Rental Property Investor · Cleveland, OH · Member since 2017 · 98 posts · 19 votes
So, I've heard from many sources that you need $10,000 minimum to start investing in REI (for down payments, etc). I HAD saved $10k and was ready to start my BRRRR strategy remotely in Cleveland from California but our first born came a month early on April 1st. Due to an emergency c-section, the wife can't work for two months and she dipped into my funds to pay bills and we can't pay it back. So that leaves me with $6k to start investing. My question is is this do-able? Is the 10k minimum fact or fiction?
I'm trying to ask myself "How can I make this work". :)
@Jon Passow Find a great deal and use other people’s money. There are lots of different strategies for investing with little or no money. At the beginning of your investing career you have to be creative and dynamic. Especially if you have little or no money.
Congratulations on the baby! Now the real fun begins ;)
In regards to investing, the days of saving and buying, saving and buying are outdated. In today's world there are various ways to leverage. When I started out I didn't rely on my savings account to buy, I leveraged my credit. DISCLAIMER: This was a path that worked for me and was done with a certain degree of discipline.
It's all about getting creative and finding a way to get the deal done. If this is completely unfamiliar territory for you then my advice is simple; go network. Go meet other like-minded individuals and you'll be amazed at what you can do.
If you don't want partners, 10K won't get you much at all, there are exceptions, but few. The problem with partners on sfr is it's a lot of potential personality conflict on a small deal.
There will be more emergencies in your real life and RE, so you'll gonna need a bundle of capital to stay afloat.
keep at it, saving money is good learning time. This is a long play, don't be worried to go slow especially when you're putting such a large percentage of your wealth into one asset.
all that said, asking "how can I make this work" will eventually produce a positive result. Keep at it, just don't underestimate how much cash you need is all.