If you only had $500 to start your RE investing

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If you only had $500 to start your RE investing

Season Price
Flipper/Rehabber · MD · Member since 2008 · 89 posts · 34 votes

Hi, everyone! I was sitting around with a few members of a Meetup group I am in. The question was asked "if you only had $500 to start your first business, how would you use the money?" So, I thought it would be an interesting question to post here. If you only had $500 to start your RE investing, how would you spend it?

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Trent Stone
Real Estate Agent · Salt Lake City, UT · Member since 2015 · 183 posts · 159 votes
7y

I would use $15 to buy Brandon Turner's Book on Investing in Real Estate with No and Low Money Down, then I would use the other $485 on marketing to find wholesale deals or work on a syndication.

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  • Trent Stone
    Real Estate Agent · Salt Lake City, UT · Member since 2015 · 183 posts · 159 votes
    7y

    I would use $15 to buy Brandon Turner's Book on Investing in Real Estate with No and Low Money Down, then I would use the other $485 on marketing to find wholesale deals or work on a syndication.

    29Reply
  • Jonathan Beemer
    Investor · Broken Arrow, OK · Member since 2016 · 132 posts · 51 votes
    7y

    @Season Price save save save and more save. Start networking instead. Find others that are involved. Maybe even get a second job. Save as fast as possible. Once you hit the 10k mark. Buy an investment property by moving in and house hacking.

    18Reply
  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    What @Account Closed said.  Then step 2 is go get more money.  Being under capitalized has to be the first or second reason for failing in real estate or, really, any business.

    3Reply
  • Ethan Board
    Realtor · Owensboro, KY · Member since 2018 · 33 posts · 22 votes
    7y

    Lower monthly expenses, raise monthly income by any means necessary.

    Start thinking about Passive income.

    If you rent or own a home, sell it and buy a multi family property and "house hack" (live in one door and rent the other(s)). House hacking is a great way to start your investment journey!

    10Reply
  • Jason D.
    Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    7y

    @Season Price education. Then I would figure out how to save money.

    4Reply
  • Syed H.
    Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    7y

    First I’d go get books and read. 2nd id go figure out how to make money. 

    1Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    Back in the 80's we could buy a 'reserve' on a new build for $500 & then wait until they broke ground before the next $1500 was due & as each build stage was completed more advances were due. In fact once I partnered up we did it a number of times closing on several but then they threw in a no-speculator clause (retroactive at the time but legal) so a partner had to take possession for at least 6 months. 

    1Reply
  • Cole Raiford
    Rental Property Investor · Gulfport, MS · Member since 2018 · 113 posts · 133 votes
    7y

    @Season Price you can’t do much with $500. In order to make any meaningful progress in RE it takes money. It either has to be your money or someone else’s money. With $500 you better have someone else’s money.

    3Reply
  • Brent Shields
    Rental Property Investor · Sacramento · Member since 2019 · 129 posts · 108 votes
    7y
    If I only had $500 the fastest way I know to get started in real estate would be to contact people who had money and start using their money to do deals.

    If I was going to do it without using other people's money, then I would look at buying houses from people who wanted me to take over their loan payments. Basically a no money down deal. The majority of the deals I have purchased for $500 or less where those types of deals.

    My third method would be doing wholesale deals,
    or paying $500 for an option on a deal and then selling the option.





    16Reply
  • Edward V Colter
    Member since 2018 · 2 posts · 1 vote
    7y
    @Season Price Have you ever heard of small change they are a RE Investing group depending on how long you're willing or able to wait for an ROI the returns are relatively fair that $500. could return $ 1500. but the caveat here is time (time =$)
    1Reply
  • Craig Jeppesen
    Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
    7y

    I would really take a look at your personal finances and figure out why you only have $500. Then I would plug that leak and start saving all you can for a few years. Work extra jobs, ask for a raise, sell the new car you can’t afford and in the mean time educate yourself on how you want to invest in real estate. In a year or two you will be ready with capital to jump in. For those saying find someone with money, that is great and all but most people are not just going to give you a bunch of money with no experience or skin in the game.

    11Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y

    if I was I was given a strict budget and challenge to do it I believe I could with the right plan and persistent action. for me I think my plan would be to take the 500$ and negotiate down a person on Facebook marketplace selling an atv or used car that needs work I’d then fix it up and flip it for 1000-1500 . Then I’d run an ad looking to buy a distressed home on a seller financing land contract with 1000 down or I’d find a house behind on taxes wanting to do a subject to sale . After I got the article of agreement I would then rent the place out or possibly flip the contract to another investor

    11Reply
  • Bernadeau C.Pro Member
    Rental Property Investor · Orlando, FL · Member since 2014 · 540 posts · 230 votes
    7y

    @Season Price I would go to the library and pick up a few books, I would listen to a lot of podcasts. I would keep that 500 dollars and keep adding 10% of my paycheck to that balance and accumulate a good chunk of change until I can really start!

    4Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Season Price $500, pshaw! With just $15, you can buy a big old bottle of reconstituted lemon juice, a squirt bottle, and a canvas bag. You know how you can use lemon juice to make invisible ink? Well, all you need to do is squirt that lemon juice all over your face and cameras won't be able to see you. So squirt away, walk into your bank with the canvas bag, slide it over the counter and demand that they fill it up with good green real-estate-investing cash! Ka-ching, your real estate career will be jumpstarted!

    7Reply
  • Lee Bell
    Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    @Jim K.

    LOL. I guess if you're gonna rob someone the bank is where the money is.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Id stick it in an index fund and keep saving.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    5Reply
  • Lydia Kawazoe
    New to Real Estate · Houston, TX · Member since 2016 · 12 posts · 5 votes
    7y

    @Brent Shields

    I found your comment particularly useful, thank you so much! As a full time student and a part time server paying back my Dad for school loans, I find myself in a similar situation as the posed question. Instead of just reading and listening about real estate, I want to really take action. Thank you again!

    2Reply
  • Account Closed
    Baton Rouge, LA · Member since 2019 · 2 posts · 1 vote
    7y

    @Season Price

    I waited until I had a significant amount of money saved up before I bought my first. I would advise someone to save enough for a down payment. If $500.00 could be a down payment, or enough to purchase the entire house, go for it!

    1Reply
  • Brent Shields
    Rental Property Investor · Sacramento · Member since 2019 · 129 posts · 108 votes
    7y

    @Lydia Kawazoe I am glad you found my comments useful.

    Thinking about it I would also add that I would spend more time looking for a buyer than I would looking for the property. Because with a really tight budget like that you want to sell the property very quickly.

    So I would try to have a buyer lined up before I bought something.

    I would also look at mobile homes, they usually sell for less than homes and the odds of finding a deal on a small budget would be greater. 

    3Reply
  • Joe Cassandra
    Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    7y

    @Season Price

    I'd take 100 different people out for coffee.

    $5 each.

    I'd bring a Starbucks cup with water in it.

    Then, soak up as much I can. Offering to bird dog. Help for free at their sites, or wherever an expert would need help.

    Basically...

    Meet as many people as I can until I find a deal. Then, out of those 100, one of them is bound to help me invest for a profit split if I've provided any value to them.

    Or, I could wholesale the deal to them if they dont want to partner.

    2Reply
  • Noah Gouldsmith
    Wholesaler · Kansas City, MO · Member since 2019 · 10 posts · 7 votes
    7y

    @Season Price

    I would invest into books, listen to every bigger pockets podcast and go to as many meetups as possible. Get your name out there, offer to work for free and keep learning. Once you’ve networked, find a deal and take it so someone else. Offer whatever you can. As Brandon says all the time: A real estate deal takes time/hustle, knowledge, and money...You only need 2/3. Prove your value and others will take you under their wing, there are a lot of people in this business who want to see everyone succeed. All the best, Noah Gouldsmith

    3Reply
  • Dale Byram
    New to Real Estate · Grand Junction, Co. · Member since 2019 · 12 posts · 4 votes
    7y

    @Bernadeau C.

    Love the "Richest Man in Babylon" reference.

    And I totally agree.

    0Reply
  • Liviu Marin
    Rental Property Investor · Italy, TX · Member since 2018 · 4 posts · 1 vote
    7y

    @Melvin Holmes Jr

    I would join someone to buy a house, 500 mine and the rest of my partner and I would involve myself in the project as ALL the investement would be mine. You will own nothing but the process experience is PRICELESS !

    0Reply
  • Michael Corso
    Lender · Wildwood Crest, NJ · Member since 2017 · 317 posts · 56 votes
    7y

    @Season Price in all honesty a good pair of sneakers. I think the best form of marketing to get started is getting out getting your hands dirty knocking on doors. That's the best way to generate good solid leads quickly.

    1Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    7y

    @Season Price well its as if zero money. Simply connect with those that are actually doing deals vs going to seminars or reading books, and learn. Find some deals, flip the contract make money . Do it enough times to earn enough to start doing deals on your own . Most important actually WORK and get it done. 

    Good luck 

    1Reply
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