I discovered a strategy to pick up very discounted properties. For example I locked up a house for $11,500 that was a 3/2 with a 2 car garage that was built in 2000. I don’t have the funds so I was forced to wholesale. I also just locked up another deal that’s a duplex for $25K that cash flows around $1500 a month.
I was told that private money is your friends or people in your circle. I don’t have no one around me like that. Should I start going to a cigar lounge and country club or something?
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
5y
Hi @England Hall, welcome to the BiggerPockets forums!
Where on earth do you live? Those prices are outrageously low, and the good news is that money follows deals. Let me unpack that briefly:
- IF something is a deal (meaning the house was undervalue at $11,500 . . not a hoarder occupied meth-den that will be worth $20k when it's cleaned up) then you or someone else purchased something low and can (eventually) sell high. Those returns are noteworthy.
- Do that a few more times and TRACK YOUR NUMBERS and you start to develop credibility.
- Demonstrate to ANYONE IN YOUR SPHERE your track record while you are developing it and you will see people start to perk up, usually after 3-5 successful deals. Inviting people into your credibility before you have it is possible, but ill-advised.
- YOU choose your sphere . . . you have one that was handed to you in life, and you have MANY others you can choose. So, if you want to go to the cigar lounge or the CC . . . AND you can own that space, then get out there and get it! However, that's far from the only way to come up against money, and (back to point #1) IF a deal is a deal then money will flow to it eventually.
Omaha, NE · Member since 2020 · 611 posts · 665 votes
5y
There are so many variables here that impact the question such as the after repair value of the property, the required funds to fix the property up, and the timeframe needed to lock it up.
Certainly the easiest way to start, if you want to flip or to rehab and rent these houses is to find a local Hard Money Lender. You can search online for companies in your area that lend that way.
But I'm guessing if you talked to the people around you, showed them what real estate investing can do, and offered a good enough return, you could pool money from multiple family and friend sources to make it happen.
Most people aren't sitting on tens of thousands of dollars, but most people have 401ks or IRAs and if they trust you, and you are trustworthy, you can teach them how to pull loans on their retirement accounts that don't penalize them, and give you access to more money than you realize you had access to.