Advice for a Newbie with only $5,000

[Cory Ballantyne]

Hello BP people!

I'm new to real estate investing but have long loved the of land-lordship, architecture, anything real-estate basically.  I've finally decided to start investing in real estate.  I'm am currently only worth my savings account which is roughly $5,000.  I've been considering buying some C class properties around $100,000 or less with minimal repair that would also hopefully be close to the 1% rule.  The only problem is that it seems like I need $20,000 dollars to get something like this.  I could roughly save up that amount in 2 years but am itching to get into the game now.  (I've been looking in the Alabama area as of recently.)  I thought about borrowing money from a family member but I would have to pay them back which means I would have a property now but would then have to wait another year or two before I could make my next move.  If I have to borrow money to get a cash flow property and spend a few years paying that person back maybe I should invest in a B class property instead or even just a plot of land.  I'm not sure what I should do at this point.

I was hoping to get some advice or ideas on how to get started with such a low amount, anyone who did get started with little money or any advice or ideas available.  I appreciate any help.

(I should note that I live in Japan so buying a house and living in it is not an option for me.)

Sincerely,

Cory Ballantyne

[Nick Mulligan]

Focus on networking with lenders/agents/property managers/et al for now would be my advice. That way you know what you can afford and what you'd need as a down payment while gaining valuable connections for once you actually start investing. Build your knowledge so when you have the money you are ready to invest. You don't want to be ready with the money but not know how to find worthwhile deals.