How can I buy my first property without any of my money?

Question

HI,

I live in Tampa Bay area. Our area is fairly hot and the prices are still crazy. However, I have a business and I'm putting all of my finances into the business because we are expanding a lot and have nothing left over for RE. How can I buy my first property without any of my money? Is it ok to loan out money for a down payment? or would a partner be a better idea? Since I am putting everything into the business, I don't think I would get HELOC.

Chris Seveney · Answer

@Andrey Salamakha

Gonna be Debbie downer here but why the heck are you getting into real estate right now with no money and no time?

If you're putting everything into your business then focus on your business. Being active in real estate with no time and no money will be almost impossible to find someone to jv - as what are you bringing to the table

Sorry to be negative but just trying to give an alternative opinion that’s not all rainbows and unicorns and making sure everyone gets a participation trophy

Josh Green · Answer

Talk to @Raymond J. Rodrigues, FL expanded a great program for first time home buyers July 1, 2023.

Joseph Stern · Answer

@Andrey Salamakha partners or individuals with large retirement accounts are great people to reach out too. I have personally brought properties to these types of people and they have paid 100% for the purchase and 100% for the rehab. There are more people out there than you think that are willing to do this and help fund your deal if you have articulately detailed the numbers, why it’s a good investment, and how you can provide value such as running the project management or use your time to make up for not having capital so the partner does not have to be so involved in the project and they can make a passive return.

Doug Smith · Answer

I'm in Tampa as well. I started right before the last crash. I was working for a bank making other people money to get rich, but I was programmed because of my vocation against taking risk. Right before the crash, my employer, which I'll not name but we'll call "Walkoverya", had just made a purchase that we all knew was going to sink the bank. It gave me the courage to jump out and take a risk. I knew finance and lending inside and out, but I didn't know the construction process. My wife was in school for construction-related design, but I didn't know where to start. One of my old clients had some money and owned a title company that worked with investors. We partnered up for a few years and figured it out together. We had skill sets that were complimentary and we really learned from one another. We've had serious ups and downs in our journey and we've made a lot of mistakes along the way, but I would strongly suggest finding a partner that you can not only learn from, but one that can use a skillset that you have, to start your journey. My old partner, who has long-since retired, and I had different knowledge, skillsets, and financial positions. We really complimented one another. I would suggest finding a partner that compliments you and find a deal that is simple and safe to cut your teeth. I wish you well, neighbor.

Michael Haynes · Answer

Hello Andrey Slamakha, I had eight Rentals for 30 years in S. Tampa. I met my girlfriend at our Stock Traders Investment Club and we used her Credit with some of my Cash to buy three more fixer-uppers which we rented for ten years. We sold two of them for $100K and $195K profit just before the Covid. You could watch Carleton Sheets, "Low and No Money Down" youtube videos to get oriented.

Erik Estrada · Answer

Look into downpayment assistance programs if this is a primary residence purchase. FHA offers a DPA program.

If it is for an investment purchase, look into seller financing or partnering up with someone experienced.

Caleb Brown · Answer

I agree with @Chris Seveney. Do not try to invest with your circumstances. Sure there is ways to get in real estate with no money BUT you are growing a business now and you want to add investing on top of that? Throw in no money which is high risk and you are in a dangerous spot. Focus on stabilizing the business you are growing. Set aside money for real estate. Then when you have the time and funds to invest do so. Use the time to learn and establish a gameplan. Be patient, real estate is a long game.

Tim Bratz · Answer

Find someone who has the money but doesn't have the time. That's how you can get started. Another great idea would be spending some time educating yourself rather than jumping in and buying a property. There are people here on BP or in your network offline that can help you avoid making some of the mistakes you'll inevitably make when you're just getting started.

Eliott Elias · Answer

Partner with someone who has cash but no time. You need to be the person who can hustle and do the day to day tasks to keep the project afloat.

Andrey Salamakha · Answer

What would I look for in a RE partner?

What do I need to prepare and have ready so I don't look like a baboon?

How can I buy my first property without any of my money?

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