How can I get started with real estate notes with little money ?

Question

Im looking to start investing in real estate and don't have a lot of money. I would like to know if real states notes would be a good option and where to start? Im listening to a few books some from the rich dad poor dad series and others on wholesaling. I've seen some negative comments about wholesaling without a license in these forums so I'm not sure if I want to start there.

Duane

DUANE JAY · Answer

@Peter Schuyler thanks for answering. I have been keeping my eye out for properties fir sale in my area that have tenants in place. I guess I  was thinking that notes would  need less capital to get started.

DUANE JAY · Answer

@Doug Smith thanks for the insight.  I think I'll try to find someone in my area who is apart of a similar group and see  how they got started while I try learn all I can and try to get more capital.

Peter Schuyler · Answer

@DUANE JAY

You might be better off trying to earn some more money and buy a turn key rental that meets 1% CoC criteria.  Put 20 percent down and strive for 7-8% cash flow plus some equity pay down.

Having not much money means you either go make more or utilize your time to be active. I prefer to be passive which let’s me earn more money with my skills.

Wayne Brooks · Answer

You can’t do notes with little no money, period.  Wholesaling properties, yes it has legal issues and you can’t really do that with little money either.  Stick to a job you can make money at, to build some capital.

Doug Smith · Answer

It's hard to start with no money. We put together a small fund to start and pooled money from a handful of local investors. I had to luxury of spending more than 25 years in lending and banking prior to forming Castle Rock, so not only did I know notes inside and out when I started, but I had built rapport with several accredited investors to help. Wholesaling is a hard way to do it, but it is one way. Keep in mind that a sometimes the folks that reply to forums don't have a background to offer advice. Licensing requirements change from state to state. Wholesalers that enter into a contract to buy a property themselves and then flip that contract to an another investor keeping the spread usually won't need a license, but if they are brokering a real estate transaction (a fine line) for a fee, then a license is probably required. The best thing to do is to  find a mentor that truly knows what they are doing and work with them to learn the ropes. Be careful who you choose, however...some will lead you down the wrong path. Good luck to you, @DUANE JAY. I hope your new venture goes very well for you.