Sellers, Banks, Etc LOOK DOWN THEIR NOSE AT YOUNGSTERS??
It seems to me that if a young person(18- maube 22) approached a bank to get a loan to invest a real estate, they would be laughed right out of the bank. Have any fellow "youngsters" had any bad experiences where this was the case.
Also, if someone is trying to sell their house, would they even talk to a young person on a serious, business-level??
Give me your list of why wouldnt they? I would love to give you the sunny side version to what you are seeing as an obsticle...
to dave REI: i dont know through personal experience yet, but it seems if I(who am 17) went down to the bank to get some sort of loan to invest in a fixer upper, income property, etc, they might tell me to come back when im older, wether due to the fact that they have no idea how much i know about investing at such a young age(which is legitimate, especially if youre a money lender)
I guess one obstacle would be me having not bad credit, but NO credit.
Don't worry about it. Just be mature and speak in an intelligent tone (Zero Ebonics) adults don't understand our language just yet. Confidence and knowledge will get you what you want.
Best of luck,
Jim
I am 18 and starting in REI (waiting to sell my first rehab home). I did get laughed at when I first started until I learned to play their game. I brought in personal financial statements, copy of my credit report, detailed plan for the current property, etc. Once I've been turned down I ask why. So far it has only been that I do not have the down payment for their required LTV.
Hey,
The good news...I think anyone can do anything, if they give 100%. There is no law (accept maybe Age of Majority) to prevent you from being a REI.
BUT....
You are facing a serious uphill battle. If you show up at the door of some homeowner in Pre-Foreclosure, they are NOT going to see their salvation; they are going to see some little punk kid. Sorry; but that is the truth.
If I am a home owner and I can deal with A) 17 year old or B) a 40 year old, which one do you think I am going to talk to???
Or to put it another way: when you get in to an airplane and you look in to the cockpit, do you want to see a 17 year old frantically reading a Flying Manual or a 40 year old ex-Navy Aviator ???
With age comes experience and no amount of Web-Surfing can replaces 5, 10 or 20 years of living.
My advise would be to find a really good mentor/coach/partner.
PERSISTENCE! Don't ever give up on whatever you want to pursue because you are young. Bring an older person with you, if you have to. But, don't let that stop you.
What does age really have to do with it? If YOU have a problem with your a age and dealing with the banks, stay away from them until you have a track record.
There is so much Hard Money available today (that is based on the Transaction and has nothing to do with you, your credit or your age) I can not see why anyone would want to put themselves in a risk position, while just starting out in REI. The Hard Money lender will look to see if the deal works on paper and if there is 30-35% buffer for their protection.
The last place I enjoy visiting is a bank where some person with no dreams or goals is going to decide if I should be able to get the funds that fuel my dreams.
Keep up the good work and do "what ever it takes". "know one can make you feel inferior with out your consent"
Im 19, almost 20 and Im working at on a 450K 13 unit multiplex, the banks aren't laughing at all- they are saying they would give me the loan except for one thing- "I dont have enough debt"
How F'ed up is that? The whole reason I wasnt doing this last year is because I was paying down my credit card debt.
Generally when I show the loan officer a current operating statement with a projected operating statement with financing calculated in to it and they see that the NOI is 3 times the debt service, they take me seriously.
The only thing that is keeping me from getting the loans I need is not having enough lines of credit open (I have one credit card, dont owe any money on it). If the deal Im working on doesnt work out, then I'll just open up a couple lines of credit and play their game.
It helps to have all your stuff together and look good when you go into the office.
-Chris
i'll just say, yes it's been a hurdle all my life. i'm now 32 and people actually take me seriously NOW. i wanted property when i was 21 or 22 and finishing college (good income, good credit) but got laffed at from car dealers to realtors. i then held that grudge for about 8 years (that i can't get anything from anyone and actually stopped trying - just living on cash).
then when i'm 30 i realized i'm stopping rent and bought a foreclosed home at a nice price. then i opened my eyes and said wow, after a split with baby-momma and laid off from my tech career - i'm bein taken seriously by people with money and NOW I have none. seems like a catch 22, but i'm fighting thru it.
i'm just jealous of all the you youngsters with the head to want this career and the heart to pursue it - when i'm just now noticing how i could've worked around it all that time!
much respect to you all!
first,
If you are a young person like myself and your somewhat upset about not being able to be taken seriously or get established an identity in investing, why not start here. Create a name for yourself, i don't even know with whom i am speaking.
SacVestor
Age really has little to do with how banks, seller, or buyers view you. You will, however, be judged on how you present yourself and how knowledgeable you sound. Things they will laugh at: lack of cash, lack of credit, lack of experience, and lack of personality.
-Chris
[addsig]
Unfortuantely, age discrimination is a part of the real estate business. Banks want to give loans to individuals who have a history of stable earnings and solid credit. People in the age group you're describing tend to have only a few years work experience at most, and very often that experience is in low level poorly paid positions. Of course none of this means that the individual in question is incapable of being a successful real estate investor. But banks tend to play the percentages. If you have a steady job, with a solid income, and good credit, banks like you, regardless of whether or not you understand anything in REI.
Bring a suitcase full of greens, and make sure to wear ripped up jeans and a nose ring to make an extra strong statement.
They'll take your money even if your tongue is pierced. It all comes down to how serious you are. While it is only a forum post, you still managed to make spelling and grammatical mistakes in yours. Mistakes like these in a contract will cost you your head, and [potentially] your family's wealth. If you come well dressed (showing you can take care of yourself), well prepared (showing you've done your homework, and you know your deal), you have several copies of blank offers and other paperwork you might need... You'll be ok. If a seller refuses to talk to you, chances are - they're arrogant. Arrogance is emotion and lack of common-sense intellect. Both are in your favor when making a deal. An arrogant person is more likely to enter a contract on your conditions, not theirs, if you can make it seem like THEIR DECISION.
But here's the best part - I haven't talked to many banks in person when applying for a loan, and I pretty much know where I stand with most sellers BEFORE I meet them. It's called "a phone call". You might need to rely on that until your first few deals are in your pocket, making money. Then you'll notice that a whole lot of people are taking you far more seriously.
I'll leave you with one final note. It's an old saying that if you think you can, you sure can, and if you think you cannot - you're right. If you won't take your own self seriously, no one else will either.
hey , don't give up. your just going through a roller coaster ride right now. i just turned 21 and started at 18 and i have a lot to learn. the reason why the bank don't consider you is because you don't have enough credit history. to step into a bank you need a good amount of trade lines. believe me i had the same thought. you know what's the Key? Confidence! anyone older than you would respect you if you come correct with what your approching them with. and once you throw some realeste terms they would be shocked and listen to what you have to say.
hey , don't give up. your just going through a roller coaster ride right now. i just turned 21 and started at 18 and i have a lot to learn. the reason why the bank don't consider you is because you don't have enough credit history. to step into a bank you need a good amount of trade lines. believe me i had the same thought. you know what's the Key? Confidence! anyone older than you would respect you if you come correct with what your approching them with. and once you throw some realeste terms they would be shocked and listen to what you have to say.
[ Edited by awackwhiteboy on Date 11/08/2004 ]