Investor · TN · Member since 2020 · 9 posts · 3 votes
Hi,
I’ll try to be as specific as possible, but I’m seeking advice on how to get started and what first steps I should take. I’ve recently made the commitment to get into investing in rental properties. So far, I’ve been working at soaking up info and finding valuable resources. The major hurdle I have is no money to put down on an initial property. Was anyone else in this same position when they decided to get into investing? Is the best strategy to find a way to save/acquire a sum to put down in a few years? What other practical things should I be doing now?
New to Real Estate · Garden Grove, CA · Member since 2020 · 64 posts · 56 votes
6y
Yes as @Marlen Weber mentioned you have the right mindset by soaking up information. Continue to do so. As far as the no money issue, I'm pretty sure most successful investors started out with no money. I'm also sure the successful ones also didn't let not having money stop them. Until you can get creative, just continue to save and learn.
And don't feel like you have to rush to get a property. There will always be deals. Your job now will be to figure out which are the good deals. And hopefully, by the time you figure that out, you would have saved a nice decent down payment for a traditional loan or the more popular with new investors, FHA loan.
Real Estate Agent · Charlotte, NC · Member since 2020 · 47 posts · 35 votes
6y
@Jake Abbatacola
I’m right there with you Jake! I’ve found some help looking up Local real estate investing groups on Facebook. From there most will hold weekly/ monthly meeting (keep in mind this may vary due to COVID). I’m still looking for a mentor as well!
New to Real Estate · Garden Grove, CA · Member since 2020 · 64 posts · 56 votes
6y
Yes as @Marlen Weber mentioned you have the right mindset by soaking up information. Continue to do so. As far as the no money issue, I'm pretty sure most successful investors started out with no money. I'm also sure the successful ones also didn't let not having money stop them. Until you can get creative, just continue to save and learn.
And don't feel like you have to rush to get a property. There will always be deals. Your job now will be to figure out which are the good deals. And hopefully, by the time you figure that out, you would have saved a nice decent down payment for a traditional loan or the more popular with new investors, FHA loan.
Great to hear you are soaking up info. While you are saving money for a deal (whether it’s your first or 100th) one of the best things you can do right now is to continue to learn. Keep reading and listening to podcasts (can be from other podcasters as well). You’ll be surprised as to how many tips/strategies you might come across as you self-educate. Like tiny little lightbulbs going off.
If you get frustrated with the amount of time it might take to save the money for a down payment, house hacking might be a strategy to consider. @Patrick Pierre brings up a good point with the FHA loan. lower cost of entry to a future rental. Check out The House Hacking Strategy by Craig Curelop.
Another option might be to partner with someone who does have the funds. If you feel like that is too large of an obstacle, check out some YouTube videos by Kyle Marcotte. I think he’s only 21 and he uses a syndication method to invest in large multifamily, but his segment on creating connections to raise capital and partner with no money down will be similar to your current position. Hope this helps!
Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
6y
@Jake Abbatacola
Find your local mentor and do whatever they ask you to get in with them, paint, put up for rent signs (not bandit signs), open units for potential renters, meet folks and learn & have fun doing it. They’ll teach you how they acquire properties and down the line you can help them source deals and make some $.
Rental Property Investor · Marine City, MI · Member since 2016 · 145 posts · 230 votes
6y
@Jake Abbatacola Welcome! Read "Rich Dad Poor Dad" and "Millionaire Real Estate Investor". Very good books for staying motivated and educated. Save, save, save. If you have a private money lender willing to lend you the money for say 3 to 5 years that wouldn't be a bad route to take as long as you can make the payments and satisfy the note within the terms.
If you're not buying you need to be learning about your markets you want to invest in and the processes you'll need to implement when you're ready. If you're looking to buy rental properties, then you'll need to start educating yourself or gaining experience in the following areas:
-landlording/property management (lots of learning here)
-Networking (MLOs, PM Lenders, mentors, Real Estate Agents, CPA, Attorneys,etc.)
-Finding and negotiating deals
Lastly, I would say manage your lifestyle and be mindful of what they call "Lifestyle Creep". Monitor your income and mitigate expenses. I took an extreme approach to lifestyle management and being a minimalist, but it pays off when you realize how much money you're saving.
Good luck and I wish you the best on your journey!