Success Stories In Their 20's
I am a young investor in my early 20's needing some positive stories of people my age that had success early in their REI careers. I have just been afraid to jump in bc I don't want to get in over my head. I have about 20000 total in my name, and I just need some confidence built to help me. Thanks.
Damn, 20 with 20K to your name. Your far ahead than most.
I'm 22, been doing this thing for 3 months, been studying for 3 years so I've amassed a lot of knowledge. But to get to the point, I've invested about 8K and I'm looking to make $40K plus off of my deals as soon as I get these bad boys sold. I made a couple of mistakes and overlooked a couple of things, but I got it together now. I've restructured my game plan and should have my houses sold in a few weeks if not sooner.
My advice, study one method you like, and then jump in. Don't try to do too much and don't get side tracked because you heard so and so made money over here doing it this way. Go with your gut and do what interests you. That's what I've been doing and it works for me.
FEAR is nothing more than False Evidence Appearing Real.
Hi, it was nice to hear that there are others out there in a similar situation to myself. I am 23 and graduated college last May. I have a good amount of money to invest, but like you I am always finding myself thinking I don't know enough. I really want to get in to apartment buildings but I feel that all I can afford are buildings in really bad areas. Not what I want to do. So, unfortunately I cannot offer you my own success story (yet!) but I am interested in following your adventure in real estate along with mine.
www.Money.com has a section called "millionaires in the making". The people on there range in age, but I remember that some were very young, and most are not REIs, but I found their stories very inspiring and insightful.
I agree with the other poster who said if you have 20K with no outstanding "bad debt" like credit cards, student loans, car loans, etc. That puts you way ahead of many people in their 20s, 30s, and 40s. Congratulate yourself.
cya,
Nightshade
I am a young investor too. Early 20's here. I am not a local RE magnate, far from it. Still I am ambitious (hell I'm young, if I wasn't ambitious and 20 I should check my pulse), and I have no fear. No fear you say? Well what I mean is I have none of the WORST fear in REI (IMHO)...Fear of loss. Seriously, I have 50k, cash. Some may feel "if I mess up somehow it could take me years to recover", I say, if you don't fear losing you don't have anything to lose!
Don't get me wrong I am very cautious, too, just not afraid to take a good solid, calculated risk, or two or three, or fifty.
Some of the greatest business people in history have failed several times before they really made it. These people had, courage, drive, and they didn't care how stupid they looked to everyone else, or how much they lost. They knew like I know that I will make it one way or another. REI is a big ball field...Don't be afraid to make mistakes, 'cause I know I'll make plenty of them before I get into my REI groove.
Not a success story, just trying to give good feed back to other young investors, who aren't wannabe's but successes in the making. I'll see you guys in the hall of fame.
Mistakes are good, I'm glad I made mine. I'm fortunate they have not cost me tons because I studied a lot before I made the investments and I had some good mentors and teachers. That's the way you learn. Remember when adddition was complex. You made mistakes until you got it right. Remember the really big numbers, you may have thought you could never add big numbers. Now look back and laugh at how silly you were to think that you couldn't add big numbers. Now you can't wait to add them....especially when those numbers are related to your bank account.
Look at this real estate the same way. These small deals are scary, complex, your afraid of making a mistake because you've been taught mistakes are bad. But once you've made it, you learned from it and made better decissions. Well, now you need to take the steps, do the deals, make the mistakes and learn from them. Then you'll move on to the bigger deals and look back at now and laugh at how silly you were for thinking the way you thought today.
Learn all you can, act on what you've learned, learn from your mistakes.....and get rich.
And to the person who posted about apartment buildings....Dave Lindahl is a good reference. I'm taking his boot camp come March so I'll post a review on the boot camp, but look into his products for information on apartment buildings.
I am 20 and doing it the JohnLock sub-to way. Haven't bought my first house yet but I have met with 6 sellers and taken many phone calls. It is just a matter of time, I can taste it. Get out there and do it!
Bought my first house for a rental when I was 25. I read through all the seminars and studied what I could but the best lessons were learned from actually doing it. I'll tell you something...those first few rent checks were very exciting. Come to think of it, they still are.
I made my first real estate investment a a year ago, when I was 23.
I have to be honest, I've never read a book on how to invest in real estate. I simply looked at each investment as if I were investing in a business. Either it's profitable and makes money, or its a waste of time.
Nevertheless, I can say that I have learned a lot about business from real estate, and vice versa.
One thing that is important is confidence. It really doesn't matter how young you look, or how inexperienced you are, because if you exude self confidence, people will listen. The hardest thing that I had to learn was how to make older, wiser, more experienced and more sophisticated people not only listen to my ideas, but support them.
I'll be the first to admit that there's TONS that I don't know and have yet to learn.
I also want to reiterate a common theme on this board, and in most of these types of venues:
Making the first step is the key to success.
Once you've doen your homework, concieved your bus. plan, found your property, done the due diligence, the next step is to go for it. You may get laughed off the floor, or your pitch will fall on deaf ears. But persevere and persist. If you're right, and you know it, you will succeed.
Off my soapbox.... anyone want to buy it? great location!!!!
Great thread! I'm in my early 20s and expect to be through with college in the summer of 2005. I expect to have my first few deals done by the beginning of 2005 and also have completed enough work through internships to complete the appraisers examination.
I, unlike others in here, come from very modest incomes and savings, a previous bk, and tens of thousands of dollars in college debt. From all these mistakes I made, I can only expect to do well in this field. My base is to start learning wholesale/flipping and sub2. I will begin assigning contracts to other REIs and through time expand to sub2 deals via J.Locke's instructions.
I feel incredibly lucky to have found this board and see the amount of young persons beginning similar routes. Good luck to you all!
I'm 24, started a year ago. I bought a rehab with my friend a year ago without having any money other then the little bit of savings we brought in from our jobs each month and sold that for a decent chunk of money. We bought our second one last July and are just about finished, should be looking at a much better profit from the first. Now I'm kinda stuck as to whether we want to start getting into rentals or keep going with rehabs. Just do your homework and give it a shot, you'll never know if you don't just get on and ride and see how it goes.
I am now 28. I attended only one year of college. I previously had another business for 5 years that the investors wanted to sell. (that business was never profitable) After that, I stared investing in REI when I was 25. Anyway, I really did not know much at all starting out. But I must say that I am glad I took the first step. In the last 3 years I have purchased 3 duplexes and 2 houses. I recently sold one of the duplexes and made $33,000.00. That is the most I have made thus far. anyway. One word of caution, I would advise anyone starting out to pursue wholesaling or some other form of investing that is not so cash intensive. Buying properties and holding them for the long-term takes money! Even if you purchase the property "no money down", Many investors have gone belly-up due to the cost of unforeseen repairs, vacancies etc. Anyway, no one probably cares, but you can read more about me in the book "Rich Dad's Success Stories" (Chapter 4) by Robert Kiyosaki.
I am now 32. I bought my first HUD foreclosed condo at age 21, and sold it after renting it out for one year for a substantial profit. I have bought four more properties since then, lived in all of them for a year or more, and have sold them all for a substantial gain. I dont know much about REI, other than knowing the areas I was buying in, and recognizing a good deal when it came along.
I now have 150k that I am looking to invest in several properties, and really want to get into this thing in a more serious manner. I guess I feel like doing your homework and knowing the market (and getting a home inspection so there are no surprises?) is a great first step? Hope that helps.
I am not in my 20s anymore but please understand that with RE, you have an opportunity to make alot of money and you also have opportunity to lose some too. Not to discourage you, but I want your first deal to go well, like mine did!! Whatever deal you come across, please post it here and/or get as much advice as you can before you jump in. I currently have a house that I live in now that I should be selling in the near future and I also co-own a duplex that has been bringing in the money since May 2002. Made minor mistakes along the way but still making money and have learned so much. Figure out what you want to do in RE ( flipping, rehab, rentals, etc. ) and patiently wait for the one that you cannot go wrong with and go for it!!! Wish you well !!
I started investing by getting into partnerships in the pricey SF Bay when I was 24. With a well written partnership agreement, we went forward and purchased a 300m house from a probate sale. After leveraging my cash, sweating and working on my weekends (after putting in 50+ hours w/my 9 to 5) we made a healthy profit and I learned a lot.
That deal lead me to my next where I am teaching someone else the business and we have generated a leveraged IRR of 300%. The cash from the investment has enabled me to pursue another career.
Good things can happen if you defer instant gratification and work your ass off. Not many people can do that. Do you have what it takes?
Good Luck to you.
Great thread. I just turned 23 and have been investing in real estate for about 6 months. I have been studying it for about a year now. I am in the Navy so I was on a ten month deployment in the arabian gulf, but when I got back I jumped in head first. I own 2 homes now, have invested about 10000 out of my own pocket, I have 60000 dollars worth of equity and make 350 a month cash flow from the rent. I firmly believe that you should buy and hold. For example the second house I bought cost me 53000 I put up 10000 out of my own pocket for the down payment, put 2000 dollars into the house. It was on an owner financed house, I refinanced the house for 70000 and pulled out 27000 dollars after the refinance. AND I STILL MAKE 150 A MONTH IN RENT. So the deals are out there. I plan on buying houses until the bank says no more, and then I will find another way to get my money. My goal was 2 houses in 6 months. I did it. I want 30 single family homes by the age of 35. Will it happen of course. The only reason that people do not make money on real estate is because they are LAZY. If I can do it while active duty in the military today anybody can do it. You will learn a lot by studying books. If you want some encouragment real Robert Kiyosaki. But you will not really know what you are doing until you just jump in the water and start swimming. Financial independence is not luck, it is a choice. All you need to do is work hard and take calculated financial risk. So study, get out there, becase man it is fun. Talk to you later
I am 23 and definitely glad to see how many other people my age there are on here. I've always though most RE investors are much older. I've only recently started learning about RE but already feel like I've been sitting on my butt too long and am aching to do my first deal. I tell you what, though: it's absolutely true what everyone says...taking the first step is the hardest. Good luck to everyone out there.
I am 28 & live in Queens, NYC. I have $50,000 in cash which I can use to invest + another $15,000 in reserve.
I would love to get into real estate investing on the side, since I am working in a job that I hate.
In NYC, $50,000 cash doesn't go far at all, especially when trying to purchase with 'imperfect credit'. I only make $45,000 in my day job.
I can't get past condo associations & co-op boards even in New Jersey.
In NY, you must have a high income. Having cash isn't nearly enough.
If I had $50k cash + $15k in reserves, I'd be buying a property this weekend. With that kinda cash, you can get your hands on a good multi-family brownstone in Bklyn for example. I looked in Bed Stuy and there are gorgeous brownstones going for $500-$600k that would give you a very decent cash flow. You need to team up with somebody else that has additional income though or just get a no doc loan.
I, on the other hand, am dead broke with tons of college loans and credit card bills. Anyone wanna rob a bank with me this weekend??
NickL
You are right man, unfortunately 50K in cash in NYC isn't much to work with. You cant get a 600K brownstone with $50K in cash, at least, I wouldn't do it. Moreover, BedStuy is tough to get good tenants who pay rent, plus collection is also difficult.
WhatI can reccomend with the $50K (because I started with the same amount) is to leave manhattan.
Try queens, like Jackson Heights, some good cheap multifamilies in Jackson Heights. Also, look out of NYC. I went up to syracuse and bought there, also philly has some good deals.
One last thing, and I might be wrong... but if all you've got in the bank is 50K, dont invest all 50K in one deal.
Definately a great thread that needs to be reviewed. I am now 19 in college and ready to get started.
School has never been my priority (I am sure this is the way for others here my age), so when the opportunity to invest in RE came along I took it.
I am interested in hearing why (or why not) did you finish college. What was your motivation for continuing and getting your degree, if not, what was your reason for stopping?
-Peter
I'm 19, got my Realtor license at 18. My partner and I have done $5.1 million pended on the agent so far this year. At the end of this year we have purchased one home for $52k sub-2 and have lease optioned for $70k with $150/mo cash flow after option credit. Set to make $8-12k on a short sale deal that we are actually getting possession of tomorrow. And purchased one rehab/short sale that should be a helluva rehab after it is short sold. We have a fourth property, another short sale underway. Between the agent side/investing side, my weeks are 60-70 hrs long but well worth it. I've noticed being an agent has really helped me with short sales.
Quote:
On 2004-11-10 19:15, PBFerrigan wrote:
Definately a great thread that needs to be reviewed. I am now 19 in college and ready to get started.
School has never been my priority (I am sure this is the way for others here my age), so when the opportunity to invest in RE came along I took it.
I am interested in hearing why (or why not) did you finish college. What was your motivation for continuing and getting your degree, if not, what was your reason for stopping?
-Peter
Welcome to the boards. I'm 26 and have been in the business for about 2 years. I've been on a buy and rent strategy with 8 units currently. It's been a hard road, anyone who tells you it's easy money is full of &*%$. Regardless, the wealth grows daily and I'm intering into my first rehabs this year. The fact remains that for willing individuals, America remains a place where opportunity is limited only by the scope of one's vision.
[addsig]
I'm 27, read my first real estate book in April, 20 books later my partner and I have 25 rental units. I don't even see it as work as I'm having so much fun, even the bad stuff is better than punching a clock
Thanks for the replys.
I am putting together a book and would like to include your success stories. Please send me an email or private message if you would be interested in sharing your story.
-Peter
Started full time 2 years ago and have more than doubled my 75K a year job that I left with probably 25% of the effort... now I have more free time than I know what to do with... my wife and I get on each others nerves from being together so much, all my friends work full time jobs and can't stay out late or do cool things during the day. I'd like to go to Vegas but none of the friends can get off from their jobs long enough to go OR they can't afford it. Sheesh...
I am new to REI but my advice would be to not waste too much time researching and and going to seminars before ever jumping in. If you are are smart you can learn as you go along without losing alot of money. In reality, even if you lose a little money starting early, you'll make more in the long run because doing something has got to be better than doing nothing. I am just getting momentum and plan to keep busting out as many houses as possible. As with any business the more business you are doing the more money you can make to make up for losses.
IMO
Nick
Nick,
I could not agree more. I am 19 and it took me a while just to call a real estate agent about local properties. My biggest fear was the fear of not being taken seriously. It wasn't until I finished my phone conversation with him that I realized the following:
There is so much money to be made in Real Estate that everyone wants a peice, everyone needs more business. To you, no matter what your age, you are a potential customer.
I have found many people to be nothing short of extremely helpful in answering my questions.
Don't spend your youth reading, or attending seminars. Get out there, learn on the job just what you need to know.
The first thing anyone should do when starting (especially young people) is figure out your financial situation.
I dont have a lot of cash, plus I need to pay off debts, so I am making some money as a note broker to begin with. Then I plan on saving for a down payment and getting a home loan.
-Peter
I am 28 years old and bought my first house with nothing down. Escrow on the 187.5k house closed on Jan 1 of this year in the Chico area. I just refinanced and the house appraised for 247k. I got really lucky with this house since I got in right before the appreciation really took off (I have been renting it out for a negative $500 cashflow - ouch - but the appreciation makes it worth it in this particular case). I graduated High School, have taken some college courses, read many real estate books and attended some seminars. Understand what you are getting yourself into, and when you figure out your finances plan on the absolute worst case scenario and ask yourself if you could shoulder the cost by yourself for 3 months without tenants. It is easy to get carried away by positive thinking, but keep your head in reality.
Don't put off investing because you don't have any money. My home was 100% financed, and even tho I ended paying high interest and a lot of fees, 10 months later I am 50k ahead (if I can sell the house for what it appraised for that is). Good luck to you!