Starting out with only 15k

[Rick Fonseca]

Alright, here is the deal. I am a newbie when it comes to this business. I do however own a business since 2004. My question to all experienced investors is "If you had at your disposal 15k when starting out how would you begin this business?

I would appreciate all the advice that you can send my way..

[Nik S.]

Depends what your goals are? Do you want to be a landlord, do you want to wholesale, do you wan to syndicate deals? Looking for partners?

Some would say $15k is a downpayment to their first Single Family Home rental property. Finance the house, pay the note, do the repairs yourself and cash flow the rest.

Answer can vary like crazy!

[Jordan Thibodeau]

HI @Rick Fonseca 

I'm a noobie, but as for now, I would stick to buy and hold real estate. I enjoy owning the asset and not having to work through numerous leads on a daily basis. Also, I enjoy having the ability to create systems which help to maintain the properties without my constant input.

As for yourself:

1. Determine how much time you have available for real estate.

2. Determine which type of investing interests you the most.

3. Listen to podcasts about that type of real estate investing.

Best of luck.

[Shawn Mcenteer]

@Rick Fonseca my advice to you is make a habit of coming onto BP and reading articles, making posts and listening to pod casts.  This will allow for you to find your niche and get a good idea of what it is you would like to invest in.  For members to tell you what is best to do with $15k is tough because it will vary to what you enjoy and where you see yourself. 

[Rick Fonseca]

I will be focusing in fix and flipping. I have a lot of free time that I can devote to this career. I have read quite a bit here in BP and listened to a few of the podcasts and I decided to go with this particular type of investing. Before I found BP I really had no idea which to pursue. I was surprised to read all the ways to make money in Real Estate.. 

The only issue the I have and from what I see almost everyone has, is lack of funds.

Thanks for the tips

[Shawn Mcenteer]

@Rick Fonseca i suggest you start with figuring out your lending. Talk to whomever you plan to get your money from to fund deal. I suggest this as your first step because it could take a while pending on credit and/or finding the right lender. I would also start searching for a good investor friendly realtor, he or she should be able to help complete your team. A good REI agent will be able to recommend: lending, title, inspectors, attorney, and most important of all a profitable property. Take the realtor search serious, talk to many and listen to recommendation. I suggest you ask BP members who they use in your area. Once you get lending and an agent situated continue building your team and start getting into properties to see what is happening your market.

[Chris K.]

Yea you'll definitely have to come up with more funds if you wanna go the fix/flip route. If that's what you want to do maybe start by wholesaling, when you find a deal for a buyer talk to them and ask them if you can be involved in their fix and flip to learn the process. You can make a few dollars and learn while you go.

[Account Closed]

Hi @Rick Fonseca

Great advice on this thread. Most goes back to education. Keep learning, and figure out what you want to focus on, picket the market, build the time, do the deal.  Simple, but getting there can be a challenge. Good luck!

[Gordon Cuffe]

buy a rental property in the Kansas city or st Louis area. own the rental free and clear with the 15k. put the rental income into your savings account. One you have 15k saved up again then repeat.

[Dan Dwyer]

Hard to say! your skill sets, what you like to do, and what you will commit to are very important. Can you do the fix flip work yourself or at least some of it, are you a realtor and handle the transaction and save on commissions and on and on

so maybe get a partner with a different skill set or a lender. Look for deals, if your going to fix and flip you always need contingency money and don't forget about carrying costs 

[Michael Wentzel]

@Rick Fonseca Welcome to Bigger Pockets! Lots of good advice here. Read the BP Beginners guide and do plenty of reading on the forums. I would also listen to some BP podcasts and some other Real Estate podcasts. Get to know your possibilities.

Then get off your butt and start investigating a market. Meet with 2-3 Realtors, 2-3 Property Managers and 2-3 Lenders. That should help you get to know a market, start building a team and know you lending options.

$15,000 cash gives you some options, depending on your job and your credit. I personally would look at buying an owner occupied multi-family or a non-owner occupied single-family.

Mike

[Rick Fonseca]

Thank you for your great advice. I have taken to heart all of this information provided here in BP along with all of the advice given here by all of you.

I decided to go into rehabbing homes because that fits more my style plus I like the challenge of taking an ugly house and making it better for everyone involved

I want to tell you that I have known a Real Estate agent and he is like a faraway friend, (you know a friend of a friends but he's also your friend but not close) So anyway, to my surprise he has been finding homes and assisting some rehabbers in my neck of the woods. I have partnered up with him and we have placed an offer on a single family home.

I am anxious and excited, I hope that our offer is accepted. I am probably going to drive my partner crazy just waiting for a response.

I will let you know as soon as I get an update..