I'm new to investing and I'm really trying to get into the real estate game. I have one property but have no capital and credit is messed up. Can anyone give advice to me about gaining capital and moving forward in this game
Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
18y
Hey Steven! Welcome to BiggerPockets. I am also new and trying to learn as much as possible. Right now I am learning about Subject-to and Lease options. This avoids the banks and you try to use as little of your own money as possible, which sound right up your alley.
You can search "subject-to" or "sub-to" in the top right of the sight to find MANY posts about the strategy. I am reading Wendy Patton's book as well "lease options and subject-to deals" I would recommend to pick it up. Should run you about $15-20. Good Luck!
Real Estate Coach · Grand Rapids, MI · Member since 2008 · 204 posts · 188 votes
18y
I would suggest giving wholesaling a try. Wholesaling is by far the best strategy that I have come across for making money in real estate without cash, credit or risk.
You can pick up some great wholesaling courses on EBAY or if you google "wholesaling real estate" there are many informative articles online.
If you are limited in funds then I would suggest sucking up the information in this forum like a sponge. Josh has done a great job and practically hands you all that you need to know right here in the forums.
Hi Steven, don't forget to market your deal to local REIA forums in addition to attending their meeting to potentially meet investors with private $$. Another option would be to bird/dog deals once you have made some quality connections.
Real Estate Investor · Amarillo, TX · Member since 2008 · 173 posts · 15 votes
18y
Steven,
Given the breadth of REI, research all the strategies that are available and then pick from those the few that seriously interest you. Doing something you despise or even hate is no way to go about a business or life for that matter.
BTW, what is your exit strategy of the property that you currently own, Is it your primary residence?
What do you want to do with the capital once it is aquired? A general direction is needed in this business so that focus can be achieved.
I personally like rentals, wholesaling, and rehabbing. All of which I have gained knowledge from reading and now I am working on gaining the experience needed. Whatever your path, be dilgent.
I appreciate all the advice and different ideas that you've given me to try out. The property that I have know, I'm renting it out through sec 8. My goal is to be making 5k-10k, monthly off of my properties. I also have 2 business partners and we were thinking about creating a LLC., and putting all are properties in that. Is it hard to get a line of credit with a LLC? Again thank you for your support and advice.
I'm going to take the unpopular route here, but my advice would be to repair your credit and build up some capital before buying more properties. Work 2 or 3 jobs if you must; save 3 to 6 months worth of living expenses first; and only then get back into real estate investing.
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
18y
Welcome to the site, Steven. I'd recommend wholesaling or bird-dogging as a way to build your reserves. Read up and you'll find tons of info here on the forums, our blog, and in the article directory for help on getting going.