How to start with Real Estate Investing with $5k

16 Replies

I'm very new to real estate investing and I have $5k to start my business. I've decided to go the route of wholesaling because I don't know what other strategy I can use to get the most out of my money. I'd like to hear other perspectives on how I can get the most out of this 5k for in my REI business. What strategy would you use and if you would wholesale what would you use that money on to grow your business?

Have you thought about CivicSource.com? I had limited funds and went through them to purchase last year.  I think they pad a lot of their fees, but it was a somewhat quick way to gain adjudicated property.

@Account Closed I didn't realize there were no FL properties there :-( I looked at Brevard County Tax Deed Auctions and Sarasota in the past (I'm originally from Gulf County), and many were less than $5K at the time.  There's also Hudson & Marshall (cheapest I found there in FL was $7K though) and Castle Rock REO that offers owner financing for some of their properties.  Best of luck to you!

@Caleb Heimsoth what strategy are you suggesting I save more money for? Your answer was very vague. It seems some investors are having success with little money doing wholesaling so I would think that 5k could go some distance with this strategy. 

Originally posted by @Account Closed :

@Caleb Heimsoth what strategy are you suggesting I save more money for? Your answer was very vague. It seems some investors are having success with little money doing wholesaling so I would think that 5k could go some distance with this strategy. 

I like buying rentals.  I vote for that.  You spend 5k on wholesaling you very likely would have zero money after.  That’s why I don’t suggest that strategy 

@Account Closed I would suggest connecting with wholesalers in your market and ask them if you can work for them. You will gain experience and knowledge. That will probably give you a greater return than what the 5k can earn you. 

Also, many people on BP speak more than they have the experience to back up what they say. If my post ratio to property ratio was the same as the person I’m referring to on this thread, then I would have 160k posts.  Yet this poster has over 4x my post count.

I encourage investors to listen more than they speak until they become an expert.

@Caleb Heimsoth Ah got it. Yes buying properties for rentals will definitely take a lot more than $5k. I'm working to level up to that strategy eventually, but not right now.

@Shiloh Lundahl Thanks for your POV. I'm taking in all the opinions/advice, doing my due diligence and going from there. I see a lot of experienced investors suggesting to connect with other wholesalers. In theory, it's a desirable idea, but it's much easier said than done (and understandably so). Partnerships like that have to start on a foundation of trust and if you don't know someone, trusting your deal to them is hard to do. I'm new to investing so my network is very small, but I'm working on growing it. It would be great if those recommending partnerships would also recommend someone who's open to doing it. All the same whether I find someone to partner with or not, I'll move forward making efforts toward my goals. 

i recommend getting the deal machine app driving around looking for distressed properties then downloading the list and skiptracing it with batchskiptracing and calling to get a deal

@Ana Gazawi search the bp podcast for a women in Detroit. She started with $5k and used no interest credit cards to finance the rehab then rented out the property. She was successful because she knew the area. Especially when most people ignore areas so cheap.

Originally posted by @Adrian Luna :

i recommend getting the deal machine app driving around looking for distressed properties then downloading the list and skiptracing it with batchskiptracing and calling to get a deal

 Great idea. I have the Deal Machine app and I haven't used it but I definitely need to figure out how to.