Can this be done?

Question

Hello! I’m new to real estate investing. I’m trying to devour every podcast, YouTube video, and website I can access. I’m trying to learn to create my own real estate investment business. I work full-time as a paramedic and make decent money. However, the thought of going into debt to start this adventure has caused my wife to not see my dream. Can this business be started from raw with nothing? If so where do I even start?

Arman Ahmed · Answer

@Matt Settle

Matt, totally get where you’re coming from—getting started can feel overwhelming, especially with a family depending on you. The good news is yes, it can be done starting from very little, but the key is to focus on strategies that require less upfront capital, like house-hacking, creative financing, or partnering with others who have capital but not time. Education is important, but pairing it with action (networking with local investors, analyzing deals daily, and talking to lenders) will build your confidence. Many of us in the Midwest market started small and scaled step by step—what makes the Midwest attractive is the lower price points, steady rental demand, and cash flow potential, which make it easier for new investors to get traction without overextending.

Caleb Brown · Answer

You can do no debt it'll just be a slower way to go. Debt does sound scary but keep in mind you are buying assets not racking up consumer debt. If she's debt adverse you can put larger down payments, have higher cash reserves and take the conservative route. Everyone does it differently so figure out what works and what makes sense

Chris Seveney · Answer

You will need cash or debt, its either one of the other.

Account Closed · Answer

I see it more of a cash flow situation. I started investing first as a house-hack in a 3 family property. 2 of the 3 units would pay the PITI, and I would essentially take what I would normally pay in rent and use that towards banking a reserve. Not for the faint of heart either, but more comfortable for me as a beginner 4 years ago. Any time you have to make a payment is a risk, but at least you can lock in a mortgage rate

Carini Rochester · Answer

Dave Ramsey (no debt) is only for people who have proven that they can't be trusted with debt. "Good debt" I wish English had a different word for it, 'financing' maybe. I have found owning property with 20% down and 80% from a bank to be a great way to buy investment properties. (There's an asset that balances the mortgage indebtedness.) I have never been late with a payment and the rental income always covers the mortgage. (Reserve funds needed for the unexpected roof, furnace, kitchen remodel . . . etc.) I get to own the property years sooner than if I had to save up for the entire purchase price. There is very little risk when good property analysis is done and appropriate tenant screening. Even my mistakes and sometimes poor decisions have not been bad enough to result in any disasters . . . yet.

Carini Rochester · Answer

I wonder if the OP would let us know if he has made any decisions or taken any action. How are the conversations with the wife going? My wife and I have very different understandings of money and of debt and of risk, but we have conversations and spreadsheets and sheets of paper with math and 'business plans' and we make decisions together. One way of looking at risk that I learned from a poster here on BP is that you are only risking the funds that you put into the property. If you put in 100% you are risking 100%. (Your wife thinks of this as low risk because you aren't borrowing. I think of this as high risk because you are risking so much of your own money.) Calculate the payback period on that investment. Calculate (estimate) how long before your investment has doubled. Estimate how long before that investment would double if you bought stocks (say an index fund.) If you and your wife are committed to investing in all cash, I recommend Wall Street.

Ryan Rominger · Answer

It’s definitely possible to start small without taking on heavy debt. Many investors begin with house hacking, partnering, or saving toward that first down payment while learning the ropes. Since you’re already diving into podcasts and videos, I’d suggest also focusing on building local connections and understanding the numbers in your own market. That foundation will help you spot opportunities that align with your comfort level and goals.

Izaiah Barba · Answer

Hey Matt, it’s awesome that you’re diving into real estate and using different resources to learn what’s going on. There are a lot of ways to get started without money: For me, I went the wholesaling route. Finding opportunities by reaching out to sellers and then matching those deals with buyers. I started with the outbound approach, mostly texting and calling homeowners. Once I had a deal that fit what buyers were looking for, I’d bring it back to them and make an assignment fee in the middle.So yes, you can definitely start with nothing. There are different ways to go about it, but I’m happy to share more on the wholesale / bird dog side if that’s the direction you want to explore.

Kerlous Tadres · Answer

Hey @Matt Settle! From my experience, you can definitely start with very little; it just takes a smart game plan. I’d recommend focusing first on building knowledge and relationships before jumping into debt. Spend time learning your market (go to local meetups, network with agents, property managers, and lenders). You can start by house-hacking, or partnering on a small multifamily property where you live in one unit and rent the others. This approach allows you to get in with lower cash and financing requirements. I’d also suggest talking openly with your wife about a plan that limits risk: maybe set a clear savings goal and timeline so you’re using your own cash for the first deal instead of heavy borrowing. The key is to learn, save, and network so when the right deal comes, you’ll know the numbers and have the team to move fast.

Nicholas L. · Answer

@Matt Settle

hello.  i'm not sure what you're asking.  a lot of us work full time and are building our portfolios on the side.

can it be started with nothing?  no, you need money.

can it replace your full time income?  not for years and years and years, unless you're the Lebron James of real estate.  i am certainly not the Lebron James of real estate.

can it be done without debt?  most of us don't, but sure, if you save up the cash.  the returns unfortunately on unleveraged real estate are pretty low.  the amount of real estate you'd need to own free and clear to generate income comparable to what you're making right now is probably a lot more than you think.

i hope this helps - i don't mean to be discouraging but long term rentals are a grind and just don't generate a ton of passive income.  i'm buying mostly for equity right now.

Can this be done?

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