Ok so i’m 19 years old, have made a decent amount of money playing online poker and would like to get started on researching in real estate investing and this forum definitely seemed promising. Like most people who get started on this journey I feel very overwhelmed with all of the available information. I plan to be doing ALOT of research on this and fill my mind with as much knowledge as I can just like I did when getting started with poker. I read books, posted on forums, practiced and gained experience so I reaped benefits… I hope for investing to be the same way. So anyway, my questions are:
With $40,000 of investable income, is this a decent amount to get started with in real estate investing? If so, what kind of profits are possible with this amount?
What are some good books to be reading in addition to reading up everything on these forums?
With $40,000 what would YOU do with the money with the knowledge that you have… like what are the steps that you would take (ie… go in the newspaper, find a home being forclosed, buy under market value, fix it up, resell it, research XXX in your area)
Are there real estate courses I should be taking on investing… or seminars, or some type of thing I can take which will speed up my learning?
I am very impressed. t age 19 and $40K and wanting to be an investor wow. Sounds to be like you have one kick ass burning desire. I like poker too. My daughter has time to play in local tournaments and has a blast and Bingo too. I have known investors that were very successful buying the cheapest property in town, just above slums, and fix them and refinance and get all their money out and rent them for a strong positive cash flow. This is one sure fire way to build an empire. I had one going, over a million in equity until I had to build out house. See my success story " We Had to Build This House" to get a full picture. This was even before the East side of Austin became red hot. Perhaps the almost 50 houses I owned would have been worth even more than the million equity today. I have started over again for the third time and am setting the world on fire. I made $100K in Killeen on 31 units and am about ready to close on a 30,000 foot building in Corpus Christi where I should make $200K in cash or cash and equity if I take in a partner after the rehab and refinance my hard money loan. I am doing this deal with about $50K of other peoples money as my down payment. Sure I am paying a high rate for the money 36% and if you have a better idea I too am all ears. The end result is all that counts and I know this project will be successful despite all the road bumps along the way so far from my lender.
Learn and study hard but sounds like you will not need much to learn the ropes. Set a goal to have a deal closed by 1/06 or even sooner. Asking questions is a sure fire way to learn too. It really does not matter which form of investing you choose and you can even to several at once. I have two rental now in Killeen, Tx and am doing two fixers and am doing the commercial deal in Corpus and looking for another in Houston and or Midland or Odessa. There are all sorts of ways to make it. Some get rich quick and seem to have the best of luck. Some do it slow one $50K crap house at a time but all have the burning desire you seem to have and some knowledge and the willingness to get it started and follow through with a plan. Get a plan and get going. YeeHaw.
Hello, Ted I enjoy reading your postings.
Python49, Ted’s best point is using OPM (other peoples money) to invest in RE. He also mentioned Hard Money. You will want to keep your credit good and use a traditional lender in your area. Use a HML as a last resort. My best advice for you is to keep doing your research and reading all the RE material you can find (for free). Also, your best source of information will be joining a REI club in your area. That is your best investment by having a membership and access to other investors every month.
First off I would buy Tedjr and REOconsultants a hot rod we will share it!! LOL
Now seriously I would leave that money in the bank there is alot to be said about seasoned funds! That way when you go to get a loan you have the money in the bank! ALWAYS USE OPM (other people’s money) until such time you have your own…
Are you looking to buy and hold or fix and flip, Or what were you thinking?