Real Estate Investing With No Money?

Question

Hello everyone, I'm new to investing in real estate and I really don't have the cash to start the way I want. But if I keep pushing it off until I feel "comfortable" it will never happen. My credit also isn't great but I have some assets! I bought my first house a little over a year ago at 24yo and I now have 23k in equity and none of the remodeling has been accounted for. I also have a couple cars so my question to you guys is.. what would you recommend me do to get started? I have an idea I'd like to run past you guys and that is, doing the numbers every day on at least 1 property until I find a good deal. Then if it's a good enough deal, I'll try to find other investors to either wholesale to or simply sell them the deal. From there I will save up enough cash to buy my own rental or flip. I know this can be done but is it my best option? I also like the idea of creating money out of nothing

Julio R Gonzalez · Answer

@Cody White

I am in almost the same situation you are (except I don't have CC debt but I do have two cars that I still owe, but they are worth more than what I owe).

I had in mind the same scenario, I wholesale to get some capital ($) and then get my rental property (BRRRR).

I ran this plan by two investors (one with quite some years of experience) and both told me to just get the rental property and forget about wholesaling or fix/flip. Do one rental a year so you can use the FHA (have to live in it for at least one year), save some $ during that year and get the next property with another FHA keeping the 1st property as a full rental.

I know this is slow but I think it is the less risky for guys like us that if a wholesale or fix deal goes south we will end up worst.

I would love to hear what other investors with experience think!

JRG

Cody White · Answer

@Harry Standafer

I've also wanted to read that book, I just finished Rich Dad, Poor Dad so obviously I'm hooked even more than I was. The two cars aren't an issue, one is used as my business car so everything is written off and it's value isn't but 2k. The other is worth maybe 3k. I don't care to have a fancy car right now. They're both paid off. But I'd have to admit a credit card is the problem where I had to use it while in between jobs. The main question I was wondering was, do you think finding deals and just simply asking for a "finder's fee" or maybe trying to buy and wholesale to other investors would be a viable way to raise capital?

Harry Standafer · Answer

My first suggestion is to get rid of one of your cars. They're expensive and you probably don't need more than one. This could help with your credit issues also. The BP Money podcast has has all kinds of suggestions on how to save up capital but that's often the first one! Some hard money lenders will loan 100% of the purchase price if it's a good deal. BP has a book on investing with little or no money also that I haven't gotten around to reading yet.

Real Estate Investing With No Money?

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