Starting Out - No Money

[Brady Becker]

Hey everyone,

I am getting into the game and came across the BRRRR strategy and think it is the best fit as an investment strategy for my goals. However, as I'm reading David Greene's book, I realize that to make this work, you have to buy the property in cash and finance later. I was looking to take the "no money" route and use OPM to get started. Has anyone out there still utilized the BRRRR method with a "no money" strategy, maybe by JV'ing or raising capital? Does this ruin the business model? My thought is to wholesale until I save enough money to purchase a property in full.

[Account Closed]

Quote from @Travis Timmons:

All of these are great ideas that are far easier said than done. If you have a wealthy parent or relative that trusts you and wants to help, different story. For pretty much everyone, you're going to need some money as a cash reserve. There is only one guarantee when you purchase a property - you're going to spend a bunch of money. 

Sure, you could say OPM - don't need money. Also far easier said than done. And you're going to need a track record to get a good partner or fair terms. It's just too much risk for someone else to take a chance on a newbie. 

If you want to wholesale, go for it. I'd also recommend maximizing your W2/day job opportunities. The simple fact is that real estate investing is far simpler, less stressful, and easier when you have a solid income. I'll say it. You need money and for your finances to be in order to invest in real estate. I'm local to Houston as well...feel free to shoot me a DM if you want to chat further. We've all been in your position starting out. It's hard and takes more time and patience than we want it to. I'm happy to help in any way that you think I can.

Agreed with Travis here. There are definitely ways to get creative financing done and save yourself some money up front, but it's likely unrealistic to think you can secure a deal for $0, especially when that deal is your first.