So I recently spoke with someone from an organization that will remain nameless, and was basically told that if I didn't have at least $2,000 to start out with for investing, then I will never get any deals. My financial resources for investing are very limited, so that was a bit discouraging to hear. He was right to a certain degree, but I know that others have had success with little to no money spent. I'm sure it wasn't easy, but I know it is possible with some creativity and consistency. What are some things I can do for free or very inexpensively for now, until I have more financial means to find deals to do wholesaling? I'm already driving for dollars.
What he meant to say, what he should have said, was that if "HE" (the "nameless organization") didn't have at least $2000, HE couldn't make money in Real Estate Investing.
I think partnering or birddogging is the way to get started.
What are you good at?
Why are you broke?
Are you willing to suffer or go without TODAY to get ahead to start a business TOMORROW?
REI is about entrepreneurship, starting and growing a business.
Guerrilla Marketing books from
have helped me.
Go to an REIA and ask the president to work for free for not money but experience.
In wholesaling the name of the game is marketing. Some of the less expensive (<$500) ways to start marketing: Website, bandit signs, hand-written yellow letters, postcards, door hangers, business cards (that I hand out like candy), fliers...
I'm getting started on a shoestring myself and, if you take out the $1000 direct-mail campaign I'm doing, I've spent less than $500 and have had half a dozen leads and one potential deal on the cooker. So...it CAN be done for WELL under $2k, but as I said: wholesaling is all about marketing, so the first deal you get I'd pump half your proceeds into ramping up your marketing. Make a plan now and execute it in stages as you get the money.
Look, let me be brutally honest here. You're told that the way to buy real estate with NO MONEY and NO/BAD CREDIT is to "wholesale". Sounds good - get other guys to bring the money to the table and I'll get my cut!
Here's the PROBLEM: Wholesaling is the FRONT END of the process, the one where we FIND the motivated sellers. This is NOT a cheap part of the process. This part of the process requires MARKETING which, other than the wasteland of Craigslist, is not free.
In some markets, it can easily cost $2K, $5K, and even higher in your marketing cost per deal. This is something that makes this business challenging. Acquiring prospects is not cheap for other small business people, and it is not for us in REI either.
So, do what can with what you have to get a deal or 2 - and then plow that money back into MARKETING... this business takes money to make money!
How about driving for dollars? Yes, it takes gas money, but those would have to be some of the best properties to go for. Maybe you could even do something like take a photo of the property to help remind you of the house. Then go to the tax assessors site and see if you can find the owner information. Likely out-of-state.
You could also craigslist troll, but that will be a lighter lead. They may be motivated, but they also might have misconceptions about what they can get for their property. I can't remember who was saying something like FSBO don't like using agents because they don't want to pay the agent's commissions (too cheap). I don't know how true that is.
@Brian Gibbons I'm actually working on both of those things as my starting point. I am hoping that I can. I like your idea of trying to work for someone for free. I don't have room to make any financial sacrifices, and at this time I am working about 70 hours because of my internship, so my time is limited as well. I do believe I am making the most of my time, but the hard part is making sure I'm learning what I NEED to learn get started until December when my internship is over.
Best thing you could do which is free, is google all terms we buy houses, cash for homes whatever. Call all bandit signs, search craigslist for the same terms. Contact every single one of these and let them know you want in. You'll bird dog, work for free like take pics of the houses they acquire, put lock boxes on them, learn how to market for them seller/buyer, learn about closing and contracts. Buy them lunch once a week or coffee. Mow they're lawn. Make sure they are reputable and knowledgeable ask around. Most of all show some hustle.
Read here and ask questions here. Google every question before asking. Most if not all have been answered at length. Do not spend money on gurus BUT you CAN learn a lil something from each one. They all have a niche they want to sell you on. Don't bite, if you like what they're saying come here and educate yourself.
That is all young Jedi.
I dunno should you?? Are you going to let some guy (who's probably wanting money from you) tell you what you can and can't do or are you going to get $hyt done regardless of what anyone says??
It's not going to be easy but as others have noted it's definitely possible.
"The first millon is always the hardest"
@Jim Viens @Dev Horn Thanks for advice. I'm actually hearing more and more about the importance of marketing, especially when it comes to wholesaling, and I see the importance. I also know that there are some ways to market for free as well, and that is what I need for right now because I simply can't afford to spend anything for at the next few months. I want to try to exhaust some of the good, free or inexpensive means of marketing for now. I know it may be harder, but I know it is possible. If I don't get one until I have 2k to spend then so be it, but I will try anyway.
That's the spirit. Play the game with what you have now.
"Success is a result, not a goal." ~ Gustave Flaubert
@Bobby Valcin One other thought I have been thinking about as a secondary market is to look in craigslist for landlords who are currently looking for renters, especially if they own just one or two properties. Maybe this latest vacancy is the last one they want.
We had 0 down dowpayment money for our first house. We know many people who rented out their rooms. So if you bought a house with 0 down and everything finance, and than rented out your rooms you could live for 0 and be investing. Honestly I have learned if there is a will there is a way.
@Ronald Perich Brilliant! Thanks.
Elizabeth Colegrove That is very true. Creativity seems to be a big help. I'm good at recognizing good ideas, but not necessarily with coming up with them.
I don't have a creative bone in my body. I am the worst Martha Stewart you will EVER come. The one thing I have been very good at is adapting. Situations in real estate require "quick" decisions. So I have gotten really good at giving "quick" thoughts. Are business plan as changed alot based on situations that have arisen.
There is tons of great advice here. I too am starting and strapped for cash. I've done some mailings and gotten one really great lead where the people accepted my offer and then didn't show up to sign the contract. Back to square one. I'm a list person (because I LOVE getting to check things off when I've done them). Here's a list you can print as a guide:
1. Go to your closest BP Meetup. The people you will me will be your guides and your sounding boards and who knows maybe future partners!
2. Open a bank account just for your REI funds. Get automatic deposit from your paycheck to put a small amount in every month and increase as you can.
3. Stop going to Starbucks, Marshall's whatever and if you go out with friends, drink only when the drink is bought for you : )
4. If you have good credit, buy a SFH or duplex with an FHA loan (I think it's 3% down) and house hack (read Brandon's book "No and Low Money down..... to learn how)
5. Listen to the podcasts every week and the new daily podcast right here on BP
6. Find a mentor or an internship. But do your homework. My first interview for a wholesaling internship the guy was drunk - I mean slurring his words and couldn't walk a straight line and it was 10 in the morning! When you find a good one, as mentioned above, bird dog, go to the court house for them get them coffe etc. You'll learn tons!
7. HERE IS THE MOST IMPORTANT ONE. TAKE ALL THOSE "YOU CAN'T DO IT" COMMENTS AND USE THEM AS FUEL! YOU'LL SHOW THEM! Go with the Rich Dad Poor Dad way of thinking - don't say "I can't", say "How can I?"
Eventually when you immerse yourself in this business and hang out with like minded people you will find your way.
hi bobby. let me tell you a little story on how i got started. i had about $2000 to start with. i found a HUD house in a near by neighborhood and went to look at it. the listing price was $8500, but i thought i would look anyway. when i went to look at it, i noticed the house next to it was boarded up. i contacted the local municipality and they said that they owned it and had aquirred it thru tax repossession. i ended up looking at 3 houses that they owned like this, i bought 2 of them. the one i just mentioned, i bought for $1700. the other, i bought, later, for $500. both needed major work, and i did that using credit cards. fixed both houses, rented them both for a period of time, sold the one for a profit and the other i still own. you can get started on as little money as you have now, but you have to find the right deal. don't let the fact that you are starting off with little money stop you from getting into the business, you can do it
My very first batch of marketing cost me around $15 (stamps, paper, envelopes) I had some family members help me write 24 letters and sent them out. 4 days later 2 calls 1 of which was a very good lead. like my mentors have said to me, don't let anyone tell you you can't do it. JUST DO IT! wether it be 5 letters at a time to good leads or 1000. Just start doing something. even at that 5 at a time pace eventually something will come of it.