How much to start investing ?

[Vicky Covarrubias]

How much money do you really need to start investing ?

[James Syed]

@Vicky Covarrubias I had $100,000 when I started in 2012. I was self employed and didn't have great tax returns so wasn't able to get any kind of financing. It took me almost 4 years to buy my first investment and they were 2 duplexes.

I had horrible financing terms as my closing cost was $16,000 (two closings), had to have two appraisals, had to pay 4 points and 25% down. My interest rate was 4.5% fixed for 30 years.

My intention to write all this to tell you that even if you have sufficient cash, you must use leverage. When using leverage, you control much more real estate than all cash. Currently I hold about $500,000 of real estate and do have better financing terms now.

Hope it helps.