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REAL ESTATE Teen REI?

djs13

Contributor
Read Millionaire Fastlane
Oct 3, 2007
416
43
41
NY
I'm running a bit low on time so if its ok I'd like to not beat around the bush too much.

- I'm 16 years old
- I have a bank account worth $2k
- My dad is a manager at a large corporation and my mom is a teacher (neither have REI knowledge or experience)
- I'm currently looking at all my financial options (stocks, e-business, etc) but REI seems the most natural to me and I am extremely interested in it compared to the stock market.

1.) Is it possible, as a minor, to use my mom as a "puppet" to sign mortgages and contracts while I'm a minor and then sign them over to me when I go to college? This seems like the only way I can get into REI.

2.) Are hotels, malls and casinos considered commerical real estate or are these businesses? I know that I'm going to start with residential real estate, but I'm a bit unclear what commercial is.

3.) If there are any current teen REI, feel free to PM me and we can network.
 

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Stevenh

New Contributor
Nov 1, 2007
10
1
10
I think with only $2,000 to work with your best option is going to be putting the money into a REIT. The only other way I could think to make money in real estate with such limited capital would be to tie up contracts and attempt to flip them (which can be very lucrative if you know what you're doing). However, being 16 you are going to have credibility issues with sellers.
 

mglshark

New Contributor
Oct 18, 2007
36
5
14
The other way is to snoop around and find deals for RE investors. Like the cash flow game you can "sell the deal" to people with the money and interest. They in turn can pay you a commission (assuming no problems with the state / gov, check with RE pro). Using your time to be the "deal maker" making you money!

mglshark
 

Stevenh

New Contributor
Nov 1, 2007
10
1
10
The other way is to snoop around and find deals for RE investors. Like the cash flow game you can "sell the deal" to people with the money and interest. They in turn can pay you a commission (assuming no problems with the state / gov, check with RE pro). Using your time to be the "deal maker" making you money!

mglshark

I'm only familiar with TX and FL real estate law, but in both of these states you can not be paid any sort of commission unless you are licensed as a sales associate or broker. I am not certain it is like this everywhere, but I would be surprised if it wasn't.
 

mglshark

New Contributor
Oct 18, 2007
36
5
14
StevenH -

Yep you are right, he needs to check local, federal & state laws, hence my statement "...(assuming no problems with the state / gov, check with RE pro).". I should have been more clear - yes always check local, state & federal laws before doing this, also talk to some RE investors on how they do this and finally find a RE lawyer (if needed) to structure your business entity to stay legal. The age may be a barrier as well. Fun research to say the least! : )

In my area many years ago I knew some RE brokers that would give you "a finder's fee" for referring a buyer. I been to RE seminars where they promote "finding the deal" or " "simultaneous closing " (buy / sell at the same time) to make money ideas, but in concept only, no mention of how to do it so you don't run afoul of legal laws. I don't know if it is legal now, with the sub prime mess and the government getting involved this ideas may not be legal anymore. of course having a RE lic. causes you to have more restrictions in what you can do.

One other idea I thought of is that he can set up a local RE web site with news, opinion, e mail and chat board just about the local market. He can offer some paid adverting and run free and / or paid classified ad section. One such web place is very popular in my area, the site has been up for many years and has lots of investors visit it daily. In fact the next question I ask on the boards will be this one!

Hope this helps!

mglshark
 

mglshark

New Contributor
Oct 18, 2007
36
5
14
One other idea came to mind - assuming you have to wait till age 18 to sit for lic. test or buy / sell RE now would be the time to study up on all this stuff, go to all the freebie seminars you can find, haunt the web and local library for RE info - all for free! See if you find the folks that been doing this stuff for 10 years plus and mentor under them, helping them out in exchange of showing you the deals and how they handle problems along the way! Imagine if you could follow someone that can showing you how to locate, fix up and sale places at a profit, fixing management / tenant issues for better cash flow, running the numbers and knowing your profits when you buy, conversion projects, buying / selling note, etc. Better then working as a stock boy at the local market!

Be sure to keep your folks in the loop and get their permission first of course. Let us know how things work out!


Best,


mglshark
 

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