New to investing in real estate

5 Replies

Hey guys, my name is Johnny, 26 years, and live in Los Angeles, CA. I recently read rich dad poor dad and it really got me interested in investing in real estate. I don't have much money saved ($10,000) and I sit with a bad credit score of 640. I can currently save $1,500-$2,000 a month. I also have the maximum amount given on a VA Loan which I was thinking of getting multi-family home. I was wondering if anyone could give me some information, guidance, and recommend me some good books.

Should I be saving a certain amount of money before I get started or should I start with my VA Loan? Thank you for your help.

Johnny, I'd use your VA loan on a multi-unit. IF you have confidence in your ability to analyze deals, then the sooner you get in the game the better. It also depends on your risk appetite. Credit score of 640 isn't too bad. If you're going to occupy the home and you find a pretty good deal on a fourplex, I can't see any other route that's better than that.

Most investors have a huge barrier to entry on a tri or fourplex because they've got to put 20 - 25 % down. Which will create less competition. And most people who CAN afford the down payment of a fourplex don't WANT to live in one so the seller will like that you're going to occupy because that will say to him that you are more vested in the deal going through if he accepts your offer and puts you under contract. So the more units you get the better (up to 4 with a VA) because you're leveraging your 0% down card which is an absolutely amazing card you have. But the numbers have to make sense from day 1

Welcome to BP. To invest here in LA, you need to know what the going prices for multi-units are and can you afford the monthly payments even with a low down VA loans. Keep saving and give some time to let your credit score rise.

You may consider investing out of the area like Palmdale, San Bernardino or even out of state where you can get started sooner with less cash.

There is much to be learned here.  ;

@Johnny Choi

welcome to the site. An owner occupied multi is a great way to get started. Good luck.

@Race Ostler , @Joe Moore , @James Wise

Thank you guys for your welcoming words and great tips.  I will definitely look into it! It's so hard to take that first step into the real estate world. 


I agree with the others I would get started with a VA loan on the multi-unit. We got started with the va loan and it was a great start (my husband is active duty). You can use that to build up your credit score and add more cash in your pocket. We personally bought with 0% down and than self funded the repairs. After we had fixed up alot of the issues( it was a fixer upper) and had accumulate more in our savings/cushion. We used our cushion to buy our first "pure investment".

When we were transferred to the next area we used the rest of our entitlement. By this time the real estate had bitten us and we just have baby stepped our way to where we are now :)

We have done the Va loan twice, so feel free to pm me if you have any questions or want links articles on the VA loan

Look forward to seeing you around 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here