Alot of people say they wish they started at a younger age when they started Real Estate Investing. So what would all you experts suggest at my age is the best way to go in this investing?
Age Is Never A Factor! You can do whatever you’d like. You can get started in any of the strategies below!
If your completely new to Real Estate, then I’d suggest:
Birddogging (Property Locating): This is usually where begginners start off and it allows them to get their feet wet in Real Estate Investing. Those who choose this option usually make it a side gig because they are working their full time job and they want to do something with minimum risk, invesment, and time. However, even if you’re a full time investor, you can locate properties for other investors as a way to bring in some extra income. Property Locators simply find the properties that the investors are looking for and pass it onto them. The investor usually handles all the negotiations, paperwork, and closing of the deal. Some Property Locators get paid up front, but most get paid when the deal closes. Typically $500 -$1,000 and even more in some cases.
To Learn a little more about Birddogging/Property Locating, go to http://www.reiclub.com/forums/index.php/topic,31214.0.html
Wholesaling: Wholesaling is like the next step up from Property Locating. Simply put, it is getting a deal under contract at a certain price and selling it/flipping it to another buyer at a higher price for profit. Example: Get the property under contract for $100K and sell it for $110K and make $10K profit (Estimate due to closing costs.) At this stage, as an investor you should be able to locate properties, negotiate, do the paperwork, and close the deal. If you don’t want to do all the work yourself, then find a Property Locator! :bobble
To Learn more about Wholesaling, go to http://www.reiclub.com/forums/index.php/board,24.html (Sorry didn’t have time to find you a post)
*Shortsales: Now some investors may see this as an advanced strategy and some may not. A shortsale is simply where the Lender/Loss Mitigator will accept less than what is owed on the mortgage in order to sell the property. Lenders do not want properties. (REOs) Therefore they are willing to work with Investors to get the deal sold. To be honest, its not that simple, as some Lenders/Loss Mitigators drive a tough bargain and they can deny your offer in a second. It’s best to present an offer that can not only make you a substantial profit, but that can be backed up by facts. Even then, some Lenders/Loss Mitigator can be difficult, and in those cases you should just move onto the next. There are so many Shortsale Opportunites out there. Look for sellers who are in default or in a depreciating market and find out their motvation.
To learn more about Shortsales, go to http://www.reiclub.com/forums/index.php/board,30.html (Sorry didn’t have time to find you a post)
*Lease Options, Subject 2 Investing & Owner Financing: These 3 strategies are like little brother, big brother, BIG PAPA! lol. A lease option is simply finding a seller who needs to sell their home and don’t mind waiting 12-24 months (typical) to get it sold. Therefore you put a buyer in the home that may not be able to qualify for a mortgage and you move them in there on a rent to own basis. Its best to screen your buyers beforehand so you will have an idea on how realistic it is for them to buy the home. You get paid an upfront option fee, monthly cashflow, and you even get paid on the back end. As long as you, the seller, and the buyer are happy, this will make you some nice profit. Subject 2 investing is taking it a step further by getting the deed to the home, (which gives you ownership of the home, while the financing is still in the seller’s name.) Again, you find the buyer that can’t qualify for a convential mortgage and you move them in on a Rent To Own Basis/Lease Option. Profit works the same. There are also other ways to make money with Subject 2 investing. Now that you own the home, you can offer Owner Financing. Where basically you become the bank and you finance some of what you want the buyer to pay you and they will pay you back over a time set by you. Hope I didn’t confuse you on my weak explanation :cool, but basically if the price is $100K and the buyer can only get $80K, then you can finance the $20K and have them pay the $20 back to you over time. There are pleny of ways to structure owner financing.
To learn more about Lease Options, Subject 2 Investing, and Owner Financing, go to
http://www.reiclub.com/forums/index.php/board,22.html (Sorry didn’t have time to find you a post)
Above all, the most important element of your business should be Marketing. Both Online & Offline! This is the most overlooked task and should not be taken lightly. This is what brings you leads.
LEADS = DEALS (Notice I just switched the D & the L, How Ironic? :cool)
To learn more about Marketing, go to http://www.reiclub.com/forums/index.php/board,31.html (Sorry didn’t have time to Find You A Post)
Anyway, I’m glad to see that you are getting started in Real Estate Investing. Even if you’re just getting started, in my opinion, you can use any of the strageges above. Real Estate Investing is the true vehicle that will put you on the right path to Wealth Creation & Financial Wealth. Even at your age, you’ll be able to knock many deals out the park. The key is to find the solution to the Problem. By doing that, you will do deals all day. Continue to educate yourself and take action. Don’t get stuck in information overload!
Hope that helps…
*In my opinion, these are the Hottest strategies in this market.
The number one first step to investing in real estate should be assuring your credit is good.
Pay all your bills on time.
This will allow you greater flexibility in whatever you decide to do.
Then save as much money as possible. Even if you don't buy a property right away it will build the habit and allow you to have money for little stuff like business cards, a web site, bandit signs etc.
READ EVERYTHING in the “Real Estate Articles” under the heading “Investing Articles” which you will find to your left under “Site Navigation”
Also get to your local Real Estate Investing Association meeting ASAP.
After you do these things something should click and just seem right as far as an investing strategy follow your instincts and explore that path in minute detail.
Information + Action = Results
The first poster posted a lot of info for starters. I just wanted to say learn what you can surround yourself with positive people, other investors, network and don’t let age get in the way. I wish started at 18 you are ripe!
Much Success and happy investing!
Who Needs Credit? :bobble
I started learning about real estate when I was 15. This is the best thing you could do for your financial life. At 15, I stumbled on a man named Donald Trump and learned a strategy he used to put $2 million in his pocket. At 15, I got addicted to real estate. My suggestion to you, educate, educate, educate yourself. Your education will cost you, so invest in you. Learn as much as you can from others, then do what you have learned without fear of failure. Experience is something you can’t purchase or go to school or college to get. You must get out there and do what you learn. I wish you much success young man.
I’m not an expert…but I wish I had started earlier as well. I’m in my late 20’s now. I think you should learn about the different methods of investing (buy/hold , flipping,etc) as the previous posters have suggested. Don’t let your age limit you , you are of legal age to sign contracts,etc so don’t let anyone tell you that you are “too young”. Also there will be the countless people that will tell you ,“real estate is risky especially now” …but a good deal is a good deal in any market. Everyday thousands of real estate transactions are closing and people are definitely still profiting. You need to be getting good deals whether you are going to hold properties and rent them out or flip them.
I would read all you can on this forum, learn as much as you can about your local market, read some good real estate books and take action when you are ready. Also finding someone that is currently doing what you want to do is great as well. Do you have any friends,relatives,etc that have SUCCESSFULLY invested in real estate?
Best of luck!