Best Investments For Young Investors
Kris Krohn here REITV and I’ll tell you something… I retired when I was 26 and that’s the question is how old or young do you need to be to really get into real estate? is there a particular age? so I love it when young people ask me how old do I need to be to invest in real estate? and i love it with old people are like “is it too late for me to invest in real estate” everyone wants to know what’s the magic age when is it too early when is it too late?
well before I answer that let me just kind of share this idea regardless of age, if you have the ability to do a deal and let’s say that deal could make you $50,000 so what I ask, “do you really want your age to to get in the way of producing $50,000?” so what age do you need to be? well I got started when I was 22 and I retired when I was 26 just a year out of college so do you need to be 22 or 26 on the low side no I’ve seen 17 and 18 year olds do it I have gotten a buddy who who went by the time he turned 19 years old had already brought a couple properties he went to go server to your Christian mission and when he came back you know what he walked into almost a hundred thousand dollars of equity sold those properties that cash flow paid for his mission and then he upgraded it into more properties you can be young and you can do this you can also be old and of course it’s never too late if you’re leveraging a short-term buy-and-hold strategy because no one wants to buy a property at 100 and then kick the bucket a year before they’re able to sell it there doesn’t have to be and I’ll tell you this I was 26 beat that! if you’re young be inspired ultimately getting a deal done does not come down to you having money are you having credit it comes down first of all you having a desire to make something happen and so if you’re watching this video and you have that desire know that in some way shape or form what’s available out there are the necessary resources to make deals happen I spent ten thousand dollars to do millions of dollars in real-estate.
That’s all it took for me to get in and then the beginning even far less than that for you I’m not going to tell you an age I’m not going to tell you how much money or how little money because the reality is everything you need right now to make real estate happen it’s available to you if the desire is there go for it now if you want to make sure that you do the deal right there are three things that I want you to watch out for how many? at three all right so let me give these to you the first thing that I want you to be focusing on is equity now what is equity equity ultimately equity is this idea of the difference between what something is worth and what you all want right so if an asset and then there’s a liability portion when you have a mortgage on it let’s say something is worth a hundred thousand dollars and let’s say that got such a great deal on it and i bought it for fifty thousand dollars well now that means that fifty percent of the property is paid off and in this example there’s fifty thousand dollars of equity then also represent a 50-percent ltd or loan-to-value so fifty thousand dollars that will be fifty thousand dollars in network equity is the first thing the second thing that you want to look forward to make sure deal works is cash flow k cash flow basically means all right here’s this hundred thousand our house and my $50,000 mortgage is costing me four hundred dollars a month but I rent it for seven hundred dollars a month what’s the difference between 700 and 400 that’s three hundred dollars a cash flow in a year that’s three thousand six hundred dollars and if it’s something like a lease option strategy and all the expenses get deferred to the person in the house so that could then become a cute cash flow to you watch one of my other videos on how to do these options to get more information on that and then the third thing that you want to look for is controlled you don’t need to be the sole owner to share control in this property sometimes I buy properties with cash sometimes I buy them as loan sometimes I bonded with partners take an example to partner you can watch one of my other videos on how to find partners and what that looks like but essentially with the partner what you’re doing is you’ve got somebody that says hey don’t put up the credit maybe they’ll put up the money and maybe you’re the one finding the tenant and managing your property and the tube you are sharing control so you can put anything in a contract you can decide what control looks like and make sure that you have some so that as you hold on this property over time when it comes time to buy sell reruns it out you’re the one calling the shots to make this work for you whether you are 17 years old yes you can or whether you are 100 years old go for it no seriously go like go go scram make it happen like I don’t care how old you are if you’re watching this video if you’re old enough to watch this and like cognitively process what I’m talking about here then guess what go go make it happen and then go tell us what went down and go ahead and blogging and comment below because I would love to hear from some of you how young or how old were you when you actually got into real estate you.