no capital for 2nd deal. how does one stay productive?

[Albert L.]

Hey BP, 

We have unfortunately fallen in the typical newbie investor pitfall and deployed a good chunk of capital to our first deal are now struggling to find ways to do the second (most likely a BRRRR project so this problem doesn't come up again).

We've considered some of the following as next steps and would love to hear any advice on what the best route (if any) is...

Get Into Flipping/Wholesaling 

(+) We can somewhat quickly re-earn some capital and at the same time, learn how to find off market deals, run ARV's and estimate rehab costs.

(-) The market is somewhat unstable and we're stuck here in the Bay Area so it's a bit more competitive and dicey to dive into those ventures.  

Hard Money Loans

(+)  CASH! Woohoo! Hello financing, hello deals. 

(-) Oh wait, we don't have enough in our reserves to step in in case something falls through.. 

Private Lenders

(+) CASH! Woohoo! Hello financing, hello deals.

(-) We are newbies... I personally would not trust me to manage a project. I've only just begun...why would I trust you? 

Personal Loans 

(+) I think we're seeing a pattern here... 

(-) Didn't qualify for SoFi, Lightstream given the mortgage we just got on our first deal. 

Write A Book 

(+) Oh, that's a new one. Book idea would be to interview people who became self-made millionaires through real estate. It would be great way to learn, build a network and if I'm lucky, earn a little of extra income from any sales made

(-) This would take some time... and it doesn't fit directly with my goals in getting a BRRRR project done by this year

Do Free Work 

(+) More learning opportunities, build some credibility with potential mentor

(-) It's free work

Suck it up and start saving. Take the time in between to network and get educated. Consider leaving corporate, pursue another job opportunity with greater cash earning potential 

(+) Going back to an agency, commission style setting would give us an opportunity to double my income. Worst case, I would be taking a small paycut that would still afford us a decent standard of living and allow us to save a bit each month. 

(-) I could fail and not earn anything on top of my base salary and it would take a bit longer (3-4 years) vs staying at corporate (2-3 years). 

Thanks for reading my life story here. Would love to hear any thoughts on how I can keep this momentum up! 

Cheers

[Andrew Syrios]

Perhaps looking for a partner would be the way to go. They put up the money, you do the work, you split the equity. And by the way, be careful with language like "I personally would not trust me to manage a project." Such words can be a self-fulfilling prophecy. You're obviously educating yourself, which puts you ahead of most.