where does the money come from really?

7 Replies

hey everyone.

yes i am a beginner and this question has been sitting in my mind for ever. So i'm a little frustrated because i just took a three weeks RE training and i remember asking this question on the first day just to be told my answer will come, now we've finished the program yesterday and their is no clear answer.

i've been told make offers ( make a lot of them), call realtors, visit potential investments just to never really have the means to purchase anything.

A little about me: i've never purchased a home but a own a small fleet of cars that i rent out to drivers for car service in the NYC area. i owe about 50k on my cars, i have a little cash to play with but much. have a couple of questions:

Is there anyway i can start investing in RE without having to pay cash?

which sources should i use? ( i do not have rich friends to lend me money and flipping isn't something i can get into right away)

i have my eyes on a couple apartments in the bronx area 1-2br they sell for 50-100k depending on the are, i wanted to buy and hold rent cap is $1200-$1600, i obviously can't use hard money lenders for that and i can only buy i get approved by a conventional bank. i personally think its a great investment, let me know if you think different? also many are coops, how complicated can that get as an investment?

 *based on my calls to different banks they don't do commercial loans for coops and the ask is 25-30% downpayment on investment properties) how complicated can that get as an investment? 

So can someone tell me i did not build up such great ambition to pursue RE just to hit the financial wall? i really need help figuring this out if not i will have to pursue flipping and I'm a little worry about that because of my lock of experience and if i fail on the first deals it'd set me back further.

Where does the money come from really?

Is there anyway i can start investing in RE without having to pay cash?

The answer is yes and no. Just because they do not take cash directly does not mean they do not take work and time which in my eyes translates into cash in the end anyway. There is a plethora of great readings on this subject in the Bigger Pockets Blog . If you check the blog out you will see there are definitely plenty of ways of making money in real estate with little or no money, however some can be simpler and require less knowledge than others.

One of the best ways to get started with no money of your own is wholesaling. In a nutshell you find a property that you can get under contract and assign the contract to, what is usually, a cash investor for a profit. Again in the Bigger Pockets Blog There are plenty of guides on wholesaling that go into great detail how it is done. You can also jump on the forum and read what others are doing with their wholesaling businesses for tips and tricks.

which sources should i use?

The answer to this questions is simple. ANY RESOURCE YOU CAN! BIGGERPOCKETS being one of the biggest and best! The forum is a great place to network and meet people. You can also check out the vast list of hard money lenders that BP has made available to us!

You should use the resources that are available to you, to analyze real estate opportunities. The better you become at analyzing real estate opportunities correctly the more value you will add to yourself as an investor. 

I challenge you to analyze at least three Real Estate Opportunities a day for a month, and act on them.   If you have an opportunity that you can not watch go by, share it with someone that can do something with it! You can always send it to me and I will be sure to get you the help you need to capitalize on it.

 i personally think its a great investment, let me know if you think different? also many are coops, how complicated can that get as an investment? 

I can not speak from experience here, however from what I have read coops can be nasty little things. Try to find out what other investors are doing in your area. As my poetry professor once told me, "Mimic the moves of a master, and you will soon move like a master."

So can someone tell me i did not build up such great ambition to pursue RE just to hit the financial wall? 

You did not! but you do have your work cut out for you! Real Estate Investing can be a hobby just as fixing cars can be a hobby to a mechanic. Even if thousands can find it enjoyable it is still work.

HOPE THIS HELPS IF NEED ANY MORE HELP FEEL FREE TO SEND ME A MESSAGE OR TXT.

@Malick Guindo - Welcome to the vibrant BP community. You are crying out loud for help and you will get it here. But, you have to follow the below steps, be patient and focus on your goal to become a REI success story.

You can do it....it's NOT complicated!

1. There is no short cut to REI, it's not a sprint race, but, a marathon.

2. Spend a lot of time on this site educating yourself with the podcasts. As of today it's at #146 which I listened to earlier. Continue with the #askBP podcasts, blogs, listen to the webinars, read some of the suggested books from this link.

http://www.biggerpockets.com/renewsblog/2013/04/14...

5. Get involved with asking questions on the forum. There is no stupid question, except for the one that wasn't asked.

6. Decide on what you want to do and focus on it....fix &flip, wholesale or buy and hold.

7. Spend a few dollars and get the PRO membership. It's well worth it and coupled with that it gives you access to a lot of other things on the site.

8. Analyze deals regularly using the calculators accessible with #7 upgrade.

9. Walk your neighborhood and/or drive for dollars.

10. Tell your friends, family members and others about your REI passion and they will respond with leads.

When you are done with all of the above, please let us know of your success.

Failure is not an option!

Frankly, I sense that you are as passionate about REI as I am, as well as others who spend a lot of time on this site. So, that's why I am taking the extra time to give you some support in this regard and as a fellow New Yorker.

@Malick Guindo - I invest in Atlanta primarily and as you know quite well, the cost of RE in our great State, NY is very expensive and that wouldn't allow me to scale as a result, if I were to purchase there.

Thanks for asking.