Beginning the Journey... Broke

[Daniel Trang]

I began studying real estate deals, courses, and concepts about a month or two ago and have soaked up the free information on BP and even started using BP calculators to analyze deals in my local area. I still have a lot to learn, but I'm not afraid of failure.

A great rental property presented itself and I went to check it out with an agent. It was a duplex in a hot neighborhood with already existing tenant in one side with good track record. It was perfect since I was looking to move into a property and utilize an FHA loan. I called a local mortgage broker for their loan rates then I ran the numbers and even made a 10% increase on expenses just to be safe. The rent was not only going to cover the loan interest rate + mortgage, it was going to cashflow $150.

I'm a college student, I don't have a 9-5 job, no credit, no debt, I knew I could pull this off if I could show the raw numbers. I made a complete presentation for my parents, my uncles, my aunts, anyone in my family I knew had the financial capabilities to made the deal work. The first thing they said after I explained all the numbers was, "You need to focus on your studies and finish college first." Then they proceeded to watch Netflix after dinner. That whole night till morning, I kept watching the property, re-calculating hoping to see if the numbers were wrong, and then it sold the next day. This not only frustrated me, it made me want to drop my scholarships and pursue real estate and show them it's not about a degree, it's about one's drive and ability to get back on the bull's back. It's about making things happen.

This is my burning question... How can I start working NOW towards that first investment deal if I have no credit, no job, no capital, nothing to my name except a couple college credits and this laptop I'm typing on... Do I really need to pick up a 9-5 job and start saving capital? If I co-sign with a lender can I really afford their high interest rates? I'm not looking for a quick solutions... I'm looking for real answers.

[Doug Watts]

You have to start somewhere. Continue to learn, go to local meetups, and start to save a little money to make things easier on yourself. Talk to as many banks as possible about any and all loans that you may be able to get to gelp with a down payment. It depends on what your trying to do as to how much money you need yourself. Wholesaling is a good option if you dont have much cash to start and you will learn a lot of things that will help you down the road. Focus on marketing techniques that dont cost a lot of money. Eventually, things will start to click as you learn more and more