Property Manager · Austin, TX · Member since 2019 · 6 posts · 1 vote
Hi everyone! I’m new to the real estate world and have a lot of questions. I’ve been looking into wholesaling as a way to start, but even though I’ve read forums and discussions about the steps to start, I feel like I need more direction when it comes to beginning this process.
I have about $7,500 right now, so not much money. I graduated in 2017 and am now starting my Master’s degree in social work, so since I’m going into this degree understanding I won’t be making a large salary in my career, I want to find a way to supplement my salary through getting into real estate investing. Does anyone have any advice for how to start off with such a small amount of cash? I’ve been hearing a lot about wholesaling lately and thought this might be the way to go.
Also, if anyone is reading this who has experience and is in the Portland, Maine area, I would love to meet if you’re willing to offer some guidance. Thank you!
Real Estate Agent · Augusta, ME · Member since 2018 · 24 posts · 37 votes
7y
Hi @Annalise Kingston. And welcome to the real estate investing. My wife and I purchased our first property a little over about a year and a half ago for less than $10,000 down using a 3.5% down FHA loan. That property now cash flows about $700 a month for us. There are many markets here in Maine where $7,500 is enough to get started with. We would be happy to meet with you to share some of our experiences, and tips.
Investor · Bath, ME · Member since 2017 · 97 posts · 29 votes
7y
Welcome @Annalise Kingston! It’s always good to see a fellow Mainer on here.
I can’t offer much in way of wholesaling advice. I had considered it, but ultimately decided it wasn’t the route I wanted to take.
I would like to find a local wholesaler in the state though. Every online search seems to yield huge national companies that aren’t really based out of MAINE.
I think one reason you won’t find many is because most areas are too rural. Wholesalers and flippers (the wholesalers biggest buyers) want to sell quick. There just aren’t enough people in most small MAINE towns to support wholesaling.
I hope I’m wrong though. Maybe it’s a great wholesaling market and there are a bunch of wholesalers operating right under my nose.
Property Manager · Austin, TX · Member since 2019 · 6 posts · 1 vote
7y
@Charlie MacPherson@John West Thanks for both of your replies! Charlie, I'm glad you came on and said that before I started looking into it further! I will likely be moving to another state next year, probably North Carolina. Assuming it's legal in whatever state I go to next, do you think it's a good idea to get involved, or is time better spent elsewhere?
For now, if wholesaling is not possible, do you two have any recommendations as to how to start getting involved in real estate with only a small amount of cash on hand? Whenever I read a forum, I feel like the first step is along the lines of "start building connections" and "find a lender," but I don't even know where would be the best place to start looking.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Annalise Kingston People wholesale all the time, legal or not. My recommendation is that you read the law for yourself. Then decide whether you want to operate illegally and hope you don't get caught by the state or sued by family members after grandma sells at a huge discount.
I like fix & flip investing. The difference is that a rehabber actually adds value by repairing dilapidated properties.
So with limited cash, I'd look to partner with a flipper and gain experience there.
Investor · Biddeford, ME · Member since 2015 · 14 posts · 4 votes
7y
Hi @Annalise Kingston. Welcome to real estate investing. It's an exciting world in which you can create value for others and solve problems. I invest in quite a bit of real estate. There's a dynamic group of active investors (with all experience levels) that meet in Portland. I think that might be a great next step for you, to talk with a number of other investors and learn different opportunities for you to get involved. PM for details regarding date and time. I'd love to have you as my guest.
Flipper/Rehabber · Charlotte, NC · Member since 2019 · 19 posts · 10 votes
7y
@Annalise Kingston Let me know if you land anywhere close to Charlotte! My wife and I just spent our last anniversary weekend in Portland, ME and LOVED it. I have no idea why you would ever leave!
Real Estate Agent · Augusta, ME · Member since 2018 · 24 posts · 37 votes
7y
Hi @Annalise Kingston. And welcome to the real estate investing. My wife and I purchased our first property a little over about a year and a half ago for less than $10,000 down using a 3.5% down FHA loan. That property now cash flows about $700 a month for us. There are many markets here in Maine where $7,500 is enough to get started with. We would be happy to meet with you to share some of our experiences, and tips.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
If you are moving what about buying a small SFH now with a low DP, live in it for the year you stay and then turn it into a rental when you leave. Buy something that needs work, fix it up for the year and then have some rental income from the house after you move.
Rental Property Investor · ME · Member since 2018 · 179 posts · 59 votes
7y
depending on definition or use of word wholesale???
i know 2 guys did free pre "foreclosure counseling 15 yrs ago "
we buy your home types, who essentially were buying from owners at cost b4 banks got involved or at even if involved on the "last chance get current" , they rescued lot homeowners, and got good low priced deals, structured them with fringe Benefits like had pay off sellers car once, or credit card, but got the property cheap, fixed up rented or listed it, or re rent own it back to previous owner, and this went on for 7 yrs till state found out made them stop, broke em up, now one had get broker licensed, one is prop managment co, etc.
Specialist · Carlsbad, CA · Member since 2018 · 1k+ posts · 638 votes
7y
@Annalise Kingston Real Estate investing is a great way to supplement your income, however, it won't be easy.
I see some people have already made it clear to you that unlicensed wholesaling is not legal in all states. You must definitely consult your local laws before getting started. Many people will tell you that they wholesale in that area all the time facing no consequences, but, they may simply have great connections or have plenty of experience. If you make the wrong moves you might get yourself in serious trouble.
If you can't wholesale you could try and find a partner to buy and flip houses with. Your best bet, for now, is to keep saving up until you have enough financial security to buy a house which you can flip yourself. During this time you could also try to keep learning about the trade to prepare yourself for future deals.
Attend your local REIA meetings. This can be a great experience nobody should miss out on. You get to learn a lot of new things and you get to network with many different people. More often than not you may end up making valuable connections at these meetings.
Rental Property Investor · NY MA CT VT MT, MO · Member since 2015 · 200 posts · 116 votes
7y
HI, @Annalise Kingston, these are great ideas all... If I were you, I like the idea of hacking a property, meaning use your $7500 to buy a Single Family home via FHA, or preferably an owner occupied 2, 3 or 4 plex to live in, hopefully at a reduced price , that might need some amount of (not too extensive) work, if you have the time and gumption to gain some sweat equity over the next year. Then keep it as a rental when you move. The crucial thing in this, however, is to make sure you have an EXCELLENT property manager in your area to manage it when you are gone. I've bought a lot of out of state properties, and there's no way I would consider a long distance investment without being ABSOLUTELY sure you have the perfect property manager. Trust me, I've learned this lesson more times than I care to admit.
And get your real estate license. You learn so much about Real Estate and gain confidence in investing. There is no better investment than real estate. You have chosen the right vehicle, now learn all you can about it, and getting licensed in your state is an excellent way to move ahead. You might even decide to do sales part time to complement the vast riches you will receive as a social worker.
Good luck! And make it your life's mission, other than saving the world, to listen to every BP podcast... it's like a PhD in Real Estate investing, truly. You could listen to 10 or more of them every time to drive to Carolina. And they are honestly really fascinating and thought provoking.
Hi @Annalise Kingston. Welcome to real estate investing. It's an exciting world in which you can create value for others and solve problems. I invest in quite a bit of real estate. There's a dynamic group of active investors (with all experience levels) that meet in Portland. I think that might be a great next step for you, to talk with a number of other investors and learn different opportunities for you to get involved. PM for details regarding date and time. I'd love to have you as my guest.
Can you send me more details on this meeting, sounds like something I would like to attend.