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How much cash needed to start?

C

clearyarchitect

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Sep 25, 2009
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Hello,

Im a 20 year old student looking to get my money growing quicker but savings are limited when talking in terms of down payement, and income is slim as well. Any creative ideas on getting started with under 10k and limited salary?
Thanks so much
 
QUOTE (clearyarchitect @ Sep 25 2009, 12:28 PM) Hello,

Im a 20 year old student looking to get my money growing quicker but savings are limited when talking in terms of down payement, and income is slim as well. Any creative ideas on getting started with under 10k and limited salary?
Thanks so much

If you find a really great property you may try a JV.... parents being a way to get a JV. If you can`t sell to your parents then you may have a tough time. Also limited funds will be hard to get a mortgage as well. Hope someone on here can help you out a little bit more.
 
QUOTE (clearyarchitect @ Sep 25 2009, 12:28 PM)
Hello,



Im a 20 year old student looking to get my money growing quicker but savings are limited when talking in terms of down payement, and income is slim as well. Any creative ideas on getting started with under 10k and limited salary?

Thanks so much


read this here .. and then ACT upon it:





5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html



How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
 
Your a student. The best investment at this time is education. Lots to learn about money and investing. Learn everything you can and once you get a steady job, after graduation, you will be ready to go and have a steady income to support your investing.
 
QUOTE (invst4profit @ Sep 25 2009, 04:18 PM) Your a student. The best investment at this time is education. Lots to learn about money and investing. Learn everything you can and once you get a steady job, after graduation, you will be ready to go and have a steady income to support your investing.


i respectfully disagree. The best investment is a high paying job that you can show off to the bank to entice them into giving away their money. I have a 4 year degree...with very high GPA and guess what, the bank don`t care nothing about it. But working as a trim carpenter for $18 an hour and reading a bunch of good real estate books was enough to make it work for me. you need USEFUL education. University doesn`t teach you how to become rich.
if i could do it over, i`d hit trade school right out of highschool and be a millionaire by now (8 years later). unfortunately i`d never read anything by robert kiyosaki or don campbell, so i bought a degree instead... oops. Of course, there`s no waste in God`s economy, so maybe it will be useful in the long run.
 
QUOTE (jessandy @ Sep 25 2009, 02:37 PM) I have a 4 year degree...with very high GPA and guess what, the bank don`t care nothing about it

I think it depends on what type of degree you are getting. My wife and I both graduated with professional degrees (the type with accreditation boards) and both had job offers >6 months before we were scheduled to graduate. We got a bank to write us a mortgage based on the income in our job offers.

For real estate investing, the biggest factor a degree makes is how it improves your income. If you take a degree that doesn`t improve your income, it won`t help with the bank no matter what your grades are.

Whether you plan to be a real estate investor or not, investigating the potential career options is important before you start a degree.

Michael
 
QUOTE (jessandy @ Sep 25 2009, 04:37 PM) i respectfully disagree. The best investment is a high paying job that you can show off to the bank to entice them into giving away their money. I have a 4 year degree...with very high GPA and guess what, the bank don`t care nothing about it. But working as a trim carpenter for $18 an hour and reading a bunch of good real estate books was enough to make it work for me. you need USEFUL education. University doesn`t teach you how to become rich.
if i could do it over, i`d hit trade school right out of high school and be a millionaire by now (8 years later). unfortunately i`d never read anything by robert kiyosaki or don campbell, so i bought a degree instead... oops. Of course, there`s no waste in God`s economy, so maybe it will be useful in the long run.

We do not disagree.
I assumed he was intending to continue his formal education, graduate and get a job some day. That job would afford him the income required to get financing and support his investing.
My reference to education was referring to the area of real estate, financing and money.
He has plenty to learn before risking his money.

I hope $18/hr is only a starting wage.

Back breaking labour all your life does not compare to the investment in a good education. Some trades pay well but age can take it`s toll.
Always remember for every successful investor there are multiple more that fail regardless of the books one reads so it`s nice to have a fall back plan.
 
I have a client, went to school graduated, been working for 4 years. Now making over $200,000 per year. Just getting started in the real estate investment business. Do you think he is going to have a pretty good chance getting a strong start in Real estate? If you read Thomas`s 5 things post you will see that you need to bring something to the table. Getting educated in real estate is a great way to make money, but life is about more than that. Hopefully you will get some education in school that will allow you to do what you want in life. Once established you can make some money. Enjoyment from your job, money from your investing, what could be better. A very common mistake people make when contemplating real estate investing is that it is a get rich quick scheme. It is not! Many people make a lot of money in this game but it after time or education or something. My advise, find a partner or two, buy a house together and continue with your schooling.
 
QUOTE (invst4profit @ Sep 25 2009, 05:18 PM) We do not disagree.
I assumed he was intending to continue his formal education, graduate and get a job some day. That job would afford him the income required to get financing and support his investing.
My reference to education was referring to the area of real estate, financing and money.
He has plenty to learn before risking his money.

I hope $18/hr is only a starting wage.

Back breaking labour all your life does not compare to the investment in a good education. Some trades pay well but age can take it`s toll.
Always remember for every successful investor there are multiple more that fail regardless of the books one reads so it`s nice to have a fall back plan.

$18 is only starting wage...and current wage...and probably the wage i retire on (already have bad back and tendonitis, but that`s what life threw my way). Right now, after the deal i`m doing closes, i`ll have a total of $1300/month passive income to add to that (all of which gets reinvested, not used up on living). I intend on being a carpenter for another year or so before moving on, and don`t want to waste any time on it instead of on real estate (i only work mon-thurs so i can have fridays for real estate) and its working for me. you just gotta be smart about it.
so take a lesson from my book. If my family can do it, on single income, $18/hr, 4 days a week, you can do it too, just gotta find your niche. (of course, my wife does a lot of volunteer work, so God`s probably lookin` out for me, haha).
 
as a student, do what i did, use money and job before school to buy house instead of tuition, then continue studies. If you get decent job (mine was $14/hr) you can qualify through cmhc with as little as 5% down on principle residence, can you not? Pay mortgage instead of renting, rent out other rooms to help with cost.
maybe parents have to cosign, maybe not, mine didn`t. (of course i didn`t know about cmhc back then and went conventional, i just bought the house to keep my money safe while i went to school). turns out i made $40,000 in 4 years appreciation....
once you have house, get student loans to pay for school. lots of loan programs (like OSAP in ontario) don`t count your principle residence as an asset, so it doesn`t affect your ability to get loans.
Its the same principle as real estate, use Other People`s Money.
 
Your time line is slightly scued.
As an example: My daughter while at Queens earned $15/hr ($18/hr her last year), graduated and got her first full time job this Sept at roughly $20/hr. In 5 years she will double that wage. She graduated with $15000 owing in loans as she applied her income to her schooling.
Not being encumbered with school debt she could now start to do the same as you (she is married but unlike your wife her husband also works). In five years she could be farther ahead than you (from her income alone and no debt) and in the next 5 double that.
By the way if your wife has the time to volunteer could she not be working to contribute to your plan. Does she support your investment goals.
Remember investing in real estate is a long slow process not a quick race to financial freedom.
 
QUOTE (bizaro86 @ Sep 25 2009, 02:54 PM) I think it depends on what type of degree you are getting. My wife and I both graduated with professional degrees (the type with accreditation boards) and both had job offers >6 months before we were scheduled to graduate. We got a bank to write us a mortgage based on the income in our job offers.

For real estate investing, the biggest factor a degree makes is how it improves your income. If you take a degree that doesn`t improve your income, it won`t help with the bank no matter what your grades are.

Whether you plan to be a real estate investor or not, investigating the potential career options is important before you start a degree.

Michael

I was in the exact same boat as you were when I graduated university a few years ago. I think education is very important but you need to have the right education. I had 7 Job offers before I graduated and made $100K the fist year I was done school.
 
QUOTE (clearyarchitect @ Sep 25 2009, 02:28 PM) Any creative ideas on getting started with under 10k and limited salary?
The REIN member audio library has interviews with REIN members who have achieved great success without any of their own money and without qualifying income. One way to do this is to use other people`s money and other people`s qualifying income in the form of JV partnerships.

One of the great things about real estate is that there are many ways to achieve success. Some successful investors have lots of capital with great income, others have no capital and no income and many fall somewhere in between. From my experience, they all have a few things in common, they treat real estate investing as a business, they work very hard and they never stop educating themselves.
 
QUOTE (kboughen @ Sep 26 2009, 11:50 AM) ...

One of the great things about real estate is that there are many ways to achieve success. Some successful investors have lots of capital with great income, others have no capital and no income and many fall somewhere in between. From my experience, they all have a few things in common, they treat real estate investing as a business, they work very hard and they never stop educating themselves.
very well said !!!
 
I am in the same situation kind of

I am 21 graduated from a 3yr program in Financial Services but because I am self employed no bank wants to look at me because of less then 2yrs experience

Now my question is should I try for alternate financing through JV or something else or Rent to Own because I have been in talks with HomeOwnerSoon and they are willing to do business with just mark up the price of the house I want

Should I take the hit appreciation wise or just wait another year or 2 and try with the banks

So jump in now and Rent to Own or save up and buy in 2yrs time

I know I dont own it technically till 2 yrs time anyways

I have about 10k saved and will have 12-15k+ by Nov/Dec

I am in Northern Ontario and will be buying my principal residence and looking to buy a duplex/triplex or big family home and rent out some rooms to students and family
 
QUOTE (invst4profit @ Sep 26 2009, 09:40 AM) Your time line is slightly scued.
As an example: My daughter while at Queens earned $15/hr ($18/hr her last year), graduated and got her first full time job this Sept at roughly $20/hr. In 5 years she will double that wage. She graduated with $15000 owing in loans as she applied her income to her schooling.
Not being encumbered with school debt she could now start to do the same as you (she is married but unlike your wife her husband also works). In five years she could be farther ahead than you (from her income alone and no debt) and in the next 5 double that.
By the way if your wife has the time to volunteer could she not be working to contribute to your plan. Does she support your investment goals.
Remember investing in real estate is a long slow process not a quick race to financial freedom.

My wife totally supports and helps with the real estate goals. There are some health complications that prevent her from working right now so she does what she can. also, we are not 100% focused on real estate, there are other aspects of our lives we`re investing in that involve less tangible benefits.
I guess i`m a little biased against the liberal arts education (not formal education in general), because people generally don`t get a raise for studying history, english, philosophy, theology...which was the school i went to (yes, i know there are exceptions). Of course there are MANY reasons to get such an education that have nothing to do with money...but that`s not what we`re discussing here.
by the way, if anyone knows of employers needing an applicant with a theology degree, let me know, haha.

also, by my reasoning, your daughter will not be farther ahead than me in five years on income alone because her income is only increasing mathematically, getting dollar pay raises and working more hours, mine`s increasing exponetially, (I`m starting out with a decent $$$ base, 100% of investment returns get reinvested, my ROIs are averaging 40% per year and producing PASSIVE cashflow so i can theoretically increase my salary infinitely) while she will hit the pay grade ceiling in her line of work....which, of course, is why all of us are here chatting about real estate instead of how to get a pay raise at work.
 
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