New to investing and curious which direction would be good for my situation

New to investing and curious which direction would be good for my situation

Real Estate Agent · Massapequa, NY · Member since 2015 · 78 posts · 13 votes

Hello everyone! 

My name is Daniel Patterson, and I'm currently living in Massapequa, Long Island NY. I'm turning 21 in a month and i'm looking to get into real estate and investing as early as I can. My mother is a well established broker that sells many homes on the south shore of long island. Shes the top agent in Massapequa and does extremely well. As I grew up I would always see my mom working furiously and on the phone 24-7. I loved her drive for work and her freedom in the business. Also after seeing her split she makes because of how well she does in the agency, I've decided to go under her wing and team up with her. I'm currently in a program to get my real estate license. Shes taught me so much about real estate already, but I'm ready to learn more. I'm setting high goals for myself financially, so in addition to being an agent full time I would like to incorporate investing to maximize my growth. I would like to do lots of rentals that will eventually pay themselves off.

So my question is; How long should I wait once I start to be pretty successful with selling homes. Such as, should I wait until I have a constant income of 100k yearly? Or should I start with a small investment earlier on so that it will grow over time? Homes or apartments?

Since selling homes is going to be my primary income and focus, I'd like to make secure investments that I wont need to really think about. But after 40 years I'd have a nice portfolio of property that I could live off of.

My biggest question is just how long I should wait until I should make that first investment. 

Thank you for your time if you read this, and thank you for any input you have!

Daniel Patterson

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Colin SmithBusiness Member
Realtor · Colorado Springs, CO · Member since 2013 · 987 posts · 447 votes
11y

My personal recommendation is don't wait at all. First of all, 100k annual income is a lofty goal in itself. Very few people actually achieve that much of an annual income in a lifetime. 

I'm guessing since you're young you don't own a home yet. I would highly recommend you, once you can afford the down payment and have a bit of a cushion, to go buy a 1-4 unit home and either rent our the other bedrooms or units and live in one bedroom / unit. Aka house hacking. I started this when I was 22 and it has significantly boosted my net worth over the past few years, especially since I have been doing it as a live-in flip as well.

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  • Colin SmithBusiness Member
    Realtor · Colorado Springs, CO · Member since 2013 · 987 posts · 447 votes
    11y

    My personal recommendation is don't wait at all. First of all, 100k annual income is a lofty goal in itself. Very few people actually achieve that much of an annual income in a lifetime. 

    I'm guessing since you're young you don't own a home yet. I would highly recommend you, once you can afford the down payment and have a bit of a cushion, to go buy a 1-4 unit home and either rent our the other bedrooms or units and live in one bedroom / unit. Aka house hacking. I started this when I was 22 and it has significantly boosted my net worth over the past few years, especially since I have been doing it as a live-in flip as well.

  • Real Estate Agent · Massapequa, NY · Member since 2015 · 78 posts · 13 votes
    11y

    Hey Colin,

    Thank you for that! I haven't thought about the possibility of renting rooms yet. So that definitely helps my decision.

    Thanks again!

  • Investor · Lawndale, CA · Member since 2015 · 58 posts · 18 votes
    11y

    Hi Daniel,

    I agree with Colin that you should not wait at all. If you are able to buy, do it right away. Yes, most people do not earn $100,000 a year working, paying rent. and spinning their wheels. However, if you flip houses you can make $100,000 in one or two cheaper flips easy. 

    I don't know much about buy and holds but I understand that it is a very good long-term investment way to go. I'm not sure I would recommend renting at such a young age, though... unless you add in the cost of a management company. If you haven't been a renter, it might be hard to be a good landlord without having experienced how all of that works first. Again, if you have a company manage your rentals, I say jump on that if it's where your heart is.

    Point is: Don't wait to own your future. Take time to assess a property's value (listen to your mother! ;-)) and bite the first morsel that you think is the right investment for you!

    Best Business Blessings!

  • Investor · Mentor, OH · Member since 2015 · 19 posts · 12 votes
    11y

    I agree with everyone above, you should wait 0 minutes.

    Buy a duplex or larger, and move in to one unit.  You'll get easier financing, and you'll be on-site to practice your landlording.  If you do that a few times, you easily build your income property.  And do it fast, because your future wife won't want to continue that process!  ;)

    Oh, here's another perspective, you don't, "wait until you earn 100k per year" to take action, this is one of the ways by which you WILL earn 100k per year!

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Glad you find this site @Daniel Patterson you are in the right place to learn all about REI! Wishing you the best!

  • Real Estate Agent · Massapequa, NY · Member since 2015 · 78 posts · 13 votes
    11y

    I'm glad I found this site as well! I'm very surprised how active the users are on this site! You all gave great advice and it only motivates me more reading all your thoughts. Thank you guys! 

    I think I'm going to research small investment ideas such as a duplex so I can gain some landlording experience. Your all right absolutely right though. I shouldn't wait, I should act as soon as I can! Down the road I would love to have a nice balance between renting out homes, selling real estate, and than doing flips when every a great opportunity arises. 

    Thanks again for all your input!

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Daniel Patterson 

    Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.

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