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Updated almost 17 years ago on . Most recent reply
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One Young Person's Dream to Become An Investor
Hello Forum,
This is my first post. I’ve a lurker on and off for years, but I feel it’s now time to introduce myself to the Real-Estate Investment community.
A couple years ago during my senior year at the University of Texas, my mom gave me a book titled “Rich Dad, Poor Dad.” Little did I know that a little book would have such a great impact on my life. It opened my eyes to a new world of living. One didn’t need to slave away making a corporation rich for his or her lifetime. With proper education, a team, and experience, one could live financially free. Intriguing.
With every interview I had, I realized the corporate world was not for me. The recruiters started to melt into one, and I could eventually answer questions before they asked. I will not complain if I never have another behavioral or case study interview! I’m not saying working for a large company is horrible. But for me, the idea of a different assignment every 3 or 4 months, climbing the corporate latter, and kissing everyone’s butt wasn’t appealing. Besides, I want free time in my life.
During that last semester, I pretty much went through the entire Rich Dad series:
-Rich Dad/ Poor Dad
-Cash flow Quadrant
- The ABC’s of Real Estate Investing
-Rich Dad’s Guide to Investing
-Own Your Own Corporation
-The ABC’s of Writing a Business Plan
-Why We Want You to be Rich
-Who Took My Money
Each new book opened my mind to think in a way it had never before. However, the books mostly created questions. “So if she bought it for that, and sold it for that, how much…?” And the questions never stopped: “How do I maximum my capital? Do I leave it in my investments or pull it out to make new investments? “Duplexes offer greater rent when compared to list price, but they appreciate slower and are harder to sell, which one should I start with?”
I had a question list a mile long. By the time offers came around, I just couldn’t pull the trigger. My family and friends thought I was a little looney for turning down some of the companies I did. Especially when I announced I was going to get my real estate license! I knew if I was going to become an expert on Real Estate, I’d need a lot of education.
I looked at the situation this way. I could either spend 9 to 5 making my employer rich by analyzing buying trends OR I could spend my entire day educating myself on what I really want to do with my life (while using other people’s money..lol).
Even before graduation I was studying for my real estate license. From the day I ordered the textbooks to the day I got my license was 35 days. Yes, I was determined. My friend set me up with a small broker near campus and I started right away.
I'm sure many of you know this, but new agents don't know a thing! I was so confused on the procedures, laws, and customs; I wanted my money back from those textbooks. It wasn't long before I decided I wasn't doing myself or my clients and good, so I got three designations right away: GRI, ABR, and e-PRO. With my increased knowledge I felt more sure of myself and was able to help my clients a lot more.
I didn’t stop reading either:
-Buy it, Fix it, Sell, for a Profit –Kevin Myers
-Flipping Confidential – Kirsten Kemp
-Getting To Yes- Fisher, Ury and Patton
-Flipping Properties: Generate Instant Cash- William Bronchick
My first year as an agent was hard. I had no client base, my brokerage was small, and I was a newby. But, I was learning. My broker had clients who flipped. They always priced their flips at the top of market. I said to my broker’s client one day “Why don’t you price it 5-10% lower than market to sell it faster.” He looked at me weird. I thought it was a good idea. Four months later, it finally sold, at 7% less than the original list price. Lesson learned for me.
Then, I read the one book to pulled all my fragmented thoughts into one and made me the most excited would-be real estate investor in the world: The Millionaire Real Estate Investor –Gary Keller
I cannot say how well written this book is. It’s logical and contains valuable information. It confirmed how I want to start investing:
1. Buy & Sell: To gain capital
2. Use capital from Buy & Sell to acquire Buy & Sold: For Wealth gaining
It’s as if Gary Keller himself slapped me on the top of my head with his book. It all just fell into place.
So now I'm sitting here at my desk as excited as ever. I spend the morning looking for rehabs in Central Austin. It's a real fun process, since I can stare into the history with MLS. Since "everyone" is flipping there are many examples. With the history function I can see a certain house sold in September for $270,000 and two months later it was on again for $410,000 eventually selling for $390,000. There out there, so it's all so real to me.
I’ll even visit flips. My friend (I wish he had capital, geez!) and I will view maybe 3 or 4 per week. Our comments range from “I can’t believe they left that,” “That is so cheap,” “Did they ever think about useable space or the floor plan,” to “This is fantastic, it will sell quickly!”
I go online and read these books because sometimes my confidence gets knocked out of me. The “capital assuming” part of my real estate investing is taking longer than I want. I love being a Realtor (the hours are fantastic!), but it appears to be an uphill struggle. I closed 7 deals my first year, which I heard was good. It’s just a good thing I know how to budget. I would love to save enough capital to do one Buy & Sell this year, so I can use that capital gains to buy my first income property.
I’m ready to begin this life journey. And, I want to share it with online real estate communities. I look to you seasoned investors, because I love learning. I think once you think you know it all, it’s game over.
I sincerely apologize for this amazingly long post. I doubt you read all of it, but it was therapeutic for me. I wake up everyday with my 1, 5, and 10-year goals staring at me. Like those investment books say, I always ask myself “What am I doing to do today to increase my net worth? To get out of the rat race? To increase my means?”
Well, sharing my passion with you is one way.
Thanks.