I get asked by people in their 20's all the time how to start investing in real estate
in your 20's and that is a great question because if you can get real estate in your 20's, it can
start making you money for years upon years upon years and I'm going to show you exactly how.
in this video, I'm going to give you 5 ways to start investing in real estate in your 20's even
if you've never invested in real estate before. And at the end, I'm going to give you a free gift
that'll help you launch your real estate journey and make sure you're doing it the right way.
Let's get started. The very first thing before you start investing in real estate
is to invest in a mentor because if you start investing in real estate without having a mentor
that can walk alongside you to help you analyze deals, make sure they're good deals for you, talk to you
about getting loans, what loans are best, how to raise capital if you need to, if you don't have
somebody helping you work through that, most likely what will happen is you'll hit those questions, you
won't know the answers and you'll just throw in the towel or you'll never get started. And what we
want to make sure you always have a mentor helping you through the real estate process. This may
surprise you, I still have a mentor in real estate. I still have somebody who can look at my deals,
analyze my deals and really help me see what my next step should be, where should I go, what market
should I be investing in, how much money should I be putting, am investing in the best assets? It
doesn't matter what age you are or where you're at in your real estate journey, you should always have
a mentor helping you along the way. But the other thing investing in a mentor will do, usually inside
of coaching groups, there's a community aspect or a mastermind and what that does is it helps
grow your network and here's why this is really important for real estate. When I invested in my
mentor, I started to meet people in his coaching group or just like me. We formed partnerships, we
did deals together, it's an amazing thing. It's not just the mentor, it's also the... all of the students
that are mentoring with him or her. You're going to be able to learn so much but also build your
network, you're going to be able to connect with people that have the same goals as you and you
can team up on deals, you can throw deals their way that you're not interested in and vice versa. It's
a great way to build your network and also build your knowledge but also help you have somebody who
you can run things by so you don't make big costly mistakes. So, make sure you invest in a mentor.
The 2nd way to invest in real estate is to house hack a piece of multi-family real estate.
Now, house hacking is where you buy a multi-unit building or a multi-family building, you live in
one unit, you rent the others out and you live for free. I love house hacking and especially in your
20's, that's a great way to get into real estate. So, here's what that would look like. You buy a duplex
or a 3-unit or a 4-unit or whatever, you live in 1-unit, rent the others out, you're saving
up money, maybe then you want to buy a house, you buy your own house and then you move out, another
tenant moves in there and the unit you're no longer living in will help pay your new mortgage
of the place you moved in. It's house hacking that can actually help you house hacked for life. That's
why it's a powerful way to bust into real estate. You're living in one and while you're living in
one, you buy more real estate which is smarter than buying your own personal home when you first get
started and you own more real estate and more real estate and you have many units that are paying
all of your bills. It's a really powerful way to launch your career, start making some cash and also
lower your expenses so you have more capital to throw towards deals. The reason I like this method
when you're in your 20's is often the family and the kids and everything hasn't quite shown up yet
so that way you have a lot more freedom to live in a place might be a little smaller or you may
not want to do that when you have a family. So, it's a good thing to do at this stage of life to move
your portfolio forward, your cash-flow forward and start investing in real estate and the benefit of
house hacking when you're in your 20's is you can use an FHA loan as long as you're going to live
in it. Well, with an FHA loan, it's only 3 and a half percent down. You can actually get into a
multi-family building for 3 and a half percent down which is a lot less than the typical 20 to 25
percent investment properties ask for. So, you can get an FHA loan and live in half of it and then
when you move out, that loan stays in place and you can get into a piece of real estate with a little
money and you can live for free. That's why I love house hacking so much. As you start investing in
real estate, I would start with something 4 units or lower. Start with something 4-units or lower
so the price tag is a little closer, you can make sure you get that deal done and it's not so far
out of reach that it really is hard for you as a new investor to make that deal happen. So, you want
to start with 4 units or less, and my opinion house, hack one of those 4 or less units so that
you have other people paying your rent. But start with 4 units or less and let's get a piece of
property under contract that is paying your bills and eventually continue to support and pay your
lifestyle. This also allows you to get your feet wet and multi-family before you take on a little
bit bigger deal or even bring in investor capital for that deal. So, this gives you a way to kind of
navigate some of the landmines you're going to meet, understand them, talk to investors educatedly
because you're an active real estate investor, people trust you more now, this is a great way and
will open up many doors for you investing in real estate. If you're in your 20's, I guarantee you know
others who are in their 20's. Would you do us a favor and share this video, send this to them,
let them know how to start getting in real estate in their 20's. It'd mean the world to us
and we would love to continue to grow our family with people who want to build financial freedom.
The 4th way to invest in real estate in your 20's is to leverage the 203k FHA loan. I mentioned
this earlier but the 203k FHA loan is usually 3 and a half to 10% down depending
on your credit score. If you have a pretty good credit score, you can get it all the way down to
3 and a half percent and for every $100,000 of house, you're only giving $3,500 to the bank, that's
a really powerful way to get into real estate without having a ton of capital. And this 203k loan
is a powerful loan because you can also finance renovations. So, you can buy a property, move into it
and the 203k FHA loan will fund your renovations. So, if you need to put in new cabinets or counter
tops or paint it or out exterior or new roof, they'll pay for it all and that's the benefit of
the 203k loan. If you're in your 20's and you want to bust into real estate, this is a loan you should
be taking advantage of and I've taken advantage of myself twice on 2 different kinds of properties.
There's a couple things with the 203k FHA loan, you can only have one out at a time. So, if you
take advantage of the 203k loan, you have to sell that property off, pay off that loan before you can
take out another loan. The 2nd stipulation is you have to live in the property. You can't
take out a 203k FHA loan if you don't live at the property. So, that's why this is a perfect fit for
the house hacking model to take this loan, house hack a property and then you can move out. The
banks don't care if you move out, they just want to make sure you're going to live there for a certain
period of time. And the last way to invest in real estate in your 20's is look for a seller financing
deal. Now, what's a seller financing deal? A seller financing deal is where you find a seller who's
interested to sell your property to you and they act as the bank. So, you don't have to go get a loan,
you just make payments to the seller. The reason this is good if you're in your 20's, you may not
have the credit in order to go get a loan. So, even if you can get the 203k FHA loan, if you can't
qualify, pretty tough loan to get. Seller financing gives you the ability to navigate that. Let's say
you find a seller willing to do land contract or seller financing, as we call it, you can actually
buy that from them on owner financing where you can make the payments to them instead of a bank.
Huge possibility. And I've even found many deals 0 down. That means I had to pay nothing, I
just started making payments to them. It's a powerful way to bust into real estate in your 20's.
One of my very first seller financing deals was a little 3-unit building I actually still
own today. Little 3-unit building I found on Craigslist, actually my wife found it on Craigslist,
we were searching one day, she finds this property, we go to them, we bought a 3-unit building with
$3,000 down, we just made payments to the seller, we paid it off and today that
building nets us $1,500 a month. $1,500 a month for a 2,000
dollar investment because we found a seller financing deal. These are one of the most powerful
things you can use as you invest in real estate for your entire career but especially in your 20's.
But I also want to give you a free gift. I have a free 60-minute multi-family master
class training that I want to give you for free for tuning in today. So, make sure you go in the
description, click free multifamilymasterclass.com and you're going to go straight to our training.
I'm going to walk you through how to get a piece of real estate in under 71 days.