How do I start with some cash but no job?

Question

I'm a full time student from Austin, Texas with the coming summer and fall semesters left in school. I've been telling myself I can't start investing in real estate until I graduate and get a job but now I know it's probably a matter of "How can I.." rather than "I can't until.."

A BRRRR or flip would be great for my first project. I'm familiar with the steps and processes for both but not sure how i could fund my first deal with 25K cash, about 700 credit score, no income or job, no leverage-able assets and no experience yet (and ideally get my cash back out quickly.)

Any tips or ideas would be greatly appreciated!

Anthony Dadlani · Answer

@Alex Yang

I agree with @Rachel H.

You will need to start hunting for a great deal and then either wholesale it out or bring in a capital partner for you to fix and flip. Most capital partners such as us like to see a project manager have some skin in the game in a typical joint venture. It is certainly possible. $25,000 should be enough to do a quick cosmetic remodel. ￼￼

Best of luck in all your endeavors.

Rachel H. · Answer

@Alex Yang You may want to start out by finding deals for other investors. This is the way I started out by first becoming a bird dog and then transitioning into a wholesaler. This is a good way to build up cash. If you have time to find deals for other investors, you should get paid well and help others in return. Once you have enough cash, then you can look into buying and holding. You may want to attend your local real estate investment club to start networking. Figure out who the key players are in your area. Strike up a relationship and see if you can learn from them but also work with them at the same time. Hope that helps. Best of luck!

Whitney Hutten · Answer

@Alex Yang I'd work on getting a job in the real estate arena OR a high-paying field like tech (lenders like W-2 employees right now).  Then I'd figure out a way to do a house-hack as my first investment (small multi preferably, but you could do an SFR) and get a co-signer.  Then get roommates or renters to pay down the mortgage and live for free.  I'd save all of the money I would spend on housing for my next deals. Then do it all over again a couple of times while I'm young with no kids or spouse. With time, my renters will have paid down the current mortgage, fueled your savings for the down payments on future deals, and allowed you to live for free or almost free.

Anna Laud · Answer

Hi Alex,

I think using cash or any credit is a huge mistake, instead I would just make friends and see how you can help them.  For example I have a bird dog your age who texts/calls sellers and if they want to do a lease option he does a three way call with me or another investor and we pay him sometimes $200 - $300.  So far he is making an extra $1,000 or so a week working less than an hour at MOST lol.

Love on people just get to know them the biggest thing I tell people your age (I'm a teacher) is that if you aren't in love with what you are doing, do something else but in the meantime make friends and just help them in some way because that skill will transfer to other things.

Hope that helps.  Thanks!

Rachel H. · Answer

Yes, you can start by networking with other investors who do business in the areas you do business in. They can be found through your local real estate investment clubs and also by calling on the for sale and for rent signs in those areas. When you drive neighborhoods, any homes and/or properties where contractors are working on them may be potential owners for other real estate investors. If you approach them as someone who may have a leads and opportunities in the area, most would be willing to take a look at any deals that come your way. From there, it's just a matter of staying in touch and building relationships.

Hope that helps!

Anthony Dadlani · Answer

@Gabe Rivera

yes.  Would love to have a conversation with you about your experiences and business. Please feel free to reach out to me and schedule a call. Best of luck in all your endeavors.

Gabe Rivera · Answer

@Anthony Dadlani

Do you invest in fix and flips for investors? What would you consider good skin in the game for a newbie investor?

Gabe Rivera · Answer

@Rachel H.

Hey how do you start out looking for deals for investors? Birding dogging as you phrase it? I’m constantly finding good deals on flip properties but I don’t have the capital to move on them. If there’s a way to learn how to forward that information to an investor for profit I’d like to know how that process works. Thanks!

Anthony Dadlani · Answer

@Alex Yang

I actually mean a private investor...Friends , family, a mentor.

Would love to have a conversation with you about your experiences and business. Please feel free to reach out to me and schedule a call. Best of luck in all your endeavors.

Alex Yang · Answer

@Whitney Hutten Thanks for your input. That has exactly been my plan but I got this feeling that I was making excuses by waiting when there may be another way to start now. Thought I'd entertain possibilities available sooner.

How do I start with some cash but no job?

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