Re: Real Estate investing given current financial position? - Posted by JPiper
Posted by JPiper on December 19, 1999 at 09:45:32:
So we?ve finally reached the point where $35,000 isn?t much money huh? I remember a book that I read back in my early 20?s?. ?How To Become a $25,000 a Year Salesman?. I remember thinking I?d really have it made if I could just make $25K. Times change huh?
I?d start by understanding that you?re standing at the threshhold of the rest of your life. (Of course I guess we all are, but at 22 you have most of your life ahead of you.) What?s important right now is NOT to buy yourself a house to live in so that you don?t ?waste? rent. What?s important is to set a foundation for the rest of your life.
You may have thought that was college?..but really what that foundation should be is education, information. ?Know-how? will get you farther in life than any single thing that I know of. To educate yourself I would read ALL the free information available on this site?.How To Articles, Money Making Ideas, Success Stories. Once you?re through reading all this?.READ IT AGAIN. Read the Newsgroup every day.
Go to the library. Check out every book on real estate. READ THEM.
When you have completed this you will have some ideas on what interests you. My suggestion would be that whatever that is should be something that will put some cash in your pocket. That might be wholesaling, it might be lease/options. But whatever it is, it should involve putting cash in your pocket for now.
Whatever that is, I would buy a course on that subject. Once I had studied that ONE course, I would get out in the field and make a deal. It?s really that simple. Nothing about real estate is rocket science. You don?t need 10 courses. One course, one single idea, will get you started.
As a caution?.if you?re one of those people who think you have to reinvent the wheel?..DON?T. Just do one thing that has worked for someone else?and do it well.
Don?t bother getting a loan and paying it back in three months. You?re already establishing credit with your student loan and car loan. Make sure you pay them on time?.no late payments at all. Keep your job?it sounds like a good beginning to me. Continue to save your money.
At your age it?s kind of fun to create some fantasies. Let?s imagine that you learn how to acquire real estate. Let?s imagine that you acquire 12 houses in a year?..one a month?..and that you do something with these houses that create $200 per month cash flow. After one year your income is $2400 per month. After 2 years your income is $4800?..which surpasses your current income from your job.
In 10 years?.your income is $24,000 per month. You?re a ripe old age of 32. At that time you will have 120 houses. Now here?s what?s fun?..imagine that each of these houses had a 30 year mortgage. By the time you?re 52?.just a couple of years younger than me?..you will have 120 houses free and clear.
Let?s say the rent at that time is $1000 per month per house. You?ll be making $120K per month from the houses that you bought in the first 10 years of your career.
By the way, you don?t have to stop buying houses when you?re 32. If you don?t?the numbers just get bigger.
But step 1 is knowledge. Step 2 is action.
By the way?I wouldn?t buy a house to live in right now. Devote your time, energy, and money to knowledge?.plenty of time to acquire a house to live in. For now, don?t worry about consuming?worry about investing.