Obtaining money for down payment

[Tony Davis]

I'm having a problem figuring out where the money comes from if you find a deal. I read/hear to go to family and friends. We have no family or friends that are willing to help us invest. Where do you go to get money for a deal if you have none? Another problem is we are being asked for a preapproval letter before we can even look at a property at times. We are just starting out and are frustrated with the whole experience. 

[Dan Beaulieu]

Quote from @Scott E.:

What kind of deal are you looking for? Owner occupied? Investment property? Single family? Multi-family?

Ifyou are looking for an investment property and have no money to contribute to the deal, you are going to have a hard time funding it unless you can get a family member or friend on board. And even then, most private equity and hard money lenders will want to see you have some skin in the game.

With that being said, if you find a real "deal" then it might make more sense to flip the contract. If you wholesale your first couple of deals, you will build some capital to throw in on your first buy.

Start calling everybody in town that is in the business and build yourself a list of agents, house flippers, wholesalers, and hard money lenders. All of these contacts will come in handy when you find that deal.

 I agree. With no experience, you’ll at least have to have some capital. Wholesaling your first few deals would be the way to go. 

You could also attend local meetups and reias and make new friends. Somebody might want to partner with you on a deal and you could give them 50% of it if they fund it. That’s also pretty common starting out.