Starting RE Investing As A Teenager - Advice? Experience?

Question

I started doing web design as a freelancer when I was 15 years old and that hobby quickly turned into a successful digital marketing agency where I now manage general operations.

At 18 years old, I'm standing here with a steady income, no living expenses (live with parents - still in high school), and a dying hunger to get into real estate!

I've been learning about RE from the sidelines over the past 6 months and I'm ready to get started ASAP!

I'm here to ask for tips from any members with advice on securing a loan that disregards lack of credit history (I don't have any yet, I just got my first credit card), finding properties around $100,000 in hot markets (I'm in Dallas) and any tips for a young entrepreneur taking the first step towards a life in REI.

Looking forward to becoming an active member of the forums!

Cheers, Brennen

Will Pritchett · Answer

Use your age to your advantage. Learn all you can so you can speak the language. If not your parents, partner with someone who has credit but no time or maybe no knowledge. They say that a good deal will get funded. I think "they" are right. Try finding a great deal and be willing to give away most of the profit to start a relationship with an investor. Hard to for an investor to say no to someone trying to give them money.      I love your enthusiasm and encourage you to stick with it.  Read all you can and network locally. Even if you have to just invest in your education for another year you will be getting closer. When i was a bit older than you I allowed someone to discourage my RE interests. Don't let that happen!Good luck!

Phillip Huber · Answer

Hi Brennen - welcome and congrats on what you have going on.

Have you thought about having your parents co-sign a loan? If my son had a steady income and was responsible enough I would think about it. It would also be easier if the property was owner-occupied - then FHA or first-time home owner programs can help.

I don't know Dallas at all but 100K sounds a little on the low side. Maybe save up for a couple of more years?

There are a lot of factors to consider - what is you goal with your first property? I would consider house hacking if I was you.

Find at least a duplex and live on one side. A tri or four would even be better, then you could live for "free".

Again I would think about making my Dad a partner and get something that has more potential.

Anyway you sound like a smart guy - don't be in rush. Take your time and figure it out.

Phillip

Brennen Bliss · Answer

@Mark Whitted I'll be sure to start getting involved with local meetups. I've got the 6/12 date marked in my calendar and will do my best to make it. Hope to run into you sometime soon!

Cheers, Brennen

Phillip Huber · Answer

Hi Brennen - Any partnership in business can be a struggle - it takes work, accountability, trust, each pulling their own weight, etc. so you need to make sure that all those bases are covered before committing to any partnership. That being said - if you choose to work with your family you had better be sure you don't screw each other over. Thanksgiving will never be the same.

When I went to school my parents co-signed my loans. I paid them on time and never defaulted. My Dad helped me with car loans back when I was a teenager - paid him back. Currently my wife and I are in my REI LLC and when my kids are older they will be brought in too. If you look at some of the most successful businesses and wealthy families out there - its all family.

Take a look at the White house right now lol, but lets not get into that.

Anyway, to get ahead take advantage of all your options but don't taaake advantage of them, especially with your parents - you get me?

College - yeah I went to a University that you had to live on campus until your third year so I feel you.

I would have loved to do an FHA owner-occupied 4-plex and live for "free" for  four years. The dorm pricing at my school was a rip-off!! The only thing positive was being with all the other students.

You have so much time to figure stuff out still so work on the education part - maybe get a State license or two, save up your capital, get some practical experience working for someone in the business and then the deals will come.

Have fun in school!!

Phillip

Brennen Bliss · Answer

I have to say, they do some pretty incredible content marketing - again, referencing my past life as a digital marketer, they make it easy to find. BP is an invaluable resource and I'm doing my best to explore all of the advantages it provides - anything specific you'd recommend I check out as far as tools or discussions go?

Brennen Bliss · Answer

@Will Pritchett Thanks for the kind words! That's what I'm trying to do. I'm going to wait until the market dies down a bit and I'll be saving very aggressively to that point so I can jump on a deal when I find it. I'm going to start attending REIA events and I'll do my best to find someone that aligns with the profile you just described. I think you've shared some pretty valuable advice - I've never thought about approaching it that way.

Thanks again Will!

Brennen Bliss · Answer

@Phillip Huber - Thanks for the advice. I'm really trying to do what I can on my own. I do have a banker who has said he will do a 20% down and I'm sure I'd need to save for at least a year before I can afford a home in Dallas. Everything here is incredibly pricey - this market is on fire. The problem with obtaining an FHA loan is that I will probably be going to college in the fall of '18 (I graduate from high school in '18 because I started a year late) and won't even be able to live off campus depending on the school I go to.

Would you recommend getting into doing this with family? I feel like that could cause problems - we have a great relationship, but it just sounds like it could go down hill very quickly (I guess Dave Ramsey's ideology has made it into my mind lol).

Thanks again.

Starting RE Investing As A Teenager - Advice? Experience?

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