How to invest without having enough money to start off

[Raul Alvarado]

Hello biggerpocket, I’m from CT and I’m new to investing and would like some more information on starting off without having more than 4K to start with. Any ideas upon where I could come up with creative financing to sucursal these deals? I’m already connected with a Realtor and a hard money lender. Suggestions?

[Justin Koehn]

Hi @Raul Alvarado and welcome to BIgger Pockets. I think if we knew more about your situation, it would be a little easier to give useful advice. For instance, what do you do for work? Income? Skills? experience? Etc. 

If you only have $4k right now, most people will tell you to start saving agressively. My wife and I bought a house on a teacher's salary 5 years ago that we used as a live-in flip and profited $100k. But, we had to have enough money for the down payment, closing costs, and renovation. We put all of our tax returns and any other money we made toward it - about $26k in total. However, we looked for a long time for that deal, and I think it was the last one on the MLS in our area that has been available since then.

The very word "invest" implies that you are putting something in and expecting a return. If you don't have money to put in, do you have time? Knowledge? You have to have something. You can educate yourself here and by helping other investors until you are a point where you do have knowledge and understanding to add to a deal, even if you don't have money. I would be very hesitant to blow any money on wholesaling at this point in time. There are A LOT of people doing it, few successfully. I would save your money, read lots of books, listen to all the BP podcasts, drive for dollars, network with local investors and ask them how you can serve them (for FREE - you want to be paid in experience and information). 

You are in the right place, but there is a lot to learn. Most people around here probably got their start in some form of house hacking because it takes less money to get in with. Read up on this. Good luck!