Kissimmee, FL · Member since 2016 · 20 posts · 3 votes
Hello everyone, I would like to find out more about little or no money real Estate investing. Has anyone had success starting out in this way and knows how it works? Can you really start investing with little or no money? How do you obtain funds from other sources? Thank you.
Here's the issue I see with it ... if you have little or no money to invest, then it most likely means that you have not yet mastered personal finance or managing money. If you are not good with managing money and try to buy an investment with little or no money down, that is 99.9% surefire recipe for disaster IMO. Another thing, let's say you do manage to acquire a property with little or no money down, then it rains and you discover that the roof leaks and needs to be replaced ... what do you do then? Just because you bought it for little or no money down doesn't mean that you can afford to hold it with little or no money. The worst reason in the world to invest with little or no money down is because you have little or no money to put down, but that is the reason a vast majority of folks on here do it. Master personal finance, save some money, then invest ... don't try to shortcut around these critical steps, it is like trying to build a 3 story house on a sand foundation without first pouring any concrete.
first of all, I recommend that you find a flipper in your area and offer to work with them. If they pay you its sprinkles on the cake. To get a crash course in investing in real estate find those who are performing and work for them to learn the business. State what it is you're intending to learn and they will likely be helpful towards your endeavors.
Seller financing is when you negotiate the terms with the seller regarding the mortgage. You could offer to pay full price with no down payment. Be more creative, etc
Hello everyone, I would like to find out more about little or no money real Estate investing. Has anyone had success starting out in this way and knows how it works? Can you really start investing with little or no money? How do you obtain funds from other sources? Thank you.
Hi Shani,
Buying on terms is also called creative financing.
Buying on Contract: contact for deed, land contract, installment sale, sub 2 or subject to existing financing, buying the beneficial interest of land trust, shared equity mortgage, and more.
Other Peoples Money - self directed IRAs, Solo 401k's, Checkbook control SDIRAs, syndications, etc.
I'm thinking of doing implementing this strategy as well. Besides from reading Brandon's book I also recommend you go out and talk with a few banks just to get a hang of what they might need from you and how can you make yourself a better candidate for a better tax rate.@Shani Dixon
What is Tax Lion Investing? And thank you everybody!
***if I am wrong in my explanation someone please correct me***
When property owners don't pay their properties taxes the state puts a lien on it and makes the lien available for sale at auction to the public. In Alabama properties that do not get bought at auction through the county are made available "over the counter" through the state on a first come basis. Every state is different is you will need to be well versed in the laws where the property is located. In my state lien holders can take possession and occupy the property if it is unoccupied. Other states are different.
I have done multiple seller financed transactions and every one of them has required a down payment, usually 10%. Even without realtors, closing costs run about 3% here. Closer to 2% in most areas of the country I'd guess. Still about impossible to ask a seller to come out of pocket to sell their place.
A lot of folks have turned skinny rocks for years seeking that elusive no money deal. There is no such thing. Consideration must be exchanged for a transaction to be legal.
Instead of searching high and low forever, folks would have been better off learning about creative problem solving and building their toolbox while they saved some money. Scorched earth budget. Work and save. No eating out. No car payments. Turn off the tv. Learn and earn. Best wishes on your journey, Shani!
Thank you for the advice Steve, and you are right about the legal transactions part. You need to put some form of money down, it does not have to be A LOT, but you need funding some somewhere. How exactly do you get started with seller financing?
Thank you for the advice Steve, and you are right about the legal transactions part. You need to put some form of money down, it does not have to be A LOT, but you need funding some somewhere. How exactly do you get started with seller financing?
Mine have all been boomer+ landlords that have been self-managing for years and want to retire. They like the monthly, not the headaches.
Check the newspaper for rent ads. While driving around, seek crude for rent signs in windows. Look up owners of decent but tired looking plexes.
Be where these people go. Diners in the morning. Circuit training at the gym for 'golden' members. They don't do much online, but some do of course. Call for rent ads that look self-managed. Just a few ideas. Good luck!
Here's the issue I see with it ... if you have little or no money to invest, then it most likely means that you have not yet mastered personal finance or managing money. If you are not good with managing money and try to buy an investment with little or no money down, that is 99.9% surefire recipe for disaster IMO. Another thing, let's say you do manage to acquire a property with little or no money down, then it rains and you discover that the roof leaks and needs to be replaced ... what do you do then? Just because you bought it for little or no money down doesn't mean that you can afford to hold it with little or no money. The worst reason in the world to invest with little or no money down is because you have little or no money to put down, but that is the reason a vast majority of folks on here do it. Master personal finance, save some money, then invest ... don't try to shortcut around these critical steps, it is like trying to build a 3 story house on a sand foundation without first pouring any concrete.
In reading through this thread, it's definitely apparent that you are very new to the world of real estate investing. That's not a bad thing. Everyone on this forum was there at some point or another. I applaud you for taking the first step. You are educating yourself by joining bigger pockets. I would suggest some future education before you jump in. I'm not saying you need to do it to this level, but I read ~50 books on real estate (all different kinds) before I bought my first property (using seller financing as well). However, when I jumped in, I felt comfortable that I had learned most of what I was going to learn without actually having experience. It REALLY prepared me well when I jumped in.
For your purposes, I'd say get some more books. Understand the types of investing, the different ways to borrow money, and make sure you fully understand everything that is available to you. I'd suggest searching Bigger Pockets for all the terms people are using in this thread and read threads that pertain to them. Want to know more about seller financing and how it works? Search for "Seller Financing" on BP and start reading through all the threads. You'll find not only detailed explanations but plenty of examples as well.
Very good advice, thank you everybody. I hear a lot about this little or no money down thing, even from experienced investors, I knew the best thing was to have money saved down anyways, I wanted to see who was actually successful with it. Thank you for the recommendations.