Before I ask my question, allow me to introduce myself to everyone as this is my first post.

I'm a senior in high school in Orlando, FL. I have great ambitions and I believe I have the potential to achieve my dreams. I just recently became a Mensa member, I'm a very active member in Business Professionals of America(BPA), competiting and placing in multiple events at regional, state, and national competitions, and I hold the titles for 2007-2008 BPA Regional Vice President and 2007-2008 BPA Chapter President. I am also enrolled in a 3 year National Academy Foundation program at my school called Institute of Finance. I plan on attending Seminole Community College for 2 years, and University of Central Florida for 2 years, majoring in Business/Finance, and then completing my education with an MBA from Rollins College in Winter Park, FL.

After my formal education, I would like to work in the finance department of a corporation. Right now, I am an intern at a financial planning firm, Ameriprise Financial Services.

Now to my question:

After all my education is complete and I have a steady job, I would like to open a small business in property investments. In the beginning, it would be the purchase of residential properties, and then renting them out. Eventually I could expand, moving on to purchasing "fixer-uppers" at lower prices and selling or renting those, buying commercial properties and leasing it, and if the business becomes sucessful enough and I can find a good location and have a good enough plan, perhaps develop an apartment complex. That last part is not an ultimate goal, just another option but I for sure would like to do the property investments.

My questions are..

Should I incorporate? LLC? Sole Propietorship?

How will I purchase these properties? Will a bank approve a business loan for a residential property? Do business loans have higher or lower interest rates than personal loans?

Will I need a realtor's license?

And for my last question.. Does anyone believe that this can become profitable? With the purchase of properties, I would start out with a debt, and the rent would most likely cover about 90% of the mortgage payment, and I would still be left with property tax and insurance on the properties. However, my state is considering completely removing property taxes and increasing the sales tax instead.

Any help that can be provided will be greatly appreciated.

Thanks ahead of time,

Sincerely,

Richard A. Duemmling

First of all, this is a great idea and it's never too young to start. I started investing in real estate as a sophomore in college.

It's tough to get started but not impossible. Research creative financing and ways to get around having to come up with a big down payment. There's owner financing, first time home buyers systems, you can get cash after the closing from the seller if you set up the purchase agreement correctly. Also, ask family members or people with cash to either be a signator on the note or contribute cash in order to become a partner. You put in the sweat and the knowledge and they provide the cash. Taking on partners is sometimes a necessity. This can be very profitable and a solid investment. You have to have a long term plan and stick with it. You most likely wont see a lot of money until much farther down the road. Don't buy for appreciation, buy for cash flow. You won't need your license to buy and sell real estate for yourself or your company, only to represent other people. You won't get a business loan or personal loan, you will get a mortgage. Your newly started LLC will have not assets, colateral, or cash so you have to sign personally. Then you can think about converting your deeds over to the LLC for personal protection. This costs money and is sometimes frowned apon by banks. Don't settle for only paying 90% of your expenses with rent, make a profit. Take your time to find a good deal and haggle, you don't need the house but the seller may need to get rid of it. Look at 100 properties before you choose one to buy. Good luck and no matter what, always make your payments in full and on time.