Whats the best way to start investing?

Whats the best way to start investing?

Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes

Is it through wholesaling, rehabbing, agent/broker, shortsaling? And is it better to buy subject to or through options when you do not have good credit and money?

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  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    Just my opinion, but all the things you mention are real estate related jobs, not investing. You can certainly make money with any of those, as long as you keep doing them.

    You don't need to buy at all to do any of those four things.

  • Real Estate Investor · Tampa Bay, FL · Member since 2009 · 180 posts · 17 votes
    17y

    In my opinion wholesaling, and double closing transactions would be the best in that situation.

    To be honest in my market, if I were going to try that, I would first find buyers. People who are genuinely looking to buy. Get their specifics, and create my buyers list with profiles for each buyer.

    Start out with a motivated buyer. And you have a fast track to closing. Your main priority then is to find something that meets their criterion.

    I just don't have time with what I am doing to take time to cater to buyers, and what they want.

    So if I was going to be a full time investor with bad credit and no money, I would look for cash buyers, and try to set up double closings with conventional mortgage buyers.

    Once you can afford to, then I would parlay that money into other longer term investments.

    Of course by then you would be able to qualify for some type of financing, and true financial leverage comes into play.

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    17y

    It is nearly impossible to succeed in this or any other business if you have bad credit and no money. Don't get me wrong, you can buy a property with no money and bad credit, but running a business with no money and bad credit just isn't going to happen. Therefore, my suggestion is to work hard; fix your credit; and build up some cash before you start investing.

    There are 168 hours in a week. That's more than enough time to work two full time jobs and still have time to sleep. Hard work is what promotes success in any endeavor. If you aren't willing to work hard, all the gimmicks in the world (sub-2, options, etc) aren't going to allow you to succeed.

    Good Luck,

    Mike

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    sorry i have limited credit since i just turn 18 a few months ago. Does this make a big difference with the advice your giving me ?

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    Matt, I have read most of your posts, and I can tell that you are already leaps and bounds ahead of most of us when we started out in this business.

    Jon is right in that most of the things you posted are jobs, but they are investments as well. Any time that you put time in your own business, it is an investment in your future.

    Since you have limited credit, and I would assume lmited capital, you will need to explore all of the different avenues of the business and find what fits your the best.

    You must enjoy what you are doing.

    - I love to rehab, network, and sell!
    - Josh loves the community interaction and the power of the web!
    - MikeOh loves the hands on property management!
    - Nationwide (Will) loves the development side of the business!
    - Nick Johnson loves the sub2/short sale business

    What you will see in all of the people mentioned above is that they have a passion for what they do!

    So my advice is to try a little bit of everything, and find out what best suits your personality!

    - You are already getting your RE license, so keep on that path.
    - Wholesale a deal and get your feet wet. This takes no real money of credit to do.
    - Find a person in distress and help modify their loan, or negotiate a short sale for them.

    I do not recommend rehabbing until you have the capital to do so, as without any money and/or experience, it could really hurt you. Get through the above steps first.

    Have a Profitable Day!

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    wow thanks that was the most insightful response ive gotten so far. My only problem is that im going to be leaving for basic training on sept 1st. so right now im just trying to gather as much information as i can before i leave. and then when i get back i can actually test the waters.

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    i've read the basic inspiriting books about real estate and now i've moved on to the "for dummies" books. after that i plan on reading alittle elaborate books from bill bronschick and gary kellar and robert kiyosaki. Once ive completed them. i have a birdogging course i'd to complete. then i believe ill be ready for my first deal.

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    And actually my posts drew the attention of a local broker, so now i have been in contact with her and she is going to take me under her wing i believe. this sight is incredible. with information and insight from people like you, my ambitions seem realistic. thanks

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    sorry about the errors ! it's site

  • Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
    17y

    Here's a different angle -- invest in yourself.

    Acquire in-demand skills/education (the medical field comes to mind) and you will always have a good-paying job to fund your endeavors.

    Live frugally and bank every penny you can for a few years and suddenly you will be a real player, with other people approaching you with deals.

    You're young. Do things right now and you could be a succesful investor by the ancient age of 30.

  • Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
    17y

    well im already in the air force and thatll keep me financially sound till im 26 at least. but i do plan on going to college for business

  • Member since 2009 · 4 posts · 0 votes
    16y
    Originally posted by Jon Holdman:
    Just my opinion, but all the things you mention are real estate related jobs, not investing. You can certainly make money with any of those, as long as you keep doing them.

    You don't need to buy at all to do any of those four things.


    I agree with Mr.Jon Holdman on this matter for sure that is a nice simple way of putting it.

    [LINK REMOVED]



  • Real Estate Consultant · Somerset, NJ · Member since 2008 · 8 posts · 0 votes
    16y

    This is a common question for people getting into RE. Look for your local REIA group and go to a meeting, you should be able to get in as a guest until you decide if you like it or not. Then network with investors. You will quickly learn different RE niches and you then can offer to find properties for them for a fee, is they close on your deals. This is all done for free. crawl before you walk, then look at other CREI techniques and strat to grow your business.

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