Funding for My First Deal

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Funding for My First Deal

Zach Fridrich
Real Estate Agent · Lompoc, CA · Member since 2021 · 18 posts · 6 votes

Hey y'all  my name is Zach. I'm brand new to real estate investing. My credit isn't the best and my capital is zero, aside from our life savings and emergency fund which is also low. I've tried almost a dozen different lenders, mortgage companies, and other ways to get funding but keep striking out. Either I need a huge amount of money down (one lending company said I need $50k down for a 100k property) or my credits not good enough. Im finding good first deals and I know there's a way to get em with no money and bad credit. Any suggestions

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Tim Johnson
Real Estate Agent · Skagit Valley, WA · Member since 2021 · 257 posts · 283 votes
4y

@Zach Fridrich - much of this can happen simultaneously:

work on your credit.... why not? 

get that emergency fund to the level you need - what if you have an emergency?

find a great lender who will help you get started. Ask yourself.... would I lend myself money?

don't believe every success story on BP about super deals with NO money needed - sure they exist. But listen to the solid advice of investors who have lived frugally and gutted it out... and put in the time studying and finding other investors and mentors. There's the real path...

And if you've read this far....and feel like I'm trying to take the wind out of your sails - you're wrong. The beauty is that my first sentence is correct - all of these things can be worked on right now - and all at once. You could be in a TOTALLY different place within a fews months.... go for it.

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  • Daniel Fitzroy
    Member since 2019 · 110 posts · 80 votes
    4y

    @Zach Fridrich

    You are doing great! Keep listening and learning on here and pick strategies that you understand and you’ll be moving up in no time this place is a gold mine.

    2Reply
  • Zach Fridrich
    OP
    Real Estate Agent · Lompoc, CA · Member since 2021 · 18 posts · 6 votes
    4y

    @Daniel Fitzroy Thanks man! I wish I knew all this stuff ten years ago!

    0Reply
  • Marius Mazur
    Investor · Jersey City, NJ · Member since 2020 · 1 post · 0 votes
    4y

    @Ashley Cross Can you elaborate more on the “grants” for the primary residence? (or point me in the right direction) thank you

    0Reply
  • Ashley Cross
    Lender · Columbus, OH · Member since 2020 · 202 posts · 214 votes
    4y

    I can only speak to the state that I lend in which is Ohio. We work with state agencies that provide grants and down payment assistance for first time homebuyers, recent graduates, nurses, firefighters, and police officers.

    1Reply
  • Louis Simmons Jr.
    Title Representative · Dallas, TX · Member since 2016 · 57 posts · 5 votes
    4y

    Trying deal many’s hard way to work degree my interest investment however I don’t think. Okay wells thanks for me to know wells done yet.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Okay, let's analyze your situation logically:)

    Sounds like you need money to fix your credit and for down payments.

    Fastest way to get money in real estate is by wholesaling!

    IF, IF, IF, the deals you are finding are ACTUALLY deals, then you should be able to get them under contrat & then sell those contracts to other investors and make a few thousand dollars on each. 

    Encourage you to try do this to LEARN if your deals are actually deals:
    - If they are - you make money!
    - If they are not - you learn what really qualifies as a deal and hopefully go find them!

    Just be sure to check out all the legalities of wholesaling in your state, so you can make a better decision on how to proceed.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    2Reply
  • Yoann Dorat
    Investor · Boca Raton FL · Member since 2017 · 255 posts · 188 votes
    4y

    Hey @Zach Fridrich, there are ways to buy properties with no money down but it's going to be very tough to pull this off on your first deal. Truth is you will most likely need capital to cover up fees, closing costs, and a few months of expenses at the bare minimum. 

    It looks like you believe in your capacity at finding good off-market deals, if this is the case why don't you partner up with an experienced investor to take them down (one with credit, track record, and money)? Or you could wholesale the deals and stack up your profits to buy your first rental. 

    0Reply
  • Crane Xu
    Rental Property Investor · Rohnert Park, CA · Member since 2020 · 9 posts · 9 votes
    4y

    @Zach Fridrich make sure your credit utilization are extremely low. No more than 10% will help boost your score quickly. 35% of your score is payments 30% is usage. Payments you can't control. That's built up over time. Usage you can. I brought my score up from 602 to 714 within a year and that's with a collection on file. My credit utilization is 4%

    1Reply
  • Zach Fridrich
    OP
    Real Estate Agent · Lompoc, CA · Member since 2021 · 18 posts · 6 votes
    4y

    @Crane Xu Thanks for the tips! I'll definitely keep it under 10%. It's good to hear from somebody who has personal results like that.

    0Reply
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