Raising Down Payment Money

PinnedDayton, Ohio
Starting Out
1yFollow

Raising Down Payment Money

Kyle Deboer
Member since 2024 · 3 posts · 46 votes

I am 18 years old with very little credit history and little capital. I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours?

39Reply
3,203 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Kyle Deboer:

I'll jump on with everyone else. The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.

You should focus on increasing earnings and learning how to manage your budget. In 1-2 years you could save enough to purchase a home to house hack. That puts you in the top 60% of Americans. Do it again two years later and you'll be in the top 10% of Americans. By the time you are 35 you could be financially independent and wealthy.

Too many Americans, particularly young Americans, want everything now. They see a 60-year-old man driving a new Corvette and don't realize that guy drove the same Honda Accord for 20 years while saving and investing. Good things take time.


The DIY Landlord Book4.7248 Reviews
WebsiteView Page
43Reply
See this reply in the discussion

65 Replies

Jump to latestLatest
  • Nathan Jensen
    Lender · Idaho, USA · Member since 2026 · 8 posts · 3 votes
    4mo

    Honestly at 18 your biggest advantage right now is time. Alot of people dont even start thinking about real estate or investing until much later.

    One thing I’d ask is whether you have any family that would potentially help you get started either through gifted funds for a down payment or even selling a property to you using a gift of equity if they have enough equity in the home already.

    I’ve seen quite a few first time buyers get into their first property with way less cash out of pocket then they originally thought because family transactions can sometimes be structured differently then a normal purchase.

    At the same time, putting your head down, building income, establishing credit, and learning the business now is still extremely valuable because strong income and good financial habits make every financing option easier later.

    Have you looked into house hacking at all yet?

    0Reply
  • Kevin Crowell
    Real Estate Professional · Mansfield, MA · Member since 2012 · 74 posts · 28 votes
    2mo

    I agree with Nathan. Save and put away your money. Real Estate is not a fast game. It is a game of patience and time. While you can make some lump sum payments when the time is right, those opportunities come along only with patience and time. Only my opinion. Good luck. 

    0Reply
  • James Driscoll
    Banker · MA · Member since 2026 · 120 posts · 31 votes
    1mo

    Nathan's advice isn't wrong, but the math gets a lot more interesting when you factor in what owner-occupied financing actually lets you do on day one. An FHA loan on a 2-4 unit property lets you put as little as 3.5% down, move into one unit, and have the rental income from the others offset most or all of your mortgage payment, sometimes more. That means you're building equity and cash flow while you save, not instead of saving. The "save for two years" timeline compresses fast when your tenants are covering your housing costs. And because you lived in the property, you get the better owner-occupied rate rather than the investor premium, which on a small multifamily can be a meaningful spread. The discipline Nathan describes still applies, you still need to manage a budget and grow income, but you're doing it from a position where your housing expense is already working for you.

    James Driscoll

    0Reply
  • Harry B.Pro Member
    Lender · New York, NY · Member since 2026 · 48 posts · 15 votes
    2w

    here's a more 'modern opinion' of a game plan at 18years old.

    Start streaming your life (lock in with twitch and youtube)

    Start wholesaling. (You will learn to swim really fast if you dive into water)

    Start originating non qm mortgage deals. -Find a mentor, tie it all together and start killing it in 90days.

    -Build your social media with your streaming clips.

    -live with your parents till 25. Stay in the basement and grind.

    "You're welcome!!" -Maui voice

    EDIT -- it's 2 years later!! Any Updates?

    [email protected]917-348-2846
    0Reply
  • Aurelio Benavidez
    Member since 2026 · 10 posts · 5 votes
    2w
    Following
    0Reply
  • Ed Craig
    Member since 2026 · 3 posts · 1 vote
    2w

    Can you partner up with someone with money, and uses sweat as your contribution?  Older people have money, but not strength.  You have strength and no money.  If you have useful repair or building skills, you may be able to partner up.  You may want to look for a job where you learn the trades.  Just know you will sweat and they will contribute nothing but money, and likely try to take advantage, so get any deal in writing.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free