Getting started in real estate late and with no money. Advice?

Question

I'm 33. Married with 4 kids and a surprise 5th. My wife is a stay at home mom. I'm a single income contractor. My forte is finish carpentry, flooring, and kitchen cabinets. I am able to do more and want get into real estate investing but don't know where to start. I live in rent and. Trying to save something to purchase a home for my family and I. Any advice or guidance would be the best. Thank you and hello to all.

Jonathan Greene · Answer

Without money, it's near impossible to get into real estate investing, no matter what anyone tells you about no-money-down investing. But, since you are a contractor you have a skill that can be traded for equity in a project once you learn what the parameters of a deal like that might look like. But from what you said, your priority right now should be earning enough money to get your growing a family a house to settle into. See if you can find jobs on investor's flip projects to learn, even if you have to cut your rates a little. It will take time, but your family is the priority now and you don't want to rush to invest money into something new when a 5th child is on the way.

Sergey Slivka · Answer

@Jonathan Greene thank you greatly for the reply. I am thrilled to get an honest answer that isn't the one I hoped for. But at least the honest one. Gives me a better sense of direction and motivation. Thank you once again.

Sergey Slivka · Answer

Thanks for the reply Maggie. I will continue in the same manner with education and improvement while working. And for savings i have also started a little bit with Acorns at the least and am also learning more about my options there. Many sacrifices will be made but i will attain my goals. Thank you once again for your input.

Maggie Polisano · Answer

@Sergey Slivka

Thank you for further information. I agree that you should look into books, podcasts and every education source you can find. Once its safe to go out and connect in person again, you should look into joining some local real estate investing groups. I founds that networking has been key to finding partners, mentors, deals and so much more!  I really like the buy and hold style of real estate investing and have a few properties in Florida. With your skills, you could have a very nice rental property and not have to worry too much about hiring someone to fix things.  Saving can be difficult with a growing family on a single income, there are many tools and budget aps out there that can help you with that. You should continue your education, work on saving for a home for your family. Maybe you can find a partner who can help grow your experience and also partner financially with you on your first couple of deals to help increase your cashflow. I know retirement seems like the last thing, but I also encourage you to consider starting a retirement account, eventually you could have enough funds that you could invest in real estate inside of your retirement account like an IRA or 401(k). A couple reasons for that retirement question, the first is that there are special distributions a person can take for things like a first time home buyer. The second reason is they can be another way to finance a real estate investment.

Sergey Slivka · Answer

Hello Maggie and thank you for the reply. in advance I am sorry if this will be a longer post than desired. So my goals for investing are fairly broad as of this moment but to sum it up I would like to get into buy and keep rentals. Being a contractor I enjoy working with my hands, my brother and I work together and he also enjoys the idea of real estate. I am diligently trying to procure a home but am at a late start at 33 years old. Came to the US with parents and siblings as a little kid and grew up with the work hard mentality instead of work smart. Realizing that I have nothing to show for the last 12 years of my married life I took it upon myself to start listening to the right people and educating myself to ensure that I have a better more secured future. So nothing in Savings or retirement but am now working to change that while being a single income. Trying to teach myself along with my wife that we should be more frugal with out income and am working to put money aside for our future and upcoming endeavors. Looking for any and all feedback and recommendations whilst reading and listening to educational content. Looking for any opportunities that might involve a potential mentor/investor/partner. Trying to be frugal/smart with my earnings and educating myself(books, BP bookstore) with items that cost money so I am trying to pace it out and plan to make up for all my lost time.

Maggie Polisano · Answer

@Sergey Slivka

What kind or real estate investing are you looking to get into? I see that you want to purchase a home for your growing family, are you planning on a house hack or having a rental space in your future family residence? Do you have any savings in a retirement account?

Sergey Slivka · Answer

@Daniel Kong greatly appreciate the reply. I am learning and watching and reading content and listening to podcasts while at work instead of music now. Being someone of use or value is what I'm striving for. Thank you once again.

Daniel Kong · Answer

I'd say learn as much as you can and get around other investors on their projects. You can always partner with someone with money, but if you do, you would need to bring value of some sort. So whether thats knowledge, hustle, experience (contractors are always in high demand), relationships, or a deal, try to do things that would make you more valuable to partner with someone who has money or access to it.

Getting started in real estate late and with no money. Advice?

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