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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.
@Theotis Williams I don’t think they’re on the app. On the main website you just flick forms and there’s all kind of templates.
#3 Managing Your Property Contributor
@Sheila Campbell If you've been lending your family money and you have none, stop lending them money. Start looking at your income and expenses-literally keep track of how you spend your money. The small things add up quickly. Can you get a second job and put 100% of that money aside for your investing?
I agree with others into looking to buy a house with a rental suite or rent out a room. Selling your current home should let you do that.
@Sheila Campbell Hey Sheila this is a great topic. I currently work for a private money lender and this is the primary issue for most people I speak with that prevents them from qualifying for a loan which prevents them from executing on deals... lack of capital.
In my opinion, first question to ask yourself is “What do you want?”
This guides your mind towards getting more specific about what type of deals you will begin focusing on.
Will you do short term transactions doing rehabs and fix and flips?
Will you do long term transaction building a rental portfolio?
Will you do a combination of both?
Will you only do SFR, multifamily or commercial or a combination of all three?
I’ve spoken with investors who syndicate deals... they put the deal together and sell it to a network of investors and split the profit with them. No cash out of pocket. Just need to identify and package each deal. If you can somehow raise capital in that way or another, you can gain enough capital to put a down payment on a short term loan to acquire the property and complete the rehab.
You have lots of ways of getting in the game... its just a matter of staying true to what you want and figuring out the how. Hope this helps!
@Theresa Harris I did stop. I've cut my expenses and have been keeping to a budget, thank you
@Isaac Owens Could you send me a DM please?
@Sheila Campbell
I'd negotiate with your creditors on the debt to reduce it.
The thrift shop on post and Goodwill near Crosse Creek have used college textbooks you can sell with bookscouter (app) or amazon.
Get on jump status for the $150 a month.
I plan on house hacking soon, if you're anywhere near base, you should be able to do that.
Find someone you can add value to, help them, develop friendship, and learn the trade.
Enjoy the best military installation in all of the military.
@Sheila Campbell
How much equity do you have in your home? Have you considered a HELOC? Even if you don't have a ton of equity in your primary, shop around for a local bank/credit union that will do 100% LTV on a HELOC. This is something I'm actively pursuing myself with a local credit union.
Sometimes even just a few thousand dollars can make the difference in snagging a deal, combined with other creative financing strategies.
Good luck!
@Martin Lindsay Tried That. I bought my house last Aug. I don't have enough. Equity
80% conventional loan.
20% seller carryback (+closing costs).
@Sheila Campbell VA loan? Should be able to have lower down payment
I've found a couple of financiers who are willing to lend 65% of ARV, so purchasing under market value (distressed sales) may be an option. I've also found people willing to lend 75% LTV + 100% renovation. In this case you could take a CC to pay upfront 25% then use the renovations loan to bring house up to median ARV and refi to pay off credit card.
Goodluck!
@Sheila Campbell. Check out Dave Ramsey’s podcast and radio show. His views on buying real estate are very conservative but his advice on money and debt are great in my opinion.
@Sheila Campbell
I used FHA to buy a duplex.
Read duplexes triplexes in quads by larry Loftis.
@Jason D.
@@Sheila Campbell
She has no money because shes AD Army. As prior service I know all to well her situation.
Sheila, another option specific to your situation is to house hack (buy a duplex, triplex, quadplex and live in one of the units while you rent out the other ones. You can use a VA loan up to 4 units as long as you live in one. Anything over 4 units is a commercial property and therefore disqualified for a VA.
The best part is no money down and up to $453k if your credit is good!
@Sheila Campbell
Well forget that option, I just read youve already used it.
In that case find a partner whose AD and use theirs. The only bad part is 2 units would be occupied rent free which would drastically reduce your chances of creating positive cash flow.
@Sheila Campbell is getting deployed an option, are you still married? The bah for deployments can be a nice additive if you from an a area that has a higher cost of living.
@Chris Connolly If you read above l, I used my VA loan to buy my current home
@Keith Fowler Will do, thanks
@Chase McArthur I looked into selling my current home and doing that. Problem is, I'd have to live in that complex for at least a year. I'm getting married next year and moving out of state. I won't be in the unit long enough. Also, I'm currently renovating my home and can't move until that's finished. But I'll look more into it, I know there's loopholes somewhere
@Rafael Garcia no, I'm getting out soon. I wasn't married when I bought my house
Thanks to everyone for all your advice. Some of you told me what I already knew, others offered helpful advice. Thanks again!
@Sheila Campbell
Hello!
If I were you, I would save up a little money first and then consider using a FHA loan and pay only 3.5% to get into your first property. Then, you can have roommates to help you pay down your mortgage. If you find a pretty run down place, then you can use a FHA 203k loan to include the rehab costs into the purchase of the property.
I feel like this is low risk, relatively high reward in getting started.
Hope this helps!
Victor
@Sheila Campbell I recommend https://navyfederal.org. You are eligible for that membership because you are active duty military. They are offering many great plans (such as VA loan, etc).
@Chi Ming Pun been with them for years
@Sheila Campbell. To answer your question “how do you invest with no money” the short answer is you don’t.
There are options but they all require some money. If you have zero money it’s time to change other things first before you get into real estate