Starting out in REI with 50k

[Account Closed]

I finally have 50k put aside to begin my real estate investing journey. I have an intermediate understanding of RE and economics, but I'm quickly learning that 50k is not a whole lot to start with. In my opinion, buying one house, rehabbing it, renting it, refinancing it, and doing it all over again, is not a very efficient way to scale, especially for the amount of risk involved with this strategy. Side note: According to many Game Theory principles, once a strategy has become too popular, there is little to no arbitrage left to be had, considering risk. This conclusion has led me to turn my focus to commercial residential investing. 

Question 1: Am I wrong about the BRRRR strategy?

Question 2: Should I go back underground and save more money before getting into commercial RE? 

Thank you all in advance,

-Blake "Blezus" Reynolds 

[Christian Becker]

@Blake Reynolds

Here my opinion. Like all the rest of free advice.

Once you do a deal successfully, you can talk about it. You tell everyone what you’re doing. And suddenly people are interested in what you’re doing. People like success and they want a part of it.

I’ve read several books and tons on BP. There are people who are abundance minded and others who think everything is scarce. There are people who do things in secret because they are worried someone else is going to take a deal from them or compete. The abundance minded go out guns blazing, share their excitement, experience and knowledge. They attract others. Once you have a deal or two under your belt, you will be able to attract people who want to give you money because they want in on the action.

Step 1: do a small deal

Step 2: don’t hide, but talk about it

Step 3: you will find money sources.