Just curious to see what your thoughts are. I am in Reno NV. I am 23. 4,000 saved to start real estate investing. May not seem like much but feels like a ton for me currently at my age. If you were starting from scratch at my age with $4,000 what would you do? And, Why?
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
12y
I'm on my phone other wise I'd do some copy and pasting for you. Check out some of my previous posts on buying with no down/low down payments using land contracts. I can make $4k go a long way!
Real Estate Investor · Champaign, IL · Member since 2013 · 114 posts · 55 votes
12y
Find a local REI group, Read books, Learn the lingo, meet local investors and help them with general labor in exchange for experience, read more books, familiarize yourself with market trends and prices, keep saving up. No one can answer this question for you (thats why no one has). There are an abundant amount of ways to make money in RE. All of them have different levels of knowledge, time, and finance requirements. Learn what they are and what you want out of RE and you will be able to answer this question yourself. Sorry, i know you wanted a clear cut short answer but there isnt one.
Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
12y
David,
Cograts on getting started here. Definitely take the time to read and get yourself educated here. Download the podcasts and run through them. Down the Beginners Guide here, and read plenty of stories and opinions to learn new perspectives. Also check with your local real estate groups and start attending them to understand what the local market is like.
I am 23 too. I spend time on here asking a lot of these seasoned folks the exact same questions you are--and I've been at it for a little while. But I think if I could steer you in the right direction, these would be my pieces of advice:
1. Learn as much as you can. Read. read. read. read. read. Ask questions--there are tons of people on this site alone who know more than I ever will about lots and lots of things. Just ask, connect, and be humble. It will take you a long way.
2. Realize your goals and what you want to accomplish. Why are you investing in real estate? How do plan on using real estate to accomplish your goals?
3. TAKE YOUR TIME. Figure out how to analyze deals, ask questions, and find one that is right for you. Make it such when it is time to pull the trigger, you are ready to jump in. Take your time, but taking ACTION is important once you have realized how.
Feel free to reach out--we young guys have got to stick together! Welcome!
Investor · Charleston, SC · Member since 2011 · 45 posts · 8 votes
12y
When I was 26, my first purchase was a mobile home for $4,200. It was sitting on a lot owned by someone else, and I was hoping to make a profit from renting it out at a higher price than my lot rent.
The lot rent got to be too much and I had a ton of problems with my 1st tenant, but it was a real good learning experience. I lost money on renting it out, however, I made it back when I sold it for 6k. Kept on saving money from my job and so far built up a portfolio of 6 homes. 4 of them rented out at an average of 600/ month, so that's 1200 per month income using 50% rule. Rehabbing 2 more.
With your 4k, I would keep on saving until you get about 10k, and then use that as a downpayment for a rental or a flip. Go for 2-3 bedroom houses. Those are the easiest to rent/sell.