Only have $1,000 and I want to start investing. Is it possible?

Question

I'm looking to fix and flip or buy rentals but have very little capital, about $1K. I've started doing my own marketing and connecting with wholesalers to find deals and a few have come my way but every time an opportunity comes it seems like I don't quite have enough money to get it under contract. I've talked to hard money lenders and they want 3 points upfront (houses are going between $150-300K where I'm at). Is it even possible for me to get started or do I need to save up more? If it is possible any suggestions on next steps?

Steve Kontos · Answer

@Trevor Carver

I have a different take on this topic.  To be honest with you when I started out, I had no money to do deals either.  I decided to leverage other resources instead.  In my specific case, I had great credit and leveraged that to get into my first deal.  I also partnered with someone who did have some money on the side. The old school mentality that you need to save and then buy is exactly that...old school.  In today's world there are various ways to get into a deal.

Edmund Ricker · Answer

@Trevor Carver

Join your local REIA and network with other investors.  Partner up with someone else on a deal.  You find the deal, they find the money, and you split the profits.  Might not be a 50/50 split, but you will make some money and gain valuable experience.

Keep digging and don't quit.

Good luck on your journey.

Ed

Johanna Castel · Answer

You could have been a bit more nicer and motivate the guy.

Michael Wagner · Answer

Yes you can start investing....Probably not enough to start buying but you don't have to buy to make money.

I would also recommend you take a good hard look at why you only having a thousand dollars. You have to have your personal finances in order to succeed long term I. Real estate. If you dont, it doesn't matter how much you make with your investing....If you can't manage a little money, you certainly won't be able to manage a lot. People erroneously believe that "more money" is easier to manage than less...Not true!

Keep getting smart, do some personal inventory and connect with local folks doing what you want to do. REIA are the best!

Chris Martin · Answer

Ok. I'll offer you the same deal I offered the other 10 post wonder on BP:

Take a broker's license class to see if this is your "cup of tea". You will be required to do some work. It will take commitment. You will be better off, assuming this is what you want to do. And when you pass the broker's exam test.... GUESS WHAT!

I will pay for (reimburse you for) your expense for the broker's application fee when you pass. Just send me an email with your credentials and I'll send you a check.

Same deal holds. It's my 'give back' moment. It's up to you to execute... or not.

Sebastian Marroquin · Answer

find a deal for 50 cents on the dollar and i'll give you the money for it! (we both make money)

Steve Kontos · Answer

@Trevor Carver

I used my credit cards.  Their easy, require little to no work to use, and have great promotions. I love my cards.

Natalie Kolodij · Answer

@Trevor Carver You may be able to do a manufactured home flip.

I got my last mobile for $50. It would be a tight budget but their purchase/renos are much lower than a normal flip.

Trevor Carver · Answer

Thank you all! I actually have an emergency fund already in place and the $1K is what I have over and above my other savings to invest so I should be good there.

@Edmund Ricker @Tom S. I really like the idea of partnering. I need to get networking and find someone who would interested in going in on the next property I find. Would you say most investors are open to partnering if I bring the deal to them? What hesitancies would they have?

@Steve Kontos, Thank you for the tip. I've got great credit too so I'll look more into those financing options to get started. Did you get a loan to start off, credit cards?

Tom S. · Answer

@Trevor Carver  @Steve Kontos  Trevor - I agree with Steve and started with the same approach.  I also had good credit and a good job, but not a ton of savings in the beginning as I was paying student loans, etc.  I found a partner  to put up the downpayment and I put the loan in my name, and we split everything 50/50.  So deals are possible as long as you're bringing something to the table.

As others mentioned, regardless of any RE activity, definitely work to save up a good emergency fund.

Good luck!

- Tom

Only have $1,000 and I want to start investing. Is it possible?

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