Wholesaling in College?

Question

Hi BP Members!

Investing newbie here! I've decided to take whatever steps I currently can to become financially independent and grow a business so I don't have to work in a conventional office.

Here's the problem...

I'm a college freshman. School is my priority. However, I don't have a part time job like many other students. This means that I have ample time to devote to starting my investing career. I'm thinking that wholesaling is the best way for me to start, as I don't have a lot of money to put down on a mortgage or rehab. My parents are very supportive of my dreams and will help me start off financially. My mom's actually been putting money in to a separate account since elementary school when she noticed that I was constantly watching HGTV and Flip This/That House instead of Cartoon Network like most other fifth graders.

I have about $8,000 that I can use (if necessary) to start. I'd be able to work on Saturdays and Sundays, as well as another two nights a week for about 6 hours. I always find time for homework (my social life is pretty busy, but my dreams are becoming more important) so I'm not worried about falling behind in school; I've always been able to make good grades and stay out of trouble. Never even gotten a parking ticket! Oh, I also have a car, so driving around looking won't be an issue.

So, how should I start?

Should I contact an investor in the Atlanta area and see if he/she will mentor me? Are internships available in this business? I'm studying business and economics in school, and have taken more advanced classes in those topics, if that makes a difference.

Should I begin wholesaling independently right away? If so, should I just start compiling a buyers list, and driving around scouting out properties, putting up bandit signs, sending letters, making calls, etc.?

Or, is this even something I should pursue right now? I feel like I'm ready to do something to ensure my future financial goals, and real estate is my true passion. I love everything about houses and buildings. I love designing spaces (which is why I want to start rehabbing one day) and I love running things and taking initiative. I love being a leader and working independently.

Any advice?

Thanks,
Simon

Marc Bodinger · Answer

Well the fact they are expanding is a positive sign. I do not know the details of the institution but expanding probably means they are buying up surrounding land to eventually build on.

Do the residential properties have retail space near them?

Simon K. · Answer

I'm at Emory, which is constantly expanding. I'm not sure whether they build on existing, undeveloped land, or buy new. The campus is in one of Atlanta's most desirable neighborhoods; 3/2 SFHs go for about $400,000 on up.

Marc Bodinger · Answer

My only concern with owning/renting college properties is how they are kept up during the lease. The renters will have parties so how much damage will happen during the school year?

I know in the northeast and my alma mater Temple University, they are buying up land one square block at a time for the main campus. Are the schools in Atlanta doing the same?

Simon K. · Answer

Thanks for the great ideas guys!

James Vermillion, I completely agree with you about continuing to learn. I've found a wealth of information on various REI sites, but none so honest as BP. The amount of knowledge I've absorbed by scouring these boards is unreal.

As for your third point, I'm doing just that, for now anyway. I leave for break tomorrow night, and won't be concerned with much else than spending time with friends or family, so I figured the next 30 days would be a good time for me to actually start planning my business. I've been listening to a lot podcasts (I quickly weeded out the hour long advertisements) and have MANY more waiting on my iPhone.

Marc Bodinger, great ideas! I do have a lot to learn about my local market, so I think that is a good first step to take.

College housing is huge in Atlanta. At least half of my friends live in communities off campus.

My parents are purchasing a property in Atlanta to double as a place for me to live, and for them when they're in town, which (thankfully) isn't all that frequent. They plan on signing it to me after I graduate, and I plan on finding some way to use it as a rehab or LTR. Any advice in this case?

Marc Bodinger · Answer

Hey Simon K. I agree with James Vermillion in that you should keep learning and understanding the market. In my opinion, $8,000 may sound like a lot of money but you may need that for a rainy day.

Here's an investment idea, since you are a college student, why not invest in college housing? I have seen pictures of these new properties being built across the nation, they are luxury resorts and not dorms/apartments. To me that's a booming business that is in the 1st or 2nd inning of its bull market.

James Vermillion · Answer

Simon, you are in a great position being young, in school, and with access to time and money.  I would say starting investing while in school is certainly a possibility. Here are some steps I would take:

1) Keep learning:  I would take the spare time you have right now and spend a lot of it on BiggerPockets, reading, and talking to others about real estate investing.  You have a great opportunity to spend time to learn the fundamentals the easy way instead of being forced to learn them the hard way.  Your life will only get busier as you go, so if you can spend time to learn the fundamentals, you will be far ahead of your peers.

2) There are some great people in real estate that will mentor you, but for many people they are hard to find.  Do you have any family members or family friends even remotely involved in real estate...perhaps they know someone who can help you get started.  If not, perhaps someone right here on BP would be willing to have lunch with you and give you some help about getting started in your local area.  I would caution you about paid mentorships/coaches...while there are some good ones out there, there are many others that simply want your money.  I would save that money until you are ready to make it work for you.

3) I would not start wholesaling right away...soon, maybe, but not right away.  First you need to make sure you understand the wholesaling process, figure out what kind of business entity you want to setup, get a good feel for your market and what investors are looking for, etc.  If you start before taking some basic steps, you will likely make some mistakes and damage your reputation.  There are a lot of good threads and blog posts right here on BP that can lead you in the right direction.

4) Look into the investing associations in your area.  By attending you might make some contacts who can help you and learn a little about the market.

And finally, on if you should pursue real estate right now...that is up to you, but I think if it is what you want to do you are in a great position...just do not let it kill your grades.  I wish you good luck and hope some others, especially those local to you will chime in with some advice.

Simon K. · Answer

Anyone?

I'd really appreciate any advice y'all could give me! :)