Young and very very hungry

[John Stark]

Hi, my name is John Stark and I recently just graduated high school. Recently I have been getting very motivated about how money works and would like to learn as much as possible about how to make my money work for me. I’ve read “Rich Dad, Poor Dad” plus other business books. I’ve watched countless videos and have considered many possible streams of income from day trading, to owning a gumball machine. 

But, nothing interested me more than that of owning rental properties. I currently live in Ohio near a soon to be HUGE cracker plant. And I believe prices of houses are going to go through the roof. 

My question is, how can an 18 yr old with little savings come up big when it comes to rental properties. Should I save 20% down and loan a house out? Should I try whole trading? Is investing money into stocks monthly the way to go? 

I’m looking for anyone who has the knowledge I seek. Thank you for taking the time to read this!! Hope to hear from you soon! :) 

[Joshua Hively]

@John Stark Welcome to BP. I enjoy chatting with young people just getting started. It helps me stay focused on the fundamentals. I must admit, prior to a bit of Googling, I was wondering how big a plant that makes thin crisp wafers could actually be. Are you down around Belmont County? Real estate, in my opinion is one of the best possible investments. There are so many advantages that don't come with other investment vehicles. That being said, at your age if you remain disciplined in your investments the vehicle almost doesn't matter. Real estate is best used as a get rich slow investment. Its good that you are already interested in local economics but be sure not to avoid the macro. For instance, assuming the new plant will raise property values in that area, will they outpace normal inflation of other nearby markets such as Cleveland, Columbus or Pittsburgh. You can also look at market trends of other places with similar industry. I would try to avoid speculation and make solid fundamental investment decisions. All of the following ideas are discussed in detail in @Scott Trench's book "Set for Life" . Consider starting a career in real estate find someone to work for who will pay you and teach you. One of the best ways to get your first property is house hacking. Using a low down payment loan for a property up to 4 units that you will live in. Investing money into the market is usually worthwhile. I would consider opening a vanguard mutual fund account and just leaking say $100 month there automatically forever. Focus on aggressive savings to build capital for investments. A few years of aggressive savings now could say you decade of unnecessary work in the future. This response was quite the ramble but hopefully you will find something useful.