Young professional trying to figure out where to start ?

Question

Age: 25

Location: Atlanta, GA

Education: BBA-Finance (Georgia State University Class 2013)

Career Background: Currently working as a Sr. Analyst for a Real Estate Private Equity Firm. Prior to my current position, I worked (4yrs @ Siemens) in various areas of Corp Finance, Operations and Project Management.

I would like to start investing in real estate and build me wealth & passive income. Like most of young professionals, I've been paying off student loan and maxing out my 401k & IRA account, really don't have much cash sitting around. However, I can possibly wait another year or so to stack up my cash. But I would like to get into it now, is there a way I can start investing in real estate with little cash or no cash at all?

Ryan Billingsley · Answer

@Andy Wu  Best place to start is learning.  Listen to the BP Podcast!  They give real life examples of different paths in the REI world.  There are many great books to read as well such as The Millionaire Real Estate Investor by Gary Keller.  Brandon from Bigger Pockets also wrote a book about investing with low or no money down which is worth checking out.

I started in real estate with around $600 out of pocket.  We started with a direct mail campaign and wholesaled our first deal in just six weeks making $10,500.  We then used that money as a down payment to buy 2 rental properties and continue our campaign.  So there are many ways to get started with little money.  But it starts with learning, listening, networking, and taking action!

Michael Lee · Answer

Hello!  I am so sorry for just now getting back to you but I just found out about this option.  I hope to hear from you again and help you with anything, especially in construction or real estate.  Best wishes!

Moiez Karim · Answer

Also a newbie but budding RE investor

Delon Hall · Answer

@Andy Wuundefined

I think you're in a great position, you're headed in the right direction.

My advice maybe slightly different than everyone else's. Not because I disagree, but because I think you're in such a place in your career/life that you don't quite fit in the general model; drop everything and jumping right in.

After working with clients that were exactly where you are now 5-10 years ago, and what i see that is common between all of them is a strong advisory board. Strong to the point where I have closed on a deal dealing with their estate attorney or financial planner. You may not be to that point but it doesn't take much for someone in your situation to get there.

I would recommend that you really spend 50/50 of your time strictly learning more about investment real estate and building your advisory board. You might not have $100,000's in the bank but unlike the others starting with absolutely nothing, you have a tad bit to loose. Getting a strong backing will allow you not only grow your own portfolio but to also leverage your own success of your personal portfolio to gain capital from other investors inside of your soon to be growing network.

Mark Nolan · Answer

@Andy Wu

Since you have existing retirement funds, consider opening a self-directed IRA or self-directed solo 401k and transferring your existing IRA funds and possibly your existing 401k funds to one of the self-directed accounts mentioned previously. You will then be able to self-directe your retirement funds directly into physical real estate instead of the stock market.

Andrew Walker · Answer

In a similar situation as you Andy except for my educational background and experience. Good luck to you as you move forward! If you have any good mentoring strategies or recommendations let me know.

Andy Wu · Answer

Thanks Michael, I will effeminately reach out to one in the future.

Michael Lee · Answer

Hello and welcome!  You can get along with an owner financed deal. Just be open and honest about your situation.  Otherwise, you will have to save more.  I am 59 years old and I was born and raised in Dallas.  I have been in the construction business since I was 17.  I graduated from college and got my broker license in1980.  If you think I could be any help to you, please do not hesitate to contact me.  Good luck!

Maxwell Hunter · Answer

Welcome to BP @Andy Wu.  As others have stated this is an excellent place to get advice from other investors (local and afar).  Make sure you set up your keywords for any areas you wish to invest or topics you wish to follow.  You have a solid background in real estate, so I wouldn't anticipate the transition would be a difficult one.  As far as investing with low/no money, there is tons of information on the site regarding the topic.  @Brandon Turner also has a book that pretty much consolidates the information you would find on here into one source.  It is called "The Book on Investing in Real Estate with No (and Low) Money Down".  You can find it on Amazon or here on the site.

Andy Wu · Answer

Likewise. Good luck with everything.

Young professional trying to figure out where to start ?

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