How Creative Can We Be?

Question

Hi Guy,

I'm new here, but you'll be seeing a lot of me from here on out.

What's fascinating about real estate investing is the investor ability to be creative and make money/fund a deal. I am trying to put my mindset in a stance of "how can i make this work" instead of "this won't work, insert limiting belief"

I'm the typical newbie investor, spent most my money trying to create a social media following. Have websites up, doing direct marketing campaigns and internet marketing w/ PPC, and spending money on education; real estate agent course, a lot of books (also bigger pockets books).

Wholesaling in Baltimore is competitive and it'll take time to rank well on google and my website is optimized but young. I don't care for wholesaling and it's not my ultimate goal but seems to be a necessity at the moment (no money not much credit.) My question is, I'm looking to purchase an multi-unit family deal w/ FHA Loan. Are there any savvy investors that can offer advice on what you'd in a situation like this? I don't even have enough to make a down payment on FHA loan. I'm looking into private money but I'm trying figure out if there is a way to make it work without private money.

Ned Carey · Answer

@Ellis Thurman Jr welcome to BP. Three is a great community of investors in Baltimore. Many are active here on BP and many here you will also see at some of the local investment clubs.

Regarding the deal, You have three main options if you don't have your own money

• A private lender
• Some owner assisted financing
• A partner.

I love your attitude "how can I make it work". Realistically though a no money down deal is tough to pull off, especially when it is your first deal. More importantly it may not be the best idea even if you can pull it off. If you have no reserves, with a fully financed property, one small thing going wrong can cause your first deal to be a disaster.

Karl B. · Answer

Hi, Ellis. One thing you can do is find a successful local investor (on BP or at a local real estate meetup) and offer him/her value (show their rentals to potential tenants, offer to find them deals, etc).

In return, they'll likely share insight, information, experience, etc. with you. And this will form a relationship.

When this happens you can ask them if they'd be willing to fund a deal/enter a deal with you (after you find a great deal). Tell them you'll manage the property as well. Chances are if you've given them value and they trust you, they'll be open to the idea.

Ned Carey · Answer

@Ellis Thurman Jr I am guessing it was Nichole Amunson that spoke. She owns a ton of units and is both smart and experienced.

Ellis Thurman Jr · Answer

Thanks for the feedback guys,

@Karl B.

That’s what I’m current working on now. I purchased an audio book from a bp author that mentioned exactly the same thing. Seeing that I have my website up with up and accumulated about a dozen and a half cash buyers, I’d offer them buyers and act as a bird dog until I can actually get a deal under contract.

I’m currently in real estate agent school as well so I will also be able to get accurate comps as well.

@Ned Carey

I attended an REIA meeting at the Sheraton in Towson and the speaker there (a commercial real estate investor) advise the same when purchasing commercial properties. One mistake in due diligence and no reserve is a possible recipe for disaster.

Playing the Long game fellas. I’d like my circumstances to allow for some creativity. However I’ll respect the process.

Thanks again for the imput.

Ellis Thurman Jr · Answer

@Ned Carey

Yes. That's who it was.

How Creative Can We Be?

How Creative Can We Be?

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