How to get into investing even though I have no money to do so

Question

I am currently 18 and a full time student in college and was wondering if there are any ways to get into real estate investing with no money.

Chris Seveney · Answer

My recommendation for the fastest and best way to get into real estate investing with no money is to get a job in real estate. IT kills 2 birds with one stone - you get experience and someone is paying you to get that experience. The key then will be how to manage and save money which is not taught in schools and I can admit I was awful at saving money in my early years.

Gregory Schwartz · Answer

One of my younger clients is a 21-year-old college student. He worked his ass off for a year to save some money, then convinced his dad to contribute and co-sign. He purchased a relatively inexpensive ($210k), 3 bed 3 bath townhome. He lives in one room and rents out the other 2 for $700 per bedroom.

I would do that.

Julia Lyrberg · Answer

Jumping in with no money down is possible, but going for 100% financing can be risky—it means less leverage and higher payments, which can be tough, especially starting out. Saving up a down payment will give you more flexibility and a buffer for unexpected costs. In the meantime, wholesaling could be a great way to make some cash, learn the ropes, and build connections without a huge financial commitment. It’ll set you up well when you’re ready to dive in!

Stuart Udis · Answer

@Dayton Bishop It's great to hear you are taking interest in real estate at such a young age but based on what you shared, you're not in a position to own real estate. The investors with no experience and no money who want to buy real estate go down rabbit holes that lead to misguided real estate advice and bad investment decisions.   At the end of the day, the sellers looking to transact in creative finance transactions are normally the owners of real estate that cannot sell easily in an arms length transaction or are gouging  the buyer on price. Sure, there are limited exceptions but the investors in your shoes are not equipped to identify those limited exceptions. Even when you stumble across the limited exceptions, you should always have sufficient reserves in place before purchasing real estate. You fail that test as well.

My advice is to get a real estate centric job, save and obtain practical real estate experience. Once you have that foundation, then consider purchasing. Perhaps there's a family member who can assist with your first purchase if you're still underfunded but even if that's a possibility obtain experience first.

David Krulac · Answer

The first 11 properties that I bought were all 100% financed in one way or another.  And the first property was a house hack where I rented out bedrooms to cover mortgage, while living there for basically free.  First purchase story with first 6 months no mortgage or rent is detailed in Bigger Pockets Podcast #82.

Lucas Liu · Answer

Hey Dayton,

I'm 20 and kind of in the same boat as you. Like Stuart and Chris, I also recommend finding a job related to Real Estate. That's what I did and I can tell from experience that it's going to change your game.

I have spent countless hours trying to figure out how to buy properties with no income, no down payment, and a 700+ credit score from a student credit card with $10 payments on time. The answer is very simple: if it was that easy, everyone would do it. This is a game where time and information are the most valuable assets, and that's why a job related to real estate can maximize your efficiency. You're trying to make as much money as possible and learn as much as possible so that you have the means and knowledge necessary to start investing, right? Wouldn't it be a good strategy to get a job where you'll do both at the same time?

Every day I have been learning this, and the people in this forum that already made it can definitely relate to what I'm about to say: there are no shortcuts. You're gonna need to put the work in, dedicate most of your days to your goals, select your priorities very wisely, and be disciplined enough to work on them. You're going to work very hard, and maybe you won't see the results of your efforts right away. Your victory comes when you get to that point and decide to keep going, when you want it so bad that you can't stop. We have the advantage of being young, and we should use this to the best of our ability.

With that said, I want to give you an idea of one of the roads you could take to start investing in real estate as soon as possible: Save 3.5% for a down payment with an FHA on a triplex or fourplex. Live in one of the units for one year and rent the other ones. After you start, it's just a matter of time until you can repeat the process. It takes a while to get going, but if you put your mind to it the snowball effect starts to come into play.

Good luck on your journey.

Jonathan Chan · Answer

Figure out what it is that you want to do and in which market. Find someone who's doing what it is you want to do in that particular market and reach out to them with value. For example, if you want to eventually fix and flip in Orlando, FL. Find a fix and flipper in Orlando, ask them what their buybox is and bring them deals.

Michael Rappaport · Answer

Hey boss - would love to connect you with my mentor. He's busy typically but would be happy to help you a lot more than I can. He primarily does commercial real estate but he loves working with college students hungry to learn - so let me know! I'm relatively new myself - feel free to reach out to me as well and I'll answer any questions I can!

Charles Perkins · Answer

This is my opinion only.  Anytime l get into an investment or look to start a business, I know that I will be investing something.  That something is not always money, but money always helps.

Great previous experience helps a lot. Working for someone can provide the experience you need.  Volunteer work can lead to the similar experience.

Education is a plus that can be brought to the table.  Even at 18 you may have some skills that you have learned like sales, marketing, research, data analysis, and others.  Construction skills, loan skills, financing skills, legal understanding, real estate transaction skills, etc all greatly help.

Personally I wouldn't deal with someone that has no money, lacks experience, or some kind of resources.  Always bring something to the table otherwise your chances of success are very low.

Just my cent and a quarter worth.

Wale Lawal · Answer

@Dayton Bishop

Starting investing with limited money can be achieved through various strategies such as house hacking, partnerships, bird dogging, subject-to deals, joining a Real Estate Investment Group (REIG), interning or working for a real estate investor, college networking, and Real Estate Investment Trusts (REITs) or Real Estate Crowdfunding. These strategies allow individuals to invest in real estate with minimal down payment, gain exposure to the industry, and build capital.

Good luck!

How to get into investing even though I have no money to do so

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