Recent Graduate from High School How do I Get Started?

Question

Hey everyone I've just graduated from high school and am eager to get started in on real estate investing. But I'm sure you all can imagine the problems I may be considering such as the lack of capital for funding my investments, so my question is how should I proceed? I've been immersing myself in real estate books and started in on the free lesson here on Bigger Pockets but I believe that I should start to take more action moving me towards my goals soon. So how will financing work if I have little to no money for investing? Also how do you all go about finding deal especially since I don't live in a super big city. my specific area I'm looking at is in Multi Family Rentals and my place of residence is in Delaware Ohio 43015 if that helps.

Daniel Chang · Answer

Best option: You should goto college, get educated, learn a craft and broaden your horizons.

Second option: Get yourself a real estate license and start working in the brokerage industry.  This way you actually earn an income and at the same time get inside some deals and get hands on experience.  Or, you can start wholesaling, which is very similar to brokerage, in that you are hustling to make a buck.  If that sounds like a job to you... you are right, it is.

Third option: Ask mom/dad to fund your first deal.

Also, stop reading or listening to anything that will raise your expectation of how to put together a no money down deal.  It just isn't practical being completely new at real estate.

Thomas S. · Answer

Good advice so far but you need to choose what is best for your personality.

To begin you must realise you need a good paying job to finance and maintain your investment plans. Investing in real-estate is different that being in the real-estate business.

Get a job you are interested in related to the industry, construction for example, work hard, live frugally and save every penny. Separate yourself from your old friends and habits and find people already in the industry or driven, such as yourself, to be in the industry.

Bottom line is concentrate on earning and saving. Starting from nothing is normal and is a liog slow drive to success. No short cuts, no secrets to success just hard work and dedication as with any path in life.

Daniel Chang · Answer

@Jordan Lisenbee,

Ok, so school isn't for you.  They are expensive after all.  But in doesn't change the concept that you still need to go through "schooling".  You have  no assets, no background, no experience.  So you need to start building some up.  You gotta put in your dues.  You really can't just "go into investing" from ground 0.

Like I said, you best bet is to find a "job" in the real estate industry.  I mentioned brokerage and wholesaling.  Perhaps a job in a property management company.  You would start having an income and putting money to do your 1st deal, but also gain invaluable hand on experience.

Tom Ott · Answer

Hello Jordan,

Welcome to BP! Always nice to see another Ohioan on here! There are many different routes you should take. Saving is probably one of the biggest if you are worried about getting capital to begin.

I agree with some of the others, school might be a good option, but sometimes that is not for everyone. Just keep an open mind! I would continue to read and study investing. Learn what kind of investments you want to do. Form an plan of action. Get the numbers straight and see where you want to be in 5 maybe 10 years of investing! There are many tools you can use to get started. Most are found on this website.

I wish you luck! Feel free to send me a message if you have any questions

Go Cavs!

Nancy Curran · Answer

Agree with Daniel. Go to college, major in real estate management, finance, economics.

Financing doesn't work if you have no money. Go to your local bank, talk to the loan officer and ask him his ideas.

Atwan Kwan · Answer

a lot of the advice ur getting here is from sage-old experienced people who've had a lot of success.....

so of course they're going to preach the "safest" path with 20/20 hindsight.....

If you're young, that's all the more reason to go FULL TILT. Find your passion and bet big.

You don't want to be asking these questions 20 years later.....

If your fear is screwing up royally, whether financially or relationships or personally or whatever....

the best thing you can do is RESEARCH the hell out of it. Read everything you can, latch on to people like a koala to a tree. If you do screw up, it didn't come out the way you thought, you shouldn't have regrets putting in all that work..... rather than making a big bet from a stupid whim....

and more likely, while you're doing all that work you'll know well in advance if this is the industry for you by how well it keeps your interest.....

I have a college degree, a realtor's license, and worked for big name property management companies..... AND I AM NOT an academic person.....

A lot of people are telling you to get a degree, but I'm willing to bet they would agree that college tuition is ONE of the WORST INVESTMENTS you could make with no guarantee of ANY return....

It only becomes worth anything to you, if your learning about something you love.... which you can do without a life-long student loan......

You'll look back MUCH more fulfilled with battle scars to show, rather than going the "safest" path and STILL asking the same questions.....

Have fun, learn lots, enjoy the ride...

Tamara Elliott-Deering · Answer

Jordan,

I have a college degree a nd a real estate license but what helpS me most in my investing business is my construction experience. I started by managing commercial construction projects for large companies but I learned most of my residential construction by working on my own houses. If I were to do it again I'd go into the trades, especially plumbing or electrical because those two require licenses to pull permits in my state and are the biggest headaches and expensive line items in my projects.

Because you are young you will need to know more than the people working for you because they will try and take advantage of you. So go into the trades, save some money and buy a house for cheap to live in. There are some really affordable properties in Ohio, you may be able to find a vacant one and work out a deal with the owner, if it's in rough shape you might offer repairs in lieu of a down payment. Once you own it start looking for roommates, live in the house for two years and repeat. Split the equity from house 1 into 2 or  more properties when you sell in two years always living in one to maximize tax advantages and by the time you turn 21 you will have a couple of houses done, paid no rent and will be able to send me a bottle of bourbon to thank me.

Go get started.

Michael Lee · Answer

Hello and welcome to BP!  It sounds like you are smart and you know that learning is a big part of investing.  Marketing is so very important.  If your phone is not ringing once you start you know that you need to do something.   Let's keep to some basics.  You need to form a business and make it some type of corpotration to protect yourself.  You are so young and you are getting a good start!  Yes, inentory is kind of low right now and there are a lot of things you have some tme to do because there is a lot of competition out here, prices tend to be high as well as rents.  Cash is likely getting most of the deals because they can close quicker.   You did not mention where your money is going to come from.  If you are going to be depending on financing the are plenty of options.  It tends to matter what niche you are going to get into.

In the beginning, you also need to find/get a Team to help you with things that come up that you do not know the answer to.  Do not try to do everything yourself.  Just have a budget for people that help you.  The main helpers are Attornies. Real estate Agents, CPA'ss (or accountants), General Contracters, home inspectors, and Handmen.  As soon as you close, you need to get an insurance polivcy that will protect you if there is a loss.  Real estate is cyclical and will have its buy and sell days. But it will change slowly most of the time.  Whether you choose wholesaling, fixing and flipping, or rental units just learn a little bit before you start investing.

I am 59 years old and I found BP about 11 months ago and i am still trying to decide what to do while I am medically recovering.  I also went to college, that is not mandatory, and I got a degree in business that emphasized real estate.  Since I was in Texas and planned on staying there I looked into getting a broker license and I was fully qualified to take the test it required so I did andi got a license as a broker.  I kept that broker license for about 30 years but I never did that full time.  Regardless of what I had I felt more comfortable in the construction business.  I have been in the construction business since I was 17 including those college years.  If you think that I can help you please contact me through BP at any time.  Good luck to you!

Recent Graduate from High School How do I Get Started?

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