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?
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.
I would save some more money and buy a small house to live in. FHA loan of 3.5 % down and you can get seller to pay your closing costs. Plus their are first time home assistance programs that can help you with your down payment. I think buying your first home that you can turn into a rental is a great way to start real estate investing. The idea that you can make money for next to nothing in real estate is unrealistic.
@Season Price make a budget and break down the $500. Personally how I started with my first $500 was $150 into books & audible for RE investing and generally coming up with a plan. $250 went into the savings plan as a small start and the rest went to gas on visiting properties to figure out if single family or multi is what I wanted and scope of work associated. Hope you have fun!
Also called a "Real Estate Purchase Option Agreement " it is a contract that allows the buyer the exclusive right to purchase the property. Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else.