20 Year Old Looking to Dive Head First into RE

[Justin Broaderick]

Hey guys, 

My name is Justin, and I am a 20 year old college student about to graduate with his biology degree. I learned too late that my real passion is business and real estate. I've been following the BP forum for a while now, and am finally reaching out for some advice.

I'm looking to dive head first into the RE game within the next few months. I have a steady, salaried job, but have only just begun building credit for myself. Fortunately, I have family willing to assist in any way to raise my approval to lenders. Additionally, I have a decent stockpile saved for several down payments, if necessary.

Possibly just because of personal relevance, I am interested in the college housing game here in Tallahassee, though I'm not necessarily tied down here. My tentative plan is to purchase a few ~80k, 3 bedroom homes in rapid succession (establishing one as primary residence and renting to friends) and then see where I can take it from there.

I've spoken to a big bank mortgage consultant, and have gotten a promising idea that I can at least mortgage the primary residence through them, but without 2-years of managment experience they will not let possible rent offset debts for additional loans. They have recommended looking at smaller, local banks. Honestly, private investors intimidate me as of yet, and I like the extended low interest rates of the banks. So, I suppose that I will try to work through banks for as much as I can here in the beginning.

There is also a part of me that wants to use my saved money to just go in on a much larger project, but I'm not sure that is the best idea for the start. 

What do ya'll think?

[Jacqueline Coombs]

Sounds like you are off to a great start! I would start by doing house hacking. It's the easiest and most economical way to start on your portfolio. Get a loan for your personal residence and rent out to cover your mortgage then see where you want to go from there. You can easily scale up by buying another personal residence and turning the previous one into a rental, and on and on from there! I would get my feet wet as a landlord before I spent my savings. Within a few short years you will be way ahead of 99% of your peers!! I would strongly suggest you do some networking and find a mentor. I found mine at my local Real Estate Investors meeting. Lots of great people and opportunities to learn a lot! Good luck! 😊