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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
Do you have good credit? Take out a credit card to cover your down payments, ask for seller concessions to cover your closing costs. Maybe your family could help you out too. There are options!
@Sheila Campbell I think the first thing you need to ask yourself is "why do I have no money?".
If you have no money, is investing in real estate a smart next step?
Maybe figuring out how to save some money would be the right next step for you.
You can't invest in real estate with no money. What you can do is get a job in real estate, save money, and then invest.
@Jason DiClemente I have no money because my ex husband put me in debt. I know it's hard to start with no money but I also know it's not impossible. Like I said, any advice is helping. Thank you
@Nick Rutkowski I Never thought about using a credit card. I didn't know that was possible. &Asking my family is not an option. I lend them money. Thanks! I'll look into the credit card option 😊
@Sheila Campbell that's my advice, find a job, possibly in real estate, that allows you to save money. When you have money saved, consider real estate as a way to grow your savings and net worth.
You cant invest in real estate with no money.
@Jason DiClemente I'm active duty military, so getting a job in real estate isn't an option at the time. Thank you
@Sheila Campbell then saving money and getting out of debt should be your singular focus right now.
Thank you for your service!
There is a group on Facebook and website called "from military to millionaire". The owner is a great guy and they have resources to help active military reach their real estate goals.
@Sheila Campbell Where is all of your money going if you work full time? I would focus on cutting some
Expenses to free up some of your paycheck to where you can save to invest at least 15-20%. Also I’m not sure what you mean “refer a property to an investor for an appraisal fee?” Do you mean wholesale the property to an investor for an assignment fee? If so that’s doable too, just get a wholesale contract off of here and split the assignment fee with another wholesaler in your market to use their mailing list.
If you're going the credit route, you can look into different LOC or credit cards and using Plastiq to cash advance a credit card without it being charged as a cash advance.
@Sheila Campbell
I'm surprised no one has mentioned creative financing yet.
One way is to use a gap funder. First you'll need to find a property and put it under contract, then you'll need to DD which will cost some money. After that you need to find an investor (or anyone with enough capital), that can give you x amount of dollars for a good ROI. At that point you'll have a hard money loan (because from what I know, no bank will give you money for a distressed home), with a down payment that is payed by the Gap funder. You fix it up, sell it, pay off the loan and the Gap funder, then both of you get half of the profits.
It's easier said then done but this is one way you can get into REI with little to no money.
Another way I'm sure you've heard of is wholesaling which you can find a lot of information on in the rest of BP.
I hope I was able to help <3
I noticed you mentioned you are military. Can you use your VA home loan witch offers 0% down payment ?
@Karl Schnitzer I own a house. Most of my money goes towards my mortgage. Thank you for the advice
@Nicholas Munford Thanks for that! I'll look further into it today
@Akeim Fin I used my VA loan to purchase my current home. Obviously being military looking into my VA loan was the 1st thing I tried to do to secure financing
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
OPM is how you grow a real estate portfolio. Be it HML, friends, family, banks---anyone that has money is a potential lender for you.
I know there are books and articles and everything online about how to start with little/no money. I think, in general, they are telling you how to invest little to no money up front. They aren’t telling you to invest without proper funds. Not having adequate reserves is setting yourself up for failure. My advice.... partner with someone that has the money. You find the deal, run the project, whatever..... do all of the non monetary things needed. Take a portion of proceeds. Do that a few times and then maybe branch out on your own. Trying to go it alone with no money will result in failure 99% of the time.
Get your fiscal house in order. Work a 2nd job, ask for a raise. Pay down your debts. Start saving money. Be accountable to yourself. Then you will have money to invest. There is no magic formula for buying real estate with no money down. The people that do it are getting by on the skin of their teeth and if the market winds shift against you, you'll be up a creek without a paddle. Do it the right way or it'll catch you in the long run.
- Peter Tverdov
- [email protected]
- 732-289-3823
@Sheila Campbell are you able to sell your current house and house hack? My wife and I just sold our home because so much of our money was going towards our mortgage. It’s not an easy decision but sometimes it’s worth it to sacrifice upfront!
@John Thedford Thank You
@Tanner Marsey Trust me I have books for DAYS! I've been working on my business profile to find a partner willing to work with me! Thanks
@Peter T. Doing all that. Thabks
@Jeremy Blevins I Want to bus I have no where to go of I do. Even if I rent an apartment, I'll be paying about the same as my mortgage. Thank you
Originally posted by @Sheila Campbell:
@Tanner Marsey Trust me I have books for DAYS! I've been working on my business profile to find a partner willing to work with me! Thanks
I just saw your location.
Look for a PM
@Karl Schnitzer how to get wholesalers contracts off here cause I need some more of them
@Sheila Campbell oh well if that is taking up all of your money it sounds to me like you might want to consider a cheaper house more within your means if that’s taking all of your mo they income, I don’t think housing expenses in a personal budget should exceed 30%. Just my opinion.