How do I start real estate but have no money..??!
@Yoel Sarue get money, then start real estate
The best way to start would be to start saving, you want going to need something to bring to the table. Depending on your goals house hacking might be the best method. Either get a SFH or MFH and rent out the other rooms if it cash flows great if not you have a rent free asset. I would save until you can acquire an house to house hack or partner with someone.
I'm just getting started myself and finding that you need money if you are not well connected or super resourceful. Read every book you can get your hands on. The PB podcast is an awesome resource. Save what you can and educate yourself until you find the right opportunity. I just finished "Set for Life" by Scott Trench and have more confidence that I don't need a ton of money upfront but it helps.
How am I getting started?
-I do have a small savings (almost enough for a down but not unexpected expenses) so I continue to save until I find the deal I can't pass on
-renting my current property and saving every dollar that I can towards my first property
-I have a "house hack" situation that's working out well
-using a HELOC for cash reserves
-I am looking at and running the numbers on properties I find daily. Even though I can't buy just yet, I'm getting some experience
Educate yourself and save while you do.
I spent some time generating income by finding undervalued items on craigslist or facebook marketplace and was able to create 400% ROI on most of the items when resold. The internet at our fingertips is a huge advantage. I wound up creating a side gig that averaged 100 dollars per hour.
A prereq (imo) would be 3-6 months savings in the bank/cash. If you don't have this sell stuff on ebay, deliver pizza, or drive for a ride-share company. After that use your funds for REI.
@Yoel Sarue increase income and decrease expenses. Save. Even for the “no money hacks” of real estate you still need money.
Best of luck!
Twana Rasoul — thank you so much for that! But when people say save money meaning if I wanna go out to eat I can’t spend money on it? 🤷🏼♂️
Definitely consider house hacking. It's a great way to get into real estate with a lower down payment then you would need to provide for a traditional investment property (assuming you use an FHA loan)
Hi @Yoel Sarue ,
Have you read "The richest man in Babylon"?
There are some good methods in this book for saving money even when you don't earn a lot. More methods than just skipping eating out or not going to Starbucks. If you aren't much of a reader the book is on audible and the audible version is even on YouTube for free.
This helped me a lot. When I started out I was a single parent with three kids making $17 an hour. It has taken ten years but I have 7 units and am looking for the next deal now. I wouldn't have been able to get started without what I learned in the book.
Read Scott Trench's book Set for Life and start listening to the BP Money podcast. You do need money. You may not need a ton of money, but you do need something to start out.
House hacking is a good way to start with less money.
@Yoel Sarue if you want to go out to eat, ask yourself this... is it more important to me to go out to eat or to invest in real estate?
@Dion McNeeley Thank you so so much for that advice!!! Going to listen to the book right now on audio. Audio helps me a lot.. thank you so much 😊!!! :)
@Yoel Sarue hi find a partner that is looking to invest there money & learn all you can here on bp. You can save but you can use other people's money so look & network.
@Yoel Sarue lack of money is a motivator, if you really have a burning desire to get money. I would say forget about money and learn everything you can. I know that’s not easy to do, when you have bills rolling in but it’s key. Keep in mind your reason for doing what you are doing (Money) but don’t let the lack of it discourage you, avoid all distractions and the money will come.
You have to live somewhere. I got started by "house hacking" which is a term used now-a-days for renting a portion of the place you live in, sort of like an AirBnB or maybe putting a down payment on a duplex and living in half and renting out the other half. So I paid for a place to live in and then rented out part of that place.
If you don't have enough money to pay for your own place plus enough to repair the other portion you're renting, then the place to start would be to work in any job that is real estate related, such as a contractor's helper or repair guy.
If you us more about yourself we might be able to offer more ideas.
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@Yoel Sarue , read Set For Life by Scott Trench
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