11 Oct How to Invest in Real Estate at 18: Flipping, Wholesaling, and Real Estate
Ryan Zolin is a real estate investor with over $400,000 in annual income who has never had a “real” job. He started out by investing in real estate at the age of 18 and by the time he was 26 he had earned his first million dollars.
One of Ryan’s secrets to success has been using the principles of “flow”. Simply put, this means spending your time on activities that produce results.
Flipping and Wholesaling: How to Get Started
What is the first step to wholesaling real estate? You need to find motivated sellers. Not just any type of seller, but sellers who are hungry for cash and want to move quickly. Which leads us to our next question… Where do you find these motivated sellers? Many wholesalers find their seller leads online on websites such as Craigslist. Flipping houses is a relatively new concept, so you must be creative. To locate sellers, you can try driving around looking for vacant houses and knocking on doors.
How much money do you need to start wholesaling real estate? This is a question I get asked by aspiring entrepreneurs all the time. If you do not have any money to invest, you can still get started. You could do renovations with what little cash you have, sell personal items on Ebay or list items in your garage sale.
I’m 14. How do I get into real estate wholesaling? Most people know about flipping houses, which is usually done with a hard money loan. Wholesaling on the other hand is usually done with bank financing which many find to be much less risky. If you are doing it on your own, or if you are not working for a real estate company, it can be tough to get financing. If you have an entrepreneurial spirit though and think this might be something you would enjoy doing- I highly recommend getting in touch with me!
How to Invest in Real Estate at 18: REITs and Syndication
What are some benefits of investing in REITs? There are many benefits of investing in REITs. It can be an excellent way to diversify your portfolio, invest in real estate without having to buy a home or condo outright, or just have your money work for you.
What are the minimum requirements to invest in a REIT? A simple answer is that it depends on the type of REIT that you are investing in.
How can I passively invest in the real estate business? Many people believe that by investing in real estate they are not only building wealth but also creating a passive income. Here are some ways you can invest in the real estate business without actually becoming a landowner.
This is the most passive form of investing. It’s also one of the riskiest ways to build your wealth since it requires no upfront costs or any knowledge of construction or management. Your main concern will be how much rent to charge, but this is generally just an estimate since you will not know how much profit there would be on any property until you look at it and see how many properties you will need to buy in order to generate the desired amount of income.
REITs and Syndication: Hands-Off Investing
What are the differences between REITs and syndication? Real estate investing is tough. The investments are illiquid, have large upfront costs, are fraught with the liability of being the “owner” of a property, and most importantly can be very risky.
The residential real estate market is especially tough for newcomers because there are simply not enough homes in America to satisfy demand.
This confluence of factors contributes to why most Americans rent their home rather than buy it.
But that does not mean that people do not invest in real estate. They just usually do so via REITs or through syndication deals with seasoned investors who will reduce risk by putting together several investments in one parcel of land or house.
What is the difference between a REIT and an investment fund? An REIT is a Real Estate Investment Trust, which differs from an investment fund in that the shares are real estate properties, mortgages, or mortgage backed securities.
What is the minimum amount to invest in REITs? If you’re like most people, you probably want to know the absolute minimum that I would invest in REITs. It’s honestly hard to say, because it depends on your age and risk tolerance. For instance, you might be looking at the market for different types of retirement accounts like IRAs or 401(k)s. Your investment strategies will vary based on what type of account it is (stocks vs. bonds). A good rule of thumb is to put about 20% of your portfolio into REITs if they’re in an IRA or 401(k), but if they’re in a brokerage account it’s better to be around 30%.
Where to Go from Here
How do I get my first property? You may not know this, but it’s possible to be a real estate investor without owning any property. That means you can take on seller-financed deals, lease options, land contracts and more! Check out the other sections on this site for more information on those types of deals.
What are some ways to get more information on how to invest in real estate? The best way to get the information you need is to speak with a real estate agent. They will be able to give you their insight and knowledge on how best to invest in property. We also offer many ways to gather more information on real estate. Real Estate Disruptors podcast were Steve Trang interviews some of the top players in the real estate space. You can sign up for our sales training, where Steve will teach you how to convert more sales.
I have already done this. Where else can I find information?
Some people are willing to sell their knowledge for a price. There are many books on investing in real estate, but keep in mind that not all are accurate or useful. This is because there are so many different things that you should know about before investing, so it may be tough for one person who knows only one or two small things about it to write a book on the subject.