Beginner Not Knowing where to Begin.

[Chris McGowan]

Hello All. My name is Chris. I am learning as much as I can over the past few weeks with real estate. I've been doing as much homework as possible. I came across this site and learned a lot from reading. My problem is that I do not have much of a down payment. I work 2  jobs to make ends meet. The 2nd job is a at home job that I started myself making vinyl decals after work. The money has been good to the point where everything is paid and have a little left over (but not much). I am not really into too much debt other than a car, paying bills like everyone else. I support 2 other people in my family other than myself. Saving has become very hard lately. I am interested in a rental property on the market. It's a multi-family building with 2 units. One unit is already occupied the other isn't. From what I read, any multi-family property, most banks want 20% down.  IF I really wanted to get some $$, I can talk to my father-in-law but I'd rather do this on my own and keep family out of this. What I'd like to know is, for those who are starting in the real estate and do not have much to put down, what did you do? How did you begin your journey? What did you do to succeed with your first deal? I see a lot of videos with Brandon on YouTube. He explains everything very well. He always uses examples of putting $30-40k down. I'd be interested to hear what others have to say. Thanks for reading.

[Allyssa Compton]

Hi @Chris McGowan welcome to BP!

I would definitely agree with the other responses that you do indeed need a fair amount of capital to get started. But keep in mind that the 20-25% mentioned is not always the case. 1-4 family properties are not considered commercial and can therefore be purchased with FHA loans which, in most cases, only require 3.5% down. If you have the 20-30% you will get a loan much easier and can jump on deals much faster but you don't have to go that route if you are just getting started.

Also, the 203k loan (renovation loan) may be a good option for you to buy a cheaper property and fix it up with borrowed money. I usually don't advocate for this loan since in many markets it is a nightmare, but I just had a conversation with a mortgage banker in my area who was touting the great benefit is has been for many of his clients. 

I would suggest speaking to a mortgage banker who can explain things to you in better detail. You may qualify for certain programs or assistance based on your area or your financial situation. Don't give up just because you don't have a spare 30k sitting around!

Hope this helps!