1 answer
1
Question
Updated
61 views
what do I need to go into real estate
Right now I'm in job corp for welding ones I get out in do my job for some years in save up I want to go into real estate what do I need to do before hand and what do I need to do now
Login to comment
1 answer
Updated
Jean Noel’s Answer
Hi - Transitioning from a trade like welding into real estate is a strong strategy. Skilled trades allow you to earn high wages without debt, saving up the necessary capital to scale into real estate—whether you plan to work as a Licensed Real Estate Agent/Broker or invest directly as a Real Estate Investor (flipping houses, buying rental properties, or house-hacking).
Here is a concrete, step-by-step action plan for what you need to do right now while in Job Corps and what to do before you make the move.
Step 1: What to Do RIGHT NOW (While in Job Corps)
Focus on maximizing your current trade, establishing clear personal financial habits, and building foundational real estate knowledge.
1. Master Your Trade & Aim for High-Income Potential
o Focus on specialized welding certifications (e.g., pipe welding, structural, or subsea/rig work) that command $30–$50+/hour or high-overtime travel roles.
o Higher income directly increases how fast you can accumulate capital and qualifies you for mortgage loans later.
2. Build Credit from Scratch
o Mortgage lenders require a solid credit history (typically a 620+ FICO score for standard loans, 680+ for better rates).
o Open a secured credit card (e.g., Discover it Secured or Capital One) if you don't have credit history. Charge one small subscription per month, set up auto-pay for the full balance, and keep utilization below 10%.
3. Absorb Baseline Real Estate Education (Free)
o Read essential foundational real estate books:
The Book on Rental Property Investing by Brandon Turner
The Book on House Hacking by Craig Curelop
Rich Dad Poor Dad by Robert Kiyosaki
o Listen to real estate podcasts (e.g., BiggerPockets Podcast) during downtime or commutes to learn terms like NOI (Net Operating Income), Cap Rate, Cash-on-Cash Return, and Cash Flow.
Step 2: What to Do BEFORE Hand (After Job Corps: Working & Saving)
Once you enter the welding workforce, your primary goal is building capital, establishing 2 years of steady employment history, and preparing your entry strategy.
1. Establish 2 Years of W-2 Employment History
o Why it matters: Banks and mortgage underwriters generally require 2 consecutive years of stable income in the same line of work before approving a conventional or FHA home mortgage loan.
o Keep clean tax returns and avoid switching industries during this savings window.
2. Build an Emergency Fund & Investment Capital
o Save a 3–6 month emergency fund in a High-Yield Savings Account (HYSA) separate from your real estate money.
o Target saving $25,000–$50,000 for your first real estate deal or business startup reserves.
3. Choose Your Entry Path
Path Primary Goal Capital Needed Pre-requisites
House Hacking (Best First Deal) Buy a 2–4 unit property, live in one unit, rent out others to cover your mortgage. 3.5% down payment (FHA Loan) + closing costs (~$10k–$20k) 620+ Credit Score, 2 years W-2 work history.
Real Estate Agent (License) Sell homes on commission for clients or double as your own agent. $1,500–$3,000 (pre-licensing courses, exam fees, MLS dues, brokerage fees) 18+ years old, high school diploma/GED, pass state exam.
Live-In Flip / BRRRR Investing Buy distressed homes, use welding/trade skills to renovate, rent out or sell. 15%–25% down payment + renovation budget (~$30k–$60k+) Trades experience, contractor contacts, reserves.
4. Get Licensed (If Becoming an Agent)
o If you want to sell real estate as a career: complete your state's required pre-licensing coursework online (typically 60–180 hours depending on the state), pass the state exam, and join a broker who offers strong mentorship for new agents.
Action Plan Summary
1. Complete Job Corps & obtain top welding certs ($0 tuition, max income focus).
2. Open a secured credit card to build a 700+ credit score over the next 12–24 months.
3. Save 30%–50% of your welding income into a High-Yield Savings Account.
4. Execute a "House Hack" for your first property after 2 years of W-2 welding history.
Here is a concrete, step-by-step action plan for what you need to do right now while in Job Corps and what to do before you make the move.
Step 1: What to Do RIGHT NOW (While in Job Corps)
Focus on maximizing your current trade, establishing clear personal financial habits, and building foundational real estate knowledge.
1. Master Your Trade & Aim for High-Income Potential
o Focus on specialized welding certifications (e.g., pipe welding, structural, or subsea/rig work) that command $30–$50+/hour or high-overtime travel roles.
o Higher income directly increases how fast you can accumulate capital and qualifies you for mortgage loans later.
2. Build Credit from Scratch
o Mortgage lenders require a solid credit history (typically a 620+ FICO score for standard loans, 680+ for better rates).
o Open a secured credit card (e.g., Discover it Secured or Capital One) if you don't have credit history. Charge one small subscription per month, set up auto-pay for the full balance, and keep utilization below 10%.
3. Absorb Baseline Real Estate Education (Free)
o Read essential foundational real estate books:
The Book on Rental Property Investing by Brandon Turner
The Book on House Hacking by Craig Curelop
Rich Dad Poor Dad by Robert Kiyosaki
o Listen to real estate podcasts (e.g., BiggerPockets Podcast) during downtime or commutes to learn terms like NOI (Net Operating Income), Cap Rate, Cash-on-Cash Return, and Cash Flow.
Step 2: What to Do BEFORE Hand (After Job Corps: Working & Saving)
Once you enter the welding workforce, your primary goal is building capital, establishing 2 years of steady employment history, and preparing your entry strategy.
1. Establish 2 Years of W-2 Employment History
o Why it matters: Banks and mortgage underwriters generally require 2 consecutive years of stable income in the same line of work before approving a conventional or FHA home mortgage loan.
o Keep clean tax returns and avoid switching industries during this savings window.
2. Build an Emergency Fund & Investment Capital
o Save a 3–6 month emergency fund in a High-Yield Savings Account (HYSA) separate from your real estate money.
o Target saving $25,000–$50,000 for your first real estate deal or business startup reserves.
3. Choose Your Entry Path
Path Primary Goal Capital Needed Pre-requisites
House Hacking (Best First Deal) Buy a 2–4 unit property, live in one unit, rent out others to cover your mortgage. 3.5% down payment (FHA Loan) + closing costs (~$10k–$20k) 620+ Credit Score, 2 years W-2 work history.
Real Estate Agent (License) Sell homes on commission for clients or double as your own agent. $1,500–$3,000 (pre-licensing courses, exam fees, MLS dues, brokerage fees) 18+ years old, high school diploma/GED, pass state exam.
Live-In Flip / BRRRR Investing Buy distressed homes, use welding/trade skills to renovate, rent out or sell. 15%–25% down payment + renovation budget (~$30k–$60k+) Trades experience, contractor contacts, reserves.
4. Get Licensed (If Becoming an Agent)
o If you want to sell real estate as a career: complete your state's required pre-licensing coursework online (typically 60–180 hours depending on the state), pass the state exam, and join a broker who offers strong mentorship for new agents.
Action Plan Summary
1. Complete Job Corps & obtain top welding certs ($0 tuition, max income focus).
2. Open a secured credit card to build a 700+ credit score over the next 12–24 months.
3. Save 30%–50% of your welding income into a High-Yield Savings Account.
4. Execute a "House Hack" for your first property after 2 years of W-2 welding history.