I’m new here and this forum seems like a great place to be a part of and share investment ideas. Here is some background info on me: I’m 20 years old at the moment, I have about $7000 in the bank. I work with my dad as a property manager; he buys houses and I am in charge of getting good tenants in them and once the tenants are in, I have to make sure they pay on time and handle any problems they have. My dad gives me $100 per house that I rent. I’ve been studying real estate investing for the past two years and know A LOT, more than the average adult in the U.S. So here is my dilemma. I don’t acutally work, in the sense of I have an employer and I get paid hourly, etc. I know I should get monthly commission from my dad’s rentals, but I do not. I have an intense desire to want to make money, I have all this knowledge about real estate investing but I can’t seem to put it in use which is very frustrating to me. My dad wont help me out much because he wants me to focus on my studies (studying to be a docter), which I am but I want to make money as well. I don’t work so I wont be able to get a loan from the bank. Does anybody have any ideas as to how I can put my money to use so it can start making money for me? My friend says to do internet marketing, but I barely know anything about that. I definetely want to buy silver because it will rise very sharpley in the coming years but should I put all my $7000+ into that? I love real estate and I have so many great goals and I want to start to invest in real estate now. I am open to any ideas you fine people can offer. I said I know a lot about real estate investing but not all so feel free to share whatever you can. I have a passion to learn. Thanks so much for any help!
Welcome! OK let’s see here…you have all this knowledge but can’t seem to put it to use; exactly what knowledge do you have (what strategies have you learned, what training have you had, etc), and exactly WHY do you feel you can’t put said strategies to use?
I apologize nsu, I hope I did not come off sounding arrogant. Well, I’ve been out in the field with my dad when he is negotiating purchases of properties, when and how he handeled all the paper work, his strategies (buying all cash, when to buy, what to buy) etc. I’ve learned a lot from him but I have also read close to twenty books on real estate investing because I love it so much. I’ve learned to purchase B class buildings in A locations, I’ve learned condo conversions, I have learned how to effectively communicate with potential buyers and clients, I’ve learned how to use office buildings and dividing up the space if I cant get it rented, I’ve learned how to utilize warehouse space, both from a location standpoint and from space standpoint (too big/too small for certain clients could pose a danger such as mechanic shops or iron works places). I’ve learned about triple-net leases, I’ve learned when is the right time to buy and sell, and 10-31 exchanges. I’ve learned all this but I cant seem to put it to use. Its frustrating. I think the answer is easy but I cant place it. I feel like if I just had $100,000 I could go and get started but with my $7000 if feel like I can’t get anywhere. I dont work so I can’t get a bank loan to purchase a property. I guess I could use my dad as a bank, borrow from him and buy a property with that money but I live in an area where property prices are high, the good stuff is far from me. My friend told me about wholesaling but I haven’t looked into it much.
Didn’t intend for you to read my reply like that, I was strictly asking for info purposes. Didn’t mean for you to think I was under the impression that you were arrogant at all.
I see now…the strategies that you seem to be most familiar with are those that require capital (ie, commercial real estate, buy-and-hold rentals, etc). You’re exactly right, $7k is an inadequate amount of capital/reserves on hand to get involved with either of those strategies.
May I suggest you focus strictly on mastering the several no-money or very-little down techniques as they relate to residential homes. That would encompass cooperative assignment lease options, wholesaling junkers, subject-to/seller financing pretty houses, and options on pretty houses. You can do all 3 of these without having to put much money down nor would you necessarily have a need to raise capital, nor would you need to use your own credit.
Also did you know you can wholesale commercial deals as well? Your commercial background with your dad would give you a great advantage in that regard. The wholesale fee checks are MUCH bigger for commercial.
Samson,
YOU HAVE READ 20 BOOKS ON REAL ESTATE BECAUSE YOU LOVE IT SO MUCH…!
Samson, you are very lucky because you have ALREADY figured out what to do with your life. You just don’t know it yet. You are studying to be a doctor, but you didn’t just read 20 looks on hip replacements, now did you?
Instead you read about 1031 Exchanges, Triple-Net Leases, buying-selling stategies. You already know more than most real estate agents, many of whom have only read the test questions to pass the licensing exam.
I’m advising you to study and spend your time doing what you love. Drop the doctoring. It, too, needs full time attention and focus to excel. As a 20-year-old with a huge desire to learn real estate, you are already in the zone to excel.
I recommend that you get your real estate license as soon as possible. Then your Broker’s license with a specialty in Commercial Real Estate. Immerse yourself in what you love. You will have a rich and fulfilled life. You will eventually buy and sell your OWN property, with all expertise.
Wasn’t Bill Gates studying law or something when he dropped out of Harvard to pursue building computers in his garage? If you do what you love, you can’t wait to get up in the morning and start the day’s adventure. A great spot to be in. You’re a lucky young man.
Ahh, you guys are great, thanks so much for the support and info! Nsu, I get what you are saying, start with the small ins to real estate investement, where as with me I was just thrown into the big stuff. I’ll definetely look into all of that stuff, thanks for all the ideas. Furnishedowner, I dont know if I can give up the doctoring. I know it is VERY time consuming but I love the hospital atmosphere and helping people in the medical field just as much as real estate investing. While I havent read as many doctoring books as I have real estate books, I’m in pre-med in college in my third year. I’ve spent just as much time learning real estate investing so far to reach my ultimate goal of being a multimillionaire as I have for studying to get into a good medical school to reach my goal of being a great doctor. If I love both just as much, you think I should give up one?
No need to give up one for the other. Why not use your medical degree to generate the investment capital that you will use to buy your investment properties?
samson, I was reading your original post and I have one question. It is not for me to know but for you to understand about yourself. You say you are studying to be a professional but you have a strong desire to make money. Why do you want to make money? Money is not a thing. Making money for money’s sake makes you a miser. You make money for a reason. If you decide you don’t want to work in a profession you will need money to retire yourself. In that case you need to have a number in mind. Do you need $2,000/month or $10,000/month? Do you want the money to buy a big house? Then do you need $100,000 or a $1million? Are you wanting to buy a car? Then do you need $15k or $90k? Or do you just want a pile of cash to throw on the bed?
Once you decide that it will make it easier to decide what your next steps need to be.
If you actually have all your needs housing, car, spending money etc, then go ahead and continue with your studies. Become a doctor and see how that goes.
Yea Dave, that has been my plan for a while and I still plan on doing that. I wont be making money from being a doctor for about the next four years, until I begin my residency so I was wondering how I could start now. But bluemoon, I have answers to all your questions. I dont want to make money just to make money. I have many reasons that are very important to me. I want to be generating income from my investmets totalling $500,000+ a year. I do want to live in a big house. I want a family eventually and I want them to be happy and I want to provide them with the things they want and need. I have a passion for cars, worked with a master mechanic for a while, and there are four cars that I absolutely love and want to own. I want to open my own practice one day and/or build a place that people can benefit from like a library or hospital. I have a few goals that require a lot of money which is another reason that I want to make a lot of money. I also want to help people, not only with the money I will be generating, but also if my investments can help them, such as getting them a place to live, etc. I want to travel, have a great time with my friends and family, etc. There are so many things I want to learn and continue to learn. I want all this and more without having to worry about money. I just dont know how I can start now with the knowledge that I have which is why I started this post but you guys have given me great help and advice.