As a 16 year old, what should I focus on?

Question

Hey there! I'm a 16-year-old kid, based in Los Angeles area, looking for some real estate advice! I would really appreciate if the bigger pockets community could help me out, and post a couple of tips on how to get started, what their experience has been like, and what they do! Not only that, but I would also love to hear from some long time, older investors, to see what they think about today's markets (as they have been through so many market types). I'm also always looking for new connections, so post as much as you can!

Nathan Gesner · Answer

I recommend you build a strong foundational understanding of real estate investing. 1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turneror The Unofficial Guide to Real Estate Investing by Spencer Strauss. 2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey. 3. As you read these books, watch the biggerpockets podcasts. This will help clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes. 4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. Biggerpockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you. 6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education. You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

Elliot Shoener · Answer

My biggest giveback is to helping young people get a strong foundation in financial literacy and how to set the road blocks to building true generational wealth. If you are 16, ask your parents to add you as an authorised user on their credit card so you can start building credit. At 18, get your own. Your primary focus in teens/20s is to build credit which you'll need later for leverage, and make as much money as possible. So besides building credit, work/earn as much as you can. At 18 early 20s you can buy our first home (duplex) and start your journey. In the meantime, download Audible. Listen to as many podcast, and listen to as many books you can on real estate, credit, investing, mindset as you can. If you want direct suggestions DM me I am happy to mentor you as this is my life mission and give back.

Erin Dreher · Answer

I do agree with many of these comments. I would also try to work this summer or as a helper (assistant) for a local realtor. I would try and find a realtor that is well established. And maybe next summer you can try and get a summer job with a property management company. I think its also very under estimated to have a background in maintenance. The more you understand about maintenance the better off you will be. This will be most beneficial if you decide to do any remodeling and for just general maintenance that will need to occur on your property. Check to see how old you have to be to take classes to become a realtor if you decide to go that route. The more you learn the better off you are from all aspects of real estate.

Shane J. Renard · Answer

If I was starting all over again, I would shadow someone in the local area. Work for free to learn and be mentored by them. Help anyway I can. Ask to trade my time for theirs.

Allen Collins · Answer

First off, I think it's amazing at 16 you're interested in REI! I would recommend trying to find someone in your area that is in the business and work for them. Watch and listen to everything they do and that person can possibly be your partner on your first deal. Just like Nathan said, take some time everyday and educate yourself. When I first started researching this topic I obsessively consumed content like my life depended on it. Not even 6 months later I'm looking for my first investment. Good luck!!

Dan Sheeks · Answer

Hey @Sargis YeghikyanCongrats on your ambition! Bigger Pockets recently published a book that's perfect for you! It's called First to a Million. You should check it out! If you have questions about the book, let me know. I am the author. :-) Also, check out this forum post. In addition, DM me if you are interested in an online community of young, like-minded individuals. Best of luck to you!

Robert Reynolds · Answer

I think it's awesome you are 16 years old and interested in real estate investing. My advice would be to get a job or internship this summer in a related field (Property Management, Realtor, Construction, Finance) and get on the job experience. Also keep reading and listening to podcasts. There's so much free knowledge and information on YouTube and your public library. I have so many mentors, that I've never met, but have just read their books and listened to their podcasts and watched their videos. Also if your parents aren't interested in real estate investing, try to teach them all you've learned and see if they will be willing to partner with you in the purchase of a short term rental or multi-unit building. You can manage it yourself. There's no better way to learn than to do.

Eliott Elias · Answer

Network and meet as many people doing what you want to do as possible. So many ways to make money in real estate, you pick

Bhekizwe M. · Answer

Education is a big one.Learn the exit strategies to profitably explore any deal.Books, audio, seminars are greatSave for downpayments where you can, keeping a high saving rate for that.Starting early gives you that advantage of letting compounding work in your favour, for a long, long time.Network and establish the contacts for team work

Scott Krone · Answer

@Sargis Yeghikyan - great aspirations. Continue to learn, be a spunge. As Robert Reynolds suggested, summer internships in any area of real estate - banking, construction, developer, property management will assist you in your future career. Each summer we have interns that try different aspect of our business. We and they both view it as a means to learn if they enjoy the job as well as the industry. Between the time I was 16 and graduated from college, my career aspirations probably changed 15 times. It was through experiences I learned what I enjoyed and what I did not enjoy. Either way have fun along the way!