HELP! I'm New And Need A Lot Of Guidance!
All I am looking for is a lot of help...but first i must know if it is at all possible for someone as young as myself to start investing in real estate. I am only eighteen years old and have basically no knowledge in this area yet I have been intrigued by the whole idea for about a year now and really want to get into it. I'm extremely determined and ambitious but I'm just not sure if it's even practical(or possible for that matter) for someone as young as myself to get successfully involved. If it is, then how??? Where do I begin? How do I start?? I understand the basics but I am overwhelmed by all the knowlegde out there I haven't yet attained. It all seems so possible yet at the same time so far out. I just need to be led a little. If it is at all possible, could someone please give me a little bit of guidance on what to do with this ambition and interest. I just dont know where to begin....or if it is at all possible for me to even begin at all. Someone please help!
You've already started!
And for someone who's only 18, I'm sure everyone here applauds your ambition.
Yes! It's possible. Although in some states you maye need someone 21 or older to back you.
Now you need to educate yourself.
This forum is the perfect place to learn more!
Hi Tribal!
I'm still in the overwhelmed stage as well. I think you've made a very positive first step by joining this forum.
It's very difficult to pick a niche to concentrate on, but if you don't you will never get started...there are just too many possibilities.
Personally, I suggest that you also join a local investors club and start getting to know like-minded people. Get very involved on the local level and let people know what your goals are. The networking at the local level will help you identify the right realtors, accountants, contractors, and mortgage people. This will save you tons of time in finding these professionals.
Good Luck!
Dave
Thank you both for your replies. I'm just wondering what kind of "niches" you are referring to? If I need to start by concentrating in a certain area then I need to know some of the possibilities... Where do you suggest I start???
Tribal.....
Check you private messages on here. I sent over some info for you......
A couple of cents worth:
1) Mind your credit, build your credit.
2) Save a few bucks if you can, or maybe already have.
3) Research bird-dogging - articles and forums on this website - dive right in if it interests you. (Good way to make some dough and learn about investing and what investors look for).
4) Read everything on this site.
5) Read your local newspaper, real estate section, business section as often as you can.
Good luck and don't give up! You are just the right age to be a heavy hitter by the time you're 25. Or even before......
Noel
Noel
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Thanks a lot.... I think I'm going to look further into Bird-Dogging for now...untill I reach a point of sufficient knowledge to start doing things myself. Any information on how to get started in it would be really helpful though.
Ok...thanks.... Now...what would you suggest. Should I start by looking for real estate investors around me or by posting on this web site, as it says on the FAQ page of this web site. Also, (very important) where can I find an informative page on everything that a "good deal" consists of....so that I know what to look out for? And one more thing, what are the odds of finding a deal that an investor would be interested in?? I have so many questions! HELP!!!
First of all, the odds of you finding a deal that an investor would be interested in are 100% if you don't give up.
You could look for investors from as many sources as you can find. Put an ad in your local paper in the RE section stating that you are a bird-dog looking for investors to work with. Or post on this website. When you get some calls, ask the investor what they are looking for, what areas, what price ranges, what condition. Then you seek out, hunt down those types of properties.
You'll need to be creative in your approach to finding properties that other investors haven't already honed in on. Get familiar with your territories, neighborhoods, mapbooks, go to your county records office and learn how to search property records, learn how title companies work. Talk to people in neighborhoods that your investors are interested in, track down vacant property owners through record research, write letters, make phone calls, find motivated sellers.
Of course, there are other ideas like tracking obituaries,(newspapers), divorces, (make friends with a few divorce attorneys), run-down props, (driving neighborhoods), properties with lousy tenants.....Oh, so much for you to do! What I wouldn't give for an awesome bird-dog!
Hope this helps - now, get out there and make us proud!
Noel
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Tribal,You have come to the right place. You are smart to start young. I bought my first house at the age of 19. Get involved with your local REI club,you will find investors willing to mentor you. You will also find burned out landlords who want to sell properties.
Thanks for the encouragement! And I have a quick question?? Besides meeting with my local Real Estate Association is there any other way to locate investors to contact such as online or by looking in the phone book??
I hope that's not too stupid of a question.
But thanks for your response.
Finding investors.....
Look in the newspaper classifieds (homes for sale, investment properties, etc) and call the people with ads that say "We buy homes fast" and things like that. Call numbers on bandit signs.
I'm 27 and I wish I would have started 10 years ago. Consider getting a parnter that's a bit older who's names you can put loans in. Pay him $200 per year and you do the rest.
You may have to get a bit more creative, but you can do anything that we can. You may want to use the phone and fax to your advantage if you look really young. Good luck.
sup tribester,
i'm only 22 and when i go in and talk to preforclosure ppl, they sit and listen. the way i figure is, if you got the answer to their questions and concerns, then they listen and respect ya, no matter what age you are. i currently have 4 houses that i'm trying to sell right now, all of which i've put down 10 bucks each to make it legal... when and if they sell, i'll be laughing at all of those people who said that i'm wasting my time. when i've just made more money in a year period that most do in 5... so hey, find that niche or specialty whether it be finding vacants, preforclosures, birddogging, L/O or what not... educate yourself in all aspects and pick and chose which route you wanna take... for me i've been in preforclosures and finding vacants when one of my prefor's call me... its simple to find vacants for me cuz all i have to do is pull the county website and search the entire street and surronding streets for owners who have a different address.. maybe the same for you...
my best advice is to do what the above mentioned and really really really educate yourself to the basics... such as terms, lingo, and etc... and know which one does what and that sorta thing. READ READ READ as many books as possible that you can find at the library and barnes and noble... a must read is
"Rich dad poor dad," which i'm sure others will agree is by far one of the most enlightening books out there for beginners and pros.
keep reading and posting and you'll be amazed on how much you'll learn from this site. i started investing in november of last year and began reading and studying in oct when i got laid off... so as you can see, anybody can do it as long as you have the drive and determination to succeed... many people do it for the money, my suggestion is to not do it for yourself, but for others. this business is for helping people who need help, and as a reward you get decent pay. keep your head up and keep reading and posting... keep us updated and if you need help, pm me or anyone of us who is on this website, thats what we're here for, to help others and eachother.
Right guys?
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Well thank you all for your replies!! I have gotten so much information and help from you guys in the last couple of days and I just want to say thank you. I'm going to keep eductaing myself and definitely keep asking questions. Right now I'm really going to use all of your advice to find some investors to be in contact with. I'm guessing that's the only way someone like me, with no experience to start. Bird-dogging is definitely the direction I want to go to start out and it's really important that I find some investors. So...thanks for all your advice and tips... I've been copying notes and will be taking you up on all your advice. Thanks for all your encouragement and time. I'll be on here asking every imaginable question for as long time yet!!
Actually the younger the better, banks are more willing and have great programs for recent Grads, new small business owners, ect. You probably will want to call your local SBA to get help from them also.
Good Luck
Lori
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What is SBA??
Small Business Administration
try this
http://www.sba.gov
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What do you expect from SBA? To finance you CREI? I do not see this happen any time soon but if you continue reading tinman1755 called Lori's posts you might start to believe that you can even make money investing in Coca Cola Cans Houses.
If anyone might come to such idea and to realy try doing it, who do you think should be the first one out of all of us on TCI? I do not think that Armand Hammer is here?
[ Edited by omega1 on Date 02/14/2004 ]
Tribal. You have gotten a lot of good advise so far. #1 is go to an investors meeting. Call the I buy houses signs etc. You are bound to find someone in need of some assistance that can teach you the ropes in return for some leg work on your part. You are never too early to start! I wish I had at your age and I am 25 now.
If you are getting overwhelmed the best thing is start with simple things. I personally learn better by doing that by reading (although I did read a lot about how to start birddogging before I started doing it.) Before I decide what area I want to specialize in I have started birddogging for some investors in my area that all specialize in diff. areas. That way I can observe and learn from each one and have a more educated idea of what area I am more interested in pursuing. All the investors I have come in contact with thus far have been more than helpful.
Omega 1 Although I would not go thru them for a loan the small business administration in my area had a few classes that were free that helped me get put together a business/action plan (which has more than impressed some investors I work with and is the reason I got them to work with me in the first place), assess how much money it was going to take to get another business I am interested in started, and a lot of good pointers for a new business owner. I am structuring my birddogging as a whole business and that way when I have more experience doing it I can train others and have my own team of birddogs. If nothing else they can give you some good pointers as to how you can start building credit for your new business and the ins and out of incoprating yourself if that is something you plan on doing. They have a lot of free info that not many people check out. I really would highly recommend just to go in and check it out when you are beginning in REI. They can help you write proposals etc if you plan on catoring to the bigger investors when you are a birddog. Once you are splitting deals the same applies..
Just my two cents. You have given me a lot of great advise and I respect you opinions, but I do thing that the SBA may have a few tools/information that new investors/birddogs can use to their advantage. They had great advise on how to organize and prioritize all your actions when it came to running a business and being a new "entrepreneur" it helped me organize my thought and be more methodical in the way I aproached the set up of my new business.
Carpe Diem,
Veronica[ Edited by vlynn007 on Date 02/14/2004 ]
I agree with Omega 100%. Anyone with any rehab experience understands the problems associated dealing with a normal lending institution when buying and selling houses, especially rehabs.
It did not take me long to realize it became a full-time job just trying to get one of these loans closed when I first started out. Hell, they wanted to know how much my mom weighed when she was born! Besides that, do you know what the normal lending institution does when they get the appraisal back showing it need a new roof, is missing the kitchen cabinets, etc.... They freak out! This is my experience.
In terms of starting out tribal, you need to educate yourself Tribal. There are some great courses on this site you can purchase. The one that comes to mind is Ron Legrands Wholesale/Retail course. Go to Shop under consignment.
Best Riches,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 02/14/2004 ]
Jeff Adam don't think the ? was how to get tradional financing. SBA may not be a good place to look for financing for CREI, but it does have other tools that may be useful. And actually back in 2000 or so I did see info on a program that catored to rehabbers and others of the like lol.. that was to help recontruct bad/neglected areas of DC. Some were for new buyer (tax incentives) some for investors/rehabbers.. if I remember correctly some tax incentives and some access to rehab loans for contractors/builders and anyone willing to get their hands dirty. I think it was mostly in DC, but non the less that is info I am sure more than one investor in the area could have used to their advantage. no?
Anywho not trying to be smart only trying to help keep an open mind. No reason why some existing tools can't help new birddogs/rei's. One never know when you can find interesting stuff that might be of use.
Respectfully,
Veronica
Carpe Diem[ Edited by vlynn007 on Date 02/14/2004 ]
Veronica:
If you read his original post, he said he
wants to be involved and be successful.
It sounds to me like he wants to start buying and retailing/wholesaling. If he was looking for a first time buyer loan, then I would absolutely refer him to traditional financing. I dont think that is the case.
Best Riches,
Jeff Adam
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Like I said I think I would not recommend the SBA as a tradional $ source for investors. You still can't eliminate places like that as a souce of info to get you started though.
Cheers,
Veronica