Side Hustling to Get Down Payment Cash

66 Replies

Hey BP,

I am really curious to hear what others have done on the side to earn money for the down payment on houses. I am looking more and more into side hustles that I can do to create a nice sum of cash to put into an investment property and to make myself a more attractive partner on deals.

What side hustles have you done? Which ones worked well and didnt work so well?

I would love to hear all of the great ideas that you guys have!

Dylan

Hey Dylon,

Not too sure what you mean by side hustles.  I'm sure you've heard of wholesaling properties.  From your post I would guess you don't have much cash to dump into it.  But there are many ways to wholesale in the beginning with very little cash.  That's a whole new subject though.  

Other things you can do is offer services to investors who are well established in your market, such as hanging flyers door to door, their direct mail needs, showing houses for busy wholesalers.  

Have I narrowed down somewhat the kind of work you're looking for?  

Matt Santillanes

This post has been removed.

Hi @Dylan Tettemer , look forward to the next military investing mastermind e-meetup. :)

The only side hustle that regularly crosses my desk on a frequent basis that seems to consistently be working is Realtors that flip using Fannie financing as the side hustle. They host enough appraisals to know when something is juuuuuuuust good enough for a Fannie loan (or within $5k of being good enough, and they are willing to risk $5k fixing a home they do not yet own), and do well in that space because they aren't paying 4 points upfront for hard money, allowing them to offer more for the home than the HML-using folks. They love the 85% LTV SFR investment property mortgage, and delayed financing.

For things that do work, but that I do not see consistently, it's always things where someone has some niche thing they are truly personally passionate about or really good at, and figure out how to monetize it. So it comes down to what that is for you. Maybe that's boutique bee honey, maybe that's comic books, maybe that's gun brokering. I've seen it all. The common pattern isn't the specific side hustle, it's the passion and personal knowledge. 

We have some people that lease apartments for us. Place a few ads. Do showing on weekends when our staff doesn't work. One lady with a full time job was making $4-5k/month.

Contact local apt owners. See if you can lease for comission.

My full time gig is as a HS math teacher, but I make some decent change from sales commissions from my RE license.

Get a job. Work a lot of hours at that job. Or get 2 or 3 jobs.

Like Scott just said^, find a good paying job and work your tail off. Preferably one you enjoy, but hey whatever it takes.

As far as specific side hustles, while I was working on getting my real estate license I put out advertising signs for local builders. Not even sure how to describe it or what it's technically called, but you drive a route on the weekends and make a lot of money for little hours (I still do it actually).

Laws and operations vary from state to state obviously, even county to county, and I'm not sure if Japan has anything like it 😜 but that's just my experience! Buckle down and do what it takes!

Use craigslist, Facebook and garage sales to get used items cheap n resell for profit.

2nd job

Originally posted by @Chris Mason :

Hi @Dylan Tettemer , look forward to the next military investing mastermind e-meetup. :)

The only side hustle that regularly crosses my desk on a frequent basis that seems to consistently be working is Realtors that flip using Fannie financing as the side hustle. They host enough appraisals to know when something is juuuuuuuust good enough for a Fannie loan (or within $5k of being good enough, and they are willing to risk $5k fixing a home they do not yet own), and do well in that space because they aren't paying 4 points upfront for hard money, allowing them to offer more for the home than the HML-using folks. They love the 85% LTV SFR investment property mortgage, and delayed financing.

For things that do work, but that I do not see consistently, it's always things where someone has some niche thing they are truly personally passionate about or really good at, and figure out how to monetize it. So it comes down to what that is for you. Maybe that's boutique bee honey, maybe that's comic books, maybe that's gun brokering. I've seen it all. The common pattern isn't the specific side hustle, it's the passion and personal knowledge. 

 This sounds interesting.  Do you mean properties they are listing themselves or other listings? Are these regular 'standard' listings? 

How much work are they putting into them? You said risk $5k fixing a home they do not own, that is just get it to quality for the Fannie loan?

I've heard of an agent doing that with her listings here on Oahu for properties that don't qualify for lending. She risks a lot more than $5000 in some cases. Gets her contractors out, fixes issues, lists, then both she and seller make out...buyer too. Would like to know more details about specific deals and how it is structured.

So a side hustle is being a licensed broker. I guess I don't get it. I thought that was the hustle, not a side hustle.

@Dylan Tettemer When I first started out, I bird-dogged and wholesaled to other investors in order to build up cash. Once I built up enough cash, then I was able to buy and hold. Hope that helps. Good luck! 

@Todd Nordstrom , so the agent gets the property under contract to buy themselves , does the fixes to make it financeable and is basically wholesaling it to the end buyer ?

I'm utilizing my current job to fuel my side hustle. for example:  I build log homes and my boss sells the scraps as firewood, anything that doesn't fit the spec for firewood I can take and use for free , so I've been building and selling log furniture that I build from free materials, to raise capital for my first real estate investment. so if you get creative, you can always find a good side hustle. there are tons of ideas on sidehustlenation.com as well

Originally posted by @Joseph M. :
Originally posted by @Chris Mason:

Hi @Dylan Tettemer , look forward to the next military investing mastermind e-meetup. :)

The only side hustle that regularly crosses my desk on a frequent basis that seems to consistently be working is Realtors that flip using Fannie financing as the side hustle. They host enough appraisals to know when something is juuuuuuuust good enough for a Fannie loan (or within $5k of being good enough, and they are willing to risk $5k fixing a home they do not yet own), and do well in that space because they aren't paying 4 points upfront for hard money, allowing them to offer more for the home than the HML-using folks. They love the 85% LTV SFR investment property mortgage, and delayed financing.

For things that do work, but that I do not see consistently, it's always things where someone has some niche thing they are truly personally passionate about or really good at, and figure out how to monetize it. So it comes down to what that is for you. Maybe that's boutique bee honey, maybe that's comic books, maybe that's gun brokering. I've seen it all. The common pattern isn't the specific side hustle, it's the passion and personal knowledge. 

 This sounds interesting.  Do you mean properties they are listing themselves or other listings? Are these regular 'standard' listings? 

How much work are they putting into them? You said risk $5k fixing a home they do not own, that is just get it to quality for the Fannie loan?

Standard MLS stuff.

Yup, pretty much. That $5k might be less than the HML upfront points. And Fannie will go to 85% LTV on a SFR investment.

Big risk of course is that the seller bails on the buyer, and/or turns around and sells their newly improved home to someone else. It's a risk.

This is really random (not really a side hustle) and doesn't make a big difference right off the bat but it slowly adds up and doesn't take much effort; however, start budgeting with your income and try to increase your savings. Cut out eating out (or decrease it), shop at a lower end grocery store, meal plan, get your hair cut less frequently, don't get coffee at Starbucks, etc. I don't make much money but I've saved over 50% of my income by just budgeting better or more efficiently.

I have done a lot af small, medium and big side hustles. There is an amazing podcast that is short, sweet and inspiring called side hustle school. 7-15 minutes everyday. Yes, every single day with ideas and thoughts on how to side hustle your way to your goals. There is a book release coming up too. I think I learned about BP on side hustle school. Anyhow, anyone can do it. Check it out. Www.sidehusleachool.com

My "day job" is a night job, bartending & making a decent living doing it in Las Vegas. I'm just now starting my "side hustle" which is real estate sales as an agent. I guess it would be a day job, but for me it's a side hustle that has already taught me things that will be valuable as an investor in REI as well. Can't report on results yet, as my license is being processed, but I think it's going be awesome!

Also, what @amy herzing said. Learn to budget as well as possible. Costco memberships, buy a bidet once instead of toilet lapsed every month, save up enough to increase your insurance deductibles & lower your monthly premiums, I bought a kegerator used for $300, I now pay $1/beer at home instead of $10/6 pack or $10/ beer drinking out. It starts to become fun to find more ways to save money and it will carry you through as you accumulate savings. Bank of America has tiered rewards (cash back) on cc putchases if your keeping your savings in their accounts so you get more back if you're saving to down payment an investment on the things you already buy. Just pay your balance every month & not interest.

RE license is an excellent side hustle that amplifies my investing.    

I can do retail transactions for family and friends.   I have better access to intel / research on investment properties both for myself and other opportunistic investors in my network.     Lastly, I can write offers and see properties to my hearts content without having to worry whether my realtor is investor friendly or not. lol 

Might not have anything to do with the "and make me a more attractive partner" part of your question but my philosophy is that my side hustles should pay at least $50/hr or it's not worth it to me. Opening credit cards + checking accounts if done properly can make $100/hr with no real consequences although there is a limit to how often you can do each (many offers can only be done once every 12 or 24 mo).

I'm happy to spend 15 minutes to get a new checking account (which I'll later close) or credit card to get a $200-500 bonus. Can easily make a few grand doing this with almost no time spent.

I went down the side hustle route and decided it was easier to trim fat in my expenses FIRST. It's a lot easier to increase your cash flow by reducing expenses than it is to increase your income. I just sold my truck for 15000 and picked up a used corolla for 3850. Now I have 300 extra (no more car payment)a month to save for down payments. Before I had a side hustle of mowing which required equipment cost and managing a schedule plus 6 hours or more of work to make 300. If I need to increase my income again I've considered uber so that it is something that works with my schedule. If you can cut expenses go that route instead of burdening yourself with a side hustle.

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