Tips for Teens – How to Prepare to Become a Successful Landlord

by Readers Question

10:03 AM, 11th June 2014
About 5 years ago

Tips for Teens – How to Prepare to Become a Successful Landlord

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Tips for Teens – How to Prepare to Become a Successful Landlord

I’m 16, and my goal is to become a successful landlord. I recently went on a fishing trip with my dad and he brought a work friend with him. His friend owns 9 properties, a majority of which are already paid off. He will retire when he is 40, and my goal is to follow in his footsteps. Tips for Teens - How to Prepare to Become a Successful Landlord

I will be speaking to him again, this time on a more professional level, to figure out how he become so successful in such a short amount of time. But for now I’d like to hear your two cents for how a teenager should start preparing to become a landlord.

Which classes would be the most beneficial?

Is saving money (keeping my minimum wage job) my number one priority right now?

Will it still be beneficial to become a land lord ~7-9 years from now?

Any tips that would help me out in the long run would be most appreciated.

Thanks

Derek



Comments

Mark Alexander

10:10 AM, 11th June 2014
About 5 years ago

Hi Derek

What a great set of questions for such a young person, you could go far!

Saving now from your minimum wage job will not do much for building up a deposit but it will condition your mind so I think that's a great idea. Equally, I think working whilst you are at college or Uni will also provide you with a work ethic that will stay with you forever. Don't condition yourself to be lazy. I have yet to find a wealthy lazy person, unless they won or inherited their money of course.

People will always need a roof over their heads. Some will rent, some will buy. How the market will look in 5 to 7 years time is anybody's guess but the points above will stand you in good stead regardless.

With regards to careers, the world is your oyster. For example, you could train as a Gas Engineer or as a solicitor. Both pay good money and you will need to earn good money to raise deposits and to obtain mortgages. Pick a trade or profession that landlords use regularly, it will save you money.

These are my starters for 10.

To read my story please see this series of articles >>> http://www.property118.com/learning-from-experience/61558/

PS - I purchased my first home when I was 19 and my first investment property at the age of 21. I retired from my day job at the age of 41. Unlike your fathers friend though, I do not beleive in repaying mortgages on income producing investments. I'd rather use the money to buy more income producing investments.
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10:47 AM, 11th June 2014
About 5 years ago

Hi Derek,

Just wanted to add my welcome and say how refreshing it is to hear of someone of your age who is already developing an entrepreneurial mindset.

The best advice I can give is to build your knowledge as much as you can by reading and researching.

Create a two, five, and ten year plan and stick to it. Set yourself goals and work towards them.

I love this saying and hope you find it helpful:

"Success comes from sustained and intelligent action".

If you take action each day, you will achieve your goals and dreams.

Very best of luck to you and enjoy the journey!

A G

10:59 AM, 11th June 2014
About 5 years ago

Derek,

What a great attitude you have. There have been some great points made above. I'll add one though:

There is not a single person reading this who didn't wish they'd started out at 16.

Go for it and good luck.

Andy

Laura Delow

11:13 AM, 11th June 2014
About 5 years ago

If only there were more 16 year olds out there like you. I would then rest easy knowing the generation coming through who one day soon would be running the world had some get up & go. Like Mark I bought my first place at 19 (cost £8,000 which was a lot then) with a 5% deposit taken from my Prudential savings plan I'd started aged 16 at £2pw from my first job earning £15pw working in the post room at M&S Head Office. Although buy to let mortgages weren't heard of then & you had to save with a building society for 2 years before they'd consider you for a residential mortgage, I bought my first studio flat & immediately let it out & self managed it. My ambition was to retire at 50. This I was able to do at age 41 but immediately got bored & started up another business & sold that aged 49 & again restarted another straight after, which I'm also due to sell soon & this time really retire aged 56 - I think! The key thing is, I wasn't an academic but I had what you seem to have; a vision ie the desire to conceive, to believe & to achieve. Vanessa Warwick's saying of "success comes from sustained & intelligent action" says it all. Please continue to set yourself apart from the herd & be the leader you seem destined for. Credit to you & also to your parents for where I can only assume comes your strong values & work ethic and it sounds like a good friendship too. Do please keep us abreast of your endeavours as I'm sure everyone like me would love to hear how you develop & grow over the years. My very best wishes to you & thank you for making my day.

Ian Ringrose

11:24 AM, 11th June 2014
About 5 years ago

If you are good at maths/physics and enjoy doing practical work, then training as a GasFitter and/or an Electrician would give you a good long term income, while exposing you to the world of property and dealing with tenants.

Most landlords/agents would jump at a trade’s person that was qualified in both Gas and Electrics given the number of safety checks that must be done and the issues with having to book appointments with many trades people. Just being Gas Safe qualified and doing a 1 day training for PAT testing, would make you a “god send” to any landlord with a HMO.

At your age you are better of investing in yourself, rather than in property – having a trade that will give you an income that is needed before you can get the mortgages to buy properties. A trade can give a lot better income over a life time than going to university so should not be looked down on.

Then buy your own home, do it up, take in 2 lodgers, save the rent they pay, put it on a BTL mortgage that allows small HMOs and repeat.

john kelly

14:03 PM, 11th June 2014
About 5 years ago

I don't think I can really add anything to that which has already been said but I want to congratulate all of you who generously give your knowledge for free. I have yet to come across other professional forums where information is given so freely! Well done!

Who said LL's are a bunch of *$"*^!!

john henderson

19:57 PM, 11th June 2014
About 5 years ago

You have a lot of skills to learn when young so it is good you have an idea in which direction these skills want to be pointing. I would definitely focus on the trades as this will save you a huge amount over your future investing years.

You also have the option of getting into house renovation purely for the capital gain, rather than renting and income.

I went to uni and did business bo++cks. Utter waste of my time and i will only encourage someone to go to uni to learn skills which cannot be learnt elsewhere - doctor, lawyer, engineer etc.

Get a part time job with a builder now and start learning this trade. You will end up learning joinery, probably electrics and plumbing along the way.

I save myself a huge amount when developing a new property (for rental) and can achieve 15% returns on the capital outlay because the renovation cost are much lower for me. My latest house has a dodgy foul water drain by the front door. I have quotes of £1k to sort this out, but i know i can fix it for £100-200.

Ian Ringrose

10:18 AM, 12th June 2014
About 5 years ago

Reply to the comment left by "john " at "11/06/2014 - 19:57":

You can become a lawyer from A levels without having to go to university, it also takes less time then doing university, then the legal exams.

Mark Alexander

14:08 PM, 12th June 2014
About 5 years ago

Hi Derek

I can't help but wonder whether your Dad was equally inspired by his friends story?

Did you know that you could go into partnership with your Dad and jointly own properties and also be on the mortgage deeds when you are 18?

Did you also know that when you are 18, if you do go to University you could get a 100% buy to let mortgage if your parents would stand as guarantor? See http://www.property118.com/student-buy-to-let-mortgages/33850/

If you and your Dad want to discuss opportunities in more detail please see my Consultancy Services page >>> http://www.property118.com/consultancy-mark-alexander/61522/
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Jeremy Edwards

15:12 PM, 12th June 2014
About 5 years ago

To be honest, I see this as more of a lifestyle choice than anything else. That you have a clear idea of what you want to do at 16 should make it easier for you to stay focussed and ignore the irrelevant stuff that life throws at us.

Makes sure that you do what you enjoy. It is less like work then and you may want to keep doing it rather than 'retire'. Ideally, find something you like that would have a positive benefit to a property business, (the gas fitter/electrician idea is a good one; self employed tradesmen are generally much more content with life than the bulk of the population).

Save money! cash gives you choices and wealth, (nasty truism coming), is the money you don't spend. Save up for assets that make you money, like a BTL property/trade tools and don't buy toys for the hell of it.

Going into business with an adult might be a good idea, as you would start sooner, but these business relationships can be parasitic; so be careful and be selfish - what is in it for you?

At 15/16 I wanted to be a vehicle fitter; by 18 I had got as far as I could quickly, so when I got made redundant, I went to University, got an Environmental Science degree, then became an accountant. I went from management accountant to financial controller to redundant again! Qualified as an IFA and I'm now self employed, with a bad car hobby!

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