Struggling to get a start

15 Replies

Hello,

It is my dream to get started in real estate however, money is tight and I struggle to get financial backing. I have seen great deals I've had to pass on because I don't have a financial backer. Please help!

@Jesse Reese  have you read the Ultimate Beginners Guide for Real Estate on this site?  The podcasts of BiggerPockets are also very helpful in getting people started who have limited finances for that first move.  It's all very inspiring, but you will have to take some time to describe what you can bring to the table that would make an investor want to partner with you.  The latest podcast I hear talked some about birddogging.  It seems like you could be the "go-getter" and earn some money on the side as well as building a business relationship and benefitting someone else in their investing.

@Kyle Denmark  I have used theses resources extensively! I'm enrolled in my certification courses to be licensed salesperson in the state of Hawaii. I own my own Business HIIA & US LIMITED LIABILITY COMPANY also based out of Hawaii. I would love to bird dog but honestly I don't have much information on it. Do you have any good resources for bird dogs?

Hi @Jesse Reese  . I'm also here on Oahu. It does indeed take a while to get started, especially here in our super expensive market. I wish there was an easy way to get financial backers, but it's really just a combination of 1) understanding real estate (of course, but you'd be surprised), 2) understanding how to present to an investor so that they see WHY they should invest with you, 3) getting in front of the RIGHT people, and 4) diligence.

I started out wholesaling for faster paychecks before I got enough know-how and credibility to raise my own capital. Now I flip regularly. Sometimes I get leads from bird dogs, other times from realtors or through my own marketing. One thing about this business is that you have to be super opportunistic. You never know where that next great deal or private lender is going to come from.

I'm probably not telling you anything you haven't already figured out, but keep at it.

Mike Borger

Hey Jesse check out the podcast it will help to find a way to get involve in real estate. One way is wholesale it require little money. The money you put out is for marketing and you can adjust it to your budget.

Hi @Jesse Reese  ! I don't know anything of your situation but have you looked into first time home buyer programs. That might be a way to at least get your feet wet and build equity ....start with the home you live in. In a lot of places owning is cheaper than renting plus you get a tax break.  If you buy right you'll save money every month which will help you save for a down payment for a second property. You could also rent out a room for extra income. There are lot of government backed programs where you can put very little down. I had a real estate agent tell me she got 5K free from the government for her down payment even (this was in New York). It was some kind of first time home buyer grant for low income people. I really wish I has known about all these government  programs before I bought my fist place :) good luck. 

Hello everyone my name is Kevin Armstead, I am in a similar situation as Jesse, I live and want to invest in Canton Michigan, I'm about 45 minutes west of Detroit. I have had deals that we're between 60%-65% of ARV and I still could not find financing... I hear the gurus that tell you to just find the deal and the money will come. However I have had no such luck.

Kevin network and find someone who will partner with you. You can find deals and they can bring cash buyers. Just an idea to consider. 

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This thread has me wondering a few things before we can be really helpful - such as:

You live in Iowa City and are studying for your license in Hawaii?  Are you hoping to "flip" houses in Hawaii?  What island?

Why are you getting your license?  Do you want to be an agent?  Work with buyers and sellers?  (I do encourage everyone to get licensed, just curious)

Have you looked for financial backers in Iowa?  Or Hawaii?

Do you have money for marketing?  What's your monthly budget?

We started out with no money as personal property right out of my undergraduate degree. The low downpayment and low interest rates made it affordable. You do have to live in your investment but it is a great "foot in the door" that I talk about on my website. We did have little debt and were able to qualify for a first time home loan. We used a VA loan. We bought a fixer upper and than rented it when we were transferred. There are lots of lots of options and strategies. We ave had many friends who rented out rooms in their house living rent free while building equity. Other people here on bigger pockets got started with duplex and multi-flex.

Originally posted by @Kevin Armstead:

Hello everyone my name is Kevin Armstead, I am in a similar situation as Jesse, I live and want to invest in Canton Michigan, I'm about 45 minutes west of Detroit. I have had deals that we're between 60%-65% of ARV and I still could not find financing... I hear the gurus that tell you to just find the deal and the money will come. However I have had no such luck.

Hey Kevin - if you're in Michigan you may be able to take out a personal line or business line of credit depending on the acquisition cost etc.

Lending is a little bit tight here in Michigan, but after making a ton of calls Key Bank was able to lend a decent amount at a good rate to me.

PM me if you need any contact info.

Originally posted by @Dev Horn:

This thread has me wondering a few things before we can be really helpful - such as:

You live in Iowa City and are studying for your license in Hawaii?  Are you hoping to "flip" houses in Hawaii?  What island?

Why are you getting your license?  Do you want to be an agent?  Work with buyers and sellers?  (I do encourage everyone to get licensed, just curious)

Have you looked for financial backers in Iowa?  Or Hawaii?

Do you have money for marketing?  What's your monthly budget?

 Hi Dev,

I live in Hawaii on the Big Island. I had moved from Iowa also I wanted to get my licenses so i can have a better day job which would allow to invest more of my own money. I have been looking for financial backers but admittedly the process has been going slow for me. My income right now varies drastically however my girlfriend and I are working together on this and it provides some stability. 

Currently my ambitions are Bird-Dogging or wholesaling but ultimately I would like residential and commercial properties earning me a monthly income so I know I'll have the money to take care of my family in the future. I have a small budget for marketing only a few hundred a month.

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