I'm 20 years old and a junior in college, my dad told me that most real estate investors that have become millionaires didn't go to college. How true is this, is it really that easy to get a loan and invest in real estate? I've read 4 books on real estate and attended a few seminars so far in the past 3 months as well as seen a few properties with potential for profit. The concepts seem pretty easy, the only thing I see is that its a lot of hard work. My dad has one rental property and my uncle just got one and it looks quite easy. Don' get me wrong, I know I have to roll up my sleeves and sometimes you may not make a profit for months and that's if you make a profit at all, but I want to know from someone who has experience, given the time and effort, could somebody strike it rich off real estate more easy than other fields? And is it more possible for any person who makes the effort or only few people have that special talent?I would definitely love to work for my self.
You don't strike it rich you get rich very very slowly. Getting started for most is very hard, first you buy a house to live in then try to buy another to rent out but you can't get a second loan. So you might move out of your house and rent it out. First time landlords make a lot of mistakes like trusting judgement about people instead of background checks and credit checks then when the tenant doesn't pay listening to excuses instead of starting evictions, most quit at that point. If you learn the landlord business you will be negative cash flow for years. Buy a house with say 1,000 mortgage and rent it out for 1,000 and you still have to pay for repairs and cover empty months etc. Raise the rent every year and in about 5 years you might break even so you support the rental house from your paycheck and save for a second rental. You can refinance if prices are up and refinance your home to get a down payment on a second rental. You might be 10 years into landlording before you have any profit monthly but if you were to do nothing else but buy and hold a few rentals after the mortgages are paid down or even before you will have cash flow and raise the rent every year. I know one couple who started with a run down 2 bedroom house cheap who now have 50 rental units but it has been 30 years not get rich quick and they and their children worked a lot of time cleaning and fixing things. They both work full time dealing with the rentals now.
You r best bet is to get some work experience in the field and finish your degree. If you like real estate, take some business courses. You can also get your real estate licesne pretty easily suring the down time of your schooling, IE - holiday, summer etc. Take the test and you are ready to go. FRom there you can work as a property manager, or work for an agent. Property mgmt is the best view of the fees, costs and profits of a property. It will open your eyes, to those you are doing a great job, and those owners who jsut can't hack it. best of luck!
It is easy money but if you learn about it then apply it. Know what property can bring in cash flow, but sometimes don't even think about the cash. Build relationships with your clients. Try getting a real estate license or take your test, they will train you. But although you don't need a license to flip homes, a lot of company still teaches you. Like keller williams, Berkshire, coldwellbanker. I am a sophomore in college, im doing the same thing you're doing. Lol reading upon it and also i hear alot of wealthy ppl talk about it alot because I work as a server at this fancy restaurant. But good luck
NO, most people do Not become rich from real estate. When anything sounds too good to be true, It Is. And No business loan is ever easy to get. It takes money to make money. And most sound investment opportunities take time to pay off. Focus on getting a good education instead of spending money on these seminars. If you are that interested in the real estate industry, find employment in areas like construction, property management, real estate sales. Learn what really goes on. Practical experience is always helpful. Universities also offer programs in this field.
