$15,000 to invest with Absolutely NO Credit, Please Help.

Buying & Selling Real Estate
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$15,000 to invest with Absolutely NO Credit, Please Help.

Michael Rivera
Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes

I have about $15,000 to work with but absolutely NO CREDIT or stable income. I'm 19 years old with NO Collateral as well.

What's a young man to do in this situation? Please help. Its would be greatly appreciated.

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y

@Michael Rivera nobody can answer this:

Any answer you get is just a guess. Past appreciation has little to do with the future. Many, many factors affect this, some local, some national, most unpredictable. IMHO, you shouldn't even factor it into your decisions.

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  • Cameron Ellis
    Investor · Memphis, TN · Member since 2013 · 171 posts · 49 votes
    12y

    seller finance; you can pick a property up in Memphis for 15k; or build your credit with about 1k of that

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    I've really been thinking of Memphis I connected with a few members on here about that market and got a couple Zip codes for decent areas.

    Do you know much the property appreciates annually?

    Thanks for your time!

    0Reply
  • Cameron Ellis
    Investor · Memphis, TN · Member since 2013 · 171 posts · 49 votes
    12y

    all depends on where the property is located .

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    @Michael Rivera nobody can answer this:

    Any answer you get is just a guess. Past appreciation has little to do with the future. Many, many factors affect this, some local, some national, most unpredictable. IMHO, you shouldn't even factor it into your decisions.

    1Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Oh okay. Thanks for clarifying that for me @Jon Holdman. I'm just trying to learn this ins and outs, Because 15k isn't a lot to work with and the last thing I want is to screw it up. Your advice is greatly appreciated.

    Yours to Cameron!

    0Reply
  • Andrew S.
    Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
    12y

    The other thing to think about @Michael Rivera is cash reserves. With "no credit and no reliable income", you will be bankrupt before the deal is even done, if you plan on spending that entire 15k on a rental property. What if you have a water heater break, or if the tenant decides to quit paying rent, or, or, or? It's way too risky to commit all your money without any sort of backup plan. In MY opinion, anyway.

    1Reply
  • Matt Morgan
    Residential Agent And Investor · Scottsdale, AZ · Member since 2013 · 212 posts · 83 votes
    12y

    What are you doing to build your credit? I would recommend getting a credit card, maybe two. Keep a small balance on it, but lower than 9% of the limit. If you have family or friends with credit cards in good standing, they can add you as authorized users which will help substantially.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thanks Matt I've been looking for a job to have stable income but the job market in NYC is extremely difficult I haven't been getting any calls back. Do you think I can get a credit card being unemployed?

    0Reply
  • Matt Morgan
    Residential Agent And Investor · Scottsdale, AZ · Member since 2013 · 212 posts · 83 votes
    12y

    Ya I don't think you should have an issue. Typically they just ask you about your monthly income on credit apps. There isn't any verification involved.

    I would add make sure you are using the cards for credit building, NOT spending money you don't have. If you do that, you'll be putting an end to your real estate investment career before it begins.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thanks Matt your advice is greatly appreciated. I so determined and desperate to begin already I've been studying for a year not its time to take action.

    0Reply
  • Shequann Burrwell
    Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes
    12y

    I would say put it in a flip and build more capital. of course to do that you would need a partner to fund most of the deal and will need to find a excellent flip that is in a hot market to sell fast to recoup your money and do it over again. that hardest part will be finding a financing partner to fund most of the flip and negotiating what your percentage would be with your $15000.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thanks a million Shequann I was thinking about going that route. Its seems like one of my only true options on strengthening my experience and bank account. I see your from upstate and homes are significantly cheaper than in the 5 boroughs. Is that something that can be done in your area?

    0Reply
  • Brant Richardson
    Investor · Santa Barbara, CA · Member since 2013 · 658 posts · 315 votes
    12y

    Build your credit. Invest in your education. Become a licensed realtor. Now you have a job and steady income to build capital, a lot more knowledge about real estate and you have access to the MLS to find deals.

    0Reply
  • Darrin CareyPro Member
    Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
    12y

    @Michael Rivera

    1. Build your credit

    2. Wholesale first, rehab later.

    3. Network and Learn. There are good REIAs in NY.

    1Reply
  • David Beard
    Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
    12y

    You could certainly start out wholesaling using double-closes and assignments, as you have enough funding to sustain a reasonable marketing budget for the 6 mths or so it'll likely take to get your deal flow going (allocating $1k/mth, for example). You can optionally sign up for support from a successful investor and non-guru mentor like Braden at www.warriorwholesaler.com (not connected to Braden, just impressed with an interview I heard), or a mentor in your local market.

    You could also work as a commissioned sales agent for a real estate company with a wholesaling business, to learn the ropes within a proven system. There are at least four companies like that in Cincinnati, for example, so I'm sure there are plenty of opportunities like this in your area as well.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thank you so much for your input guys its greatly appreciated.

    I joined a wholesale course for 1000 bucks but just lost my money and learned absolutely NOTHING. Ive never met anyone in real life who has succesfully wholesaled a home. How can I realistically get this done?

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    12y

    What wholesaling course was it?

    Curt Davis - KAIZEN Realty538 Reviews
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  • Melodee Lucido
    Real Estate Investor · OR · Member since 2012 · 390 posts · 133 votes
    12y

    There are many that throw money away in the beginning of their crei business. It may be that you actually did learn something and you will discover what it is as you get in action and start doing the biz.

    I agree with starting with wholesaling. I am surprised that you say you don't know anyone that has had success wholesaling. I just quit my job 2 months ago because of wholesaling : >

    Study here and go do it. Ask questions and go do it. Read the beginners guide and go do it. If you really want it you will make it happen.

    And as for the $15k I'd save it until you have more; I'd get a job doing anything and then work every extra minute on your crei biz.

    Best to you!

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    @Curt Davis it was Kenny Rushings Course I put in a grand and so did my girlfried for 2k total and nothing happened. Soon they just started ignoring us.

    0Reply
  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Michael Rivera I agree with @Darrin Carey and the order of the points he made. Also you might want to also consider partnering up with another investor with some experience in our area on a flip and get some hours of experience in doing this. It may be a great option as part of working with someone else if they're willing to do so.

    862-208-2287Podcast Guest on Show #48
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  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thanks Darren I'll sure be willing to do so. Im 19 so maybe my youth can work with me in that way. I would love to shadow an investor to gain some expirence. Do you know the best way I can reach one?

    0Reply
  • Darrin CareyPro Member
    Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
    12y

    Network at your local REIA. Find the person doing something, get to know them, and offer to help.

    Wholesaling works well, I do some here. The best teacher I know for wholesaling is Vena Jones-Cox.

    If you want to get a solid education base, come out to Ohio Nov 7-10. Especially the 7th with Vena. http://oreiaconvention.com/ Network with the people attending, you will find people like you, and the ones who have worked through it and are getting deals done.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    @ Darrin I would really love to understand wholesaling a bit more. But the deeper I dive in to it the more it starts to look like big foot. I've never met anyone who has really completed a wholesale deal or has met some one who knows some one. Well at least in NY wholesaling is like the Yetti or something I would truly love to be able to get a deal done to prove it can be done.

    0Reply
  • Terry HershbergerPro Member
    Investor · Nipomo, CA · Member since 2011 · 227 posts · 76 votes
    12y

    @ Michael, wholesaling is not as easy as some make it seem to appear, especially those selling courses on it. It take time and good marketing. Without good marketing, I believe wholesaling is tough for the beginner. I would visit some local REIA's and get some education from those that are in your area. I would not spend much money on it as most of the education you need can be gotten by teaming up with someone and reading some good books and on this site. Try to find someone that has the experience you want and that has a need that you can fulfill so you are bringing something to the table and team up with them. Maybe since you are unemployed, you could do some work for them and in turn you can learn the trade you want.

    Just an opinion from someone that has done some wholesaling and I am more of a long term residential real estate hold kinda guy.

    0Reply
  • Michael Rivera
    OP
    Property Manager · Brooklyn, NY · Member since 2013 · 66 posts · 7 votes
    12y

    Thanks a lot Terry ill begin on all the info I got on this thread ASAP. I truly thank you on for your time and advice.

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