NO credit. NO money at all... Can i start investing?

8 Replies

NO credit. NO money at all... Can i start investing?

Any idea how to start in this case?

What are you investing?
I guess you could invest your sweat equity or knowledge and expertise if there is a market that will pay for it.

Despite what the Gurus say it does take money to invest in real estate. It doesn't take a LOT, especially relative to the price of real estate itself but you do need some money. 

So how do you get started? Here are some ideas. All of these cost nothing to start. 

  • Learn as much as you can about the business.  You can start learning most of what you need to know for free right here on Bigger Pockets
  • Learn you market. You don't learn you market sitting behind a computer screen. you learn it by going out and looking at properties. Lots of them, and look at all kinds, listed, open houses, FSBO, auctions, wholesalers deals, other investors deals etc.
  • Start networking. Get to know the investors in your area. This is a team sport and you need connections to build you business. You can start building those contacts now. This may bring you opportunities to partner or find a mentor, until you have some money of your own.
  • Start saving and building your credit. This may not sound like the fun sexy part but the reality is no one ever builds real wealth unless they learn to live on less than they make and save and invest the rest. 
  • Do today what others won't, so tomorrow you can do what others can't

The ONLY way I know that this is possible is to locate a killer deal with a huge spread. Bring it to someone that has money and experience and negotiate a profit share with that person. It might not seem appealing to do so, but the experience will be very valuable and as stated. If the property is a great deal, the money or credit isn't an issue. Someone will jump on it. You have to walk before you run. 

Other then that, I have not met a person that has purchased, closed, rehabbed and kept 100% of the profits. If you listen to the gurus, they'll recommend upping all the limits on your credit cards, beg family for money and or sell a kidney on the black market. Anything to push you off the ledge. 

Totally agree with @Ned Carey . I started like you a couple years ago, if you have no money at all, while you adjust your life style to raise a starting capital, you have the biggest commodity on your side; "TIME". Invest it on education, networking and more education while also building your credit.

I just recently closed my first multi-family property and accomplished my first target, which was to live rent-free, leading to the opportunity to switch my 8-5 job routine at my 20's all within Puerto Rico's stressing economy, starting from the real bottom, and now have more time to expand my own business, while continue to develop my next step on REI.

Sounds easy? It is not, you'll really need commitment to educate yourself, modify your life style to raise enough starting capital, build a plan, and stick to it!

I really hope you can reach your REI goals, and ask for help with any specific questions you may have, we are all here to help and learn.

Apart from the excellent advise Ned already gave you, here are a couple suggested areas you should start to read about if you are starting from zero:
  • Personal finance
  • Building credit
  • Underlying concepts of mortgages and other financing options


Save.  Earn.  Save more. Scorched earth.  Brew your own coffee, brown bag your lunch. Christmas is a craft.  A date is frisbee in the park.  Stay out of car payments, malls and restaurants unless it's to go to your third job.  Drive a beater to your first closing with pride.  Sacrifice to change your life!

@Joel Perez    So to sum up...  1) Pay down high interest debt.  2) Educate yourself about real estate.  3) Since you like sales, you might want to consider becoming a real estate agent. 4) Network with local investors.  Get a list of people you trust, who have the funds to invest. 5) Start looking for deals.  If you find a great deal, talk to your investor friends about it.

@Michael Biggs Hi Michael, Thank you so much for your advice. I'm a book freak, more than 30 real estate books read, i'm from the Robert Kiyosaki Generation... including Dave Ramsey, Actually i get debt free following his snowball and baby steps system.

Last 55 BP podcasts and a couple BP webinars, A lot of seminars in the area... most of them ends selling their mentoring system for thousands, sometimes sounds good but i do not want to be part of the scam group that buy the course and ends doing anything.

Sales Associate, i just fail the first state exam, i re-schedule for next month, that's what i'm working really hard now.

I definitely need to start networking with investors in my area, that is the main reason of this profile, scouting around here.

This journey have already 2 years and no results. I will keep working on this, is my dream. But the truth, sometimes i get a bit frustrated. I Think my 9 to 5 is draining me so much... I don't know but something wrong i'm doing and i will found it.

Best Regards,

Joel Perez

If you have been at this for two years and still have not saved up any money or improved your credit you are defiantly doing something wrong. First thing you need to figure out is what is it about your life style that is holding you back.

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