Help! No Money Down?! What's your opinion?

[Rachel Geronimo]

Greetings! 

I'm relatively new on BP and with real estate investing. I want to do real estate part time (preferably do buy and holds on multifamily properties). After gradating college, I'm have been in a financial slump. I've recently bumped into an opportunity with No Money Down. I know it's possible, but I'm more concern about the risks that it can accumulate. With that being said, is it smart for a beginner to start with No Money Down? What are some risks that I should consider? Or what are some general advice that I should consider? 

I am also currently abroad. I know it's possible, but is it hard for a beginner to invest in real estate while traveling?

Your thought? Please let me know!

Cheers!

[Jay Hinrichs]

No money down investing is fine if you actually have money for reserves.. there are two different things. 

1. proper capitalization of your investing entity or company or self.

2. finding 100% leverage deals.

to go into real estate with NO money for reserves or operating capital .. and then buy 100% leverage property.. well this is a very good way to implode before you even start.

think of real estate as any other business .. you need capital to run it. and you need reserves.. same with your personal finance's...

If you have Capital in reserve then 100% leveraged deals if you choose to partake is fine.

or if you live right next to the asset and watch it like a hawk.

but if anyone who has been in buy and hold will tell you .. there are bumps in the road.. your relying on a 3rd party for your income ( tenant) what happens when tenant has an upset.  what happens if your cash flow stops and you have no reserves what do you do then.  ?