Hey everyone, I’ve been listening to BiggerPockets for awhile now and am tired of sitting on the sidelines. I’m ready to jump in. I do not have a lot of cash on hand, however to secure a first deal. What are some good strategies for coming up with the cash to make my first deal without having to work countless hours and save it up. Would love your thoughts. Thanks!
Could you house hack first? 3/5% down on a MF or SF.
I’m married with 3 kids. We just bought a single family 2.5 years ago. House hacking would be difficult
I'm also new to real estate investing and am currently narrowing down markets to invest in. I've been planning for a few years and have been saving. Unfortunately a lot of the time, waiting and saving might be the most financially prudent option. Depending on how much equity you have in your primary residence, you may be able to do a cash out refinance and gain some capital that way. There are upsides and downsides to that. I'm sure there are people on here who have experience with all sorts of creative financing and more experience than me who can give some advice.
Hey Nate, as others have mentioned there are so many ways to buy a house hack with a super low down payment. I see you don't feel that's best for your situation though. Could you buy a vacation home instead? This would require only 10% down and you can pick a location that is a bit cheaper. This is a good hack for getting into the vacation/airbnb game. Good luck!
Hi @Nate Stunek
Sounds Great! Welcome to BiggerPockets.
I hope you continue to learn from everyone on this platform.
If you have not, great books to read are:
• Rich Dad, Poor Dad• The Millionaire Next Door• Cash Flow Quadrant • Tax Free Wealth• Set For Life• Rental Property Investing• The Millionaire Real Estate Investor• The REAL Book of Real Estate• So Good They Can’t Ignore You
You are more than welcome to reach out if you have any questions.
Good Luck and go make it happen!
Do you have any equity in your home? You could get a HELOC.
Congratulations on getting started and welcome to the BP Forum.
Look into local meetups where local investors can help by sharing their experiences and insights. Best of luck on your journey.
I am a recent college grad and as you can imagine, didn't have much saved up to put in 20-25% down on an investment property. I partnered up with my brother and longtime family friend who had been working for the 4 years while I was in school. We are forming an LLC and will set it up so I can pay my share as we continue to build our portfolio until we are all at equal shares at which point we can move forward as equal partners in any deal we make.
My point being, if possible, find a partner(s) who does have sufficient savings so you can get your foot in the door so to speak. What I did was handle a little more of the day to day things to make up for the differences in money put into the deal. There are of course other ways to get into real estate with little or no money down but that is how I did it.
P.S. Brandon Turner has a book "Investing in Real Estate with No (or Low) Money Down" which sounds like it would be a great learning resource for you at this time. Hope this helps and good luck!