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Updated over 5 years ago, 04/01/2019
How To Get Started WITH No Money?
Hello all! I know this one is tough! I'm trying to get started with NO MONEY, which is almost impossible. I've read plenty of books that say it's possible. I've even found a few properties that will do owner financing with me, unfortunately I just can't afford the down payment. Another thing is, how do you refer a property to an investor for an appraisal fee? If I could do that a few times, I would then have enough money for a down payment. I know that I'm not the only one who's been in this position before. ANY advice is great advice. Thank you.
@Sheila Campbell I see both sides of what everybody is saying. I know you want to get out there now and get yourself a property but you’ve got to make sure it cash flows after taxes, vacancies, repairs, etc. Why folks are saying that you need to have some additional funds put away is so when (not if) something goes wrong in the property you don’t wind up in a worse financial crisis. Things break and renters break things all the time. So yes do it, but remember that building wealth takes time. I can tell you’re driven so have all of your ducks in a row before you put your name on a contract. Buying property is a long game. It’s not going to save you from the debt that your husband put you in for years to come and as an investor who wasn’t prepared the first time I invested I found out the hard way that going into a deal without reserves is very stressful. There are a lot of good suggestions here on how to partner with someone else to get started. I would highly recommend that.
If you are finding properties willing to do owner financing, you could ask if you could ship that to another person and send it to another investor who is more financially able. Save that money, make sure you are clear of debt, and when you are in a position to buy then do it.
But it sounds like you currently aren't, so I wouldn't recommend it until you are more stable. That means a target market, good cash aside from just your real estate, money in the bank for emergency, and little to no debt.
@Chase McArthur. Good advice!
@Sheila Campbell I saw you're in the military. So are we! I believe you are eligible for $463,000 using your VA. Depending how much your current home loan is you might be have enough eligibility to use it to purchase a quadplex and house hack. You could rent out your current home and live in one of your units for a yr. I know at least 3 other service members that take advantage of this strategy. Especially since VA loans typically don't require any money down. If you don't have have enough VA eligibility, you can check Navy Federal for a military mall, which is very similar to a VA with a small origination fee that was attached to the end of the loan. You have options, girlfriend! We currently have 2 VA loans open and one military loan with Navy Federal.
@Sheila Campbell
My advice to you is to save while you are saving read books in the process and go to real estate meetings in your area and Write out goals with steps to reach them also watch the webinars on this site good luck
@Sheila Campbell Hi! I recommend reading the book "The Book on Investing in Real Estate with Little or No Money Down" by Brandon Turner and published by Bogger Pockets. I am almost finished with the book and it's really great. Chapter 2 "Owner Occupied Investment Properties" is a great chapter and goes into depth about obtaining a VA loan with no money down. The entire book has great insite into other forms of no money down real estate investing and may shed light on what you are trying to do. Best of luck.
@Sheila Campbell have you tried wholesaling? Little to now money involved if you know what you’re doing.
@Sheila Campbell Find ways to get motivated..not the lazy way. Id first start to read 2 books ..THINK AND GROW RICH and RICH DAD POOR DAD. add a second job..or rent out a room in ur house or do some extra work ..live tight for a few.. save at least 30% of every dollar u earn.. pay ur credit cards minimum and the day of.. remember..to pay yourself first always! Then find someone...u can partner up with or even use their credit ..stay in tuned with BP and youtube.. make some friends at rei meet ups..network and im pretty sure ull find someone to partner or lend u a downpayment provided he gets back his roi at whatever they decide on...
They even got hard lenders but they are expensive. and try a small bank or credit union or even credit cards and to show u got that cash..and which ever lender will see that.. hopefully theyll lend u enough for a down deposit.
Lastly don't give up.. You can do this!!! Nothing is impossible!
@Sheila Campbell
So I used to be in real estate brokerage. We had a saying about investing in real estate.
“Want to know a sure fire way to make a small fortune in real estate? Start with a large one.”
Real estate is a game I think that takes money. Can you get in without any money? Sure! Can you have no money and start making money? Sure! Is it likely you will do that if you have no experience? Probably not!
Think of it like this. Your going to go to Vegas and your going to be expecting to find pennies on the ground to start gambling with and you can’t lose because your starving and will die if you don’t win any money. Ol and the odds are against you. House wins 9 out of 10 times. And the likely you will find pennies on the street and turn it into any money to eat off are even worse odds than 1 out of 10.
Lesson: If you can’t even afford the down payment. Get on a budget, save some money. Learn some more. You’ll be glad you did.
@Tanner Marsey
Tanner nailed it. He is 100% right. Don’t go playing with money that you don’t have. Ever heard of the saying dead broke not just broke?
@Sheila Campbell not to speak for Jeremy, but I think he was advocating house hacking. You buy a multi-family building (duplex up to a four-plex) and live in one unit then rent out the others. Your tenants would be paying all (or some) of your mortgage.
Thank you for your service, and good luck on your investing!
Accurately value your time & experiences. Do everything you can to leverage your time to gain experience as opposed to looking for the deal or the money right now.
Starting out of the gate doing a no money down deal is possible but it's more the exception than the rule in my opinion.
If you are already reading and do the research then you don't need much more specific advice you just have to continue taking action every day, and continue working hard to leverage your time, where you can gain experience.
There are seemingly endless possibilities to get started, but if you keep seeking knowledge & experience, you will figure out your way to make it work. If you want to do it right, it is a patient game, but the harder you work, the more opportunities for luck and experience will come your way.
Along your way you'll find there are probably a handful of people in each trade who are dominating your immediate market, 2-3 realtors, 2-3 contractors, 2-3 investors, 2-3 attorneys, lenders etc... keep working, you'll find these people, identify everyone's needs, start solving their problems, gain experience. That is all part of the process.
@Isaac Owens Hello, I’m in the exact same boat as Sheila, I’m going to a boot camp in a few weeks hoping to meet more lenders and wholesalers so that I can get started in this business. This has been an extremely helpful thread and I’ve just found this app today! I feel Sheila’s pain and I’m going to take steps to make this happen. I like the information and network that is here. I look forward to getting advice and tips from you all!! Don’t quit Sheila!
@Sheila Campbell
Hello Sheila, I’m right there with ya, I’ve been looking into the idea of wholesaling and I think that’s the route I’ll take to get more capital in my pocket until I can do something bigger. Please stay in touch with me and we might be able to work through this together!!!
@Sheila Campbell I'm in a similarsituation. I've been saving up and have about $10,000, but being a teacher and owning my own home already is making it a very slow saving process. I just want to get started but I dont have anything close to a down payment.:/
@Matt Honeyford Geat example