No experience, no credit, and only 15k saved up. Any advice?

Question

Hey BP, so glad I was able to come across this website. I'm 21yrs old & looking to build deeper relationships within the REI community near Tulsa, OK. I have no experience investing in real estate, but I'm educating myself daily to begin my REI career in the near future. I'm currently working a full-time job, and attending college part-time. I'm working to develop a stable, and passive income through real estate. I'm currently in the process of saving up for a down-payment on my first REI property, while educating myself about REI & developing relationships to help get me there.

Any tips on starting out in REI, or any advice at all is helpful!

God Bless.

Caleb Heimsoth · Answer

When you get to 20-30k you probably have enough to buy something

Seth M. · Answer

@Joshua McMillen, Welcome to BP. I agree with the comments above. If I was in your shoes, I would start going through the Biggerpockets podcast and webinar archive and finding episodes that our geared towards beginners and the tips for networking, building a core group of contacts, and learning the fundamentals of finding and analyzing deals. The links below have a good short list of books to get you going and start narrowing in on your specific interests/strategy. At the same time, you can be improving your personal finance position to have a solid foundation for investing and taking calculated risks. Brandon Turner has a good book on investing with no and low money down, but personally I think it's ideal to have a solid personal savings buffer even if you are creatively financing with other people's money. For the personal finance angle, I would recommend checking out the BP Money podcast and Scott Trench's "Set for Life" book. I've also really enjoyed a blog/podcast on personal finance and broader financial independence at https://www.choosefi.com/https://www.biggerpockets.com/renewsblog/2015/11/1...https://www.biggerpockets.com/renewsblog/2013/04/1...

Ricardo Gomez · Answer

Hello Joshua,I recommend looking into the BRRRR strategy if your financially tight. Get in touch with some hard money lenders, and build your credit. Best of luck.Sincerely,

Brandon Cuellar · Answer

Wholesaling may be a good way to get your foot in the door while making some money. I'd recommend getting a credit card in the meantime.

Mike Lowry · Answer

Hey.. go for it ! With that money I recommend undeveloped land. Owner carry may be more available than home or business structures. Raw land is so much easier to research and purchase. Means you better learn everything bout Right of ways, utilities, building codes and tones more.. but hey.. if you don't learn those.. you will lose everything .. as REAL ESTATE is based on the land, the government laws locally, and every technical detail , laws, and technical jargon and fact including business law and contract law !!! You have a waze to go if you clueless bout this education. So many " investors " fail due to being lazy and not getting a base education in the subject but rely on the SALES PACKAGES to make you rich. Not gonna happen unless you partner up with an Educated (as above ) Partner. Bigger Pocket does not promote or allow such to occur. I went to college and real estate school,, then drove for dollars for months with everyone attempting to rip me off.. until finally got good partners even tho I had as good or better base education as them. In any biz that requires money.. or not.. you cannot work all alone. Who you know.. is everything !!! Like find a good title company, good realtor, accountant, contractors for rehabs, Escrow company, etc. or you will fail fail fail. Try and go horse back riding by reading books.. yeah. Never work out.. ! Cheers !!

Mike Lowry · Answer

Wish I could help as I specialize in FREE EDUCATION in getting financed and help fill out papers for 1. Getting DOWN PAYMENT ASSISTANCE ( but you may still get it as you have part to contribute if not enough for your purchase price.2. Same for getting the Mortgage.. that is long term large amounts up to $500k for residential purchases. However.. BIGGERPOCKET RULES PROHIBIT me sharing any ph or email website in reality .. any way to contact you directly to allow you to be a FREE STUDENT. I am just doing these at the local library weekly now.. but in the future will have an online system that students can access FREE 24/7. Maybe you will find my new website in a search for DOWN PAYMENT ASSISTANCE FREE HELP in google IF I get the system automated. Search the web for FREE NON PROFIT HELP and you just may find such in your area. Cheers and good investing ~~

Joel Kadlec · Answer

I agree with above posts on educating yourself and learning the different strategies of investing.Start networking and creating relationships with like minded individuals in your local market. The Tulsa REIA is a good place to start.

Lisa Williams · Answer

Yes, build some credit. Put utilities in your name, open a Best Buy credit card, and pay on time. In a year, you have some cash and the credit a lender will look for. Hard money can be useful, but talk to a traditional lender and build a relationship. I would think about finding a rental that is occupied, when your friend the lender says he/she will agree to give you a loan. Much easier to buy a property that will pay for itself and you can show the lender that is the case. Good Luck!

Samuel Fowler · Answer

Step 1. Open a secured credit card with one of the large providers: Chase, Capital one, Discover. You wont even get a look from a lender till you have scores populate. Having a revolving credit card is the fasted way to push your scores up. keep your balance low and pay on time

Sam T. · Answer

You are on a good path but before you make a move keep educating yourself about what opportunities are going to best match your personality and the long term goals you have in mind. If you want to get into rentals consider doing some research on the BRRR strategy and start listening to podcasts from people who have mastered that. If you do it the right way you could have no money out of pocket on your deals!