Real estate beginner

11 Replies

It depends on what you want to do.  One option is to buy a house and move in and rent out rooms.  You could buy a duplex and live in half and rent the other half.  If you live in the house, you can get mortgages with 5% down payment.  Otherwise you need 20%.  Find out how much you can borrow, then see what that will buy.  Use that as motivation to save up for the down payment.

For saving for the down payment, look at your debt, expenses, etc and see how to get rid of any debt (it will limit what you can buy), cut expenses and increase your income (second job, odd jobs on the side).  

Do a search on Bigger Pockets and you will see a lot of posts by people in the same situation and read the advice that others gave them.

Buy a basic duplex or small multi in your market with an FHA loan. Rent out the other units and let them pay down your mortgage while it (hopefully) appreciates. Save your cash. After a couple years, you should have enough equity that you can borrow against it for a down payment on another property that you can move in to and repeat that process. Do that 5-10x and you will be able to retire early and choose to work or not.

Best of luck!

Normally you'd borrow from a bank in the form of a mortgage. Sounds like you're starting from scratch, do you have any savings yet? What type of real estate are you trying to get into? Owning rentals? Buying land? The more specific you are about your goals, the more people on here will be able to direct you. 

You'd get a mortgage from a bank or credit union.  Do you have a credit card?  If not start there.  Make small purchases on it (buying stuff that you would normally pay cash for) and pay them off in full each month.  That will get your credit history going.  If you talk to a bank or credit union, they can give you info on what your credit is like and how much you can borrow.  

@Mame Thierno Seye ,

The best, easiest and cheapest way to get into the game is by buying a primary residence (ideally a multi-family!).  This way it's 3-5% down, and not a lot of red tape.   If you buy a multi-family, you'll  likely end up living for free or really cheap!   Go talk to a bank, and see what you're potentially working with--  and what you could be approved for!    You don't want to waste your time looking at properties at X price,  if it can't actually happen in real life, so step #1-- go to a bank/mortgage originator!

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