Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am 22 and looking to get in the market, i mean i really have nothing else going for me.
So my questions are the following.
is it a "good" time to get into the market?
what role does interest rates play?
how much should you have to get stared?
any truth to the whole you dont need money to begin pitchs?
and the big questions how do you get started? Any courses?
i see people making alot of money in this industry, and i know for a fact taht you can work for your money or you can for you money work for you, and nobody ever became wealthy working for others. (i have know this since i was about 14)
many of those no money down authors found out you can only play the no money down game until something upsets the dominos.
many of the biggest went bankrupt following their own advice. i read robert allens stuff back in the day. it all sounded so good at his seminars and in his books.
Do not even think of getting into investment-level real estate at your tender age. First, you don't have the cash and, second, you don't have the experience. It is a volatile business where the rewards are great, but so are the risks. My wife is an executive with a very large commercial real estate company where some of the agents earn close to a million a year in commissions alone.
At the same time, those same guys will tell you to sock away three years' worth of living expenses due to the feast-or-famine nature of the biz. As an example, everybody was riding high in 2007. In 2008, well, we all know what happened. My wife's company managed to get through it because of conservative biz practices and adroit money management. Lots of guys out there totally lost their shirts. So if you don't have the appetite for risk and aren't willing to put up with long years of investing your time, then don't play. If you are, then work hard for the reward that will happen several years down the road.
The first step is to get your real estate license. Depending on the state, a real estate license can let you sell both residential and commercial. At the same time, you'll need to specialize in a hurry.
The second step is to affiliate with a reputable brokerage, one that has a strong marketing thrust. Whether commercial or residential, a brokerage will give you the support and credibility, not to mention the brand recognition. If you are just starting out, it's far preferable to be associated with a market leader than Brand X. This is more true than ever given the emphasis on online marketing and listings.
The third step is to network your ass off. Go to business functions to the point where you could scream. Don't have a spring-loaded business card dispenser in your shirt sleeve, for that puts you in the league with aluminum siding salesmen. Instead just go to meet people and talk. Learn a lot about business. I realize that requires a bit of jujitsu, but the first requirement of a good salesperson is to be trustworthy. If you are just the guy looking for a quick score, nobody worth a damn will do business with you.
Fourth, read everything you can. The Wall Street Journal. The business weeklies. The white papers put out by the Federal Reserve. The local business press. In real estate, knowing the business trends is critical. As an example, in the middle part of the last decade, I was working with a half-dozen developers. One morning while reading the Wall Street Journal, I noticed where underwriting for Jumbo Loans was going to be severely cut, which would impact the ability to buy higher-dollar homes. I picked up the phone and called all of my clients to point out this fact. Only one really took it seriously and changed his planning accordingly. The rest shrugged their shoulders.
Six months later, I sat in an emergency meeting held by one of the other developers. He couldn't understand why his $500,000-$750,000 homes weren't selling any more. The $300,000-and-unders were doing fine. By then it was too late. He was in too deep because he didn't pay attention to the market signals, and blithely kept building expensive houses for which no one could get financed. And, in early 2007, I start raising the red flags, advising developers to quit building entirely and just sell their remaining inventory. Again, only one guy listened. He's still in business. The rest went under, some in pretty ugly ways.
Fifth, real estate is subject to wild fluctuations. Especially in markets such as Florida, California, and Nevada, it's a cycle of boom and bust. Keep your head about you at all times and never believe the hype. At the same time, when things are terrible, look for opportunities. When I was vacationing in south Florida in 2009, I saw brand-new luxury condos on the block in Fort Myers at staggering bargains. As in 3-for-1 sales. If I had sufficient guts at the time, I would have bought as many as I could have and held onto them. At the very least, I could have broken even on vacation rental income. Oh well. Would of, should of, could of.
Sixth, once you develop a good reputation around age 30-35, THEN you can really start acting the part of the wheeler-dealer. Until you hit 35, you really won't have the gravitas to convince a bank or an investor to give you the millions that it takes to really buy, develop, and turn property. Unless, of course, you are a wunderkind or have friends with trust funds.
invest, but I would not say no to the former idea.
If you have spare cash rattling around to invest (We're talking thousands and thousands), then I'd find someone who does it already and let them handle matters (With a sheaf of legal agreements in place). Unless you're prepared to be a landlord full-time or can hire a maintenance guy, I wouldn't buy an apartment on a bet.
I am 22 and looking to get in the market, i mean i really have nothing else going for me..........
I was like you once. No college. No connections. No family. As you said, Not much going for me.
But I wanted to do something. I started by taking a sales training course. Then I got really interested in it; started taking it seriously. I improved my vocabulary. I stayed up late and watched Johnny Carson in order to learn how to maintain a conversation (I'm dating myself, aren't I?). I read everything i could get my hands on regarding the field of sales; PsychoCybernetics, Think And Grow Rich........I still have my original copies - signed by the 23 year old me and dated.
That was 1968.
Then I began.
It was tough. I didn't have the knack for it at first, but I didn't quit. Soon, I started making sales and getting promoted.
By 1987, I was top salesman at well know multi-national company. TOP! out of 2500.
But I kept on going. I became Director of Sales and Marketing at a much smaller company and handled affairs in the USA, the Caribbean, and South America.
Then my wife and I established our own business.
Finally, in 2010, I retired. We are very proud of our seamless retirement, which pays the same amount we made when we were working.
I'm telling you all this in order to make the point that because you have taken the first step of seeking advice, you are in the top 5%. Already.
Go for it. Pick your field and make the choice work out. Pay careful attention to your finances, such as they are, work all you can, and never give up.....
I am 22 and looking to get in the market, i mean i really have nothing else going for me.
So my questions are the following.
is it a "good" time to get into the market?
what role does interest rates play?
how much should you have to get stared?
any truth to the whole you dont need money to begin pitchs?
and the big questions how do you get started? Any courses?
i see people making alot of money in this industry, and i know for a fact taht you can work for your money or you can for you money work for you, and nobody ever became wealthy working for others. (i have know this since i was about 14)
If you have nothing going for you, you are doomed before you begin. People successful in real estate are all really hard workers who are paying careful attention to details and pinching pennies. They take the time to educate themselves. If you don't have the character to do the same, it won't work. Nobody gets money for doing nothing.
1. It's always a good time to get into the real estate market
2. Do some home work, I can't explain this to you in 2 sentences
3. What are you going to do? You need down payment money for rentals, You need down payment money, carrying money, and money to fix up for a flip. You need the entire purchase price, or money to make the payments on a buy and hold.
4. I wouldn't want to try it. Most of those are teetering on the verge of being illegal and many of them are also unethical. But someone will be very willing to take your money to sell you (for a lot of money) the secret to getting rich in real estate with no money ad no work.
It's a lot like the plans to lose weight without exercising and being able to eat all you want. Perhaps if you follow the directions, it will really work for you. I'm sure anyone would lose weight by eating all the grapefruit they wanted and nothing else, if that is what the diet plan requires. Are you capable of doing the things to follow the plan from the no money down real estate plans?
5. Again, I can not tell you how in 2 sentences. But you start by educating yourself. Much of the information is free on-line. Go to any investment forum and put your time in.
.............i see people making alot of money in this industry, and i know for a fact taht you can work for your money or you can for you money work for you, and nobody ever became wealthy working for others. (i have know this since i was about 14)
You've left out one step. In order to have your money work for you, you must first accumulate the money.
invest, but I would not say no to the former idea.
You are a bit late to directly buy properties. Most of the good markets are already 50% up from their bottom. The good properties in these markets have international cash investors. I've made over 20 offers on properties this year in the San Francisco Bay Area. I always offer over asking with 50% down payment to 100% cash and still get outbid. The good markets are red hot and it's very difficult for any non-cash investor to pick up good deals. Are you able to pay cash? If so, check out as many open houses as you can. You will learn how to pick out good deals this way.
If you don't have much cash, you could invest in REITs (Real Estate Investment Trusts).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
