and sold when I moved back to Kansas City in 2015. I purchased the home for 90k and sold it for 160k. While I lived there I replaced the flooring throughout the house, I painted the garage floor, had a sprinkler system, sod, and a concrete patio put into the backyard. I also painted every interior door, wall, ceiling, and piece of trim in the house. I did all the painting myself, but contracted everything else out. I spent around 10k in improvements over the four years I lived in the house. This is just one example. I am now about to list my house in Kansas City and use the house hacking strategy to buy fourplex in the area that I now want to live. The best thing you can do is learn how to evaluate a property and take action.

Antoine Martel · Answer

Ryan.I'm 22 years old and invest full timeSo its definitely possible.I'd recommend having your father co-sign on your mortgage. Are you looking to buy this duplex in Indianapolis?

Cody Evans · Answer

@Ryan MattsonMy degree is in Mathematics. It isnt necessarily related to real estate but the higher math classes and stats knowledge allows me to think up new ideas which isnt useful now but probably could be later if I blow up. I can read and learn the real estate concepts with no fear of complexity since it isnt near the level of abstraction I was working with plus I can test it all out in the field more easily with a money incentive.Too young to buy houses even for you to live in? That´s silly, if you want to to talk real estate you can send me a colleague request.

Ryan Mattson · Answer

@Cody Evans We're more alike than you think man. My girl thinks I'm too young to be buying houses, but luckily my dad believes in me lol. What did you get a degree in? Anything real estate related?

Cody Evans · Answer

@Ryan MattsonYou are ahead of the game. I just got my four year degree and have only been looking into real estate the past 2 months. I've learned lots by keeping up with the forums on bigger pockets. You also have a family that supports your decision. My family and girl think I'm behaving like a little kid that says he wants to be a big rap star some day hahaha! I'm dying to close my first deal within 60 days so I can buy a gold chain like a gangster throwing money on the ground around the house to rub it in their faces! If a prankster like me is making moves then there is no reason you can't. The only catch is you have to be disciplined about it; dedicate a little bit of time every day to real estate and don't let yourself off the hook.If your dad is getting into real estate I would think rather than just cosigning the mortgage you would have him partner. Even if he is willing to give 100% of the title you may still want to give him 50% so he can feel the ups and downs with you so that he may be more likely to buy a second property with you.

Antoine Martel · Answer

You can use both man. I use some banks in California to refinance my properties out of state. But also I use some commercial lenders in Memphis and St. Louis to do some commercial loans.

Michael Minor · Answer

@Ryan Mattson Thanks, I should mention that just like all FHA loans it is for your primary home for at least one year of residence.

Ryan Mattson · Answer

@Michael Minor Thank you so much for your service to our country. House hacking using an FHA sounds very enticing...

Ryan Mattson · Answer

@Michael Minor Very inspirational, one day I hope to match the success that you've achieved. At 20 years old, did you receive a mortgage for the $90k property on your own?