18 year old aspiring investor from Austin, TX

[Kristina Sparrow]

Hello all!

I have been a lurker on the forums here for quite a while so I thought I would finally introduce myself. I am 18 years old and currently attending the University of Texas at Austin. Over the next few years I hope to take my first actual steps into investing. At the moment, I am solely interested in obtaining knowledge because I believe I am in no position to make the first move. (Hopefully that will change soon!) I have read numerous real estate books and listened to countless podcasts. In addition, my father is an active investor and we chat about real estate all the time. I would like to get into wholesaling at first, then eventually buy-and-hold properties to slowly build a passive monthly cashflow. However, I believe my age is a factor that is holding me back, for I have a fear of not being taken seriously in this people-centric business. Also, I have zero credit and only about $7,000 saved up from my high school jobs. Nevertheless, I won't let go of my ambition and I hope to keep learning more here on BP!

[Jenna Stonecipher]

@Kristina Sparrow

Your age won't be a setback. On the contrary, I think many local investors enjoy seeing a high-energy young person who is eager to learn from them. Surprisingly, many are eager to teach!

At 19, I was bragging to my uncle about my high credit score and he told me, "you just haven't had enough time to mess it up yet." That always stuck with me. Watch your credit and your credit debt ratio. You will rapidly grow in your 20s, and so will your salary, but if you learn to live efficiently then it can be a great boon to your investing.

Also, manage any student loan debt that you may have. If you don't need it, don't borrow it--not matter what anyone tells you. You will also qualify for more if you purchase a home any time up to 6 months before you are set to pay your student loans off <--messed up my first deal.

The best advice I can give you is to purchase a multifamily as your first property and live in part of it. I did this with a triplex, which is considered commercial property here. If I had done it with a duplex (as an owner occupant) my taxes would be cut in almost half. You can do all of it with an FHA loan and 3.5% down, btw. $7k covered my down payment and closing costs.

You have a HUGE advantage since your Dad is an investor. Take advantage of that! Best of luck and keep us posted!