How to start investing in real estate

Question

Hello, I’m interested in investing in real estate, buying houses, flipping and renting. I have a 730 credit score and $8k cash. I would like to know what avenues best suits me. I would also like to collaborate with others as well. Currently I have a photography/ videography business, and I’m a visual artist.

Hai Loc · Answer

$30k sounds a bit better. Not sure what your current situation is but if

I was a single person with $30k   I would use $10k as a 3% downpayment to purchase a triplex/fourplex "as long as it is not considered commercial" in the $300k range. Something that doesn't need too much work.. So at the end of the day $20k will cover the downpayment closing costs and minor renovations. I would live in one unit and rent out the others. Have $10k in the bank in case something stupid happens..

You should be able to cash flow and have your most of your living expenses taken cared of. This will help you to save and build more capital for your next project

Hope this helps   Good Luck

Devin Hughes · Answer

Right now in your journey, worrying about a specific number isn't what is most important. I would recommend continuing to save while reading, listening to podcasts, attending webinars, and asking questions here to fill the gaps in knowledge with the subject.

Chris Vanderloo · Answer

Don’t expect a recession. Always invest with some tactics in mind in case that inevitably happens, but don’t wait for markets to cool off or you’ll always be waiting.

With that said, the small amount of cash would make me nervous about having reserves were that to happen. Make sure your numbers are really solid on whatever deal you get. You’ll need to do a lot of marketing funneling - direct mail, talking to lots of agents, getting yourself in front of anyone that could possibly have a deal.

Best of luck.

Jim Goebel · Answer

@Sharbae Terrier

What market are you in?  Do you know how to look at the numbers and evaluate deals?  If not I'd get some practice with that.  Build that $8k up to where you can put 20% down if you can.  That'll give you nice long term financing options as an owner occupant purchase.

Michael Lewis Lee · Answer

Hello Sharbea!  Do not buy with an Agent involved on your side.  It's ok to use one to sell because they usually get a retail price which is what the MLS usually has.  Only use the MLS to get an expired listing.  Your marketing ability should help.

If you do not know marketing or sales, learn them to get prepared.  Being financially education and sales knowledge should help you.  Whatever you pick, enjoy it and be prepared (like learning).

Only listen to people with actual experience.  You can listen to them (like family members) but do not believe them.  Doing research and learning makes you and what you do less rísky. Be prepared.  Know what you are doing, for real.

Good luck to you!

Sharbae Terrier · Answer

@David K. I meant using some of my cash towards an REIT. I’m a day trader so Investing is Easy. I want properties where I can make a difference and see my vision come true.

Jerryll Noorden · Answer

Listen.

To become an investor you need motivated seller leads.

That is ALL you need. Nothing else. The rest comes easy once you have the leads!

Now how do you get leads? Easy.

How do you get motivated leads.. a LOT harder.

I will tell you my way. Keep in mind I will show you proof, numbers and data how well this works.

These are the leads we get every single day. For free, and they are highly motivated to sell.

So this actually works if you know how to use your head, be intelligent and think!

Again, I do not pay a cent for this.

1) Get an investor carrot website

2) Make the website credible.

3) Google "Forced Traffic & Conversion Strategy"

4) Learn SEO.  DO NOT HIRE ANYONE to do SEO for you, because believe me when I say, EVERY single person does it wrong. How do I know? They all try to please Google. I do not! I get crazy results, they do not!

5) Follow the FT&C strategy

$8K will be enough money to get you several deals within 2 months time!

Sharbae Terrier · Answer

@Hai Loc  I would love to invest in a triplex so this breakdown is great advice. Thank you !

Sharbae Terrier · Answer

@Michael Lewis Lee how do I gain access to MLS?

Sharbae Terrier · Answer

@Michael Lewis Lee Michael thank you for your advice on the realtor.

I wouldn’t really ask my family members advice on buying a house because they brought their house for $600k and after the recession it’s worth $300k. Even when we told them to find something else their heart was set on that house. 🤦🏽‍♀️

How to start investing in real estate

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