THE TRUTH ABOUT REAL ESTATE INVESTING WHEN YOU HAVE NO MONEY TO INVEST

THE TRUTH ABOUT REAL ESTATE INVESTING WHEN YOU HAVE NO MONEY TO INVEST WITH!!

If you’re reading this, you’ve probably considered, or dreamed of owning your own business, or being a full-time Real Estate Investor. You’ve probably also seen all the Invest in Real Estate with “No Money Down” ads and commercials, and maybe even tried one of the programs.

Yes, you can start in the industry with no money down, but don’t quit your job to do so…. What most people don’t tell you is to be successful it still takes money for advertising, locating deals, earnest deposits, down payments, etc. Even if you are using a source of “OPM” (Other People’s Money) or Wholesaling, you will have to spend some of your own money, and many of the most successful people are spending a lot of their own money. Business cards, fliers, bandit signs, letters, postage, etc are not free…even fuel “driving for dollars” isn’t free.

You really need at least enough capital to get you through the first 60-90 days, because even if you get lucky enough to find a great deal your first few weeks, it can take over a month to turn that deal into some money. Sure, it can happen faster, but typically it takes a while, especially at first when you may be depending on help and guidance from other people.

If you’re going to actually start closing on deals yourself, even if using OPM, you may have to come up with money for earnest deposits, down payments, etc. prior to your funding being approved.

If you are really serious about changing your life, I’ve developed this simple to follow “Outline to Success” I used to change my life. I was broke & homeless when I was 27 years old, and after struggling to get ahead for several years, I read the book “The Millionaire Next Door” and used some of the information to put this system together that worked for me and changed my life.

No Free Rides!! To be successful in this life, you must be willing to put in the GRIND!!

OUTLINE TO SUCCESS-

Step 1: DO NOT PAY FOR ANY MENTOR SYSTEM OR TRAINING PROGRAM AT FIRST There are some great ones that work, but also a lot are just after your money. Wait until you do a lot of your own FREE education and research before considering paying to learn. Surround yourself with positive motivating people, and research as much as you can on real estate investing and strategies. Start networking with Real Estate Investors and professionals. Attend local REIA meetups, attend local FREE seminars, etc. You can learn a lot from FREE research, Google, BiggerPockets forum, Facebook Groups, etc. After you spend a few months doing your FREE research, at that point you will be in a better position to know if paying for a Mentor Program or other training program is a fit or not.

Step 2: Force yourself to wake up earlier daily, grind as many hours as you can, go to bed, repeat...There’s 24 hours in the day, how you use them is up to you. Can you make sacrifices for your future? People always ask me if I ever sleep, and even today now that I don’t have to work unless I choose to, I rarely ever sleep past 5am even though I rarely go to be before 12midnight.

Step 3: Get any job earning X amount of money, preferably the highest paying job you can find, and its even better if they offer overtime hours, if so always work it, that’s 1.5 times the pay.

Step 4: Get a second PT job or side business earning Y amount of money. If possible, find a PT job that you basically do nothing but set around and can be on the computer, iPhone etc, getting paid to work on your side business, or learn real estate. For example, I took a part-time job for a while working the overnight shift at a 24-hour call center doing technical services for clients. There was a lot of down time doing nothing, where I could spend on the internet doing research and was being paid. There are also jobs out there that you get paid while you sleep, but are on call if something happens.

Step 5: Get a third PT job or side business earning Z amount of money (preferably this should be starting in real estate in some way…wholesaling, or PT job at realtor, RE Management Co., Title Co., etc.)

Step 6: Figure out how to live off W (less then you earn), eliminate all unnecessary expenses until you get ahead. Live with parents, roommates or house hack to lower bills, carpool or ride bike/walk to work to save on fuel expenses, eliminate things like cable, movies, eating out, smoking, drinking, and buy a cheap car with no payments and cheaper insurance, etc.

Step 7: Open a savings account and put your savings into it (X+Y+Z)-W= S (Savings), if your fulltime job offers a 401K with matching, max it out, that’s free money.

Step 8: A year or two from now, once you've grinded your butt off and saved as much as you can, you will be able to start truly investing your own money in real estate!!

Step 9: Learn how to use other people’s money to maximize investment opportunities. Just be careful not to over leverage in case of a crash. You need to keep a nest egg of your own cash to get you through in case anything bad happens, because it will at some point.

Step 10: Continue to live the frugal lifestyle that you've learned and eventually you'll be able to quit all your jobs, and become a full-time real estate investor.

Following the steps above can help anyone get where they want to be!!

Conclusion…

I adapted the outline a little to be more geared towards real estate upfront, when I started I was just focused on getting ahead and trying to save money to grow my own non-real estate business. I didn’t purchase my first investment property until I had set aside $30K to start in Real Estate, which was in March of 2016, my second was in April, and my third wasn’t until October 2016…That’s also when I ramped up my marketing system, and learned about wholesaling “as is” properties, instead of just rehabbing/flipping. Prior to that, I was buying, closing, rehabbing, and then reselling… Long slow process. But starting with a good amount of my own cash, definitely sped up the process.

Today, I own 10 investment properties free & clear with no mortgages, with enough cash-flow to live off of if I decided to retire. Those 10 properties are now my free & clear “nest egg” that could survive a real estate crash. But I also continue wholesaling and rehab/flipping as a full-time business, and have flipped or wholesaled 19 deals so far in 2017. My goal is to continue building more capital to be able to expand acquisitions into larger apartment complexes in 2019, while also looking to help others learn how to build their own real estate business.

Feel free to reach out to me thru my contact information on my BP Profile anytime for free advise.

Good Selling!! Keep Grinding!! Follow me on social media for daily motivation, and read more of my Blog at JeffFilali.com - (OklahomaCashHomeBuyer.com)

--------------------------------------------------------------------------------------------

Disclaimer: Author is not an Accountant, Attorney, Financial Advisor, Tax Advisor, Broker, or Agent. This is for general information, and not legal, tax or investment advice. Readers should do their own due diligence and seek professional counsel prior to making any kind of legal actions, tax changes or investments.