Why “Little Cash and No Credit” Should Be A Motivator
Over the last month I’ve received a number of emails from new investors saying something like this:
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“People have been saying that you can get started in real estate with no cash and bad credit, but I just haven’t been able to make any progress and I’m wondering what I’m missing and if this is just a lie from gurus looking to make a buck.”
The issue in some cases is a lack of action or a lack of persistence, however let’s put those two issues aside for a moment and focus on the concern that you can’t get started in real estate without cash or credit.
One thing I know for sure from speaking to investors for the past few years is that the ones who actually started with very little cash and bad (or no) credit are some of the most successful investors. I believe this is primarily because they had no choice other than to be creative and resourceful. Once you can make something out of nothing, just imagine how effective you can be! Don’t let this be a hindrance for you — let it be a motivator!
In one my previous posts, A 7-Day Plan for Aspiring Real Estate Investors, I mentioned that I strongly believe that you at least need a little operating cash to get started even if its for gas in your car or stamps, but a few sacrifices with your discretionary spending in a month can help with that (e.g. reduce your dining out, turn cable off)!
If you’re cash strapped but want to get started quickly, consider some of the following options:
- Do joint ventures with other active wholesalers in your area — you can make at least $1-2K with each deal and this can help you build capital
- Drive for dollars, looking for abandoned/vacant properties and finding the owners to see if they are motivated to sell
- Dial for dollars, calling all the for rent signs in your area and finding motivated landlords who want to sell their properties
- Look into mobile home investing where all the price tags are smaller than single family homes or commercial buildings
These ideas should at least get your wheels turning. There’s absolutely no reason why you can’t get started regardless of your financial resources (or lack thereof). Get educated on the approach you want to take, and just go out there and do it! There are many experts right here on BiggerPockets who generously share the “how to” and their experiences with various real estate investing strategies.
Would love to hear any other ideas that investors have that might help aspiring investors with little cash get started.