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For teenagers? Don't, and depending on your age, you may not legally be able to do this any way.
Economically, rates are relatively high, which makes the cash flow component hard to justify.
For a teen with a 60+ year time horizon, there are plenty of other opportunities you should focus on before real estate, such as investing in your most valuable asset you have right now -- human capital due to education, your health, etc. Wisely invest in your education (good school, avoid student loans, get a major that will actually make you employable, etc) and you'll likely have enough excess cash flow to deploy for large investments.
All great points. Getting the base right will directly impact quality of life and future investment opportunities.
Mostly Agreed with above poster. 1. Don’t pay for school. Make sure you do well in high school to get a scholly at any decent school 2. Do what you absolutely love and the money will come. Especially in our internet age. Don’t go chasing a job that you’ll hate and that may or may not exist in 20 years.
1. You should consult BOTH an experienced tax accountant and real estate / title attorney in YOUR state. Do not get legal or tax advice online. Real estate law varies wildly from state to state and what is common practice in one state is totally illegal in another. The money you spend up front will be saved 100x over.
2. Research if a family trust is a suitable option to purchase property and just make the teen beneficiary & used a trusted adult for custodial signatures.
3. If teen has earned income, research opening a self-directed IRA. Property is titled to the IRA trust company. You can realize gains without tax implications. You cannot use property for personal or family use, though. Teen should be able to open a Roth IRA at any age.
4. If purchasing property to be rented out, research how to form LLCs for minors & place each rental property in its own LLC. Discuss with real estate attorney how to put property in a LLC owned by a trust.
5. Make sure teen executes a will the day they turn 18. All custodial adults should also have a will.
6. Finally, teen should take a real estate license class so they understand the local real estate law. Most states require you be at least 18 before applying, but many online pre-license courses do not have a minimum age. My daughter took her class online & got her Real Estate license at 18.
Hope this helps. Message me if you need any referrals.