Investing and making the most out of 2-3k

15 Replies

hello I'm a newbie investor and I'm looking to get started immediately. Id like some advice on what would be the best way to get started with the little bit of cash I have. I've got about 2,500 and just wanted some advice as to how I could use that little bit of money to get my first property without using my credit at first. Any and all advice would be greatly appreciated 

With that much money, I think your best options are either wholesaling or creative financing (seller carry, subject to, private lending, etc.). To find those types of deals, you will need to do some marketing though, so that might be where you need to spend that money.

I agree with @Andrew Syrios

The other thing you could do is seek out joint venture partners to team up with. There are a lot of people who are looking at real estate as an investment but don't know where to start and don't want to be hands on. You provide the knowledge and all the leg work and they could provide the money. 

And of course, you could always Lease Option from the seller.

Here's your 5-step plan:

1) Develop a cash buyers list of people who can fund a flip. 
2) Get a website or landing page.
3) Set up a Google Adwords campaign with a $20 per day budget.
4) Also do other online stuff like Craigslist, but most your action will come from paid media.
5) Work the leads as a wholesalers - find deals, get them under contract, get them to your cash buyers, and get paid for finding great deals.

If you don't yet know how to do Wholesaling, send me a colleague request with your email address and I'll give you our 3-video WHOLESALE ACCELERATOR course for free (offer open to any BP'er).

Other strategies like Subject To require significant capital investment and rehab expertise.  Stick to "wholesaling" (assigning contracts) until you have some capital to fund actual investments.  Make sure you have 5-10 legitimate buyers that you can contact immediately after (or even before) signing a contract with a seller.  While I promote wholesaling as a way to get started, I also - like a lot of BP'ers - think you need to be responsible in making offers to sellers; you need to KNOW that you can fund a deal via your buyers or you can really jerk around a homeowner who thinks they found a solution to their problem.  So be sure to do step 1 first....

Thank you Andrew and Jim yes I think creative financing would be a great way to start. In the meantime I'm going to consider finding a partner to work and start with thank you guys.

Originally posted by @Dev Horn :

If you don't yet know how to do Wholesaling, send me a colleague request with your email address and I'll give you our 3-video WHOLESALE ACCELERATOR course for free (offer open to any BP'er).  

Can I take you up on this offer?:)

@Justin Frye Welcome to the BP community. You got some good inputs from BPers on how to spend $2,500 to get your REI business out of neutral and into gear.

However, below are some links to get your REI education started, as that's definitely needed to get your business up and running quickly.

Your time here will be well spent.  Now that you have made the move, below are some links that will help you navigate the site. However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

Before your 1st purchase, please ensure you visit the below link for some tips.

http://www.realestate.com/advice/buying-your-first-investment-property/

eBook

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-

community-book

Blog

http://www.biggerpockets.com/renewsblog/2013/02/09/how-to-start-investing-real-estate-young/

Lastly, don't forget the podcasts, webinars, #askbp podcast and the blogs.

Originally posted by @Robbie Knecht :
Originally posted by @Dev Horn:

If you don't yet know how to do Wholesaling, send me a colleague request with your email address and I'll give you our 3-video WHOLESALE ACCELERATOR course for free (offer open to any BP'er).  

Can I take you up on this offer?:)

 Yes, anyone can.  Just send me a colleague request and include your email address - I send you the video links and sample contracts via email.  No advertising or B.S.  So far, we've had more than 500 BP'ers go thru our Wholesale Accelerator course!

Originally posted by @Fitzgerald Hall :

@Dev Horn Is there a thread that you spoke on about scaling up? If not is there a way to discuss scaling my wholesale business up with you?

I'm not sure of other threads, but feel free to send me a private message here in BP with any questions you have and I'll try my best to assist.

Originally posted by @Dev Horn :

If you don't yet know how to do Wholesaling, send me a colleague request with your email address and I'll give you our 3-video WHOLESALE ACCELERATOR course for free (offer open to any BP'er).

Can I take you up on this as well, @Dev Horn?

Forgive me if this sounds harsh, but I don't think you are ready to purchase a property yet. Yes, you may be able to construct some sort of creative financing to buy something, but that doesn't mean you should.

My concern is that if you only have $2,500 to invest, that to me says that you do not yet know how to manage your money. If you currently mismanage your money and buy a property, you will still mismanage your money, just on a larger scale and with high leverage. When ignorance is combined with leverage you get some pretty interesting results (not in a good way).

So, I would focus 1st on mastering personal finance. You'll know when you've mastered it because the money you'll need to invest will magically start accumulating in your bank account. In the meantime, I'd get a library card, research on BP, and join in REI meetups for education ... the best things in life are free :-) If you still want immediate hands on experience, then go work for somebody that does what you want to do and get paid to learn.

Good for you for your ambition to ... I think that this would be the more sensible way to start.