Real Estate to a 17 Year Old - Posted by John - MI

Posted by DJ-nyc on January 21, 2010 at 08:45:23:

Nice post. See you at the top.


Real Estate to a 17 Year Old - Posted by John - MI

Posted by John - MI on January 20, 2010 at 20:59:11:

Hi I’m John, I’m 17 years old and I live in Michigan. A friend of mine told
me a little about real estate and for some reason it sparked my interest. I
started to read a little about real estate online and then I ran across this
site. This is an awesome site and I’m very grateful that I found it because
I find almost everything on it very fun and interesting to read. I’ve read a
lot that this site has to offer, and I really want to jump into real estate, but
I’m still an amatuer and have never done anything like this in my life. I
have many questions and maybe some of you may be able to answer a

Are there certian laws that would influence me because of my age (like
certian restrictions if you are below a certian age, etc)

What would you suggest to be the easiest market to start out in (because
of my age/ lack of experience) From what I have read, my favorite
happens to be house flipping; also I don’t think I would be good at
rehabing a house by myself seeing as I’m not experienced in that field at

What do you suggest to be the best way to approach someone who I may
potentially buy a house from (take into account my age - i.e. Not many
people are going to feel comfortable selling a house to someone so

Also keep in mind I have very limited funding ($5000 cash at most to start)
so that may impede my ability to go into certain markets at this stage. I’m
also not looking to make a whole ton of money to start, my main goal is to
start saving up for college so I don’t have to take out as many loans and
so that I can at least get my foot in the door of real estate.

I might have more questions later, but if you could help me out in any way
possible I’m all ears and I would love to hear what you all have to say.

Re: Real Estate to a 17 Year Old - Posted by gh

Posted by gh on January 27, 2010 at 15:59:53:

At 17 I strongly suggest you FIRST open a RothIRA account (minors can open one) and try to max it out each year starting last year (yes that’s possible until April 15th). It can be an emergency fund plus its being a retirement fund gives your money protection against bankruptcy and lawsuits - two common threats against any money you invest over the years. You can eventually do rei in one. Not to mention the superb tax advantages. Not to mention the most powerful force in the universe called “compound interest”! At 17 you would be a fool not to fund a Roth…even if you only contributed to one for the next 5 years you would be waaay ahead of most people financially.

I’d first fund your Roth each year with part time or full time jobs. You will also need a job or jobs to pay for your daily living unless your parents are supporting you. I’d suggest you start at least going to college part time. Maybe some business courses. Also continue to study real estate investing to get a good idea of the various approaches. Read, read, read. Also get out and about to learn your local real estate market. Visit open houses. Join a local rei club. At 18 (when you can legally sign a contract) use a little (i repeat, little) money that you can afford to “blow” to give things a try. You might start with wholesaling since it does not cost much.

Create a PLAN for your life. And physically write it down. This greatly helps helps a person to clarify things and to use their brains. They teach this concept in top schools like Harvard. It’s like creating a map for yourself. So many people just jump into things with only a sketchy vague plan in their head. As they say, if you don’t know exactly where you’re going it’s doubtful that you will ever get there.

Write down your goals and then break them down into the specific steps and actions and intermediate goals you need to work on in order to attain your ultimate goals.

Don’t think like a 17 year old! - Posted by Rick, the Probate Guy

Posted by Rick, the Probate Guy on January 21, 2010 at 15:44:35:

When I was 17 there was only one thing I wanted and it wasn’t real estate, at least not specifically.

So, you’re thinking sounds pretty focused and I say to you: 'go get ‘em.’

Of course, there are a few details that you’ll have to work out in the meantime, like what makes a deal, where you’re going to find them, finance the rehab and holding cost along the way and legally enter into contractual agreements, but I think each and every one of these hurdles can be overcome.

I started at age 23 (in 1978) and have never regretted even my worst days becuause I love both investing and the business of real estate.

Right now, the best investment with the highest return is in yourself. Learn everything that you can and get a sense of what aspects are best suited for you and your collective skills.

If you find yourself short on deals/skills/capital/ or knowledge, then that will be your clue to pour yourself ever yet harder into your R.E. education.

Also, you’ll need some sort of cash flow in the meantime because you won’t be able to learn everything that you’ll want to learn for free and it just makes sense to profit from the lessons and mistakes of others so you don’t have to write the check.

By the way, you might start by getting a checking account, since you’ll need to use one from time-to-time in real estate.

Re: Real Estate to a 17 Year Old - Posted by BRADLEY SMOTHERMAN

Posted by BRADLEY SMOTHERMAN on January 21, 2010 at 08:32:31:


I get excited when I see young people, like me, when they begin to see the light.

As far as age, it will hinder you, UNTIL people begin to see that you know what you are talking about. Knowledge is power. I am 23, started selling real estate as an agent when I was 18, and was #1 in my company in 2008.

I have since moved into real estate investing, and am in the middle of my first rehab flip right now. I think that it is important that you learn what a “great deal” is first. You can do this by researching the market, but I feel that it would be best served if you got your RE license. You will make 3% by buying a property that is listed, which will more than pay for the cost to get licensed. In the mean time, you can learn the market from the inside out.

Just one word of advice. The people that are the closest to you will be the most negative about things. Typically people can only advise against things, considering there is risk involved. Don’t take it personally. Especially if you don’t come from a family with an entrepreneurial background, you may have a tough time with this. Sometimes it is best to keep your aspirations to yourself.

Anything I can help you with, let me know.