Raising Down Payment Money

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Raising Down Payment Money

Kyle Deboer
Member since 2024 · 3 posts · 46 votes

I am 18 years old with very little credit history and little capital. I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours?

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Kyle Deboer:

I'll jump on with everyone else. The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.

You should focus on increasing earnings and learning how to manage your budget. In 1-2 years you could save enough to purchase a home to house hack. That puts you in the top 60% of Americans. Do it again two years later and you'll be in the top 10% of Americans. By the time you are 35 you could be financially independent and wealthy.

Too many Americans, particularly young Americans, want everything now. They see a 60-year-old man driving a new Corvette and don't realize that guy drove the same Honda Accord for 20 years while saving and investing. Good things take time.


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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Kyle Deboer

    the latter - just save it up.  house hack as soon as you can.  good luck.

    13Reply
  • Rene HosmanPro Member
    Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
    1y

    Have you read Start with Strategy by Dave Meyer? I'd highly recommend this as Dave was young and had no capital when he started as well. He lays out in the book that people bring three things to a deal: time, capital, or skill. If you have no money you can try to earn equity in a deal with your time (finding deals, managing the property, etc), or skill (learn a trade, get your GC license, etc) 

    I read that book in Sept and wished I had read it sooner! 

    https://www.amazon.com/Start-Strategy-Design-Portfolio-Long-... 

    The book is on sale right now it looks like!

    BiggerPockets
    20Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    Just earn solid money. You are 18, you shouldn't be ready to buy a property yet. You don't want to be so focused on getting into the game that you leverage the start of your entire life just to do it. Learn as much as you can. Make friends with investors. Be an asset to them. If you go to meetups, you will find friends and future partners. Don't rush it, but it's great that you are focused on doing it.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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    19Reply
  • Carter Trombley
    New to Real Estate · Buffalo, NY · Member since 2022 · 13 posts · 5 votes
    1y
    Quote from @Jonathan Greene:

    Just earn solid money. You are 18, you shouldn't be ready to buy a property yet. You don't want to be so focused on getting into the game that you leverage the start of your entire life just to do it. Learn as much as you can. Make friends with investors. Be an asset to them. If you go to meetups, you will find friends and future partners. Don't rush it, but it's great that you are focused on doing it.


     Could you expand upon "leverage the start of your entire life"? 

    Much appreciated!

    3Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Kyle Deboer:

    I'll jump on with everyone else. The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.

    You should focus on increasing earnings and learning how to manage your budget. In 1-2 years you could save enough to purchase a home to house hack. That puts you in the top 60% of Americans. Do it again two years later and you'll be in the top 10% of Americans. By the time you are 35 you could be financially independent and wealthy.

    Too many Americans, particularly young Americans, want everything now. They see a 60-year-old man driving a new Corvette and don't realize that guy drove the same Honda Accord for 20 years while saving and investing. Good things take time.


    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    43Reply
  • Julia Lyrberg
    Lender · TX · Member since 2024 · 308 posts · 196 votes
    1y

    If I were in your shoes, I’d focus on building up some capital first. It’s definitely worth putting your head down, working hard, and saving as much as you can. In the meantime, you can also work on building your credit score, which will help you get better financing options later. You're still young so I'd focus on learning and saving as much as I can!

    10Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y
    Quote from @Carter Trombley:
    Quote from @Jonathan Greene:

    Just earn solid money. You are 18, you shouldn't be ready to buy a property yet. You don't want to be so focused on getting into the game that you leverage the start of your entire life just to do it. Learn as much as you can. Make friends with investors. Be an asset to them. If you go to meetups, you will find friends and future partners. Don't rush it, but it's great that you are focused on doing it.


     Could you expand upon "leverage the start of your entire life"? 

    Much appreciated!


    Yes. Incurring debt before you have sufficient earnings to support that debt. It's like putting your life into net negative before you are trending enough into financial positive.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
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    3Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    @Kyle Deboer, you need to be financially ready first before jumping into real estate. Aside from downpayment, you want to have a solid emergency fund in place, something that can cover unexpected repairs, vacancies, or any other random costs that pop up.I’d also recommend saving more than you think you'll need and keeping a close eye on your expenses. Monitor your spending habits to make sure you’re consistently putting money aside for both the short-term and long-term costs of real estate. Hope this helps!

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    5Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    Hey @Kyle Deboer,

    Your eagerness is a great asset! Focusing on building knowledge, credit, and some capital is key. The long hours and dedication will pay off as you learn the ropes and prepare for your first investment. Your credit score will be worth improving to acquire better financing options. BP will be the perfect place to find a mentor or just take notes from others experiences to add to your back pocket. 

    6Reply
  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
    1y

    @Kyle Deboer Love your eagerness. Who's asking for the down payment? Just you?

    Hmm, that means you haven't built your team yet. Other team members can fill your gaps of experience, lack of credit, etc.

    Be ok taking a smaller percentage of "something" rather than chasing all of nothing.

    10Reply
  • Jonathan Chan
    Lender · Clermont, FL · Member since 2020 · 168 posts · 87 votes
    1y
    Quote from @Kyle Deboer:

    I am 18 years old with very little credit history and little capital. I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours?


     Don't go out and do this on your own. Find someone who's doing what it is you want to do in the market you want to do it in and bring them value to learn. As you gain some experience, your value proposition to others increases, which will then make it easier to raise money for your own deals. Another route is to find somebody who's experienced and raise money for their deals.

    7Reply
  • Jason Dumbaugh
    New to Real Estate · Viera, FL · Member since 2023 · 12 posts · 6 votes
    1y

    @Dave Meyer had an interesting episode on the BiggerPockets Real Estate Podcast about 3 main resources when it comes to investments: cash, time, and experience.  Sounds like you don't have the cash but you may have the time to do research and get crafty with a small team. Like @Tim Ryan said above - maybe someone else brings the cash to the table. Maybe you help manage the property for them for a small %, or give sweat equity for small cosmetic renovations? Either way you'll learn valuable lessons and gather up experience for your investor toolbelt.

    4Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    1y

    @Kyle Deboer

    Everyone is going to want to see some skin in the game. Not that you raised the capital to have skin in the game. I would just continue to grind over the years until you have the ability to pay for the DP yourself. 

    [email protected]817-480-9452
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    2Reply
  • Keisha Clark
    Member since 2024 · 2 posts · 7 votes
    1y

    Essentially it is going to take some work. It won’t take as long as you think. if you can wholesale a few properties you can get enough to support you in a small project while learning the ins and outs. Age doesn’t limit you a small mind and lack of creativity does.

    7Reply
  • Sasha Fukuda
    Walpole, NH · Member since 2018 · 66 posts · 34 votes
    1y

    Many others on here have said the same thing, but at your age i'd focus on career. Build up job skills, build up savings, and increase your W2 income. Once you've done that for a couple years, you should have an emergency fund and the money for a downpayment. Then you can house hack. This step by step process is all laid out in Scott Trench's book "Set for Life". There are other, more ambitious, risky, and difficult, ways you could achieve the same end goal. However, i've never really seen the logic in taking those paths when you can just take the safe and slow approach. 

    2Reply
  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
    1y

    1. Learn all about real estate investing. Know the lingo and the processes.

    2. Find a good deal.

    3. Beg family and friends to fund it for you.

    They "might" do it if they see you've learned a lot and your business plan sounds very solid.

    How do I know this "might" work? That's exactly how I did my first two deals...

    (saving the money to have your own deal is the worst idea)

    3Reply
  • Andy RouschPro Member
    Investor · Mt. Arlington NJ · Member since 2018 · 251 posts · 143 votes
    1y

    Congrats on getting started Kyle! Either way you will do way. It is a matter of getting out of your comfort zone a little bit but not so much that you will burn out or lose sleep. If you can raise money without stressing out completely, than go for it. If you would prefer to do it on your own than that is fine too and you will just have to grind it out and save like crazy but it will be worth it. I'd be happy to show you around the calculators, I have seen people use the calculator results to bring to meetups and try to raise funds that way 

    1Reply
  • Nicolas Martin
    Member since 2024 · 52 posts · 25 votes
    1y
    Quote from @Kyle Deboer:

    I am 18 years old with very little credit history and little capital. I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours?


    At 18, start with wholesaling to find off-market deals and earn fees without capital. Build savings through side hustles like flipping cars or offering handyman services. Network at meetups, help investors, and learn from them. Explore creative financing like seller financing or joint ventures. Open a secured credit card to build credit and keep learning strategies like BRRRR and house hacking to prepare for future opportunities. Focus on consistent action and saving aggressively.
    0Reply
  • Yolanda Chancellor
    Member since 2024 · 8 posts · 4 votes
    1y

    Maybe look into a down payment assistance program for a first time homebuyer and house hack. I'd make sure you have enough money from a job to pay the mortgage if you don't have renters for some time. 

    1Reply
  • Seth Singer
    Member since 2025 · 13 posts · 17 votes
    1y

    Hey Kyle, I’m also from Ohio! I’m 20 now and I have 1 unit and I co-manage a portfolio. My advice for you is different than everyone else. 2 years ago I was in your shoes. Everyone told me the same thing. They are all right! BUT, I think there are some things that I did that you should deploy if you are set on getting in the game now. 

    1. Tell everyone you know you want to get into it and that you will work for free. Brandon Turner talked about it in his 2nd book, The book on real estate investing, he got a private money lender for one of his first deals from someone he went to church with. He did it by just telling people he was an investor. I did this and I found out that there is a surprising amount of people in my life that invest. From there ask them if you can come shadow projects or help manage. Ask if you can do little tasks like having to go change a lightbulb, change a lock, etc. I found that a lot of self managing investors appreciate it a ton if they don’t have to do those things. Then from there they will start gradually providing you with knowledge on the job. 

    2. My second piece of advice coincides with my first but that it is you have time. You may lack money but having the flexibility to learn/work for free (and learn). Your age will also deter people from investing with you (don’t worry I got that too). But if you can prove to investors that you know your stuff, and you back it up with projects. It flip flops, it actually makes them more intrigued. Spend your time listening to bp podcasts and reading books. Offer up free work to investors. It will pay off 10 fold.

    3. Lastly, don’t get over levered or into a bad deal because you are so ambitious. Use it to fuel you but do not fall in love with a deal and force it through. 

    I’d love to connect if you are looking for more of a conversation or even just to have each other in our network. You’re destined for great things, good luck! 

    12Reply
    • Micaila Frazier
      Investor · Winston, MO · Member since 2025 · 18 posts · 13 votes
      1y
      Quote from @Seth Singer:

      Hey Kyle, I’m also from Ohio! I’m 20 now and I have 1 unit and I co-manage a portfolio. My advice for you is different than everyone else. 2 years ago I was in your shoes. Everyone told me the same thing. They are all right! BUT, I think there are some things that I did that you should deploy if you are set on getting in the game now. 

      1. Tell everyone you know you want to get into it and that you will work for free. Brandon Turner talked about it in his 2nd book, The book on real estate investing, he got a private money lender for one of his first deals from someone he went to church with. He did it by just telling people he was an investor. I did this and I found out that there is a surprising amount of people in my life that invest. From there ask them if you can come shadow projects or help manage. Ask if you can do little tasks like having to go change a lightbulb, change a lock, etc. I found that a lot of self managing investors appreciate it a ton if they don’t have to do those things. Then from there they will start gradually providing you with knowledge on the job. 

      2. My second piece of advice coincides with my first but that it is you have time. You may lack money but having the flexibility to learn/work for free (and learn). Your age will also deter people from investing with you (don’t worry I got that too). But if you can prove to investors that you know your stuff, and you back it up with projects. It flip flops, it actually makes them more intrigued. Spend your time listening to bp podcasts and reading books. Offer up free work to investors. It will pay off 10 fold.

      3. Lastly, don’t get over levered or into a bad deal because you are so ambitious. Use it to fuel you but do not fall in love with a deal and force it through. 

      I’d love to connect if you are looking for more of a conversation or even just to have each other in our network. You’re destined for great things, good luck! 


       Seth, I found this reply so encouraging to myself, as I am also new to the investing world! Thank you so much

      0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    @Kyle Deboer
    Get a job and save up till you can buy the first one. Not what you want to hear but it's the truth. While you save up work on building up your credit history with a credit card. I got the Discover It Secured card in high school and used that to build up my credit. Check out YouTube for some videos about that card. It's a good secure credit card for a beginner. 

    [email protected]614-412-4565
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    2Reply
  • Josh Otero
    Property Manager · Los Angeles, CA · Member since 2024 · 39 posts · 16 votes
    1y

    Hey @Kyle Deboer, it's great that you're eager to get started. Don't let anybody tell you you're "too young" to get started. I suggest getting a job anywhere and saving your money to then invest. It's up to you if you want to put it in an ETF, CD or something else in the meantime. At this stage of your life, communication skills are most important so be sure to develop those. Some jobs that help are by being a waiter at a restaurant or try getting a job in property management or something real estate related of some sort. You're in the Ohio market where it's definitely possible to team up with maybe a sibling and get a property when you're 21 ish.

    1Reply
  • Austin McClainBusiness Member
    Real Estate Agent · OH · Member since 2021 · 347 posts · 602 votes
    1y

    Finding a deal will make you an asset to investors with capital 

    [email protected]614-710-4827
    1Reply
  • Juma Otoviano
    Member since 2025 · 2 posts · 0 votes
    1y

    Hey, a great thing to start with is considering wholesaling and seller financing options that can help build capital while you are completing deals. In addition to that, you could open up a credit card to get that credit history rolling. Obviously, you should focus on earning as much as you can, since are young and save over time to build that capital but here are a few ways to get started in another direction. 

    0Reply
  • Carlos Collier
    Investor · Prescott Valley, AZ · Member since 2017 · 27 posts · 13 votes
    1y

    Have you considered partnering with someone who has money? 

    0Reply
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