NO MONEY! How do I find funding for deals!?!!!

9 Replies

Sooo let's get right to it . I have no money have been studying all the no money investment strategies. But I can't seem to have any luck , started off wholesaling, didn't get a single deal . That strategy was far to competitive and border line illegal for a me as a rookie to come in and be successful. I've left that strategy alone to Focus strictly on BRRRR investing.

I know how the strategy works and have plenty of leads coming in and have basic skills on estimating rehab cost but HARD MONEY LENDERS are my problem. Every hard money lender I have spoke to wants you to either have a track record of deals you’ve done (I have none ), you to cover all the rehab( no money) and or to put a down payment on their loan to you. All of this at 15% or higher interest rates.

So to keep it simple as a newbie how do I find partners/ lenders to help fund my deal?

I'd avoid HML until you have experience because it's a sharp double edged sword. Have you considered lease options for your BRRRR strategy? How's your credit? Stick with the wholesaling strategy if it's your thing. If it was easy, every one would be doing it. Do you listen to the podcasts?

Brandon's book (see here) is the best place to start. But I would advise to try and build at least a little in savings. Low money investing is certainly doable. No money is possible, but really really hard.

Learn creative financing strategies/techniques (esp. Seller Financing & Sub2) then focus on finding MOTIVATED sellers. 

Also look for Private Money (not HM) and other sources of OPM.

@Andrew Ager find deals for those doing deals, they will pay you a finders fee. Do enough save and start doing on your own,,, KEEP IT SIMPLE !  You will not get 100% financing with zero experience , stop reading books. 

GOOD LUCK 

There are definitely ways to do this.  One would be to partner up with somebody. Maybe you would bring the deal to them or help with the remodel, etc.  The best way to find other investors is to go to your local real estate meetups.  A few hours of your time each week.  Networking pays off in the end.  Those that disagree have either never been to a meeting or sat in a corner by themselves and didn't chat with anyone. I have had a number of deals sent my way from wholesalers as well as investors that sent renters my way because my area was their ideal location to live.

If you can't find a partner there is a possibility the seller might do Seller financing. Very rare the seller will accept zero down payment.

Hard money wants to see some type of money towards the cost to protect themselves and you.

3rd possibility and it's not ideal would be to get a 2nd job to save up for 3.5% down on a house.  Yeah I know it's not no money down, but it's pretty good.  

4th you will want to make sure to have some money in savings even if you do buy something.  It's highly unlikely anything you buy will just need paint and carpet.  I have a minimum of 5k in savings for each house I buy for the unknowns.  I had a blocked sewer pipe that cost me 1k within the first year of getting the house.  Stuff happens.

The low and no money down deals do happen, but they're very difficult for a newer investor to pull off. Nobody else has really suggested it, but you need to get money. If that means just simply saving up and living below your means, than that's what you need to do. Whether that be yours or someone else's. Everyone loves gloating about getting into properties without any cash invested, but a majority of people start with some funds. REI is a capital intensive idea. Once you get to a point where you've done enough deals, you likely won't struggle with finding money. It has a way of finding you when people see your success's.

@Andrew Ager Welcome to Real Estate Investing, sorry entrepreneurship!

Your job (not the easiest, of course) is to figure out creative ways to solve these problems including finding people who have done the same thing you are trying to do. 

Listen to me, there is a barrier to entry in any business and REI is no exception.

If you stay at it long enough you are sure to WIN! 

Oh, you mentioned: "started off wholesaling, didn't get a single deal"? What does this mean? How many letters or how long did you try for?

I once remember listening to a podcast and the guest said their REI spends a $1,000,000 on marketing for wholesale leads.

What's my point? My point is how are you doing wholesaling? I mean there are many people doing it successfully, right? 

KEY: Keep learning and pace yourself (everybody wants to do a deal like yesterday, but they only started investing last week).

To conclude, this is a good website to start your journey, so linger for a bit and you never know what you might learn and who you might be able to partner with.

Hope this helps.  

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