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Updated almost 4 years ago on . Most recent reply

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Jeremy Powers
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What's the best way to get start up capital?

Jeremy Powers
Posted

I have decided that I want to get into real estate. Buy and hold makes the most sense to me. And if I brrrr correctly I should be able to build a nice portfolio. Then move into commercial. The only problem is I don't have any capital to get started. I'm considering learning to wholesale to get enough cash for a down payment/repairs. I also realize I could try to find a partner with money. However since I'm brand new and have lots to learn that can only be learned by experience. I don't think very many people would want to risk their money on me. I wouldn't want to if I was in their shoes. Then there's creative financing. However I feel like going the creative route would 1, require waaay more work than I would want to do, and 2 require skills of a salesman far greater than myself.

I was just wondering what someone with experience thought about building capital. Is there any ways I don't know about?

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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
Replied

The only real way to build capital is to build capital. Work for the money that will become your investing nest egg. If your job doesn't pay enough to sock away, see what else you can do or other income streams. But, in general, it's silly to think there is another way to build capital then to do it. You said yourself, why would someone partner with you right now? You don't have capital, experience or connections so you have to work to make all of those by going to local REI meetups on and offline and let time play a role. You can't rush capital or you end up paying 20 pct for it.

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