Raising Down Payment Money

PinnedDayton, Ohio
Starting Out
1yFollow

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?

39Reply
3,343 views

Most Popular Reply

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
See this reply in the discussion

65 Replies

Jump to latestLatest
  • Austin Fowler
    Investor · Reseda, CA · Member since 2019 · 297 posts · 150 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?

    Hi Kyle, would be great to hear an update of how the last six months went. Are you studying? Have you found stable employment? How is your saving going? Did you get creative and get into any deals?
    0Reply
  • Brendan Mullenholz
    Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 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?


     If your handy and physically hard working, I'd get a summer/break job in the trades and learn a few things while saving up money.  If it's your thing you can save a lot of money on renovations down the road.  Thus buying homes cheaper. than someone who will have to put more money into it. 

    0Reply
  • Tekoa Glover
    Member since 2024 · 32 posts · 5 votes
    1y

    Great Plans and eagerness! I love it. I would be open to financing a deal with you if you find it. I'm sure that we can come to some type of agreement. I will bet on you. Saving is a good idea, but in my eyes, I'll rather draft you now. Look for something under $50k.

    0Reply
  • Tony Bacon
    Member since 2025 · 71 posts · 27 votes
    1y

    I would also add go get a job as a real estate agent, property manager, maintence guy, or something working in properties. 

    The truth is you just have to save up for that first one, but with FHA it's not too bad if you're smart, only 3.5% down.

    But when you get it, you should understand how running a building works, expecially if you want to make this a business. You should learn the business first. Otherwise when a toilet floods at 3am you're not going to know what to do (this happens more than you think). 

    2Reply
  • Tekoa Glover
    Member since 2024 · 32 posts · 5 votes
    1y

    Sorry for the typo. I meant $500k

    0Reply
  • Kyle Vogeler
    Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes
    1y

    Get a small deal with your own money first. This gives you a track record and credibility and also allows you to learn without risking anyone else's capital. 

    While saving for that first small deal, educate as much as you can. Read 20 real estate books, build your own analysis templates, analyze deals frequently so you start to understand how rents/expenses impact deals, go to real estate events and meet connections in the industry. 

    Since you don't have capital and you don't have experience, you will need to show investors that you have something special that warrants their investment. That something special will be your knowledge of the industry. 

    1Reply
  • Tony Bacon
    Member since 2025 · 71 posts · 27 votes
    1y

    Good advice. 

    I still reccomend getting a job in the industry so you can see it. 

    I've been doing section 8 remodels/turns now for years and at this point, I always budget for the worst case scenario. But i've also turned 1000s of unites over the years and have seen some of the worst cases possible. I think it's best to be prepared. 

    0Reply
  • Scott Bowles
    Member since 2025 · 4 posts · 3 votes
    1y

    Bird dogging and wholesaling. 

    1Reply
    • Tony Bacon
      Member since 2025 · 71 posts · 27 votes
      1y
      Quote from @Scott Bowles:

      Bird dogging and wholesaling. 


       whats Bird Dogging? 

      0Reply
    • Scott Bowles
      Member since 2025 · 4 posts · 3 votes
      1y

      @Tony Bacon have you googled it yet? OK you find a good reliable wholesaler and you bring them deals. You bring them properties and when they get a contract on that property and it sells you get thousands of dollars for bringing the deal.

      1Reply
    • Tony Bacon
      Member since 2025 · 71 posts · 27 votes
      1y
      Quote from @Scott Bowles:

      @Tony Bacon have you googled it yet? OK you find a good reliable wholesaler and you bring them deals. You bring them properties and when they get a contract on that property and it sells you get thousands of dollars for bringing the deal.


       Have you successfully done this? 

      0Reply
    • Scott Bowles
      Member since 2025 · 4 posts · 3 votes
      1y

      @Tony Bacon Pace Morny has a lot of YouTube info on this method. https://youtu.be/7qDrcZXc9s4?si=__divbNGbgZYqJAv

      1Reply
  • Jakob Mikhitarian
    Member since 2025 · 86 posts · 25 votes
    1y

    @Kyle Deboer. Love that you're thinking about this at this age! There's always ways to get into real estate without having capital. Wholesaling, bird dogging, becoming an agent. Each deal/investment requires capital, time, and experience. Find what you do have and leverage it. Do you have time on your hand? Are you experienced? From there, I would then recommend to save for your first house hack multi. Reduce expenses, reinvest, and keep the ball rolling!

    0Reply
  • Bernz Bayabo
    Member since 2020 · 11 posts · 2 votes
    1y

    @Kyle.  I wish I would have started when I was 18. I actually started my journey without any money.  I partnered with 2 people who put up the cash and I became the Industrial partner who found and negotiated the deals and I also, found the lender, did the project management for the rehab.  We are on the tail end of our rehab and I can't wait to list it.

    Find a market that fits your budget.

    0Reply
  • Neil Jenkins
    Real Estate Coach · Sacramento, CA · Member since 2020 · 37 posts · 7 votes
    1y

    I can teach you how to raise capital. It’s one of the biggest skills you can learn. It will take some time to master but if you’d like to learn I’ll do my best to help 

    0Reply
  • Neil Jenkins
    Real Estate Coach · Sacramento, CA · Member since 2020 · 37 posts · 7 votes
    1y

    I can teach you how to raise capital. It’s one of the biggest skills you can learn. It will take some time to master but if you’d like to learn I’ll do my best to help 

    0Reply
  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    11mo

    Love the drive. With limited credit and cash, focus on two tracks: build capital and build credibility. Do high-value sweat plays now—bird-dog or wholesale for experienced buyers, JV as boots-on-the-ground, or manage rehabs for a small fee and profit share. At the same time, craft a simple private-money pitch that explains what you do, how lenders are protected, and how they'll be repaid; start with your circle and give regular updates to build trust. Stack reps and metrics fast: make one on-market offer a week, five seller calls a day, and talk to two new lenders each week. Open a secured card, pay on time, and keep utilization low to build credit. Give yourself 90 focused days—the first check fuels the next deal.

    0Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    11mo
    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?




    Hey, I see this question a lot, and honestly, you’re already ahead of the game just by asking it at 18.


    We help 200+ people a year get started in real estate in New England. The first thing we do is we help them find a way to get started with intention.


    If you don’t have much capital yet, focus on learning the business first. The two best ways I’ve seen people start are becoming an agent or wholesaling.


    Becoming an agent is a great way to get paid while you learn. You’ll see how deals work, meet other investors, and start understanding the process. You can use your commission checks as down payments on your first property. Tell people what you’re doing, talk about your goals, and build relationships. You’ll be surprised how many people will want to help you once they see you’re serious. If you manage your time this is something you can do part-time or even while in school. I know because we've done it before you just need to be honest with your commitments and not over extend yourself. 

    Wholesaling is another great path, but do it with the right purpose. Don’t just chase big checks. Use it to learn how to find good deals and negotiate, and use the money you make to buy your first property.


    When you’re starting out, time is your biggest advantage. Use it wisely. Spend time building a bridge to where you actually want to go. If your goal is to buy a small multifamily or house hack, then focus on that. Help others buy small multifamily. Wholesale small multifamily. Stay in that lane so everything you do moves you closer to your own goal.


    Also, just a heads up. There are a lot of people who will try to sell you coaching or systems. You don’t need that right now. You can learn everything for free by going to meetups, talking to people, and giving back. You’ll learn faster and build real connections.


    Right now, you’re paying with time instead of money, and that’s okay. If you stay intentional and keep learning, you’ll be way ahead of most people by the time you have capital to invest.


    You’re already on the right path. Just keep going with purpose. Goodluck and happy to help anyway we can!

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    1Reply
  • Chase Busick
    Realtor · Oklahoma City · Member since 2020 · 258 posts · 139 votes
    9mo

    @Kyle Deboer Great post & sure you have had a lot of options to learn from all the others in this forum feed.

    Biggest thing is learning, working & saving. You can learn how to leverage other people's money, time, experience & knowledge. With that being said, this can open up a whole new perspective on what you want, what you want to accomplish, set new goals, & strategy to get on the right path for your desires.

    I am always open to connect & share my experience & help you along the way if need! There is always money out there you can utilize if the deals make sense.

    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    8mo

    Hey Kyle,

    I want to approach your question from a slightly different perspective: real estate investing does require some capital, and it's more than just the down payment. You'll also need capital for closing costs, reserves, etc. So, as others have mentioned, focus on increasing your earnings. There are ways to do that through real estate itself, such as wholesaling or becoming a real estate agent. Both of these avenues let you earn income while gaining hands-on experience and learning how the business works.

    Keep learning, earning, and networking, and you'll get there sooner than you think!

    1Reply
  • Christina SmithPro Member
    Member since 2026 · 3 posts · 2 votes
    8mo
    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?


     What about starting out with wholesaling?  You need no money out of your pocket. You have to put in the hours researching homes that may be coming up for foreclosure or whatnot. Then find Private investors to buy it from you for a profit.  That's a great way to build up a little startup money in less than a year. It's not easy and it will take time to research, talk to homeowners, etc. You've got to be good with people and empathetic to their needs. 

    0Reply
  • Kirstin A.
    Investor · CA · Member since 2023 · 28 posts · 25 votes
    8mo

    @Kyle Deboer it's been a year now since you wrote this, how's it going? Nate Barger (Cincinnati, Ohio) runs Brrrr Investment Academy (BIA). After a few years he began posting videos on his 18 year old son's journey of buying and rehabbing homes in Cincy through DSCR loans, etc. He's ofc Nate's son and has connections so it was easier for him, but the videos are very educational and inspiring for younger people like yourself. Check them out!

    2Reply
    • Kirstin A.
      Investor · CA · Member since 2023 · 28 posts · 25 votes
      8mo

      @Kyle Deboer here's his son's insta profile: 

      https://www.instagram.com/kaydenbarger1?igsh=NTc4MTIwNjQ2YQ==

      0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    8mo
    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?


     Honestly, you may not like the answer but I would recommend just putting in the hours for building capital and building that foundation for knowledge. I don't know how long you've been researching and learning, or what your knowledge consists of, but it can never be built stronger than before. It took me about 3 years of learning, building capital, and actually reaching the legal age to buy. And I wouldn't have it any other way because I got the duplex that's perfect and if I would've got into it sooner it wouldn't go as good as it has. 

    Think of it as God holding you back to build you better

    [email protected]859-443-4952
    Sam McCormack Realtor
    View Page
    0Reply
  • Rodell Reddix
    Real Estate Broker · Nationwide · Member since 2024 · 5 posts · 1 vote
    7mo

    Kyle,

    I was much older than you when I started investing in real estate. If I had of started young, there are 2 areas that I would have focused on: 1. Education and 2. Wholsale.

    You are also in a difficult state - Ohio is where I believe you can only wholesale one property per year which is why I say educate yourself as much as possible. Then, you can be plan a strategy to use creative financing once you are able to enter the industry.

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    7mo
    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?


     I would find a high paying job and potentially look into doing a house-hack if with 5% down if you have the capital. Other options are get you license and sell real estate if you have a passion for it.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 55 Reviews
    WebsiteView Page
    0Reply
  • Brad SeidBusiness Member
    Lender · Licensed in 28 States · Member since 2026 · 127 posts · 33 votes
    6mo
    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?

     @Kyle Deboer I would recommend getting a full time salary or hourly job (W2 Income) and do a FHA purchase on a 4-plex. Live in one unit and rent out the other 3 for a year. On an FHA mortgage you can put 3.5% down and you can have as low as a 500 credit score with my partners. Always here if you have questions

    [email protected]248-408-3855
    West Capital Lending5122 Reviews
    WebsiteView Page
    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 911 votes
    6mo
    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?


    You’re thinking about it the right way, most people start exactly where you are. Early on, it’s usually a mix of stacking cash, building credit, and getting creative with partnerships or house hacking rather than trying to do everything solo.
    [email protected]614-418-6081
    0Reply
  • Nadean Willis
    Lender · Jacksonville, FL · Member since 2026 · 46 posts · 17 votes
    6mo

    @Kyle Deboer as a lender, I am seeing more and more investors raise capital through crowdfunding platforms. 

    You could also network and find partners to JV with. It's possible you could do a joint venture with a partner where you brought the deal and do the work while they obtain the financing. Considering you are still learning, it may not be a 50/50 split but it will certainly give you a great start.

    1Reply
  • Joseph Neri
    Investor · Houston, TX · Member since 2019 · 95 posts · 29 votes
    5mo

    Kyle — at 18, the best thing you can do is start building a capital system now that compounds over time. Everyone else will tell you to save in a bank account. That works, but the money just sits there.

    One thing I wish I knew at your age: if you start funding a properly structured whole life insurance policy now (even with small amounts), by the time you're 25-28 you'll have a pool of cash value you can borrow against instantly to fund deals. No bank needed. No credit check. Your money keeps growing even while you use it.

    I've done 100+ real estate transactions in Houston — flips, wholesale, rentals, lending. The investors who scale fastest aren't the ones with the most money. They're the ones who built a system where their capital is always accessible and always growing. Start that system at 18 and you'll be light years ahead by 25.

    Short term: get a W-2, save aggressively, house hack your first property. Long term: build a personal banking system so you never have to ask a bank for permission again.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free