Need Serious Applicable Advice for Young Beginner

General Real Estate Investing
1

Let me give you a little back ground first.

I’m 19, a cashier at walmart, moved out on my own a few months ago, I’m getting married in the summer of 2010, and I have virtually no cash saved up (though I am working on it).

I am not cut out for the normal work force, my dreams are too big and I know there’s too much opportunity to sit (or stand) around all day working to make someone else alot of money while I make minimum wage.

I don’t know how, but somehow I got interested in Real Estate. Maybe it’s because both my parents are Real Estate Appraisers and the people I’m currently renting a room from are too. Idk, but I just bought Dolf De Roos book “Real Estate Riches” and fell in love with real estate and have been hard core reading about it ever since. This all happened about a month ago. So I’m very new to it. But at least I know what REO’s are, what the MLS is, and a few other things I picked up from my parents.

Basically what I’m looking for is your advice on what you’d do if you were in my situation and were desperate to become financially free through real estate investing.

I’m checking out as much as I can on this forum and other sites (btw, any sites you can recommend relating to real estate investing would be greatly appreciated) and reading as many books as I can. But I’ve got to do something. What should I do? What would you do if you were in my situation?

My current plan was to become a Realtor and learn as much as I could about the market here in the Twin Cities (in Minnesota) and then after learning a considerable amount about real estate while making commissions off of it I’d start investing (becasue I’d also be raising the capital to start investing.)

I was thinking about whether or not I should get a mentor, would you if you were in my position? And if so, how would you go about finding a mentor?

Long and short of it is, I’m desperate, I don’t make much money at all, but I am willing to try almost anything to gain financial freedom. At this point, if all I can do is start down the right path, I’d like advice on which path would be best (think, “What would I do in his position?”).

My goals are simple but big, be a millionaire by 25 and/or a multimillionaire by 30. That’s a million dollars in net worth with a substantial monthly cashflow (5,000+).

Any advice is greatly appreciated.

Again, what should I do in my current position? What would you do in my position?

Should I seek out a mentor? If yes, how would I find one?

And do you have any advice on my current plan of becoming a Realtor and learning/saving up till I can invest? Do you like it? Do you have better ideas?

Thank you very much for your time and advice.

2

Funny thing about people who recommend that someone like you get a mentor…they usually are a “mentor” and will be glad to teach you for a nominal fee.
You can learn a ton from this website and should start here with the forums that interest you.
You are starting from ground zero here. No education, no savings, and a low paying job. You need to do your absolute best to live BELOW your means. That means you drive your car til the wheels fall off. If you and your future wife can make it with one car, do it. Eat at home. Do without buying soda/coffee while you’re out. Be very thrifty.
Understand that there are all kinds of Realtors out there…you may even be working with some at Wal-Mart because they can’t make enough by just being a Realtor.
If there are other better paying jobs out there you can do, consider switching.
With no savings, buying to hold is probably not much of an option in today’s market. You can try bird-dogging deals for investors for now to make some quick cash.
If you want to read some REI books, see what your local library has and read articles online.
One word of caution on setting goals:
It’s nice to have dreams, but if you always set your goals out of your reach you will constantly be disappointed. Set smaller “mini-goals” along the way. Have the long range vision, but be able to see the check-points along the way.

3

You need to tell us what you mean by "financially free’. For most of us, financial independence happens when our PASSIVE income supports our lifestyle. When this happens, we don’t have to work, don’t have to do another deal to put food on the table.

Notice, I said “passive” income. Passive income comes from your investments. Becoming financially independent does not happen overnight, or even quickly. Rental property ownership is one way to financial independence, but it will take you quite a while to get there. This could be a 30 year retirement plan.

Inheritance and winning the lottery are two other ways to achieve financial independence provided you prudently invest the money.

4

Your passion to become wealthy is one of your greatest assets! Now, you need to get some experience by ‘doing’ deals. In this economy there are many deals to be done and I would suggest small deals and then build on that experience.

The goals you have stated are lofty and with some maturity in you and your business, they will be tempered to something more realistic. Having said that, shoot for the stars, but keep one foot on the ground!

Dolf’s program is quite good, as are most of the courses available online. Find something you can do from those courses or partner up with someone who is experienced in ‘no money down’ deals and share those deals for the experience. Eventually, you can do deals and develop wealth.

Personally, I would not spend the couple of weeks and $500 + to go to classes to obtain my license. I would use the $500 to get into a deal and never look back. That’s what I did and it is 20 years and 400 deals later!

Keep focussed and climb the stairs, one step at a time.

Rob
R.E. Investor/Mentor

5

Lol thrift is something I strive for and have a fair amount of success at. I always budget and control my expenses and live far below my means.

As for realtors, lol justin I actually do work with a realtor at walmart, he is a fellow cashier. Funny that you mentioned that. And I understand what you mean but there are millionaire real estate agents too who got there mainly by just being incredibly good at what they do. So I’d assume that if I learn enough and work hard enough I could get a nice pay check out of being a realtor. And I’d learn some of the necessary skills to invest.

Yes, I know about keeping a foot on the ground and setting mini check points to gauge where I’m going, long term/short term goal setting, planning backwards (seeing yourself five years from now and then imagining how you got there) and all of that. I’ve read quite a few motivational/goal setting/self help books. Kinda tired of them… lol wanna move on to real data that can help me.

Financially free means exactly that to me Dave yes, having a passive income that exceeds my expenses to get out of the “Rat Race”. 30 years maybe, but I’ve read more then a couple of books and stories of people who did it in less then five. My question would then be, if them, why not me? They started bottom up, many of them with nothing (or less then nothing, being in debt and all) and they made it to millionaire status and financially free in 5 or less years. So why not me?

Thank you Rob for the advice. I do like the idea of taking the money and investing it in a house, one problem though, I’m totally clueless on how to invest and what to look for. I’m glad I found this website and will continue to use the tools on this website to learn, continue to read, continue to ask for advice, but I need a better job then working at walmart (and I’ll get one as soon as I get a car in about a month) and being a realtor seems like a good idea. Do you have any better ideas? I’ve had one person suggest I work for the “We Buy Ugly Houses” franchise and that seems like a good idea also, but do you have a better one?

Thank you all again for your advice.

6

Most of the ‘we buy ugly houses’ franchise owners I know cannot afford to hire anyone since mid 2006. Becoming a R.E. Agent is viable, yet it did not make sense for me. Much more freedom buying/selling without a license. I’m not a fan of gov’t interference and restrictions/regulating, etc. Anyway, learn how to do one type of a viable deal in this market, do it often and get good at it and you won’t need a job.

I tell my real estate investor students the same thing. If you apply for a job, get a job, trade your time for a small wage, wait 2 to 4 weeks from the onset of your employment to get a check, you could use the same time to learn a type of transaction, do the deal, make the money, be in and out of the deal, and make much more than a job would pay. If you release yourself from the ‘job’ mentality and get into business where your passion is seeded, with a total commitment, a bit of knowledge, and massive action, you will earn the money…far more than a job will pay.

OK…that’s one humble man’s opinion.

Rob
R.E. Investor/Mentor

7

Hi Everyone,

I’ve been investing in real estate for ten years now and have done quite well.

I hate negitivity. I bought the Carleton Sheets Course in the early 90’s, I bought John Becks course on buying tax notes and get the Playboy mansion for $300 in 2000. All I can say is, you’re right, for the most part these guys are salesmen not real estate investors. HOWEVER, I did learn something, no matter how small from each course.

It isn’t what courses you’ve bought, what you know but your heart and will to realize your dreams that will determine your success.

I wanted to get started but I didn’t know what I should do first. So I prayed. YES I prayed. The greatest mentor I have ever know is God. . . and he doesn’t sell books, CD’s or have late night infomercials.

The very best thing we can do here is what a few previous posters have done and simply tell you about our FIRST deal, exactly what we did, how we did it and what we should have done differently.

My first deal was complicated but brilliant and I used a bit and piece of every course and book I had ever read to do it. One thing I had chosen to do that I never read anywhere was learn about house and home repair. Just the basics because many of the most incredible deals are properties that need just a little work., most of which I did myself. . . and I’m a woman.