Realistically Speaking...

8 Replies

As a newbie, how much money is a realistic figure to get started in REI? I know there are many stories of people who have built RE empires srarting with nothing or very little down, but how realistic is that in today's market, and is the only option for this method done through wholesaling or "helping/preying" on those who find themselves in financial trouble with their home?

Look forward to hearing your feedback...thank you.

~Shanda

We got started with 0% down personal property. It was a foreclosure that we totally gutted. When my husband was transferred active duty (Navy) we rented the house out. We have had lots of friends who have rented out rooms and use it to save money/pay down their mortgage. We did that when we were first married with a rental.

Another great place is to look around the blogs, forums and listen to the podcasts. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog or website in your signature, if you have one. Its a great additional networking source.

Look forward to seeing you around! Let me know if I can help!

Like Elizabeth Colegrove says, "0" IS the magic number.  It's not the money that gets you the deals, it's the knowledge of what to do with it.

Joe Villeneuve
REcapSystem
A2REIC

Great info guys...thanks! 

Originally posted by @Shanda Porter :

As a newbie, how much money is a realistic figure to get started in REI? I know there are many stories of people who have built RE empires srarting with nothing or very little down, but how realistic is that in today's market, and is the only option for this method done through wholesaling or "helping/preying" on those who find themselves in financial trouble with their home?

Look forward to hearing your feedback...thank you.

~Shanda

Realistically speaking you can start with zero dollars of your own to wholesale and depending on your credit and REI saaviness becoming a landlord/owner can be done with zero dollars of your own also. There are various ways to make a purchase with little to no money down and even secure government assistance to do rehabbing / to help pay rent on behalf of your tenant(s). Its a grown-ups business to put it blunt. If you always needs someone to hold your hand then real estate investing isn't the industry for you. You have to want it bad enough to stick around after weeks and months of failure which many investors have gone through at one point or another. Its been said many times that failure is a necessary ingredient for success. There will always be a lending ear and helpful advice here on BP. I'm sure many have quit because they found that this business is not for them. Hopefully you'll find your answer sooner or later.

Kudos,

Mary

Thank you @Mary B., no I definitely have my "big girl bloomers" on & not afraid to get my hands dirty for experience is a great teacher, so I'm not looking for hand-holding, but not interested in re-inventing the wheel either. I a firm believer that every man is your teacher & when the student shows up, the teacher will appear...so I'm here & will accept whatever advice is offered - good, bad or indifferent - after that, it's on me to decipher & use what works for me.

@Shanda Porter  

What kind of Banker are you?

The answer to your question is $0.  But I highly recommend having "as much as possible." It opens doors and gives you options.

You don't need any money, but someone, somewhere in your group, does.  That could be all coming from a funding source (bank, etc...).  If that's the case, then someone on your team needs to have the credit to be approved by that lender.

As @Shanda Porter  says, "It opens doors and gives you options".  It is easier if you are proactive with your funds.  In fact, there are great ways to use cash over and over (the same cash) many deals in a rapid fire sequence, if you are proactive with your funds.  Again though, these funds don't have to be your, but they have to be someone's. 

Thus the term "Other People's Money" comes into play.

Joe Villeneuve
REcapSystem
A2REIC

@Aaron Montague, I'm a licensed Mortgage Loan Officer in FL.  There wasn't a category for loan officer/mortgage broker when I completed my profile, so I chose the closest thing to it.  :-)

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