Can I make money in RE with no money, no credit

Question

Hello I am new to BP. How can I make money in my first deal with no money and no credit. I am open to using other people's money.

Jason S. · Answer

I still think it is probably quicker to save money and do a deal with an experienced partner where you bring a little money to the table than it is to try and learn everything you need to know and then try to find a deal and make money on it.

1.  Find someone that will teach you by doing, as in, you do the following crazy amount of grunt work, and I will work with you on a deal found.
 
2.  Get a second job, save money, find an experienced partner that is doing deals and needs cash to capture the next one, partner and learn.

3.  Study wholesaling, pricing, values, everything else involved without a local hands on partner and try to eventually find an elusive deal and toss it to someone who you can flip it to and they will make the offer fast enough to capture the deal because you do not even have EM.

I am not certain which is easier.  I started at #1.

Michael Quarles · Answer

You can do a deal with little or no money.  However being in business requires money.

As mentioned earlier if it's a deal it will find the money.   Key is don't let greed and inexperience get in your way.

Raymond Lee · Answer

Here's an in depth example,

I am currently on my first investment deal without my own money.

I am attempting to wholesale a rehab property via assignment.  I am in contract with the seller for 20k.  Thing is, I don't have 20k to shell out to him (he knows I am a wholesaler with no money - he just wants me to help him get the property sold).

I am in negotiations with end buyers who I will assign the contract to.  I'm hearing 25-30k buying price.  So I am going to pass on my original contract of 20k along to the end buyer with an assignment contract and charge an assignment fee of 5-10k.  20k goes to the seller and I collect the assignment fee as my profit.  I didn't realize how simple it was until I actually started making moves.

It's not finalized yet, but hoping to close within the coming weeks.

That's one way, I know there are other ways just not the exact details.  Keep on browsing and good luck.

Rob Gillespie · Answer

Keith,

Heck yeah! No cash, No credit, No B.S.

It can be done all day long. The most sucessful guys and gals out there do not hang out at banks. I would say out of the few hundred deals I have done, I have went to a bank for a loan less than 10 times. :mrgreen:

No Excuses, you can do it!!

Account Closed · Answer

You can buy properties low and get high rents.  You can buy properties in the $40,000 range and get $1000 a month rent or more per month. Great cashflow, but no appreciation.

You can buy these houses at market value and get these kinds of rents. That what makes it a great buy and hold market.

You won't make a living here wholesaling properties. I know an investor here that tried and was good at it, but he said there was not enough spread in the deals to make it worth while.

Account Closed · Answer

Syracuse is not a great market for wholesaling. It is a great market for buy and hold.

Find a local investor looking for help and do what you can to learn and earn with them.

Chris

Aaron Mazzrillo · Answer

Research bird dogging and wholesaling on BP. Lots of great info on this site to get you started and you can absolutely make money with no money and bad credit in real estate.

Stinson Bland · Answer

In my opinikn, a good buyer can make money wholesaling in any market. A good salesmen can sell overpriced deals in any market.  It's all about negotiating a price that allows a spread and/or having a buyers list that is willing to pay your price.

You will have a better reputation and have more "staying power" if you can buy deep instead of selling overpriced deals.

There are a couple larger firms in Dallas that are well known for "wholeselling" deals slightly under retail prices.  They claim to move 25+ properties a month and I believe it.

Jason S. · Answer

How can that be? If it is a great market to /hold props then there is room for those who find better than average deals? no?

Ali Shah · Answer

If the deal is right, source of funding will follow..yes you can leverage on someone else for doing such but keep in mind you have to bring some thing to the table of a value for the other to partner up with you and allow you to piggy back on each other fortunes to make money with such situation.

It has been done, it is getting done and go for it. you can do it.

Can I make money in RE with no money, no credit

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