Still havent made the first move and getting frustrated

[Naeem Barbour]

Hello BP family I am writing to get someone to point me in the right direction with resources. I was looking to get a hard money or private money lender to help finance a deal. I was looking to purchase a small house as low as 9k to 25k in cash in the Chicago south suburbs. The ideas that I had in mind was focus on areas like East Hazel crest, Markham, Chicago Heights, Harvey and also looking in the areas of like Gary.  I noticed that most of the properties are listed very low but need gut rehabs. Does anyone know any one willing to walk me through this process. Work numbers with me, help me find properties listed and unlisted, and point me to the right lenders. I was going to Utilize the brrr strategy. I already have about 5k saved up for what ever. What would you suggest. I have already got the typical "read books" educated responses that most people give. I already know about renatus. Im just ready to do this because I keep feeling like its getting pushed back.

[Tom Shallcross]

Hi @Naeem Barbour.  Fist off, you've got this and you need to keep pushing if you truly want to do this.  If one is interested he'll do what's convenient, but if he is committed he'll do whatever it takes (not my quote but stolen from John Assaraf)

I got started by doing private lending.  I understand that sounds counter-intuitive to lend when you're actually looking for financing.  However, if you lend your 5k to an investor, you'll not only receive a little bit of interest, but more importantly you'll get exposure to watching someone take a project front-to-end which may be the next step you need to get going.  You'll also have a deal on your resume, make some contacts....etc.  Bottom-line, it's an easy way to get in the game without much experience.  

Another avenue is to solely focus on owner-financing deals.  This will take work to hunt and the number of deals will narrow, but this eliminates the money side of the equation.  

Lastly, I'd serious look at househacking and even doing the work yourself if needed. 5k at 4% down on owner-occupied FHA loan would get you 120-125k duplex (although I wouldn't suggest maxing out your entire budget leaving you with no reserves). Even better would be a FHA 203k loan that allows you to roll in the renovation cost.  This needs to be owner-occupied which is why I recommend a househack.  

Hope that helps a little.