If you had no money and bad credit, where would you start in Real Estate to begin investing?
Sandwich Lease Options, Seller Financed deals (from retiring REI), Partners
Honestly, I would start by saving some money and improving my credit. You need to be able to manage finances to do real estate and have some money for when things go wrong.
There are a few steps here.
As others have said work on improving your credit and saving some money. This may take a year or two.
Learn as much as you can about real estate. Attend REIA meetings, listen to podcast, read books, etc. Volunteer to help an investor by donating your labor and or other skills to learn the business. This is the time to educate yourself while working on other things.
You can find great deals and bring them to an investor. Networking is key. Do the things that others won’t do. It’s your time that is valuable. Even if you can only help on weekends start ASAP.
Try saving every penny, and continue to work on that credit. Also, read in these forums :) Good luck to you
One way to come into the game with little to no money is learning to the wholesale. However, in general I´d say you need to evaluate why the credit is in such a bad situation and start doing what´s needed to improve it. Fair or not, bad credit sends up red flags to people that the individual can´t manage money or their personal affairs. It limits the amount of resources they can get to assist them. If there is no money, itś also difficult because in so many instances the individual needs to have some skin in the game to be involved with deals. You need alliances in certain instances and the combination of the lacking two makes a lot people not want to bother. I´d stay keep studying up on investing, fix the credit and start putting away as much money as you can until you get enough. In the mean time network with other investors doing the same forms of investing you desire. Good Luck!
Rent to own for 2 years. Lock in 2020 prices and gives you 2 years to boost your income/ fix credit and save for down payment
Sorry to sound redundant here, but start saving money and paying your bills on time. While you are doing that, listen to every podcast on BP, read every real estate book you can find at the public library, and start going to REIAs in your local area. Good luck!
Wholesaling, Work for a top rehabber or mid-size real estate Investment company.
Also, listen to all BP Podcast on Wholesaling and creative financing.
@Mark Cruse good answer! Wholesaling
No money and no credit, theres nothing to invest. Start investing in building your credit and save all you can.
Any investment demands a minimum to put down. Even working with others money... you need to invest in network, brand, etc.
So from now on “ every penny counts”. This is your start.
I would get a better paying job and improve my credit.
@Javaughn Harkness become a RE Agent and as others have said repair your credit and start saving.￼
@Javaughn Harkness . Just some thoughts, not necessarily in order.
1. Make and save as much money as possible. 2. Build better credit. 3. Learn as much about RE as possible. 4. Network, especially with people who could lend to you on no-money down deals. 5. If you don’t already, buy a property as a personal residence. This will let you build equity and can eventually become a rental.
All the above are great ideas but I might start with the strategies outlined in @Scott Trench ’s book Set For Life where he lays out the concept of financial runway.
I’d time travel back to 2007 and get a NINJA loan.
@Javaughn Harkness Get a job in a property management. Learn something while you build your base.
It takes a lot of courage to talk about your situation like this.
Lots of others have already mentioned the big picture...improve your credit and save money. Intern with a real estate investor, read all you can on BP, etc. While that is the overall goal, I think the process to getting there is the key.
If you have bad credit and low income, there is a good chance you need to start with something very simple. Learn how to build better habits.
You can get help with this for free. You can get books at the library on this topic (7 habits, rich dad/poor dad, power of habit). Then it's a matter of persistence and desire to change your habits. If you can build good habits you can win at real estate (or most things).
I agree with Mark Gruse and Kenneth Garrett in that you are making money while getting hands on experience in Real Estate which should feel like wins and continue to motivate you as you make more contacts and garner trust from those contacts.
I bet if you spend your time focusing on that while you are tightening your belt, your credit will be good enough to get some help on your first deal and hopefully that will start your boulder rolling down hill.
I wish you gratitude at the fact that you know you are headed in the right direction. I think this will carry you the furthest.
@Javaughn Harkness I would begin to save save save and repair credit in the process. As a fairly new investor I found the forums along with reading (How to Invest in Real Estate, the Ultimate Beginners Guide to Getting Started) to be of great help.
I would start by improving my credit score then start saving some morning while I'm driving for dollar looking for motivated sellers then get creative with any great deals i find.
It's pure hustle at the beginning without money and bad credit.
Wholesaling, apprenticeship, or volunteering
Hello there from NYC and Happy Holidays!
For starters, congratulations on speaking up about this. It’s not easy, but it’s the first step.
Now down to the nitty gritty, my first advice would be that you need to get out of debt. Not only will this help you personally, but I believe it will also give you a foundation for your business. We all go into this wanting to succeed (any business). Having healthy money habits will take you very far, a budget will help you understand exactly where you are and you make a plan to get out of it.
Now, this is me assuming that the bad credit is related to debt. If the situation is just some things in collection that are causing the low score, then my recommendation is the following:
1. Make a list of the accounts in collection and the amounts owed. I suggest listing them from smallest to largest. Once you have that list, start calling the agencies and offer them 50% of the debt. That’s it. I don’t recommend a payment plan because you negotiate less that way. Make sure you have the funds available to make that payment at the time of negotiating and be very specific with them, that making this payment will eliminate the debt. Some may tell you it’ll take some time, or that they won’t remove it. Once you pay it and you have your receipt, dispute it with all three credit bureaus and ask that it be removed (you may have to do it a couple of times).
That alone should increase your score drastically. Then the question stands, do you have any credit cards or loans. If you have credit cards start paying them off. If income is an issue, pick up a second job. Getting out of debt is no walk in the park, it takes sacrifice and getting uncomfortable.
So, regarding getting into real estate. I suggest getting a some type of job, any job, related to real estate. Even if it’s an assistant to an agent or an office assistant at a real estate company, or a property manager. Start networking. Things a little tough now with in person networking, but we’ll get there eventually. Once we do, go to as many meetups as you can and meet people. Talk to people about it, just get out there and it will come to you.
... but it starts with you. Start planting that seed now, it’ll grow slow but keep watering it and trust the process.
Hi @Javaughn Harkness ,
I’d start with someone who can guide you. I’d offer to work for free for a real estate investor in your area that’s respected since you don’t have the money for mentorship. This way you provide value and learn what you want. Other than that wholesaling would be the way to go without money.
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