Ways to invest with limited capital?

[Dan Cox]

Hi all,

I'm looking for advice and strategies on how to start investing with limited capital. Currently I find myself a sole provider for our household working a demanding job (Project Management). I'd like to start making moves in real estate investing but have limited funds. Right now I have about $10k available to utilize. Also, I have about $50k in equity available in our primary residence. I'm looking for strategies or recommendations on how to go about using these funds to start investing/ acquire real estate. My preference would be multi-family residences for greater cash flow opportunities. Is a HELOC a good option to use? Currently my DTI is in the ballpark of 35%. Is it possible to get approved for another mortgage? Any advice, tips, or strategies would be greatly appreciated. Thanks

-Dan

[John Warren]

@Dan Cox when I started investing I was in a similar position. I was fortunate enough to find a lender who is an investor, and he helped me do both a cash out refinance and a HELOC on my home. This just barely gave me the capital to purchase a four unit building in Lyons, IL, which is right by where I live. I still remember my realtor at the time telling me that these kinds of buildings would never make me rich. I just completed my second cash out refinance on the building, and I have received my initial investment back twice in four years.

Don't be discouraged right now. Focus on finding the right team members. Find your agent, lender, attorney, maybe a mentor, and then find yourself a solid property to purchase. The sweat equity and hard work will put you in a completely different situation in the future.