Flat Broke and No Funds...What to do???

67 Replies

Hi Everyone,

Happy Friday first of all!!  I recently got divorced and am up to my eyeballs in debt and my credit score has taken a hit (once a gleaming 750, now a less then great 640ish).   

I am highly motivated and already have direct mail campaigns for multi-family apartments in the mail for the Sacramento area.  I am also hunting down deals for self-storage properties.  

My problem is $$$ money! :(  I am employped full time and make almost $100k a year.  However, as I said the "big D" has left me in debt up to my eye balls!

I have reached out to lenders for a mortgage who basically laugh in my face because I have no funds.  How does one get started without funds??? Where can I get funds??? (and no I don't have friends or family with deep pockets). 

Thanks in advance!!

1. What kind of debt is it?

2. Can you move out of Cali with your job?

3. Why do you have a direct mail campaign? What was the plan here? 

4. You already know you don’t have the money. Were you planning to wholesale?

Hi Aaron,

1. Personal debt, CC, consolation loan, student loans. 

2. No.

3.  To get off-market deals. 

4. Well, I keep hearing "if you find a good deal, the money will come"....like it falls from the sky or something...lol

@Jason S. if you don't have a support structure to tap into... the unhappy answer is that there is no short cut. You have to invest the time and effort to rebuild it all back up. Get a side gig for extra cash flow, stop all extra spending and live like a monk. At the same time get out to REI meet ups and get your name and face out there. See if you can bring value to somebody that will be willing to bring you in on a deal. It personally took me decades to build up the financial base to get going, but once I did I was able to start making some serious progress on wealth building. Sorry I was not able to give you a silver bullet for your problems, but this is the reality of the situation.

@Jason S. if you make that kind of money I’d recommend stop spending it on direct mail and pay down debt, especially credit card debt.

The whole “find a deal the money will come” is often wrong. Even if it does you’ll still likely need some of your own money

The wholesale thing isn't going to get you a long term MF or storage unit. What it can do is possibly generate some quick cash to help you pay down debt and build for a down payment.

Live frugally and try your best to turn your liabilities into assets. If you own a home rent a room. Have a decent car then drive for Uber, Lyft or rent your car out on Hyrecar or Turo until you build yourself back up.

@Arlen Chou funny you should mention living like a Monk...that's exactly what my friend said. LOL...  I don't spend wildly, I have child support, and live in the bay area (and have to stay here for my kids).  

Take some time out to process your divorce.  I rented for a year after my starter marriage ended.  Hunker down, regroup, save some money, live frugally, get grounded.  You'll know when it's right.

@Jason S. if you can get a property owner who will sell at a great price then put it under contract and wholesale it. For example , find an apartment for 900k, find a buyer who will pay 950k you make the 50k spread in between. You now have money to fix n flip your own house. If you don’t have money , you don’t want a rental yet anyway. There are wholesaling examples all over google and bp

@Caleb Heimsoth - Appreciate the feedback.  The assumption that I make good money is wrong.  I have child support and live in the SF Bay Area (I'm not leaving for my kids).  Direct mail is surprising no that expensive.  I wish it were that easy to pay down the debt when you're barely scrapping by...Anyways, thank you for the response! 

@Jason S.  yeah I can see that.  I recently read people making up to 117k a year can qualify for public assistance in SF.  

I’m in a different situation with no kids and not married but I would still urge you to find a way to pay off CC debt.  You’re gonna pay a lot in interest 

Originally posted by @Jason S. :

@Dennis M. so what I keep hearing on here isn't true?  That if you find a deal the money will come? 

Well Not in a practical sense . Look Any lender or partner is going to need you to bring something of tremendous value to the table . That may be cash , years of experience , credit , collateral ..Buying properties these days with no money down is like finding a unicorn . Even if you could you need closing cost money you need reserves and so fourth. Save up atleast ten grand so you got something to work with . Shouldn’t be too hard if you make over 100k a year 

Originally posted by @Caleb Heimsoth :

@Jason S.  yeah I can see that.  I recently read people making up to 117k a year can qualify for public assistance in SF.  

I’m in a different situation with no kids and not married but I would still urge you to find a way to pay off CC debt.  You’re gonna pay a lot in interest 

 that's for a family, if a person makes over a 100k they do alright even in SF....

but alright has many different meanings... 

For perspective, outside of SF you can easily get a place to rent for 2500 or so, figure another 1500 for day care. Gas going to be closer to 5/gallon than 4... car insurance probably 150 or so. The taxes are killer though, you're going to lose probably like 30% of your paycheck.

@Jason S. I understand that but I’m a big believer in path of least resistance. That path is getting rid of your bad debt. Doesn’t matter how you do it, but that’s gonna be the best way.

Even if your income doubled you have run into DTI issues