How do I get started in real estate investing with 10k ?

Multi-Family and Apartment Investing
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How do I get started in real estate investing with 10k ?

Davere Currie
New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
Ideas , ideas , and information on how to get started in real estate within the next 3-5 months with 10k
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Account Closed
Rental Property Investor · Austin, TX · Member since 2015 · 280 posts · 176 votes
7y

@Davere Currie

1. Pay a small fee (~$150) to a local NY Real Estate Lawyer to advise you if Wholesaling is legal in NY. If so...

2. Purchase a target list (i.e. Listsource.com) for your target area (~$150), for people who have more than 60% equity in their house and meet any criteria you believe would make them sellers (i.e. Elderly, out of town owners, etc). 

3. Mail out 1k yellow mailers to each address (~$750)

4. Network extensively in online and local investor groups. Take names, numbers, and emails - build your buyers list.

5. Listen to the BP Podcast episodes with Michael Quarles - the guy is a machine and his tactics are solid. 

6. Negotiate with potential sellers. Lock them under contract. Sell the contract to someone on your buyers list for a markup ($5k and up). Profit. 

Just remember to be up front about what you are doing. You are NOT an agent. You work extensively with investor partners to bring them deals and that is why you want to buy their property. 

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  • Account Closed
    Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
    7y

    Invest in marketing. There are lots of things you can do with 10k if the right deal jumped out and grabbed you, but usually you have to market to find a deal. Unless you have a ton of time on your hands and pursued time intensive ways to sift thru a lot of dead ends in order to find the deal.

    2Reply
  • Dustin Lavender
    Investor · searcy, AR · Member since 2016 · 147 posts · 111 votes
    7y
    @Davere Currie buy a rental property
    1Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    House-hack. I got into real estate in a week with less than $10k down on a $170,000 duplex. Just need to find a real estate agent to set you up on the MLS and start underwriting/touring deals.

    7Reply
  • Michael DangPro Member
    Rental Property Investor · Houston, TX · Member since 2015 · 454 posts · 273 votes
    7y

    Get educated on what aspect of real estate you want to get in.  Find one that complements your current skillset or personality.

    Wholesaling, Real Estate Agent, Flipping, Notes, Land, Development, Residential, Industrial, Multifamily, Lending, Title, Appraisal, and the list goes on.

    0Reply
  • Yasuha J. Dorce
    Realtor · Miami, FL · Member since 2018 · 53 posts · 23 votes
    7y
    Originally posted by @Davere Currie:
    Ideas , ideas , and information on how to get started in real estate within the next 3-5 months with 10k

     Best way would be to partner with someone. Especially New York Real Estate with its codes and status. And how it’s regulated in general. Finding someone willing to mentor and joint venture with you on projects. Will ensure you don’t have to go through the toughest lessons this business teaches, alone. 

    1Reply
  • Account Closed
    Rental Property Investor · Austin, TX · Member since 2015 · 280 posts · 176 votes
    7y

    @Davere Currie

    1. Pay a small fee (~$150) to a local NY Real Estate Lawyer to advise you if Wholesaling is legal in NY. If so...

    2. Purchase a target list (i.e. Listsource.com) for your target area (~$150), for people who have more than 60% equity in their house and meet any criteria you believe would make them sellers (i.e. Elderly, out of town owners, etc). 

    3. Mail out 1k yellow mailers to each address (~$750)

    4. Network extensively in online and local investor groups. Take names, numbers, and emails - build your buyers list.

    5. Listen to the BP Podcast episodes with Michael Quarles - the guy is a machine and his tactics are solid. 

    6. Negotiate with potential sellers. Lock them under contract. Sell the contract to someone on your buyers list for a markup ($5k and up). Profit. 

    Just remember to be up front about what you are doing. You are NOT an agent. You work extensively with investor partners to bring them deals and that is why you want to buy their property. 

    11Reply
  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    7y
    Originally posted by @Account Closed:

    @Davere Currie

    1. Pay a small fee (~$150) to a local NY Real Estate Lawyer to advise you if Wholesaling is legal in NY. If so...

    2. Purchase a target list (i.e. Listsource.com) for your target area (~$150), for people who have more than 60% equity in their house and meet any criteria you believe would make them sellers (i.e. Elderly, out of town owners, etc). 

    3. Mail out 1k yellow mailers to each address (~$750)

    4. Network extensively in online and local investor groups. Take names, numbers, and emails - build your buyers list.

    5. Listen to the BP Podcast episodes with Michael Quarles - the guy is a machine and his tactics are solid. 

    6. Negotiate with potential sellers. Lock them under contract. Sell the contract to someone on your buyers list for a markup ($5k and up). Profit. 

    Just remember to be up front about what you are doing. You are NOT an agent. You work extensively with investor partners to bring them deals and that is why you want to buy their property. 

    Thanks Larry 

    0Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    Thank you guys for the feedback. What’s the best approach to find partners who will trust me to fund my investments with no experience. I currently work for a property management company and I’m working my way into leasing to start my foundation in order to build my empire. Not to only make money in sales but too also learn and meet as many people as possible to build relationships. 

    1Reply
  • Stephanie Wankel
    Rental Property Investor · Lone Tree, CO · Member since 2017 · 18 posts · 13 votes
    7y

    @Davere Currie the best way to find partners is to start meeting people through local real estate meet ups, and right here on bigger pockets. Educating yourself through books, podcasts, and these forums will help you speak the lingo and start having meaningful conversations. 

    1Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    7y
    @Davere Currie You say INVESTING in real estate. Some of the responders have mentioned real estate jobs and real estate businesses such as wholesaling, which have nothing to do with INVESTING. If you do mean investing, as in beginning to build a portfolio of real estate investments, you have 2 different ways to go 1. Purchase a property directly. With $10,000 it will be either a very low price property, or a deal in which you can convince the seller to carry paper. 2. Investment passively in someone else’s deal. This can be anything from investing in public REITs to investing in syndicated deals or funds some of which is available on various crowdfunding platforms.
    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    4Reply
  • Kathie Riedel
    Investor · Hot Springs Village, AR · Member since 2018 · 112 posts · 56 votes
    7y

    @Davere Currie Working for a property management company gives you a great opportunity to see the advantages and disadvantages of rentals and a potential source of deals. Network to find people who will be interested in multiunit housing and watch for any properties that you manage for signs the owner may be ready to get out of renting. You may be able to put two people together for a win win deal. Just one way to start but it is an advantage over those who are not in the business in any way.

    0Reply
  • Joe Tomko
    Specialist · Easton, PA · Member since 2018 · 136 posts · 48 votes
    7y

    @Davere Currie

    $10,000 is a good start.  I'd look to joint venture on a note deal, but the lowest entry point I've seen on my deals was about $15k.  If you had a partner who also had $10k and you joined forces, I'd suggest looking into a note deal.  High upside, low downside.

    1Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    @Dustin Lavender I live in nyc. Prices are high for rental properties.

    0Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    @Dustin Lavender I need more capital than 10k. I’m in the process of increasing my income.

    0Reply
  • Barry Sanders
    Brooklyn, NY · Member since 2018 · 79 posts · 30 votes
    7y

    @Davere Currie what is your long term goal/ what are you trying to get from your investments? Determining that may help others show you the path of least resistance. I can also guarantee that as you learn more your goals will also change. NYC is a tough market to do alone but fortunately there are many people open to partnering up 

    0Reply
  • Dustin Lavender
    Investor · searcy, AR · Member since 2016 · 147 posts · 111 votes
    7y
    Nah man. There are things around that you can invest in with only 10k. It just takes motivation and hard work. There are no easy answers. The answer is to get involved. Check these two out. Happy investing. 

    254 E 184th St, #1B, Fordham, Bronx, NY 10458

    79 Edgewater Park, #79C, Throggs Neck, Bronx, NY 10465

    Originally posted by @Davere Currie:

    @Dustin Lavender I need more capital than 10k. I’m in the process of increasing my income.

    0Reply
  • Matt Nusbaum
    Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes
    7y

    Continue to educate yourself, network, and figure out the exact real estate niche you want to focus on. From there decide who you need to align yourself with and what steps you need to take. If you want to invest immediately with 10k you could house hack using a FHA loan and only need to put 3.5% down. However, I'm sure you'd have to move out of the city to find anything in that price range. Good luck!

    1Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    @Dustin Lavender I’ve checked out both properties. They are both coop. Wouldn’t it be harder to get out of a deal like that. I’m looking invest into units for the passive income. If I was to get both properties and the tenants leave I’m stuck with the payments. How I see it the more units the better. Thank you though

    0Reply
  • Dustin Lavender
    Investor · searcy, AR · Member since 2016 · 147 posts · 111 votes
    7y
    Sounds like you’ve got it all figured out then man. You asked a very open ended question. One that has been asked a thousand times on here and answered 10 thousand more: “How do I start”. The journey starts with your first deal!  If you are investing for passive income, you need to seek out deals that are going to be passive. Multi family is not going to be passive when you are starting off in such a low capital position. Most investments won’t be at first. I have handled my properties for the last 3 years from the ground up and started with just $4500. I put in no more of my own income after that first investment and I didn’t hire a property manager until recently, and even now I still do my own maintenance. 

    The D/C class properties I pointed out are likely not going to be completely passive, however, a bank appraisal on those two properties will likely yield a much higher value than what you are paying for them, allowing you to have instant equity, you could then leverage that equity position into more properties, allowing you to have additional investment capital. Each deal should then compound your position and if you buy right allow you to leverage the equity for each consecutive deal from the previous one. 


    Happy investing! 


    Originally posted by @Davere Currie:

    @Dustin Lavender I’ve checked out both properties. They are both coop. Wouldn’t it be harder to get out of a deal like that. I’m looking invest into units for the passive income. If I was to get both properties and the tenants leave I’m stuck with the payments. How I see it the more units the better. Thank you though

    1Reply
  • Paul Stewart
    Specialist · Atlantic City NJ · Member since 2018 · 114 posts · 50 votes
    7y
    Originally posted by @Davere Currie:
    Ideas , ideas , and information on how to get started in real estate within the next 3-5 months with 10k

     Hey Davere

    Fellow NYer here by the way of Long Island. So starting off with 10K is real hard in NY but its very possible. Do you own a home now? Do you rent or live with Family? If you are not a home owner I would suggest to House Hack. Try to find a property that is a multi family or a mother in law suit etc so you can rent out part of the property and live in the other. IF you do this you can get a FHA loan for 3% down in most cases. 10k will still not be enough to cover closing costs as closing costs in NY can be insane. You should hunt for deals where you can leverage a sellers concession to cover a good part of your closing costs. To find the perfect deal for you might take some time so I would start looking and continue to stack you money so maybe by the time you find the gem you will have more towards 15K etc for your total expenses. Where in NYC are you looking specifically? I personally have a lot of interest in the Bronx especially anything near Orchard beach as It is ear marked for re development here is ling to some info about what they are looking to do in the area...

    https://www.amny.com/real-estate/orchard-beach-pavilion-1.25619117

    0Reply
  • Gregory Scott
    Rental Property Investor · Copperas Cove, TX · Member since 2019 · 4 posts · 2 votes
    7y

    @Theo Hicks @Theo Hicks I am curious because I am finding my self in a position where most banks want 25% down for a loan.

    You said you got a loan for less than 10k on a 170k loan.

    How did you manage this? If you don’t mind me asking ?

    0Reply
  • Anastasia G.
    Lender · NJ NY PA CT GA FL, Puerto Rico · Member since 2015 · 212 posts · 111 votes
    7y

    @Davere Currie can u qualify for mortgage? If so, u can utilize 15k grant and buy 3-4 units rental in NJ

    0Reply
  • Gage Rowden
    Rental Property Investor · Boca Raton, FL · Member since 2016 · 17 posts · 7 votes
    7y

    There are many options on what to do. I don't know you experience level or what you like to do in real estate. But you can do wholesaling, flipping, notes, land and others. You can use the $10k as a down payment on a $100k duplex or triplex. 

    If you don't want to deal with the three T's of small rentals like a duplex. Invest in Cardone Capital. You can get monthly distributions EVERY MONTH on great deals and large deals that are 200- 1000 units in great location. 

    If you don't want to do that you can flip land or buy notes. Many options. All about what you feel comfortable with.

    0Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    @Paul Stewart I was looking in Brooklyn , Queens , Bronx and even No in areas like Bayonne, jersey city , Newark. I currently live at home and I’ve been looking into fha’s as well

    0Reply
  • Davere Currie
    OP
    New to Real Estate · New York City, NY · Member since 2018 · 25 posts · 14 votes
    7y

    @Anastasia G. I should be able to qualify. I have a pretty good credit score. I will looking into getting prequalified for a mortgage this week.

    0Reply
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