I am 18... What do you wish you knew at a young age?

Question

Hello! I am 18 and brand new to BiggerPockets! I have listened to 20+ hours of BP Podcast and I wanted to throw my first post out here because I cannot believe how active this forum is.

I am 18 and already have $2,000 in my personal ROTH IRA which I am proud of because I am pretty young and 2k is a big chuck of change for kids my age. I figured while I’m young and while I’m only making pennies, I should put it into the market for the compound interest to work on it. My first question is if I should start slowing my retirement saving contributions and start saving my capital for Real Estate. I also am planning on getting my first Credit Card next week and I have been planning on getting one for a while, just to start building my credit. By my calculations someone would have to have about 20 cash flow properties to even make 72k at $300/month. I am very intelligent with finances and am hungry to learn. Thank you for your time.

•Should start slowing my retirement saving contributions and start saving my capital for Real Estate.

•How to make build portfolio and assets the fastest

•Why do REI lend money to other REI, when the REI lending money go out and fundraise to get more capital to invest?

•What are the tips you wish you had at such a young age?

Thanks, Jeff

Reggie Rearden · Answer

My biggest tip AND something i wish i would've done younger was READ all the real estate books i could. Definitely start with Rich Dad Poor Dad. Get in the proper mindset. After that book, I've been reading all the Bigger Pockets Published books i can handle. I only really started learning and studying REI about a year ago, though I've had rentals for a few years. I have 7 rentals currently and under contract for a 10 unit multi family. If i wouldn't of read books the past 12 months, i wouldn't be in the position i am now to purchase this large multi family. I've learned so much the past few months. There is no telling where i'd be now if i would've started reading years ago. Actually, i get pissed at myself for not reading and studying sooner.

Kyle W. · Answer

At 18, I already was enlisted. This isn't the best option for everyone, even myself since I eventually got out. However, I wish I knew about the House Hacking using the VA loans for 1-4 unit properties. Then after the one year term of living in the dwelling, get another VA loan on the next property. Always 0% down, always 4-plexes. I would have probably purchased around military installations. Now I have a large family and House Hacking won't work for us until I can start kicking out my kids. 16 years to go... Good luck on your approach.

Scott Mac · Answer

Hi Jeffrey,

Build up to about $25,000 cash in an FDIC account that you can access quickly as a first goal, then re-assess your situation.

Make your goal to accumulate that cash as fast as possible to dull the effects of inflation on the initial dollars.

Work more than one job and save 100% of your income if you can.

Good Luck!

Mike Dymski · Answer

To go bigger, faster. Scale matters.

I am 18... What do you wish you knew at a young age?

I am 18... What do you wish you knew at a young age?

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