Posted by Brian M. Powers(MI) on July 08, 2002 at 21:59:40:
i don’t pursue flips. i am willing to forgoe the quick money and bear the risk of waiting for the bigger payday.
BMP
20 year old investor - Posted by ichephren
Posted by ichephren on July 08, 2002 at 15:12:29:
Hello,
I am thinking of getting into L/O but I have several problems. First I am 20 years of age and I fear that my age would come into play if I want to structure deals with homeowners. Second, I am currently highly cash poor and have no credit. Can I still do this? I feel as if there is something that I am missing about this…is there any way that I could be liable for payments that I will not be able to pay? What would you advise as more seasoned investors?
cash poor? - Posted by Donald
Posted by Donald on July 09, 2002 at 04:31:23:
Why are you cash poor?
Do you have a job?
Donald
18’s Age of Maturity, most states - Posted by John Merchant,JD
Posted by John Merchant,JD on July 08, 2002 at 20:26:39:
Looks like you’re really asking two questions:
First, would home/property owner even deal with you, your being just barely an adult in most states. I’d guess you would want an older “front” person who might be trusted more by the seller. True story: I have a friend who started a mortuary, funeral home business with his brothers, when he, my friend, was only 18, in the days when that was NOT legally the age of maturity…so, in order to get the confidence of his customers, he hired an older guy to be the front man and pretend he was the owner…but my friend and his brothers ran and owned the place and made all the decisions.
Second question is: At 18, could you be held liable for what you agree and promise and contract to do? As far as I know, without doing a state-by-state analysis of the law on this, 18 is the age of maturity, meaning that at 18 or above, you are legally responsible for your agreements and contracts, but below 18 you’re not, unless you have done some other legal act (e.g.marriage in some states; maybe joining the US Military in some states; or by special petition in court in some states)that the law says, has made you an adult and now, legally responsible for your contracts.
And of course, this can lead to some ridiculous law being enforced…there are still girls of 13 being married! Are they really adults? Come on! But the law of their residence might sure say they are.
Re: 20 year old investor - Posted by Lazaro
Posted by Lazaro on July 08, 2002 at 20:10:41:
Hey,
AGE DOES NOT MATTER!!! I am currently 19 and I started even earlier. I can prove to you that age does not matter. EVERYONE respects me because I respect them…that is all there is to it.
Cordially,
Lazaro
Re: 20 year old investor - Posted by ichephren
Posted by ichephren on July 08, 2002 at 19:28:19:
Thanks everyone, I appreciate the advise. I think that I will start off scouting for other people to get experience and money then move up from there.
Re: 20 year old investor - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 08, 2002 at 16:10:07:
first lets talk about your age. your age will not be an issue with motivated sellers so long as you conduct yourself as a professional adult. i am 27 and i would say about half the sellers i meet with comment on how young i appear. when i tell them i am 27 most comment along the lines of “wow, you’re only 27 and buying houses already”.
if you have an inferiority complex regarding your age than that will most likely come out when you present yourself to the seller. but if you are seeking the motivated sellers that will sell on a L/O, as long as you have confidence then in what you are doing then i see no reason why age would be a factor.
now lets deal with the fact that you have no money or credit. the credit is less of a concern to me at this point than the cash. you have to have a rainy day fund in order to handle the unexpected. what happens if you cannot find a tenant/buyer right away and you have to carry the monthly payment yourself…do you have the funds to do that? what happens if you get a deadbeat tenant in the home who stops paying…do you have the funds to evict the tenant and make the payments to the seller while waiting for the courts to oblige you with evicting the tenant? what about repairs? 6 months into the deal the home might need a new roof, furnace, etc…can you afford to pay those?
you have to be able to absorb these “holding costs” because it is not a matter of “if” they will occur but “when” they will occur.
if you are really strapped for cash then perhaps flipping/wholesaling or even bird dogging would be a better way to start.
they will provide you with some experience and some cash while minimizing your risk. once you build up your bank account than you can look into more profitable deals like lease options.
best of luck and congrats for being so interested at such a young age!
BMP
PS- check out this great link posted by Johnboy…its a great read for beginners:
http://www.creonline.com/wwwboard/messages/arc_2001/arc_50/50774.html
Re: 20 year old investor - Posted by Matt KY
Posted by Matt KY on July 08, 2002 at 16:08:43:
ill be 20 in november. ive been studying RE for about a year now and i have several leads that should produce at least a couple deals in the next few weeks. like Matt PA said, be professional, know youre stuff, and age wont matter.
lucky for me, i look much older than i am. but even if you look 12, if you get motivated sellers, it wont matter. just make sure the numbers work. thats all that matters.
And Matt PA, congrats on the first deal!!
Re: 20 year old investor - Posted by Matt PA
Posted by Matt PA on July 08, 2002 at 16:02:49:
Hey,
I’m 20 years old too and just got my first l/o deal this morning - the contract will be signed tomorrow by this time. If you’re dealing with motivated sellers, age is not a factor. Just BE professional and make sure you know what you’re doing. You don’t need credit or a lot of money to make well-structured deals happen. Get a mentor, read some books, and be on your way after you know what you’re doing. Good Luck Bro - Matt Hegedus
Re: 20 year old investor - Posted by Eva
Posted by Eva on July 08, 2002 at 18:43:24:
Hello, read your response to the young man with great interest. It has occurred to me that “flipping” is the way to go. But I just finished with a depressing 2 hours on the phone. Every single person who had an “investor will buy houses” ad was somebody who just finished a guru course and was praying for a miracle. It seems like the only one making money is the penny saver!
Can you give some PARTICULARS (though I have nothing against it, no advice/encouragement, lol) on how you have structured “flips”.
Thanks!