My plan

[Lucky37]

Right now i am starting to create my own business plan. I would like to start off small just to get an idea of the area of business i want to go into and then move onto bigger things. I would like to start off purchasing a small family home and renting it out to make passive income off of it. Then after i get more aquainted with the real estate business start buying bigger properties such as duplexes or even apartment homes with the money i make off the first one or from loans. My final goal which i hope to achieve in the next 8-10 years is to have my own real estate company. I would like to make my own floorplans for the homes and design them and build a community. Now right now i am only 17 years of age so i hope to buy my first home and rent it out by the time im am 18 and have a community by the age of 25 or 30. I know this will take alot of work but im willing to put in the time and effort to do so. I also am hoping to obtain my real estate lisence when i turn 18 so i can cut out the cost of having a real estate agent. I also would like to recieve a masters in business and if any of you know of good colleges to go for this i would love to hear from you or any insights on my plans that you may have.

:thankyousign:

 

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[Russ H]

Lucky-

You're just getting started, so it's OK to have lots of goals/aspirations.

Let's look at your list:

1. become a licensed realtor at 18
2. buy a SFH
3. Get into multis
4. become a developer
5. get an MBA.

RE: The above:

1. You're 17. When will you take the realtor's exam? Have you been studying/taking classes for it?

2. Have you made a list of what it will take to buy a rental SFH? (like good credit, a reasonable downpayment, ability to cashflow, etc).

3. When will you make the transition into multis? How do you plan on doing this?

4. What does it take in your state to become a RE developer? Licenses? $$? Cost of a typical project?

5. How will you get an Bachelors and MBA (4 + 2-3 years= 6-7 years) and still do all of the other stuff, in the next 8-10 years?

I don't expect you to know all the answers to my questions. And I'm not trying to put you on the spot.

I just want you to think about some of these things.

-Russ H.

 

[Russ H]

JScott- Again, I'm not putting you on the spot either.

But you've made the suggestion that Lucky37 could accomplish all of these things in 5 years.

What path would you take to to this-- what steps, and how long for each?

Thanks,

-Russ H.

 

[bflbob]

Lucky-

You're just getting started, so it's OK to have lots of goals/aspirations.

Let's look at your list:

-Russ H.

Russ:

This is what I like about you.

Just the right nudge in just the right direction.

Rep++ (Ooops...gotta spread some around first!)

 

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[Russ H]

JScott-

It's clear you've put a lot of thought into this.

Your plan actually looks very reasonable, and includes a lot of what you need to do.

A few things:

Perhaps the biggest assumption you're making is that you will find your perfect 4plex during the short time window you're allowing yourself.

This may or may not be realistic-- it all depends on the market, and availability.

I'd suggest you start looking at loopnet or other sources now (realtor.com?), specifically looking at 4 plexes, but also looking at 5-20 unit properties. You never know-- you may actually find an amazing buy on a larger property, and in this range (5+ units), the lender will be looking more at the property than at your earnings.

My first rehab, I spent *months* looking-- there were plenty of places I could have bought (it was a buyer's market), but I waited until I found something that was *exactly* what I wanted (and what my realtor had told me would cost at least 25% more). So I made a decent chunk right when I bought (one of the first rules of REI is you make your money when you buy).

As SteveO will tell you, there are some GREAT ways to make money after you buy. I did this as well, by rehabbing/improving my first property. I took far too long to do it (6+ years), but that was before I ever played cashflow. Ah, if I only knew then what I know now. . . :smxB:

Keep fleshing out your plan-- it's a great start. You need to fill in a few more places (like working w/a mortgage broker to see what you can afford, if you haven't done that already).

I'm assuming you have enough set aside to live on? Not sure about that part of your plan.

Hoping SteveO will add to this.

-Russ H.

 

[wildambitions]

Yup, perfectly reasonable question...

My timing is somewhat constrained by my current personal and career situation, but here is what I'm planning to do (and from what Lucky wrote, I think he could use the same path, maybe even faster)...

Lucky is female.
:seeya:

 

[Lucky37]

1. You're 17. When will you take the realtor's exam? Have you been studying/taking classes for it?
2. Have you made a list of what it will take to buy a rental SFH? (like good credit, a reasonable downpayment, ability to cashflow, etc).
3. When will you make the transition into multis? How do you plan on doing this?
4. What does it take in your state to become a RE developer? Licenses? $$? Cost of a typical project?
5. How will you get an Bachelors and MBA (4 + 2-3 years= 6-7 years) and still do all of the other stuff, in the next 8-10 years?

To answer you first question i have just turned 17 about a month ago so i still have almost a year to take the exam. But i am enrolling in the classes for it for the spring 2008 term.
I also have made a list of what it will take to buy a SFH. I have about $3000 saved up and i do have some family members that are willing to invest their money into my plan. So i will have a reasonable downpayment and my parents will probably co-sign with me and they have very good credit. I am also starting to build up my own credit as well and am getting a visa card.
For your third question i plan on moving into multis when i feel like i know all i can know about the real estate investing business so i dont get in over my head. Most likely though i will move into multis in about 3 years.
I do not know currently what it takes to be a real estate agent in my state. I am currently living in California but am planning on moving to Arizona within the next 6-8 months.
Also for my Masters degree i am currently still in high school but am graduating early so i will be done by the end of October. I also am currently enrolled in classes at a local commuity college and will have a semester done by December. So it will take me about 4-5 Years from now to get my masters If i try hard enough.

Also yes i am female not male
I was also wondering if any of you could share with me some of your past real estate investment plans and how they turned out for you?
:thankyousign:

 

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[Russ H]

Lucky-

Sorry about the sex change.

I'll try to be more cognicent of this for all in future posts.

Thanks also to wildambitions for letting me know.

Lucky-

Thanks for fleshing out more of your plan. I'm guessing you're going to be studying for a RE licence in AZ? Are the requirements different?

-Russ H.

 

[BeingChewsie]

I love seeing people with a plan! and at 17!! how cool...

I see nothing wrong with getting your RE license but...I don't think cutting out the RE agent is the right idea...how long will it take you to become proficient in doing their job? What better things could you be doing with that time? I say keep the agent, delegate, delegate, delegate. You could cut time off your 8-10 year plan by doing that. Think about the yield not so much the cost.

I'd consider doing some reading on multis and think about a larger property from the get go but that is me, how about with someone who already does what you want to do? You get a mentor, you can invest in a bigger property for larger returns and perhaps a quicker turn-over. Sounds win-win to me. Rinse and repeat until you are ready to leave the nest and fly on your own.

I see nothing wrong with the MBA route but if its going to slow you down by years and if you can achieve your goals without it..why not become financially free first then go back and get your MBA and not have to work your butt off while doing it.

Then...if you still want to build a development you'll have the knowledge, the connections, and who knows there might some niche you can tap into too related to that too.

Good luck!

Right now i am starting to create my own business plan. I would like to start off small just to get an idea of the area of business i want to go into and then move onto bigger things. I would like to start off purchasing a small family home and renting it out to make passive income off of it. Then after i get more aquainted with the real estate business start buying bigger properties such as duplexes or even apartment homes with the money i make off the first one or from loans. My final goal which i hope to achieve in the next 8-10 years is to have my own real estate company. I would like to make my own floorplans for the homes and design them and build a community. Now right now i am only 17 years of age so i hope to buy my first home and rent it out by the time im am 18 and have a community by the age of 25 or 30. I know this will take alot of work but im willing to put in the time and effort to do so. I also am hoping to obtain my real estate lisence when i turn 18 so i can cut out the cost of having a real estate agent. I also would like to recieve a masters in business and if any of you know of good colleges to go for this i would love to hear from you or any insights on my plans that you may have.

:thankyousign: