Salinas, CA · Member since 2017 · 14 posts · 2 votes
I don’t have the thousands of dollars needed for a down payment on a home, and I’m wondering if there is anyways I can get a multi family home in Los Angeles, San Jose, Oakland. Or any big city in California without a down payment. If it’s possible I’m planning on living in the garage or something and renting out every single room on Airbnb. How can I make this happen?
Real Estate Broker · Orange County, CA · Member since 2019 · 25 posts · 16 votes
7y
@Alex Marquez, try finding a seller who is willing to do seller carry back. And maybe you can split the profit with them to go towards deferred downpayment.
Rental Property Investor · Member since 2018 · 207 posts · 225 votes
7y
Alex,
With truly no capital and not knowing anything more about you, it is unlikely that you will be able to pick up a multifamily project in the markets you listed on your own. Your best bet would be to see about bird-dogging for an experienced investor...if you are able to find a solid deal, then perhaps someone else will buy it and you can piggyback for knowledge. That said, anything is possible if you have the hustle! Whatever you choose, best of luck to you! Go get it!
Real Estate Broker · Orange County, CA · Member since 2019 · 25 posts · 16 votes
7y
@Alex Marquez, try finding a seller who is willing to do seller carry back. And maybe you can split the profit with them to go towards deferred downpayment.
Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
7y
If you truly have no money, don't buy a house. Only buy homes if you have reserves or a LOC to cover immediate repairs and the mortgage. Especially in high price areas.
Renting for a year with some buddies might be a better option to save up cash.
Rental Property Investor · Los Angeles, CA · Member since 2019 · 112 posts · 38 votes
7y
@Alex Marquez
1st you better look at the law for air b@bs they are Changing out here__ look for an owner finance option or an FHA lender and talk with them what and how much you need to save for---me I'm leaving LA for investing too expensive and I dont believe in rent control
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
7y
asking if it's possible is a weird question.
Yes it's 100% possible, but the more uncommon an approach is the more entrepreneurial you'll need to be to create it. Entrepreneurs aren't known for asking if it's possible, they are known for doing the seemingly impossible. The more difficult the path, the smaller percentage of people who can tell you how to do it, since so few have. Most people on this board are fairly ambitious but mostly reasonable, they are going to take a low risk and long term approach towards wealth building.
The question I have for you is: how good are you with managing money?
What you're really asking is people with high levels of resources to trust you with their retirement, their assets, and their peace of mind, all while you have no skin in the game and are younger and less experienced then them. So, you gotta find out why anyone should do this, then sell them on it.
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
7y
I agree with Linda Labbe. That is how I got started. I rented a 3 bedroom condo with an option to buy. I was in college at the time and rented the two bedrooms to other students which essentially allowed me to live rent-free. I had a part-time job and saved for the down payment. When I finished college and got a job, I exercised the option. Several years later I sold the condo and used the proceeds to buy my first MF building. This takes some time but if you have no capital this is certainly the best option.
Rental Property Investor · Westerly, RI · Member since 2016 · 80 posts · 59 votes
7y
@Alex Marquez here’s an idea. Come up with a polite script to ask multi family landlords that have units for rent and politely ask the seller if he or she would be willing to let you sublet the property...Now here is where you can get creative...Most people are probably going to say no, but if you offer them something in return that makes their life easier....paying for property upkeep, signing liability forms over to you (talk to a lawyer) maybe paying him bi-monthly rent to give him/her a warm fuzzy. The actual landlord is still going to get paid every month which is exactly what he wants....and you’re going to run an air BnB business out of it (which is exactly what it is) but no money down, except for first months rent and security I’m assuming!
Investor · Suwanee, GA · Member since 2014 · 22 posts · 15 votes
7y
@Alex Marquez I would try and get family, friends, acquaintances to let you rent out one room Airbnb. What I mean is setup an account, and then you rent the room from them for a few days. Show them everything online, how it works. You have to educate and explain. Then explain you want to do the same thing again, this time with a real outside guest. Manage the whole experience so that it is a excellent positive both for the guest and the property owner. Again total transparency and educate exactly how things work, when and why. Make sure the property owner gets their money ASAP. Do the room cleaning immediately. Now that they understand and are comfortable with the process explain how you will have a small business running these Airbnb rentals.
After you begin to have success doing this make a portfolio and document everything you have done. Reach out to a local lender that is here on bigger pockets and make an appointment. Go to their business, be on time, wear a suit, be a professional. Don’t try and BS anyone about anything. If they ask you something you don’t know then admit it and promise to get the answer. The purpose is not to get a loan, that’s just not realistic. But now they know who you are and know your story. Grow your business, document everything and stay in contact with the lender. Don’t be afraid to make them a mentor and ask advice. The day will come sooner than you think when they will start to offer you deals. It’s not going to happen overnight but it won’t take forever either. You have to start from somewhere. Good luck and keep us updated on your journey.
Realtor · Southeast Michigan · Member since 2017 · 232 posts · 180 votes
7y
Not the answer you want to hear, but get a job and save up some seed capital. Dont be fooled, Real Estate isnt some get rich quick thing, its a long term game. Take care of your finances first, and then worry about real estate
PS. I have a biased opinion, but I suggest you consider getting RE license. Think of it as getting paid to learn about RE
Investor · Houston, TX · Member since 2013 · 471 posts · 267 votes
7y
@Alex Marquez you should be able to sign some leases and get Airbnb set up with almost no money down. I would start there. See if you enjoy running an Airbnb business. I have 10 of them out of necessity on my own, but don't particularly love or enjoy doing it and thus wouldn't scale this. Find out if the Airbnb model works for you before looking to make an entire purchase predicated on that strategy.