How much $$$ did you have when you started investing?

Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes

My husband is convinced we have to be making $200k + a year before we can start investing. I KNOW that isn't the case. I have met a few that started with very little and built their empire over time.

When you first started investing, how much did you have in your pocket? How much in the bank? Would love to hear from you!

806-685-1818

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Sergey A. Petrov

Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes

I had zero or maybe even negative. Barely out of college, with a newborn, wife unemployed. Bought a condo using an FHA loan. It needed some work, water heater blew a week after closing. I remember getting my final estimated settlement statement the day before closing and realizing i was twenty or something bucks short for that due from borrower line item. That $20 was stressful!

Lived in and worked on the condo in the evenings and on the weekends, repainted, replaced flooring, appliances, some other outdated fixtures, sold it two years later with a gain nearly equivalent to my gross W2 earnings at the time. That was 20 some years ago

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Ryan Deasy
Lender · Farmington, CT · Member since 2015 · 542 posts · 321 votes
4y
@Maranda Tucker

i started investing when i was making 28k per year and had about 7k saved. no idea, to this day, how they let me buy that first duplex in 2012.
2 Reply
Matthew McKee
Real Estate Coach · Boise, ID · Member since 2022 · 177 posts · 285 votes
4y
It’s never about how much money you make or you have saved. It’s all about mindset, society trains us to be worker bees and the tax laws are written to promote an entrepreneurial spirit. A forum could be a good source of encouragement but there’s always going to be self rooted doubt. I’d suggest patience, respect and daily implementation of information from books and podcasts. Information is the best mitigation for fear.
2 Reply
Matt Lyons
Rental Property Investor · Chicago, IL · Member since 2019 · 109 posts · 443 votes
4y
@Maranda Tucker with all due respect: your husband is an idiot (I say that to make a point as I don’t know him)
If you are buying for cash flow and finding the right deals your outside regular income is not a factor as the property MAKES money and has value.
Next, to afford the property you don’t need ANY money.. there are three things every deal needs and if you can bring two of the three you can easily find the third:
Hustle/work
Deal
Cash
If you have the deal and are willing to run the property and do the work then it will be easy to fine 20% to put down from an investor
1 Reply
Joe Garretson
Investor · Castle Rock, CO · Member since 2021 · 79 posts · 104 votes
4y
Quote from @Nicholas L.:

@Joe Garretson maybe you can meet in the middle.
What does "$1300/month for RE investing" mean? That you're adding $1300 a month to the $15K you have set aside to invest? Or something else?

Yes, current savings account specifically for REI is at $15k and adding $1300/month to that balance. Growing that account while doing research, seeing what happens in this weird market and working through some mindset differences with my wife on what RE investing means to each of us.
1 Reply
Jeff SchemmelBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y
@Maranda Tucker I was 27, had $6,500 and I made about 75k/yr at that time. I dropped $5k on my first house hack.
2 Reply
Alexander Yates
Investor · Reno, NV · Member since 2018 · 54 posts · 44 votes
4y
Similar to what others have said above, there are plenty of options without your own money. I purchased a 4br house with a friend and lived there while renting out the other three rooms, which covered all expenses and plus provided additional income. Friend contributed down payment and all upfront costs from a distance while I managed the house logistics. There are plenty of people with money sitting in the bank that don't have the knowledge or drive to invest in RE, but would invest if they had someone they trusted to do the work.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
Quote from @Alexander Yates:

Similar to what others have said above, there are plenty of options without your own money. I purchased a 4br house with a friend and lived there while renting out the other three rooms, which covered all expenses and plus provided additional income. Friend contributed down payment and all upfront costs from a distance while I managed the house logistics. There are plenty of people with money sitting in the bank that don't have the knowledge or drive to invest in RE, but would invest if they had someone they trusted to do the work.

back in the later 80s in the SF Bay Area specifically the lower peninsula ( Palo Alto Los Altos etc) homes had already reached 500k and above. and since you need 20% down to get a bank loan.. there was a lot of equity share going on where one investor put up the downstroke the other person got the loan in their name and paid all the payments with a 3 to 5 year plan to sell or refi then split profit. Many families got into high priced owner occ homes this way.. And many investors did quite well.. I knew one lady that had about 20 of these as the down payment partner.. now a days not sure if you can get owner occ loans this way.. but it sure worked then
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Richard Loniewski
Real Estate Agent · NJ · Member since 2021 · 572 posts · 127 votes
4y
I had less than 30k in bank. My first deal I just laid out the 2k deposit. I found a partner to cosign on loan, A gap investor (my barber) and I ran the project. I had to give away a good portion of the pie, but I got my first one done. Now I can buy properties on my own. My advice is network!
1 Reply
Chris Tarashuk
New to Real Estate · Member since 2022 · 17 posts · 14 votes
4y
@Maranda Tucker I plan on getting started in these next few months with less than 10k in my bank account. I have spent most of my summer doing research and reading up on BP books as well as forums. I plan to bring my ideas to an investor who has expressed interest in REI and leveradge my time and knowledge to start a 50/50 partnership. If I were on my own I would most likely save up about 40-50k so I would have money for a down payment and cosmetic value adds.
Does your husband know about the BP forums and research much on REI or are you the main pitch?
Hopefully this was helpful! Good luck on your journey!
0 Reply
Deyson Shaw
Twin Falls, ID · Member since 2019 · 10 posts · 1 vote
4y
I had about 40k saved up. I pulled out a HELOC of 85k on my primary residence and used that to buy a property that needed work. Once the remodel was complete I sold the property and used the proceeds to put 20% down on a new construction duplex. I utilized a 1031 exchange since half the property was an investment, and I also got a great rate since I purchased it as a primary residence.
I moved out of that duplex 5 months ago and it now cash flows about $1750 a month. I wish I could turn 40k into that kind of cash flow every time…
I would say that you guys have more than enough saved up, you just gotta convince yourselves to jump into the deep end of the pool.
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Kevin Phu
Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
4y
When I bought my first house hack (rent by room), I had about 8k in cash and about 30k in my TSP (govt 401k). I bought the house with my VA loan and put 0 down. Closing costs and inspections did cost me around $5k total. When I moved into the house I had just under $3k cash to my name. Tight times but it has paid off!
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Brian G.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
4y
@Maranda Tucker I liquidated a retirement account (ill-advised) and invested about $35k on our first deal. Our household income then was probably about $60k/year.
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Maranda TuckerPro Member
OP
Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes
4y
Quote from @Matthew McKee:

It’s never about how much money you make or you have saved. It’s all about mindset, society trains us to be worker bees and the tax laws are written to promote an entrepreneurial spirit. A forum could be a good source of encouragement but there’s always going to be self rooted doubt. I’d suggest patience, respect and daily implementation of information from books and podcasts. Information is the best mitigation for fear.

Agreed! I ultimately am looking to show my husband first that it is possible. All of these responses are so exciting! I have lots to refer to, however none of them flesh out the HOW.
806-685-1818
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Maranda TuckerPro Member
OP
Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes
4y
Quote from @Nicholas L.:

@Maranda Tucker
salary / income isn't really the right way to think about this... were you just curious what other BPers make or did you really want the community's reaction?
you could be making $500K a year with 0 in the bank, and that would not be a good financial position to be in; conversely you could make very little but have access to lots of savings
so... assuming this is a serious question... i'll ask 2 of my own:
do you and your husband own a primary yet?
do you have any savings?

I honestly was looking for how other people got started to show my husband that we already have what it takes (I'm the one doing the research and actually interested as my career is in Real Estate)
current savings is $20k, we own a primary that will one day be a rental (currently appraises for $360k), and make a combined income of $110k a year.
806-685-1818
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Maranda Tucker
got it! seems like a good start to me.
0 Reply
Jeff SchemmelBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y
@Brian G. Do you have any regrets about doing this? I've had a similar thought because traditional retirement savings strategies bore me to death
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
@Maranda Tucker It's amazing how many people started out with $20-30K, or less!

When I purchased my first house I had $30K cash. I used a conventional 5% down and invested $17K into the rehab. It wasn't rocket science. It was cost effective, calculated, and I knew the property could cash-flow when I moved out.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
@Maranda Tucker You need to just do it. Drag your husband along kicking and screaming if necessary...... :-)
0 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
Quote from @Maranda Tucker:

My husband is convinced we have to be making $200k + a year before we can start investing. I KNOW that isn't the case. I have met a few that started with very little and built their empire over time.
When you first started investing, how much did you have in your pocket? How much in the bank? Would love to hear from you!

$500.
0 Reply
Jacob Zimmer
Real Estate Agent · Little Rock, AR · Member since 2021 · 1 post · 1 vote
4y
When I was 24, I was making about 50k a year and only had about 4k in the bank. I did an FHA loan and pulled about 6k out of my 401k to close on the property. I ended up house hacking and lived in it for about 15 months and doing some minor updates myself before moving and renting it out. I still rent it out to 5 years later and cash-flow about 500/month. It was a single family home, and if I could go back I would have purchased a duplex or triplex while house-hacking.
1 Reply
Matthew McKee
Real Estate Coach · Boise, ID · Member since 2022 · 177 posts · 285 votes
4y
Quote from @Maranda Tucker:

Quote from @Matthew McKee:

It’s never about how much money you make or you have saved. It’s all about mindset, society trains us to be worker bees and the tax laws are written to promote an entrepreneurial spirit. A forum could be a good source of encouragement but there’s always going to be self rooted doubt. I’d suggest patience, respect and daily implementation of information from books and podcasts. Information is the best mitigation for fear.

Agreed! I ultimately am looking to show my husband first that it is possible. All of these responses are so exciting! I have lots to refer to, however none of them flesh out the HOW.
I’m not sure there is a THE how. There are thousands of hows, that’s what’s so great about RE you can have a totally diverse portfolio under this one umbrella
0 Reply
Mordy Chaimovitz
Investor · Chicago · Member since 2022 · 128 posts · 85 votes
4y
Guess what! It doesn't matter if you are making a million dollars a day!
DONT USE IT!
Find a good deal and use OPM (other people's money) to finance your deals! Partner up with other people who want to invest passivly in your deal. Your return on investment is infinity! You didn't put down a penny!
but if you must know. I just bought 2 single family homes having no money in savings. Living paycheck to paycheck. I got a money partner that liked the deal and we are going 50/50. Both on the cash flow and the eventual equity from the sale
you can make less them minimum wage and invest in RE. And that is one of the many reasons I 💚 Real estate!
so get a move on and buy something already!
1 Reply
Maranda TuckerPro Member
OP
Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes
4y
Quote from @Mordy Chaimovitz:

Guess what! It doesn't matter if you are making a million dollars a day!
DONT USE IT!
Find a good deal and use OPM (other people's money) to finance your deals! Partner up with other people who want to invest passivly in your deal. Your return on investment is infinity! You didn't put down a penny!
but if you must know. I just bought 2 single family homes having no money in savings. Living paycheck to paycheck. I got a money partner that liked the deal and we are going 50/50. Both on the cash flow and the eventual equity from the sale
you can make less them minimum wage and invest in RE. And that is one of the many reasons I 💚 Real estate!
so get a move on and buy something already!

I couldn't agree more!! 2 SFH with no money in savings? That is awesome.
806-685-1818
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Maranda TuckerPro Member
OP
Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes
4y
Quote from @Jacob Zimmer:

When I was 24, I was making about 50k a year and only had about 4k in the bank. I did an FHA loan and pulled about 6k out of my 401k to close on the property. I ended up house hacking and lived in it for about 15 months and doing some minor updates myself before moving and renting it out. I still rent it out to 5 years later and cash-flow about 500/month. It was a single family home, and if I could go back I would have purchased a duplex or triplex while house-hacking.

Starting at 24 is so great. Wish I would have started at 24!
806-685-1818
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Maranda TuckerPro Member
OP
Property Manager · Charlotte, NC · Member since 2022 · 152 posts · 118 votes
4y
Quote from @Carlos Ptriawan:

Quote from @Maranda Tucker:

My husband is convinced we have to be making $200k + a year before we can start investing. I KNOW that isn't the case. I have met a few that started with very little and built their empire over time.
When you first started investing, how much did you have in your pocket? How much in the bank? Would love to hear from you!

$500.

Would love for you to expand on this!
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