Good Opportunity but not Money to start investing?

20 Replies

Found a good Opportunity but have not $$$ to start any advice would help?

Possible cash flow of about $225 + for a SFR.

Its a foreclosure purchase. 

@Jose Tamayo Jr

Wholesale deals to other investors until you build up enough to start buying yourself.

I have heard of wholesale but don't really know what that actually means? @micah copeland?

Get the property under contract, make sure it is assumable and sell your rights to the contract to another investor at a higher price that still makes it a good deal for them. 

@Jose Tamayo Jr

Find a local, seasoned investor to help you acquire and exit the property or risk losing a deal because you're not yet prepared to step into the arena. A deal with no money will not do you any good.  A deal with a partner, partner's money, partner's skills/knowledge, etc., will make you money at the same time you're learning.

Thank you @Guy Gimenez, So what would I have to offer the seasoned investor or how would we become partners? Say I could find that investor, God knows how I would do it? LOL, but lets say i have him interested? Do I then show him the #s and have him finance the 20%? and we split the profit for 50 50??? 

BTW thanks for the reply... any help is truly appreciated. 

Look into some books there are several good one's on amazon if you key word 'wholesale'. I would also look to join your local REIA to start building a network of investors to pitch deals to.

@Jose Tamayo Jr here's the thing - the economy works on self-interest. No getting around that. Appeal to a mentor's self-interest.

Next thing I want you to consider doing is asking yourself if you are honestly being as resourceful as you could be. Could you read some books, takes some courses, network with friends and family to get this deal done? Could you get your deal closed if your life depended on it?

If you said "yes" then I think you stand a chance at winning the hustle game.

Best to you - you have what it take already inside you! It's Figureoutable.

Originally posted by @Jose Tamayo Jr :

Found a good Opportunity but have not $$$ to start any advice would help?

Possible cash flow of about $225 + for a SFR.

Its a foreclosure purchase. 

 I would concentrate on the numbers of the deal.  Cost and income potential.  If you can get the house under contract in an assignable manner and it is actually a good deal you will get it sold.  

If where you live $225 cash flow is a good deal you need to move to Houston Texas.

Originally posted by @Jose Tamayo Jr :

Thank you @Guy Gimenez, So what would I have to offer the seasoned investor or how would we become partners? Say I could find that investor, God knows how I would do it? LOL, but lets say i have him interested? Do I then show him the #s and have him finance the 20%? and we split the profit for 50 50??? 

BTW thanks for the reply... any help is truly appreciated. 

 Generally, you would market for deals and bring those deals to a seasoned investor which certainly adds value to that investor's business.  Marketing is expensive and is a moving target, so placing a deal in the lap of an active investor is very appealing as he/she can make a profit without incurring marketing costs and time. 

If you haven't done so already, start attending every local REI MeetUp group and learn to network like a fool. Offer to help other investors in any way possible in exchange for the investor sharing his/her knowledge. This business is built on relationships.

Every deal is different. If one of my partner investors has no experience, knowledge, skills and no rolodex of buyers, contractors, etc., then it may not be a 50/50 split. I often do a 75/25 for the first few deals UNLESS I don't have to put money in the deal and it's a quick acquisition and exit, in which case 50/50 will generally work.  

You won't make the bulk of the money until you bring the bulk of the necessary skills and money to the deal. Remember, education is expensive, so don't get greedy when you have an opportunity to learn from a well seasoned investor who can decrease your learning curve dramatically. It's always easier to learn from other's mistakes instead of your own.

@Jose Tamayo Jr

Hi Jose,

It is great news to hear that you are finding investing opportunities!  Real estate investing offers fantastic opportunities for any person to make money in real estate.  Many different strategies for acquiring property can be researched here on BP.  Wholesaling property is one option many people use to acquire capital for purchasing real estate.  Truly it does "take money to make money", but the amount of money is open for discussion.

If money to invest in real estate was not an initial stumbling block, what area of real estate investing would be your target?  Have you made plans to start your investment business? I'd love to hear about interests in real estate investing.  There are always options to do the things you want to do.  

Thank you for everyone that took time out of their day to write a comment on my post. Any information is good :) Im truly learning a lot of new techniques and doing research the Wholesaling currently @Skylar Dejesus any books you could recommend?

@Al Williamson The current skill that I have to offer any Investor interested is that I am an Architectural Drafter and work from home my company is T.D.S. (Tamayo Drafting Services) so if anyone where to need any floor plans for additions and remodels well I could help with that. I also know a lot of people in the construction field in the Ventura County... Thank you and I sure hope I have what it takes? I will order the book on Amazon soon.

@Cliff Odom What is the ROI in textas? And Im a newbie so I think that that is a good start for me? not sure what positive cash flow works in your are?

@Guy Gimenez I don't have any investors in my list, So I do have to attend the REI meetings and start putting my networking skills to work. I did a simple google searched For "REI Meetings near Moorpark, CA 93021" and found one in Simi Valley my neighboring city. Thanks for the Advice I will be attending the next one in my area.

As for my 50 50 suggestion it was just a question without any knowledge of how that deal would work. I would like to have the money and skills to bring forth to my future investors, this is why I am here and learning as much as I can.

@Victoria Winters I would love to make money with as little money coming from my pockets for a greater ROI. right now my interests in the real estate industry is simple. Learn, Learn, and oh yeah learn.

Eventually at one point I will be a full time Real Estate Investor and retire my wife at first then retire my self.

Business Plan:

Keep my day job (Architectural Drafter / Project Manager at an Architect & Construction company) Start in Wholesaling (Part Time) to build my knowledge of  finding the deals and create my network of investors, contractors, property managers, etc... and absorb my self in my market.

Move to purchasing my own great deal and having a few wholesalers in my network to provide me further leads. still keeping my day job... Of course I want to pass my RE Test and get my license...

Eventually en up as a full time REI...

This is as much as I have for my business plan "please don't laugh" this may be brad and yet not fine tuned but its a start for me and a great dream of mine.

What do you guys thing? any advice?

Thanks again for taking the time to posting comments...

Hi Jose,

Welcome to the BP community. The best thing about this platform is connecting with the people, who have the experience. I'm an investor, licences agent, and in the same local area. If you'd like, I can go over the numbers with you to see if it is a great deal. If it turns out to be so, I can refer you to a wholesale buyer. 

I agree with the thread, if I were in your situation, I wouldn't evaluate and try to purchase a property for the cash flow, instead, I'd try to get it into contract for a wholesale deal until I'm able to build capital, have a partner with capital, or have a very motivated seller who'd be interested in financing it for me. Hope this helps. 

Tim Soto, Real Estate Agent in CA (#01822648)

@Jose Tamayo Jr

There is also a Ventura County REIA that meets every month at the Mimi's Café in Thousand Oaks. I have been to a few REIAs in different areas of Southern California and that is definitely my favorite one. All discussion and no sales pitches during the meetings, plus open networking at the end. You can find it on Meetup.com. Or if you PM me, I can send you the direct link.

Hey Jose! Give me a call and lets see if we can help you out. We wholesale in Westlake Village and Ventura and Santa Barbara counties.

Annette Duke 

Property Holdings

877-677-7080

Originally posted by @Victoria Winters :

@Jose Tamayo Jr

Hi Jose,

It is great news to hear that you are finding investing opportunities!  Real estate investing offers fantastic opportunities for any person to make money in real estate.  Many different strategies for acquiring property can be researched here on BP.  Wholesaling property is one option many people use to acquire capital for purchasing real estate.  Truly it does "take money to make money", but the amount of money is open for discussion.

If money to invest in real estate was not an initial stumbling block, what area of real estate investing would be your target?  Have you made plans to start your investment business? I'd love to hear about interests in real estate investing.  There are always options to do the things you want to do.  

 Great Advice Victoria!

Hey Jose, don't let not having money get in your way. I'm in the process of buying my first multi family with no money and 100% loan. In my case I'm able to pledge some equity from my primary residence as my down so I can get it. The bank is willing because it's a good deal. If it's a good deal someone will be willing if you find them.

Write up the terms of the deal here and see if it generates interest.

@Aaron Davis, wow thats awesome man.

Well I am trying to re-finance my current loan on my mobile home to invest on my 1st multi family. But the lenders do not do a cash out refinance on mobile homes older than 20years.

If anyone would help me out on re-financing my current Loan? please message me.

I bought my house 10-17-14 for $76,000 

its currently valued at about $100,000 to $120,000...

Current loan terms:

Purchase Price of ($76,000  ($29,000 Down Payment + Closing costs))

Loan Amount $47,000 / Term; 20 years / Interest rate: 10.75% / Payment: $477.16

Would like to refinance and cash out to:

Loan Amount $74,500 / Term; 20 years / Interest rate: 5.0% / Payment: $491.67

(2,500 will be used for closing costs)

($25,000 cash out to invest)

($47,000 Original loan amount)

IF anyone is interested or knows of any Mobile home refinance programs?

IF Cash out is not an option i can simply Re-finance for :

Loan Amount $47,895 / Term; 11 years / Interest rate: 5.0% / Payment: $472.46

(1,395 will be used for closing costs)

($46,500 Original loan amount)

@cornelius charles  thank you I will PM you and hope to go to the next one.

@tim soto the REO is already peding so no longer an opportunity but I will for sure sen the next one your way. Where are you based out of and is it okat if I can PM you?