Brooklyn, NY · Member since 2010 · 11 posts · 3 votes
I'm just starting out in real estate investing. I'm looking to invest in my local area and find team members (real estate agents, attorneys, CPAs, etc.) within my local area. Anyway, I was wondering how I can pay my team members when I don't have enough money and I don't have a job as well. I'm looking to pursue real estate investing full-time. I know that in my state, attorneys and CPAs charge hundereds of dollars per hour. Even if I negotiate the rate with them, I still won't be able to come up with the money. Are there any creative ways to solve this problem?
I think you will find it difficult to invest in real estate when you have no money and no job. What kind of investing are you looking at? You may be able to birddog for a short sale investor, or wholesaler. This has no cost associated with it, and will bring in some income and also give you experience and knowledge you can use when you're ready to go on your own. I don't want to discourage you, but think you would be better off making some money (get a job?), do your homework, and learn as much as you can before taking the leap into full-time investing.
So are you saying that it's impossible to invest in real estate without money and without a job? I'm looking to find foreclosures in my town and I'm thinking about partnering up with someone with money and credit. My goal is to buy properties and rent them out for positive cash flow.
Real estate agents are paid on commissions, so you do a deal and they will get their payment.
Attorneys and accountants will expect to be paid for their time. My accountant has sued "wannabe investors" for money that he was to be paid for his time. So, ask them whether they have some kind of payment arrangements BEFORE wasting their time.
You might consider fix and flips. That makes more sense with a partner. Buy and hold with a partner but not credit means you're wanting the partner to loan you money at bank rates or that you want them to pay cash. If they're paying all cash for a buy and hold, you're not adding much value beyond a property manager. Being into rentals with all cash isn't usually as profitable in terms of dollars returned for each dollar invested as being leveraged.
Scott is right....it's not impossible. I would say that it might be possible with no money and no job if you had the knowledge, experience and contacts. I got the impression (forgive me if I was incorrect) that you had no experience. Partner up with someone, learn and build a bankroll.
Jon, I understand what you mean. But I thought that fix and flips work in an up cycle. My city is in a down cycle just like where most cities are now. I thought that the buy and hold strategy works in a down cycle or bottom cycle.
Also, I asked some real estate agents in my area and they said that it's a bad time to use the fix and flip strategy. Most people in my town are renters.
So are you saying that it's impossible to invest in real estate without money and without a job?
Impossible? No.
Difficult? Certainly.
If you don't have cash or credit, at very least, you need to find someone who does and who will work with you...
I would agree with J Scott and others here. If you don't have money and/or an income source you will need to bring something else of equal value to the table. Why would someone with cash work with you otherwise.
You might be able to wholesale some deals or work for some real estate companies. Working for a real estate company can have the added advantage of teaching you how to do deals and some of the fine points of investing.
I agree with the other posters. It's difficult, especially if you have little experience, to work real estate investing with no money or job. A couple of suggestions:
1) Hook up with a reputable Creative Real Estate Investor's club (CREI) and you will be able to pre-qualify your team members and they will be accustomed to investors in your situation. This is how I met my attorney, CPA, and real estate agent (among others). Some will give out a limited amount of free advice.
2) I would find at least a part time job. Consider getting a job at company that will dovetail with you real estate investing. Look for entry level (secretarial, errand, etc.) positions at title companies, real estate companies that work with investors, or see if any big time RE investors are hiring. You can get paid while you learn. (btw - I have a full time job and do fix and flips and rentals and I'm revving up a short sale business as well)
3) Ask around at the CREI about whether or not flipping makes sense in your area. My area is still considered a down area but you can make money flipping houses. You just have to buy at a bigger discount and sell a bit lower than your competition.
Really good thread here. Stanley the advice given is on point. I am a newbie like yourself and I thought I wanted to come in to the business wholesaling. I figured it would allow me to build capital before moving on to other ways of investing. The more I read the more I think, not so much. The point here is that I have very good income, credit, and savings so if I change my plan and decide to start purchasing, I am in a position to do so.
You may want to get a job as well as apprentice for another investor. Get out to all you networking events and ask around. You may be able to learn the ropes while getting a small cut of the deals.
as a person who has done several "partner" deals, I have to say you need to beef up your resume to find a partner.
Right now it is:
No money
No Job
No Experience
That is not the profile of a person any smart investor wants to partner with. RE is not this easy game that anyone can get in and win (despite what the gurus say).
Work on your "resume" a bit before you try to get into real estate, IMO.
1) Educate, Educate, Educate. You can find just abolut everything you need to know to get started on this forum. Read posts follow, reply ask more questions. Ask people to be collegues.
2) Before you can build a team you need to focus on what you want to do first.
3) Read Think and Grow Rich if you need it I can send over a copy to you.
4) Pick an area to specialize in learn it, feel it, breathe it, live it.
5) Birdogging will be your best bet with no money. If you don't know what that is look it up.
6) Don't vary from the area you want to specialize in until you get good at one thing first.
7) Set your goals. That book will help you do this.
Hopefully this helps. PM for the copy of the book.