Want to do my first deal

[Rob Greenawalt]

I know this title may be a cliche by now, but that is where I am at. I have learned a lot about RE investing over quite a few years, including how not to rent your former personal residence [included a nightmare tenant], but have never truly done a deal. 

I feel that my best opportunity at this point may be to partner with somebody that can assist me with financing of buy and hold multifamily properties, my area of interest, since I do not have funds for a down payment. I do however have knowledge of how to obtain and analyze profitable deals.

My geographic areas of interest are generally around where I reside or have resided....parts of PA and Northeast FL. 

[Brendan Markle]

Being completely honest, and i'm sure not everyone would agree with me, but if you are serious about getting into Real Estate Investing take the time to save up at least a 5% down payment, and more for unforeseen expenses.   It takes hard work and discipline, and some sacrifice to save money and these skills are very important for a Real Estate Investor. 

You wouldn't walk up to a stock trader and say "hey, I don't have any money, but I know how to analyze stocks, give me some of yours to invest and we'll split the profit".  When I see a post like this, it comes across the same way for me.  There are way too many posts out there that make it sound like you don't need money to invest, when in all actuality, you do.  

[Loren Jacobs]

@Brendan Markle is absolutely right. Even for "no money down" deals, you always need capital. Due diligence, rehab (which sometimes you can structure into your debt), marketing, holding costs during turnover, maintenance and cap x all require money and you should never, initially, rely upon cashflow to pay for these. Yes, once the property is stabilized and you've built your reserve funds you can start to rely on that money for some of these expenses, but, that can take at least 1-2 years. Focus on building capital and continuing to refine your REI knowledge. One way to accomplish both is to start by wholesaling. This will help you develop your deal sourcing skills and can also be very profitable.

Leveraging a partner for experience and financing is a great idea.  However, you have to bring significant value to the table.  With all due respect, your post isn't likely to attract many serious partners.  It will be much easier to align with a partner when you have some experience and successful transactions under your belt.  Real estate investors are always looking for deals and money.  If you don't have the money bring great deals to the table and have comprehensive market, sub-market, tenant demographic, business plan, legal, lending, property management, asset management and disposition research complete and put together in a quick and easy to understand presentation.  Make your potential partners life easy.

Hope this helps!

[Account Closed]

Originally posted by @Rob Greenawalt:

I know this title may be a cliche by now, but that is where I am at. I have learned a lot about RE investing over quite a few years, including how not to rent your former personal residence [included a nightmare tenant], but have never truly done a deal. 

I feel that my best opportunity at this point may be to partner with somebody that can assist me with financing of buy and hold multifamily properties, my area of interest, since I do not have funds for a down payment. I do however have knowledge of how to obtain and analyze profitable deals.

My geographic areas of interest are generally around where I reside or have resided....parts of PA and Northeast FL. 

 Well if you don't have any money (and won't anytime soon) then I'd say that Airbnb arbitrage is one of your only options. Otherwise you will need to find a way to save up enough money for a down payment. Or you can partner with someone and take some equity or an acquisition fee if it's a good deal. Or you can go raise money and do a syndication but trust me without experience and money in the deal this is harder than you think. For those with no money you're going to have to leverage the other assets you have such as time, work and creativity. Unfortunately there's really no easy path but the more action you take the closer you will get to what you're trying to accomplish.

Good luck!

[Eric Mielke]

@Rob Greenawalt Do you have a personal residence where you can take out a HELOC? That would be a good possible way to get some cash for your first deal. Otherwise, if you know how to analyze deals you could possibly start wholesaling properties.

It's most difficult to save up that first down payment, but it is very worth it. 

[Rob Greenawalt]

Thank you all for your honest replies.

Eric Mielke, I have considered a HELOC and that may be an option in the future, but is not now.