Hi, everyone! New Austin TX Investor/Realtor

Austin, Texas
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Hi, everyone! New Austin TX Investor/Realtor

Thomas Lee Malpass
Real Estate Agent · Austin, TX · Member since 2018 · 29 posts · 4 votes

I am a new Austin TX. Realtor, and I have been studying real estate investing for almost 5 years now but never took the leap to buy an investment property, I feel I've been stuck in analysis paralysis. Does anyone have any tips for someone looking to get started with little to no money saved up?

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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y

Hey Thomas, if you have limited funds available, flipping or BRRRR'ing could be an excellent way to get started. With this strategy, you can purchase a property using hard money with only 10% down, and they will cover 100% of the renovation costs. If you're flipping the property, you can sell it for a profit and use the proceeds to continue investing. Alternatively, if you're pursuing a BRRRR deal, you can refinance the property at a higher appraised amount, allowing you to be in the deal for less than 20% down and potentially even receive cash back at closing. Hope this helps!

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y

    Hey Thomas, if you have limited funds available, flipping or BRRRR'ing could be an excellent way to get started. With this strategy, you can purchase a property using hard money with only 10% down, and they will cover 100% of the renovation costs. If you're flipping the property, you can sell it for a profit and use the proceeds to continue investing. Alternatively, if you're pursuing a BRRRR deal, you can refinance the property at a higher appraised amount, allowing you to be in the deal for less than 20% down and potentially even receive cash back at closing. Hope this helps!

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You are stuck in analysis paralysis because you are not taking action. Reading books, watching podcasts will do nothing but confuse you if you are not in the field. 

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    3y

    @Thomas Lee Malpass start by househacking. You need very little down!

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    1Reply
  • Kristiana Kenny
    New to Real Estate · Killeen, TX · Member since 2017 · 14 posts · 12 votes
    3y

    @steven 

    @Steven Foster Wilson Hi Steven! I'm interested in what you mentioned about flipping or using BRRRR method if we have limited funds. You mentioned "they" will cover 100% of the renovation costs. My question is, who are "they?"

    1Reply
  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 491 votes
    3y

    Certainly, it's not uncommon to feel stuck in analysis paralysis, especially when starting out in real estate investing. Here are some tips to help you move forward:

    1. Start Small: You don't need to jump into purchasing an entire property as your first investment. You might consider starting with something smaller, like a REIT (Real Estate Investment Trust), crowdfunding platforms, or even fractional ownerships. These options allow you to invest with significantly less capital than buying an entire property.
    2. House Hacking: House hacking involves buying a small multi-unit property, like a duplex or a house with a basement apartment, and living in one unit while renting out the other(s). The income from the rent can help cover your mortgage and even provide extra cash flow.
    3. Partner Up: If you lack the necessary funds, consider finding a partner who can invest with you. This can be a friend, family member, or another investor who has the capital but lacks your expertise in the real estate market.
    4. Seller Financing: In some cases, the seller of a property may be willing to finance your purchase. This would involve you making payments directly to the seller over time, rather than obtaining a traditional mortgage. ***MY PERSONAL FAVORITE***
    5. Lease Options: A lease option allows you to lease a property with an option to buy it in the future. This can give you time to save up money, or wait for a more favorable real estate market.
    6. Wholesaling: Wholesaling involves finding a distressed property, putting it under contract, and then selling that contract to another investor for a fee. You don't actually need to purchase the property yourself, so it requires little upfront capital.
    7. Educate Yourself: Keep educating yourself about real estate investing, and try to build a network of mentors and colleagues who can provide advice and potentially collaborate with you on deals.
    8. Build a Good Credit Score: If you haven’t already, start working on improving your credit score. A good score will make it easier to get a loan when you're ready to invest.
    9. Saving & Budgeting: Even with little to no money, developing a saving and budgeting habit is crucial. This discipline can help you accumulate enough for your initial investments and create a safety net for any unforeseen issues.

    Remember, each of these strategies requires careful consideration, and there are always risks involved with investing, so you must do your due diligence. Don't be afraid to seek advice from experienced investors and professionals in the field. They can provide insights into the current market situation in Austin and help guide your investing decisions. Good luck & happy investing!

    [email protected]
    RentWerx Property Management4.73215 Reviews
    WebsiteView Page
    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Thomas Lee Malpass:

    I am a new Austin TX. Realtor, and I have been studying real estate investing for almost 5 years now but never took the leap to buy an investment property, I feel I've been stuck in analysis paralysis. Does anyone have any tips for someone looking to get started with little to no money saved up?


     Well if you are limited on funds simply act as a birddog for those doing deals. Earn , save and learn, then go on you own, EXACTLY how I started 15 years ago

    All the best 

    1Reply
  • Thomas Lee Malpass
    OP
    Real Estate Agent · Austin, TX · Member since 2018 · 29 posts · 4 votes
    3y
    Quote from @Melanie Thomas:

    Certainly, it's not uncommon to feel stuck in analysis paralysis, especially when starting out in real estate investing. Here are some tips to help you move forward:

    1. Start Small: You don't need to jump into purchasing an entire property as your first investment. You might consider starting with something smaller, like a REIT (Real Estate Investment Trust), crowdfunding platforms, or even fractional ownerships. These options allow you to invest with significantly less capital than buying an entire property.
    2. House Hacking: House hacking involves buying a small multi-unit property, like a duplex or a house with a basement apartment, and living in one unit while renting out the other(s). The income from the rent can help cover your mortgage and even provide extra cash flow.
    3. Partner Up: If you lack the necessary funds, consider finding a partner who can invest with you. This can be a friend, family member, or another investor who has the capital but lacks your expertise in the real estate market.
    4. Seller Financing: In some cases, the seller of a property may be willing to finance your purchase. This would involve you making payments directly to the seller over time, rather than obtaining a traditional mortgage. ***MY PERSONAL FAVORITE***
    5. Lease Options: A lease option allows you to lease a property with an option to buy it in the future. This can give you time to save up money, or wait for a more favorable real estate market.
    6. Wholesaling: Wholesaling involves finding a distressed property, putting it under contract, and then selling that contract to another investor for a fee. You don't actually need to purchase the property yourself, so it requires little upfront capital.
    7. Educate Yourself: Keep educating yourself about real estate investing, and try to build a network of mentors and colleagues who can provide advice and potentially collaborate with you on deals.
    8. Build a Good Credit Score: If you haven’t already, start working on improving your credit score. A good score will make it easier to get a loan when you're ready to invest.
    9. Saving & Budgeting: Even with little to no money, developing a saving and budgeting habit is crucial. This discipline can help you accumulate enough for your initial investments and create a safety net for any unforeseen issues.

    Remember, each of these strategies requires careful consideration, and there are always risks involved with investing, so you must do your due diligence. Don't be afraid to seek advice from experienced investors and professionals in the field. They can provide insights into the current market situation in Austin and help guide your investing decisions. Good luck & happy investing!


     thanks for this.

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