All Forum Posts by: Taylor Hughs

Taylor,

You are on the right track by asking questions now and starting to learn as much as you can. Vitaliy, gave you solid advice and did a good job of explaining some of the key issues. I would encourage you to learn the market you plan to invest in now and to continue to learn about the different methods of investing. I would also recommend that you do not narrow your investment options. I have been investing in real estate for well over twenty years and can tell you there are a lot of ways to make money in real estate. 

Your best route might be to buy a 2 to 4 unit property that you can live in and rent out the additional apartments. You could also buy a single family property that you can either fix and flip or house hack. Vitaliy provided some great points about the pros and cons of single family verse multi-unit investing. What I will add is that you may have a harder time finding private money partners willing to fund your investment deals when you are 18 and have no experience. 

Private investors want to invest in deals they believe will be profitable. Part of that reassurance comes from bringing some experience to the table and a proven track record of investing successfully. Ask yourself would you invest your money with an 18 year old new investor with no experience buying, or managing investment real estate? 

My advice would be to follow up with Vitaliy and pick his brain as much as he will allow. I would also focus on smaller deals, single family to 4 unit starting out, so you can establish some experience. I would keep detailed records of my deals to include photos that I could use later when I am approaching a potential funding partner. I'm not trying to discourage you from investing, I think it is a great idea. I just want you to go into your investing as prepared as possible. 

@Taylor Hughs I also recommend you reach out to McCaw Property Management. https://mccawpropertymanagement.com/ they are also looking for maintenance people. Even have company vehicles and work with college students too. Hope this helps. 

2nd part of qualifying for a loan is how much you make. Do you have a job? Or a relative that is willing to cosign with you? Preferably both. Credit scores do depend somewhat on your credit limit. One big factor on raising your credit limit is your yearly income. 

@Taylor Hughs I’m sure you probably have a cell phone. I think if you put it on your credit card and pay it off every month it should also help build your credit. If your parents currently pay that bill for you perhaps they will write you a check or give you cash to continue paying for it, or write the check to your credit card.

Another thing I will suggest for you to consider for later on In life once you get into a serious relationship is to NOT put your significant other on your credit card with your longest term length of being open. Sometimes if you need to remove them for whatever reason, a break up, or something else you may have to close the entire card and that can significantly reduce the age of your credit.

I had a card that had been open for 26 years and had added my wife that I had been with for 10 years. After 20 years together we divorced. At the time, the effective combined age on my credit score was around 14 years. The credit card company had to shut the whole account down and they were more than happy to give me a new card with a higher limit but now 6 years later the combined age of my credit is still only around 6.4 years. It probably wouldn’t ultimately matter to me but when you’re starting out and your age is only 2 years it matters a lot if you start closing accounts and your age drops down to 8 months. You won’t get loans.

Quote from @Taylor Hughs:

Quote from @Bruce Lynn:

I think a great learning experience in any of those places would be to go to work for a bigger apartment complex or Property management company as a leasing agent or maintenance person.  Either way you will learn a lot about real estate.  Maybe it can turn into a cheap place to live if you trade work for an apartment or room.  Either one of those jobs will really get you into the weeds and basics of investing. Maybe switch positions in year 2 to round out some of your skill.  Maybe 3rd and 4th year go to work for the owner as an asset manager.

Thank you so much, I'll look into applying to be a leasing agent or maintence person at some property management team, do you have any suggestions on where to look?

I think you probably need to decide where you are going to end up in college....unless you want to start working now.   In DFW area I would contact Allied Property Management, SPI Advisory, maybe in College Station -Madera Residential....those are some great operators.   Everyone needs maintenance techs right now.  It's grunt work, but learning all the tricks and in/outs of maintenance over a years time also sets you up well in the future.  

I think a great learning experience in any of those places would be to go to work for a bigger apartment complex or Property management company as a leasing agent or maintenance person.  Either way you will learn a lot about real estate.  Maybe it can turn into a cheap place to live if you trade work for an apartment or room.  Either one of those jobs will really get you into the weeds and basics of investing. Maybe switch positions in year 2 to round out some of your skill.  Maybe 3rd and 4th year go to work for the owner as an asset manager.

My advice would be to read the Bigger Pockets’ book First to a Million (and the workbook). It’s written for young aspiring investors just like you.

Read chapters 11 and 12 about building credit and credit cards.

Many banks will allow you to open a savings account and then borrow against the savings account and they put a hold on it. My first loan I did years ago was for $500, but it helped. That’s pretty much a no-brainer for a bank.Just make sure that it is a bank that reports on your credit.

@Taylor Hughs

Yup, thats the tough one.  Its a credit HISTORY for a reasons, and generally youc can't get a credit card until you are 18...

Get on, usually at college there are offers everywhere --- although, I hear now you have to get a secured card.  Start whereever you can.

There are plenty of online "tutuorials" on how to build credit.  In short, just don't carry a balance.  If you are fearful of going into debt (which is a whole other problem), just put a few charges on it a month.  When the statement comes, pay it off in full.  That builds the HISTORY of you being able to manage the credit/debt.

Never (well, in your time scale) close your initial card(s).  the credit HISTORY only looks at open accounts for some reason.  

There is NO reason to be actually paying interest --- at least on credit cards.

Hope that helps to get you started.  Happy to chat.  Good luck.