Well I have just happened to stumble across this forum and I like what I see so far. I am 20 years old at the moment and I am looking to get into REI. I dont really know much about the industry but I am eager to join my local REI club and learn.
But my question is…
At the moment I have $30,000 saved at the moment and I would like to invest it in a more tangible investment ie RE. With the speed of the appreciating market can anything really be done this day-in-age with 30k? Various people have told me that you cant really do anythign with that kind of money and to lay off it until I make more money.
I dont really know much about the industry
I would advise against throwing your money into anything you didn’t know much about. You wouldn’t even need your 30k to get started but you would need to learn about RE investing. Learn everything you can. Take $100 from that 30k and go buy several books. You seem to be on the right path. Stick with it.
Thanks for the rather quick reply. I definately dont plan on doing anything with my savings until I am educated and confident in my REI education. I just dont understand how someone could go about getting a property with much less then 30k…But I suppose thats why I have to learn.
Yea…I did well when it came to saving my money. I have also obtained a credit card in January and have used it a lot, paid bills ahead of time, and never paid minimum payment.
Honestly I dont really know what would really be beneficial to me. It seems like holding for a cash flow can take a lot of time to actually profit from, but I like it because its nice to have someone else pay your mortgage. Buying, fixing, flipping and etc seem like the repairs would cost me more then I have in savings but I dont know for sure.
Also another thing that I am up against is the price of RE in my area. I live in Bergen County, New Jersey and property is through the roof.
Well you can go to the REI Club of your area, then get investors that need cash for rehabs.
You can become a hard money lender. Get more info in how to, you would love it.
You can get very good return of your money wile you learn the way to REI.
There are OLD investors and there are BOLD investors!
I still have of yet met an OLD BOLD Investor.
I was bold when I was your age I had a room under a bridge and little to no money.
So I was a BOLD investor went out and bought 5 houses in 45 days and got cash back on all of them. Got to the point where I had over 70 properties and then I became an OLD Investor. Sold all the properties and turned them into interest bearing notes at 13.99%
A couple of years ago I would have told you to be BOLD now I will tell you to relax and wait for a deal. (WOW I can’t even believe I said that).
Look into educating yourself first thing I would check into is putting some of that money into tax liens. Where else can you get 13% interest on that money while you are learning?
I suggest that everyone starts by being a birddog/wholesaler learn the business. Keep the best and wholesale the rest. You do this correct who knows you might just find a property for 25,000.00 that you can pay cash for with a large equity position. Buy it and get a HELOC (home equity line of credit) for the full appraised value. Use that to by the next. Then do it all over again. Turn your 30k into 100k then 100k into 200k and so on.
WHAT A COUNTRY!
Let me think what else I did that was 11 years ago!
Oh I know I had a friend of mine (whom was quite older) add me on as a card holder on 4 of his cards and when the cards came I had him shred them. 45 days later it showed on my credit as 4 positive lines of credit. That is what I used to buy my first houses.
It’s awesome that you’re getting into the game this early. It’s hard to find other young, motivated people (I’m 21 myself) out there looking to get with the program and get into real estate investing. Kudos to you man! You’re right this is a pretty good site to gather some good info and contacts; I just started in the forums, but I’ve met tons of people via my profile.
A Mortgage Broker, like the one I work for, processes or brokers any particular loan but doesn’t necessarily finance the loan.
There are hundreds of wholesale lenders that work with Loan Brokers, which means when I assemble a loan I can pick the best rate and terms from among them.
I suppose a more correct suggestion would have been “Mortgage Broker”. My office works with a handful of “private investors” who lend money (at exorbitant rates) to persons who need construction loans or some kind of temporary financing.
If you can locate a solid mortgage broker, he or they should be able to tell you more about investing and have the necessary forms to set it up for you. I believe your money can be insured, but I’ll have to confirm that.
Books to read, which I have read and courses I have taken:
Wholesaling for Quick Cash by Steve Cook
Rich Dad, Poor Dad by Robert Kiyosaki (you may be past this stage)
E-Myth Revisited by Michael Gerber
Ultimate Buying and Selling Machine by Larry Goins
Motivated Seller Magnet by Ben Innes-Ker
Science of Getting Rich (Motivational and inspires creativity go to http://www.scienceofgettingrich.net/index.html free e-book available)
Every week I listen to free tele-conferences and webinars. Larry Goins has Brain Pick a Pro weekly calls.
Plenty of free information out there and articles you should read but you will eventually pick something you feel comfortable trying in your area then stick to it. There are so many ways like Owner Financing, Lease Options, Note Creation, Seller Carryback, Wholesaling, Rehabbing, Subject 2, etc. to buy homes that you should HOLD ON to your $30K as tightly as possible unless absolutely neccessary. Always try to come out AS LITTLE out of pocket because once you start spending it you will think that’s how it’s done and once you deplete your funds you will stop investing and waiting to cash out.
Get familiar and comfortable using OPM = Other People’s Money
I wish I started my education when I was 20 yrs old. Consider yourself fortunate and count your blessings because you’re way ahead of the game at your age. Keep going and persevere and prosper.
Just an FYI. I just bought 2 more books off amazon that have great reviews and are written by well known people in REI. I’ll be honest and tell you that I haven’t read them YET. But for the cost it sounds like it definitely worth it.