Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x

Posted almost 7 years ago

7 Ideas for finding money for your first down payment

One of the biggest stumbling block many aspiring Real Estate investors have is their inability to come up with enough cash for their very first deal. Depending on where you live and depending on the Real Estate Strategy you choose, you might be asked to put down somewhere between $20-$40k for your first deal. This amount can be overwhelming for new investors and it could discourage them from even getting started. Below are some ideas on how you can come up with money.  

  • Ask for additional hours at work. Talk to your boss, ask them if you can work extra hours for extra pay. Do not just ask one time. Try asking in regular intervals, in case some life events might have changed the situation at work (someone might have quit, gone on vacation, ... etc).
  • Ask to work a different shift. If your company offers 24/7/365, then there is a big chance that it has a hard time finding people willing to work second or third shifts. These shifts pay a little more, but require to work inconvenient hours.
  • Find a part time occupation. Because of the current low unemployment, the job market has been quite tight. Plenty of companies would be glad to have someone helping them, even if it is only part time. 
  • Find a week-end gig. When I was trying to save money for my first deal, I learned that the youth soccer leagues in my town were looking for soccer referees on the Saturdays and Sundays. I quickly did my referee license and was in high demand every week-end. I'm sure there are plenty of opportunities out there in whatever area you might be interested in. Ask around, you will find something. 
  • Borrow money from your 401k. If you have a 401k at your current job, chances are you can borrow money from it. Make sure you educate yourself on the conditions of borrowing by speaking to your plan administrator. Also make sure to understand the conditions for returning that money, if you were to leave your job voluntarily or if you were fired. 
  • Ask Family and friends: If you know people in your family and/or friends circle that can trust you with money, feel free to ask them for help to get started. Make sure to repay them appropriately and as agreed upon. 
  • Down Payment Assistance Program. I recently only learned about Down Payment Assistance Programs. Click on the link to see if this might be of help to you. 

I'm curious how you came up with the down payment for your first deal. I know it was a scramble for me. I used a combination of the approaches I listed above. 


Comments