Investing with no money down

Real Estate Agent · Porter Ranch, CA · Member since 2022 · 48 posts · 28 votes

Very excited to start investing in rehab's and rental properties. I have been analyzing 20 properties a day minimum. Problem is, no money. Solution, need a partner/investor. Question is, what comes first? the deal or the investor? What would you recommend my first step should be?

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Jaron WallingPro Member

Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes

@Sam Dorgalli Echoing what others have stated; it's EXTREMELY hard to start with no money. Let's not sugar coat that fact. Anything is possible but I'd rather focus my effort (time) on the path of least resistance. That means buying distressed with skin in the game (down payment, rehab funds, network of solid contractors, partnership split, etc.), adding value, and building a track record. Create a deal with your own money. I haven't meet any successful investors who skipped those steps. With a property or two under your belt money will find you for future deals. That's been my experience.

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Tyler Fontaine
Property Manager · Member since 2022 · 196 posts · 125 votes
3y
The deal comes first. The deal. The deal. The deal.
Think of it like this. Your network is part of your tool box. You constantly are adding new tools to it so you can get any job done thats needed. Other tools in the box is your knowledge, experience, capital on hand, literal tools/equipment you own, etc.
You then need a project in which you can deploy the tools - aka the deal.
If you can find a deal, the money will be easy. You could also work for free with someone who already secures deals on a high level and then leverage that relationship.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
3y
Quote from @Sam Dorgalli:

@Scott Mac This is a great way to structure the agreement. But what if I already have my own LLC and all I find someone to partner up with but don't want them to be on my LLC?

Consider talking to your Attorney and accountant about a Joint Venture...which can be another LCC....
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Account Closed
Denver, CO · Member since 2018 · 133 posts · 97 votes
3y
@Sam Dorgalli I know a few hard money / private money lenders on BiggerPockets who will fund 100% of the purchase of a property at 100% loan to cost and 75% loan to value in their home market (LTV is probably closer to 65% now in fall of '23).

This is just on the debt side. There are equity investors who will take on more risk in exchange for a higher % of the deal. Perhaps a local contractor that needs work (I imagine that is hard, next to impossible, to find right now).
If you find a great deal the money will come.
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George Munoz
Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
3y
Quote from @Sam Dorgalli:

@Joe Homs I have been browsing the MLS and working on connecting with wholesalers and investor friendly agents as well as seeking destressed properties whenever I'm heading somewhere. I am focusing on flips ATM. At the same time, I recently started attending a bigger pocket meetup in my neighborhood and I'm working on building a team. Thanks for the input.

Seem you are doing the right moves .. I see you are a RE Agent . I will dare to suggest based on my personal experience . Why dont you work with a already established wholesaling company as an agent.. This along will give Stamina. And learning curve will be 10x.. Also you can see all the ins and out without your own money . Basically you will be paid to learn .. and the cool thing .. seem you have a bit of the upper hand been an agent. though they are 2 different worlds , though knowing as an agent . helps as far as contracts , formality etc etc. also makes you more credible when dealing with sellers and buyers..

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Sam Dorgalli
OP
Real Estate Agent · Porter Ranch, CA · Member since 2022 · 48 posts · 28 votes
3y
@George Munoz that is great advice. I am actually working with an agent from a wholesaling company that's been feeding me leads and the guy been very nice, teaching me a lot. its definitely something worth considering. Thank you so much!
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George Munoz
Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
3y
Quote from @Sam Dorgalli:

@George Munoz that is great advice. I am actually working with an agent from a wholesaling company that's been feeding me leads and the guy been very nice, teaching me a lot. its definitely something worth considering. Thank you so much!

Not the same, Try and see if you can be in , Trust Me ! (you will be singing Aladdin's song) " whole new world" cos what you want is basically learn how to get and catch the fish , and for that there is a lot of components, such as the Rod, the catch , the current , the river, etc( you get my point right now you are getting the fish and trying to eat the fish our resale the fish .. ( nothing wrong with that ) Is just a matter of what you are trying to accomplish.
In another note , feel free to reach out anytime ill be glad to assist in anyway that i can too..
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Sam Dorgalli
OP
Real Estate Agent · Porter Ranch, CA · Member since 2022 · 48 posts · 28 votes
3y
@George Munoz Oh I meant that he answers any questions I have about working with investors and what they look for and how he finds them, etc. he is more than happy to answer any personal questions or give advice when I ask for it. I do need to get into the world and I'm slowly getting there. Thank you!!
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George Munoz
Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
3y
Quote from @Sam Dorgalli:

@George Munoz Oh I meant that he answers any questions I have about working with investors and what they look for and how he finds them, etc. he is more than happy to answer any personal questions or give advice when I ask for it. I do need to get into the world and I'm slowly getting there. Thank you!!

Awesome!!! That a long is a Blessing .. that's super, man . Great you found someone like that !! impressive !!
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Sam Dorgalli:

Very excited to start investing in rehab's and rental properties. I have been analyzing 20 properties a day minimum. Problem is, no money. Solution, need a partner/investor. Question is, what comes first? the deal or the investor? What would you recommend my first step should be?

Just bring deals to someone doing deals, Learn, earn, save then go on you own, 20 A day really? Should not be that much work. DEAL comes 1st everything will take care of itself. The issue is you cannot negotiate a deal, you have no money. Sellers will not entertain you as you cannot show the ability to close Again, show props that could be a deal to someone doing them
Good luck
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Sam Dorgalli
OP
Real Estate Agent · Porter Ranch, CA · Member since 2022 · 48 posts · 28 votes
3y
@Bob S. I look through probably about 500-600 properties a day but I don't analyze all of them, I guess I should've said "I analyze 20 a day" but that number grows everyday. I also own a small business so my time is kid of tight, if its an all day thing, I'd be analyzing way more :)
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Sam Dorgalli:

@Bob S. I look through probably about 500-600 properties a day but I don't analyze all of them, I guess I should've said "I analyze 20 a day" but that number grows everyday. I also own a small business so my time is kid of tight, if its an all day thing, I'd be analyzing way more :)

I guess I am spoiled, I can get as many as I want in my market, they just come to me. I suggest going to your local RE meeting, should be deals there. OR look on the local PB posts,,,
All the best
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CJ Berina
Lender · Northridge, CA · Member since 2017 · 186 posts · 42 votes
3y
@Sam Dorgalli Find a deal, I'll bring a money guy if you have a good deal. He's just waiting for a good deal.
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Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
The deal
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Sam Dorgalli:

Very excited to start investing in rehab's and rental properties. I have been analyzing 20 properties a day minimum. Problem is, no money. Solution, need a partner/investor. Question is, what comes first? the deal or the investor? What would you recommend my first step should be?

20 a day, you are working much too hard. If you have no money, what are you doing? You can't lock it as you have no money, and you most likely will not even be shown it without a POF. 1ST you need to connect with an investor doing deals. They will pay you a fee for finding them. Learn save then apply what you learn. If you have no experience, how do you know what is a deal? Also MLS is not where the deals are. KEEP IT SIMPLY, connect, learn then go on your own, EXACTLY how I started, that was 500 deals ago.
Good luck
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George Munoz
Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
3y
Quote from @CJ Berina:

@Sam Dorgalli Find a deal, I'll bring a money guy if you have a good deal. He's just waiting for a good deal.

Does HE buy outside CA?
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CJ Berina
Lender · Northridge, CA · Member since 2017 · 186 posts · 42 votes
3y
Quote from @George Munoz:

Quote from @CJ Berina:

@Sam Dorgalli Find a deal, I'll bring a money guy if you have a good deal. He's just waiting for a good deal.

Does HE buy outside CA?

If the deal is right, he'll fund it. Send me a message.
If not him, I'm also a hard money lender, so let's find a way to fund your deal.
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Sam Dorgalli
OP
Real Estate Agent · Porter Ranch, CA · Member since 2022 · 48 posts · 28 votes
3y
@cj

@CJ Berina For sure! i've been looking and reaching out to property owner, you'll be the first to know once I find a gem!
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Sam Dorgalli:

Very excited to start investing in rehab's and rental properties. I have been analyzing 20 properties a day minimum. Problem is, no money. Solution, need a partner/investor. Question is, what comes first? the deal or the investor? What would you recommend my first step should be?

Flip the contract, you do not have any other choice. Find the deal, everything else will take care of itself
All the best,
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