At what point did you start investing in real estate for yourself?
My family has a history of investing in real estate and I transitioned to REPE over the past year and will be finishing up my MBA this summer. I am going to be a cheaper house and live below financially what I could be living under in order to save for investing in some properties.
I was curious at what point did you guys start investing in your own properties. I'm hoping to have a cheaper house owned and on my way to buying my first property by 31 or 32 (am 26 atm), but I'm curious how much capital you had saved, and if you could change the way you started out, what you'd do different.
I've been very interested in investing in Real Estate, for the past 3-4 years but I never really got started into it just because I'm not really sure what's the best way to get started, as I've heard and seen so many different advertisements online and different "professionals". One thing that seems pretty consistent though throughout all the resources I have heard, is that it never is too early or late to get started in real estate investing. I would imagine that at 26 if you're preparing to have your first property time, that is a great time to start.
I've heard that the absolute minimum you should have ready to invest is 5,000. If I were starting out I'd probably want to start with 8-10K definitely with the help of a mentor. This article (screenshot) helped me find a few good places to look into to invest in real estate, and gave me a good place to start. Hope this helps.
I would definitely invest in a managed fund or go with a private placement. This would reduce the managing costs and the risk and allow for good leverage. I faced a similar scenario for a 1M$ investment and i went with the private placement instead of buying my own property
how do you expect him to invest in a private fund? hes talking about scraping together some spare change to buy a rental property, not exactly my definition of an accredited investor
Yeah that part was cringe.
Fair enough, I only have one year of RE experience, but just wanted to state that they're where my interest came from. I am working on the other side of the world from them, so it's not like I used any connections anyways.
Probably should have left it out, I get how it sounds.
Was making more an industry joke - you're good bro it's just WSO
make sure to lead with this in interviews
I'm preparing to invest in my first deal within this next year as a 23 y/o, with the money I've made myself (my family has no money and did not come from a real estate background). I was fortunate enough to make a friend who recently began to do really well for himself and is roping me into his RE investment ventures in growth markets that he knows really well. First downpayment on a ~$100K SFH will be around $20K, with another $5-10K in CapEx. Would love to hear other peoples' experiences with investing in SFHs, not just commercial (though ultimately I am aiming to get into commercial since that's the industry I actually work in)
in all seriousness, dont do it. investing with friends is a good way to lose them. wait until youve got enough cash to go it alone.
Just put my first deal under contract. Got the PS&A about 2 days away from my 25th birthday. Between my friend and I had 100k liquid. Our down payment is between 45-55k, still finalizing numbers with our lenders.
Family has a few SFRs in the Bay Area and invest passively in syndications since 2013.
Buying multifamily in Cleveland along with SFR flips.
Definitely is never too early. Flipped my first three family at 21. Was definitely in over my head but was fortunate to be connected to some friendly private money which we heavily levered from at a 10% pref and close to 90% LTV. Most importantly I was also fortunate to have a mentor involved to steer the process. I had no money of my own. Literally ran up a line of credit to participate in the deal. Super risky 10/10 would never do this again esp given the interest on the line. There were cost overruns which forced us to market the completed flip at the top of the market in a shitty neighborhood. There were some signs of gentrification so we had some comfort but it was the only house in this price point probably 25% above anything else on the street. We somehow found a one in a million buyer who saw the value in our over-remodeled flip and we were able to exit with our shirts on and make a very attract return in the process. I would never do this deal again, just so much uncertainty when pricing at the top of the market in a questionable neighborhood. I paid my line of credit back and took a decent chunk of profit from the deal and rolled it into a down payment on another three family. Used conventional financing here and lived in one of the units so again benefited from high leverage and this time a much lower interest rates. The second three fam was rehabbed by a flipper so there were some surprises along the way but nothing that broke the bank. This time I purchased for cash flow and long term hold. Saved up the cash flow and a year later bought a condo as a live in-flip using conventional financing at a pretty moderate LTV. Looking to refi this year and use the proceeds toward the purchase of another three family which I will also keep long term and harvest cash flow.
What market are you located in?
Third tier northeastern city - very low property values but very solid yields
I bought my first property at 20 with a good friend. It was a renovation/flip scenario. We used credit cards and our savings on that first property and were able to get in and out in 120 days. Made a good 30% profit on that one that we later used on a couple of other projects before we graduated school/the market fell out in 2008/2009.
I'm wouldn't make the same leap today (I'm a much more cautious 35 year old), but when I was 20, I thought I was invincible.
Bought my first triplex at 25 (went 50%/50% with my parents).
Soon after partnered with an old colleague and we started buying together. Currently own 6 properties, 20 units ($2MM portfolio value which is relatively small).
5 Properties in PA, 1 multi-family in Brooklyn.
I'm 29 and still W2 employed. My goal was to get 10 properties before my 30th. Currently in acquisition mode....
How'd you start searching for properties? Also, how leveraged were you in the subsequent properties after you went in on it with your parents?
I decided to invest money in property after my moving to Turkey. I selled my old house in USA and I needed to buy some property in Turkey in time. So I checked some real estates companis and found good one in https://tolerance-homes.com/property_alanya/ As a result I bought small apaprtment in Alanya region.
Started buying at age 26. Am 28 now. I had been reading and listening to podcasts for about two years, then started working for a guy who owned nearly two hundred units which gave me the confidence that I could lean on him for guidance. I could probably sell today and bank $120k but am pretty pleased with the cash flow and don’t need the capital. One of the loans is coming due 2021 and am still scratching my head whether to refi or pay off depending on what my long term business plans are.
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