how to start being an investor with no money down please help

4 Replies

how to start being an investor with no money down please help

@Steve Raymond  

That's probably one of the broadest ways to address that question I've seen posted.  It's probably the most honest as well!

The reality is, you are going to have to put money down to buy properties, regardless of your exit strategy.  However, it doesn't have to be your money.  (See Ben Leybovich's many, many Blog posts about how he never uses his own money.)

You didn't indicate whether you are currently employed. If you are, and you are cash flow positive, you have the option of saving for a down payment. If you can purchase a property as a primary residence, you have the option of getting into a property on FHA for only 3.5% down. You live there for a year, refi into a non-FHA loan and repeat the process. Even better, if you can find a small multi-family property (duplex, triplex or quad), you can still use the low down FHA option, rent the other units, and get most or all of your mortgage payments paid.

If none of the above are options, then you can always try going the wholesale route.  Wholesale 3 properties, banking enough money to cover the down payment on your first deal...repeat.  Wholesaling is NOT easy.  You have to be good at a lot of things.  You generally need some money for marketing, but you can start with driving for dollars, knocking on doors & cold calling.

Hattie

Having no money is almost a deal breaker in real estate investing. I would say save, save, and save. Income tax season is coming up and if your fortunate you may get some money back. Put that with the money you saved and there's your first property. Second option would be to get a 80/20 or 80/10/10 loan, mind you if you do this two mortgage process with PMI you or almost guaranteed not to cash flow.

Really, by definition of "investor" you can't invest without your own money. What you can do is make money as a real estate dealer or operator from your knowledge and labor.

For any economic, beneficial transaction the principle fundamentals of economics must be present, at least 3 of the 4, land, labor, capital and entrepreneurship. That last big word means management and the ability to identify opportunities, taking action that involves the use of the other necessary activities and fundamentals to earn a profit.

If you lack one of those three elements you must compensate with more from another, less capital you need more labor or management.

What you "invest" is your time, labor, skills and knowledge. Some call it work!

Nothing in RE is easy when you are broke and often, even when you're not broke!

Begin by learning the fundamentals of real estate, from the very beginning. With that foundation you will then understand the entrepreneurship aspects of how to apply labor, land and perhaps other's capital to profit from. :)

   

Thank you so much for your help...is it good to do a lease to own from a investor

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