I am starting out in REI but barley any capital

Arlington, Texas
Starting Out
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I am starting out in REI but barley any capital

Ismail Sogbaike
Member since 2023 · 43 posts · 10 votes

Hello i just got started in the REI and my plan was to first obtain a duplex, but as I've been told and have learned is that i need some capital, and someone suggested i do wholesale to build some start up capital to fund my first multi family. I've heard that you dont need money to start but i find it hard to believe, what do suggest/what do you recommend is the best way to start out.

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  • Nathan Harden
    Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
    3y

    I have heard a lot of people telling others to wholesale first as well. No, it does not really require any money at all. You can drive for dollars and the only expense is gas. 

    That being said, wholesaling is not as easy as some make it out to be, especially for a REI rookie.

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You don’t need any money to start in real estate, all you need is hustle. If you can find a good deal, there are tons of investors who would pay you to sell them. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Ismail Sogbaike:

    Hello i just got started in the REI and my plan was to first obtain a duplex, but as I've been told and have learned is that i need some capital, and someone suggested i do wholesale to build some start up capital to fund my first multi family. I've heard that you dont need money to start but i find it hard to believe, what do suggest/what do you recommend is the best way to start out.


     Yes you do need money to start. There will be thousands of posts about getting 100% financing and seller financing etc. But thats great, you are under water from day 1 because what it would cost to sell AND you have no funds to pay for a major repair or carry the mortgage when it goes vacant.  you can start wholesaling but that is also not easy to do and takes money to find the leads. Again anything can be done but if you want the truth about investing in real estate and not some pep rally type response. Continue to save money and educate yourself. 

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  • Michelle BatemanPro Member
    Realtor · Kansas City, MO · Member since 2019 · 108 posts · 52 votes
    3y

    creative financing (subto deals) are going to be your best way to get in with no money down or you can house hack to as little as 3.5%! 

    [email protected]
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