How to get into real estate without a lot of risk or debt?

5 Replies

I am new to bigger pockets as well as to real estate investing. I wanted to see who can give me an advice on how to start real estate investing. What motivated me to get into real estate was by reading the book "Rich Dad Poor Dad" which I'm sure many of you are familiar with the book. It talks about using assets to produce cash flow which also includes liabilities as well as taking risk. Well when i finsihed the book I went on and read "The total money makeover" by dave ramsey which talks about getting out of debt and pay your house in cash so on. My question for you guys is in real estate which path or strategy would you go into? And how can you succeed from it?

There is no point buying RE without dept if you want to build wealth. Some people keep their asset unleveraged but it usualy is used in wealth keeping situation, meaning they already are rich, just looking to park money. 

Honestly you should learn about the financial market if you believe leverage is too risky & obviously take what dave ramsey said about leverage with a grain of salt. He got greedy and got burned, does not mean it's not a great tool.

@Jose Paiz , all the useful answers/options are ALREADY on BP - somewhere. Time for some more serious research!

It might help us respond if we know a BIT more about you, such as whether you're hoping to escape renting, how flexible you are as to where you're prepared to live, how good a saver are you, what YOUR anticipated/preferred strategy is, and what sort of budget you and your LENDER may give you? Welcome to BP. All the best...

No risk ........ No reward.

If there was a way to invest without risk or debt there would be no money to be made.

For those investing without debt they earn next to no actual profit based on the amount of cash they have "parked" in a property. Returns would be higher for them if they put their money in a REIT or income fund and avoided the liability of owning brick and mortar..

@Jose Paiz there are a lot of ways to invest in real estate. Most of them use debt, whether it is your own debt or someone else's. The more sophisticated investor you become the easier it is to use other people's money to invest. Starting out you may not have the experience that would make someone trust in your ability to manage the debt and pay I back. So I would encourage you to get experience by partnering up with others who are more experienced and that are trustworthy where you can gain experience so that eventually you can start doing deals without using a lot of your own money.

As for the book "Rich Dad Poor Dad," it is a good book, but not his best book in my opinion. Robert Kiyosaki has written several books that are more in depth on developing the mindset of a rich person. That first book is like your basic English 101 class. I would suggest looking into his other books especially "Cash Flow Quadrant" if you really want to gain a better understanding of investing. 

As for "The Total Money Makeover" by Dave Ramsey, that is a great book for the average, unsophisticated investor.  Most people do not want to spend years learning how to invest so they give their money to other people to do it for them. That book helps people learn discipline when it comes to managing their own finances and I would recommend it to everyone has a good starting point. Then, once they have mastered money management principles, and if they are still interested in learning how to invest, I would recommend several of Robert Kiyosaki's other books.

@Shiloh Lundahl well thank you for your response. I didn't notice there were already forums of the same question I had posted. I'm bearly learning the websites tool that it has to offer. But as far as your reply that is actually true I guess I just wanted to hear other people's opinions about because it kinda threw me off reading one book followed by the other. I will read cash flow  quadrants by Robert to see what I can learn from it. 

I'm completely new to real estate investing so I'm trying to get as much educated through books, forums, podcast, etc.... 

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