All Forum Posts by: Hayden W Gibson

Hello everyone,

I've seen several posts on BP from younger people, like myself, who are in college or have recently graduated and want to get into the real estate game. I graduated from school a month ago and moved to Denver for a job. This last week I was fortunate enough to get my first investment property under contract (House-hacking and hopefully the closing goes well!). I thought it would be useful to share a few things I did while in college that set me up to hit the ground running after I graduated.

1. Get a job (if you can): If you can manage it, work while your in school. I was a business major, and my classes weren't crazy, so I worked full-time while I was in college. Obviously, not everyone can do that (if I was an engineering major I would have had a hard time even working part-time), but every little bit helps. Working helps keep school costs down, but more importantly, you can use your job to learn how to handle money. When you have an income, no matter how small or large, it gives you the opportunity to learn how to budget which sets you up for success once you have a better job after school.

2. Learn Excel: BP has some cool calculator tools, but I'm a big fan of using Excel to run numbers. Not only does Excel help you get more comfortable with running numbers, but I think it helps you understand what the numbers mean and how they are calculated. For me, I created my own RE calculator, and I used it to analyze properties while I was looking for my first investment. As an added bonus, you can use Excel for stats, finance, or economics homework!

3. Record your thoughts during tough days. I hated school. In fact, the thing that kept me grinding my classes was the goals and dreams I have for life after school. The frustrations and boredom are what will drive you to strive for more. The hard part about feeling frustrated with school or a job is that the feelings don't stick with you all day. You will be frustrated for short spurts, but then you tend to forget about the irritation. That's why jotting down your thoughts when you're frustrated and reading back through them works wonders. I used this approach in college (and still use it), and there is no better way to keep you accountable to your dreams and goals.

To my fellow young people, I hope this helps!

Hey Jason,

I'm new to the game as well and I'm in the process of looking for a house hack too. The first thing I would recommend, if you decide to house hack, is finding a good real estate agent who focuses on clientele that are trying to do what you want to do. It sounds like you think you may not be able to afford to house hack. The great thing about talking to an agent who has experience with house hackers is that they may have information about lending options you don't know about.

One thing I've learned as I've gotten started is that it's unrealistic to expect yourself to know everything. Find a professional who knows the game and make sure you soak up as much as you can from them.

Hope this helps!

Hi Joshua,

I'm in the process of getting my first investment property as well! From the research I've done, I don't think there is a "one size fits all" answer to your question. In my opinion, it's better to keep your money with a small bank or credit union because you often get better service and, more importantly, you have the opportunity to build a relationship with the people at the bank.

As I'm sure you've heard other investors say, real estate is all about relationships and the relationship you have with your bank is no different. I'm sure other more seasoned investors will have better insight than me, but that's my two cents.

Best of luck to you!

I'm not a developer, but I want to become one in the near future so I've educated myself a little but on the subject. 

Developing land doesn't necessarily mean you build on it. For example, you could get your plot zoned and subdivided and then sell it to a homebuilder. Development is basically a value-add proposition. Building structures isn't the only way to add value. Developing land it a time consuming process, so by getting it zoned and subdivided, you have created value for the homebuilder because they no longer have to spend the recourses doing that themselves. 

Of course, there are a bunch of different ways to develop land, that's just one example. I hope this is helpful!

Hi Payson,

I understand where you're coming from. I just graduated last month and am in the process of getting a house hack. While I was in school, I had similar feelings as you. I stayed in school (I'll outline the benefits below), and I think it ended up working out well for me.

Although I finished school, I'd be lying if I said I enjoyed college. Every day was a grind, but I think the fact that I didn't like it was why it benefitted me. I'm a firm believer that forcing yourself to do things you don't like gives clarity about what you want to do with your time. As an added bonus, setting graduation as your goal before you start investing makes you be patient.

Lastly, if school is driving you crazy, get a full-time job on the side. It sounds like you already have a job, but if it's part-time, try to add on more hours. Not only with the job help you financially, but it can also help you develop standards. Real estate investing is like any other business in that you have to strive for excellence to be successful. One of the best ways to develop that standard is while working while your in school.

I hope this helps!

@Brian Oberg I manage my parent's SFR here in Nor Cal and we have had the same tenants for about six years. In our situation, we have raised rents on a per year basis to match market rates. However, one of the most important things we've done to keep our tenants in our unit is to develop a good relationship with them. Every year we get feedback from our tenants, and we always make sure we're on top of any issues that arise. Being diligent and accountable builds trust, respect, and loyalty with tenants.

@Luka Milicevic, I also have some questions about getting started in the Nashville area. Can I reach out to you? Thank you

@Elijah Jay Dangerfield I'd love to connect! I'm just about to finish college and am looking to move to Nashville. Just like @Kyanne Mader, it's great to connect with people who have similar goals. Let me know if you'd like to discuss!

@Salvatore Lentini Thank you for the great thread. What's holding me up revolves around school. I finish my degree in September and I'm not quite sure where I'll end up after I graduate. I live in CA, but am going to relocate to either Nashville or Dallas. 

Everybody has made some great points. Here are a couple of things that haven't been said. 

1) According to the Hoover Institute, more than 13,000 businesses have left California in the last 10 years. I have a close relative who works in the legislature here in CA, and they have told me that the legislative committees do not consult accountants or a diverse set of economists to figure out downsides to their policies. Also, even though the capital is in Sacramento (Nor Cal), the state is primarily run in LA. That leads into point #2. 

2) I help run my family's ranch just outside of Stockton. The agriculture industry has basically been abandoned by the state. All of the water collected in Nor Cal gets sent in open canals to So Cal, and then we have to buy it back (unless you have a well on your property). Also, if you are a farmer, you labor costs are increasing about 8-10% every year, so a lot of small farmers are either selling or moving their operations. What I'm trying to get at is that CA has one of the largest agriculture economies in the world, and it employs tons of people. As more farmers move, it could impact the middle of the state.