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General Real Estate Investing
1

way to get started and build a solid foundation? Some background information. I am a 19 year old college sophomore looking to get into some aspect of real estate to generate some cash inflow. I have just recently got my first credit card and are now using that for all my purchasing. I have also just opened an account with a jewelry store.

Basically what I am trying to figure out is what is the best way to establish myself in order to begin my future with real estate. I have been researching and I am thinking I would like to begin buying, rehabing, then renting homes. I have about $10k in the bank that I would be able to play with…

If anyone has any insight to give to a rookie it would be greatly appreciated.

Thanks.

2
  1. Know your market
  2. Understand how to calculate cash flow
  3. Read, read, read

In order for a property to have a positive cash flow it needs to be bought really cheap.

As far as money is concerned you really don’t need that much to purchase your first property. If the house is bought at 70% of the market value the house will use its OWN appraiser and loan you 100%. But don’t take anymore than needed!

Keep your credit clean and there is no stopping you!

3

c,

first, don’t “play” with money… :stuck_out_tongue:

you’re going to INVEST that money.

how and when is a matter of time and education.

you’re 19 so you’re young. this is good. you’re ahead of the game. but if you “play” with your money, you can kiss that money goodbye.

don’t buy depreciating items that turn your cash into trash. rule number one.

build your credit by using your credit card once a month - pay it off, every month. cancel the jewlery store CC. that’s garbage.

consider reading or listening to some audio/CD stuff on business.

visit your local library and for about 1.85 in late fees, you can get AN INCREDIBLE EDUCATION in about 6 months, start doing things you NEVER LEARNED IN SCHOOL for the past 18 years…and within a year - you’ll find that you have a business with its own business bank account, credit card, etc.

by the time you’re 21, if you do it right, you’ll probably have spent about 2k of that money getting things “in order”…within that time, you could take a realtors course and maybe improve your salesmanship skills.

in that time, you might consider toughening up and getting ready to LIVE YOUR LIFE ON YOUR TERMS.

the other option is of course, go to college and do all this during that time and then at the age of 24, have a college education under your belt - but if you’re going to spend that drinking and gettin laid, then forget it - it’s a waste of time and money.

and then there’s option 3 - work for the man and live by the rules of others, like your employer and the government hand-out line.

ppppsssttt…option 1 or 2 is better… ;D

4

So say I find a GOOD deal and decide to take the next steps in order to own the property so I can either rent or wholesale, should I get it financed under my name or should I first start up a business and then try to get it financed under my business?

EDIT: I am sure these questions have been asked more than enough times on this forum, so is there a FAQ or an e-book that I could read that breaks things down step by step to rookies?

5

Personally I thought the best beginning book I read was propertymanager’s

http://www.1minutetorentalpropertyriches.com/

Great read for beginners.