Antsy! Ready to Start, but No Cash Reserves

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Antsy! Ready to Start, but No Cash Reserves

Brooke D'Avanzo
Miami, FL · Member since 2020 · 3 posts · 3 votes

I've been bit hard by the real estate investing bug. I'm 28, living in Miami, FL.  My "why" is a 2 part-er. Part 1: Time. I value my time over everything. I would like to start this journey to eventually earn my time back to keep a healthy work life balance. Part 2 of my "why" is the ability to have the financial freedom leave my current job industry and enter other industries that have sparked my interest along my current career growth. I enjoy working, being a part of a team, and being a team leader who operates on a positive mindset. I am young, career and skills growth are important to me.

I've read almost every bigger pockets recommended book, listen to podcasts daily, and have been analyzing 2 properties a day for 5 months. 

I'M READY, but my cash reserves aren't. They will not be ready until January 2023.

Has anyone been in my shoes? Looking for advice. Wait, study and save? Take action now, real life learning, borrow?

Thank you all! 

-Brooke

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Natalie KolodijBusiness Member
Moderator
Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
6y

Put that antsy energy into a 2nd job. 

Realize that every shift you pickup, every small thing you can cut from your budget is getting your cash reserve to where it needs to be faster.

Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
Kolodij Tax & Consulting
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  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    6y

    Get a job in real estate. Learning online is good, but it can't replace actual experience. If you have no money, you have nothing to invest except for your time and effort. 

    0Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Brooke D'Avanzo do you mean your reserves or your down payment?  That seems like an awfully long time, I'd see if there are ways to boost your savings to get that wait time down.

    0Reply
  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    6y

    Put that antsy energy into a 2nd job. 

    Realize that every shift you pickup, every small thing you can cut from your budget is getting your cash reserve to where it needs to be faster.

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
    1Reply
  • Annie Dickerson
    Real Estate Coach · Oakland, CA · Member since 2017 · 59 posts · 91 votes
    6y

    @Brooke D'Avanzo One of best things you can do if you're low on cash reserves but have time/knowledge is to partner up. Find someone who has cash but doesn't have the expertise or the time to find or underwrite the properties. You bring your expertise and sweat equity to the table, they bring their capital and balance sheet.

    Another way to go about it is to find a sponsor team doing commercial syndications and see how you can help. You can bring your underwriting or other skills, help to raise the capital needed to close the deal, or assist in other ways.

    This is exactly what has allowed us to scale up so quickly. We started out a little over 2 years ago joining different general partnership teams and helping to raise capital, do due diligence, manage investor relations and paperwork, etc.

    Through those partnerships, we've been able to grow our investor base, help hundreds of investors invest alongside us, and close 25 deals in the last 2 years.

    Since you're learning a lot, I'd also recommend starting to share what you're learning with friends and family through organic conversations, posting on social media, and starting a blog. That way, you start to position yourself as a leader in the space, and partners and investors will start to flock to you.

    Hope that helps. Good luck!

    0Reply
  • Rita Medeiros
    Rental Property Investor · Pompano beach, FL · Member since 2017 · 478 posts · 194 votes
    6y

    @Brooke D'Avanzo Come to our women’s group ft lauderdale when we can go out again.

    0Reply
  • Derrick Dill
    Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes
    6y

    Do you have a retirement account? You can include retirement as reserves from a lending perspective. 

    0Reply
  • Brooke D'Avanzo
    OP
    Miami, FL · Member since 2020 · 3 posts · 3 votes
    6y

    Thank you all for taking the time to give me some advice! It is very appreciated. 

    @Nick C.- I love that idea, I have a trusted network of Realtor friends. I have had meetings with them to discuss your very solution. It is top of mind. Thank you, again. 

    @Aaron K. - Both, sadly. Down payment and cash reserves to have financial security to cover unforeseen problems i.e vacancy, unexpected rehab time, etc.  Thank you for your interest in helping! Love to hear more of your thoughts soon. 

    @Natalie Kolodij- I love your reply. Thanks for the bluntness, ha (really though!). You're absolutely right. A second job is on the horizon. I am re-starting up my side gig of private swim lessons to add supplemental income. I've also cut all of my expenses in half, currently living on what I call my "skinny budget". Which is still comfortable. Thank you again for your input. 

    @Annie Dickerson - Amazing, thank you. Of course, being so green, I always dreamed of funding independently. However, I will look further into your partnership suggestion. It's also so nice to hear from a person who did this exercise and it's been successful. I really appreciate you helping me see from a different perspective. 

    @Rita Medeiros- Rita, I would be so excited to join your group the next time you all meet. I need more local, likeminded people to surround myself by. Connecting with you via bigger pockets now! Thank you for extending your community to me! 

    Thank you all again. Just hearing input from a group of kind, inspiring people like yourselves puts me at ease. I'll keep everyone updated. 

    1Reply
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