Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Aaron Sal

Aaron Sal has started 2 posts and replied 20 times.

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2
Originally posted by @Richard Rolle:

Aaron,

You say you have no money, which I presume means no cash, but how is your credit?

There are lots of ways to get into the game without your own cash and I'd be glad to share some ideas with you.

Start with making some connections.  Most important, investors that have money looking for deals.  I'm sure you've heard of wholesaling?  I think thats a tough gig.  In this market, in this area, finding a wholesale deal that you can mark up and still have enough meat on the bone to pass to an investor is rare, but can be done.

I recommend a variation to this. Start a relationship with a hard money lending company and start relationships with investors to partner with you. You can find flips to buy with hard money. Your investors cover the renovation costs and split the profits on the sale. You can also do buy and holds for rentals if you have investors that can refinance after renovation. (see BRRR)

I want to caution you on a couple things to make sure you have in line.  I believe this is "make or break" stuff on your deals.

1. Make sure your numbers are on point.  Its easy to find the sales range of houses in the area. For example, I can almost guarantee a 3/2 in Tacoma area is gonna sell for $245-$265K (YMMV based on sq ft, premium areas such as North Tacoma etc.) that's the easy part.  The magic happens with the timelines and budget.  Remember its gonna cost you ~9% closing costs, reno budget and holding costs. Subtract this from the sales price and you have your potential profit.  Make sure there is cushion, especially for your early deals.  Make sure you work with a Realtor that understands investing, not just opening doors.  Your agent can be your best asset in making sure you buy right and sell fast for most $, as well as connecting you to the right resources to complete your project.

2. Contractors.  Who is gonna do the work?  This is huge as it impacts timelines AND a bad contractor can greatly impact your costs and quality of final product.  If you are swinging the hammer yourself, do you have the skill set to do a professional job or will it look like DIY?

3. Permits and inspections. If you are just updating, you are usually gtg, but if you are doing things that will add square footage, make sure you pull permits. Helps greatly when you list as your claimed description will match county records and our friends at the VA and FHA will be much more likely to approve your buyers loan upon appraisal.

4. Exit strategy.  Have multiple ways to finish the deal.  Can you wholesale the property for a quick profit?  Can you flip it?  Can you buy and hold it?  If you depend on only one of these, you really can find yourself in a bind.

After a couple of solid deals, you should have a nice war chest to expand your options.

Hope this helps!

 This helps a ton and I will take you up on hearing some of your ideas if thats cool with you. Any help I can get would be awesome. I sent you a friend request hope we can continue to talk about R.E. Thanks for your post and your time it took to share this with me it means alot to me. Appreciate it thank you 

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2
Originally posted by @Andy Whitcomb:

Hi Aaron,

Generally, you need three things to buy a property.  You need money, you need a deal, and you need to know what you're doing.  If you don't have one, you better have the other two.  

I recently purchased my first property, a 4-plex, and I basically used none of my own money to do it.  First thing I did is exactly what you are doing:  educate yourself.  This is the #1 most important thing you can do.  The BP podcast is awesome, read all the books you can get your hands on, and then after you're exhausted of reading and you feel like you know it, then move to the next step.  The next thing I did is I started surrounding myself with people who have done it and are currently doing it.  As Jim Rohn often said, "you are the combined average of your 5 closest friends".  So if you hang in circles where people are buying houses, flipping houses, and renting houses, then pretty soon you'll be doing it. Yes you'll get connected, yes you'll learn more, but MOST importantly, you will start to truly believe that you CAN do it.  That YOU can do it.  It takes knowing people who have done it, and watching them do it, for that thought to travel from your mind to your heart. 

Then, after all that, the next thing I did was find a deal.  Now, deals are hard to find, but you will only find it if you know what you're looking for.  If you skimp on the first two steps, it won't happen.  You need to know your stuff.  Once you have a deal and you know what you're doing, then the rest is easy.  The money will come.  In my case, I found a good deal on a 4-plex, got it under contract, put the whole deal together, then got my brother to buy in to the deal.  He funded it with his heloc, we renovated it over the summer, put in tenants, and now we are refinancing to pull out the initial investment to repay the heloc.  I wish I could say it worked perfectly, but we had all sorts of problems.  Some came from me being new, others could not have been foreseen.  But ALL of them were learning experiences, and the deal is a success. 

Long story short; Educate yourself and surround yourself with the right people, THEN look for a deal, and finally look for the money (in the form of partnerships).  Honestly, all of this takes time, so in the mean time you can improve your financial situation in any way you can.  Credit, income, savings, learn money management, etc.   Do anything and everything you can, and always keep your eye on the goal of R.E. Investing.  It will happen.

 Wow I can't thank you enough for the post and insight. I Will keep my eye on the goal of R.E. I will keep learning and maybe find a local meet up group and see if i can build relationships. I really do appreciate this and sent you a friend request. 

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2

Wow I didnt expect this many responses, I appreciate every response and all the tips that have been given. Thanks for the help everyone. I'm going to keep learning and find what route is best for me.

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2
Originally posted by @Caleb Friberg:

Hey Aaron, you're on the right path.  I won't be specific on how to invest with no money but Invest more time and what money you have to educate yourself as much as you can. Podcasts are free and highly beneficial as well. Keep a notebook with you and write down things you learn so you can quickly refer back to them. You'll need some kind of money to invest or at least have as backup, even if that means cutting back expenses bare bones for a year or two so you can save the rest. The moment I set goals, broke them down into tasks and took action, was when I started seeing results. My father always told me "Chance favors the prepared mind". Stay positive and don't quit no matter the cost. 

 Thanks @Caleb. I'm trying to learn as much as I can. I do have time but not much money. I have attended a few webinars, I will have to look into the podcasts thanks for the tip. I will keep learning and hopefully one day I can say i'm an investor. Thanks for the reply it means alot appreciate it. 

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2
Originally posted by @Jay Hinrichs:

apprentice with a realtor or management company and earn some money..  real estate is not a no money business.. once you have some money occasionally a deal may fall into your lap that you can buy with little money down.. but if you have no money that means you have no money for reserves and really and honestly your not going to get any financing and the first time you have a hiccup your going to have a cash crisis..

gets some seed money together.

OR  find a money partner.. you need some liquidity in this business..  remember the no money needed just sell books and tapes its not reality 99% of the time.

 I appreciate the response. I will keep that in mind that the books and tapes aren't reality, I use them to learn from only. I know r.e requires money that's why I wanted to see what I could do with no money if anything. I don't have a money partner and I know that it wont be easy getting started with no money, but one thing I do have is time, no money but time I do have. thanks for replying it means alot. thank you @Jay. 

Post: How to start in Real Estate with no money

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2

This is a very broad question but I read the forums and went to my local library to check out a few brandon turner books but I would like other peoples input on how they started or an idea that could help me start. I have no money and would like to get into real estate. If this isnt the way to go about finding the answer any help would kindly be appreciated. 

Post: Any Wholesalers in Puget Sound?

Aaron SalPosted
  • Renter
  • Auburn/kent, WA
  • Posts 20
  • Votes 2
Originally posted by @Ruth Bayang:

Hi @Account Closed, get out to local meetups and start networking. There are lots of wholesalers.

can you link me to these meetups? I'm a newbie trying to get into wholesaling but don't know where to start obviously on bigger pockets.

thanks for all the info and welcoming me back. I'm still learning and just happy to be back. im reading as much as i can from this site. thanks guys any articles or good things to read for washington state?

Originally posted by @Kevin M.:

Welcome back dude.

 thanks man. I haven't been very active but now im looking to get back to learning and such.

Originally posted by @Alex Chin:

Hey @Aaron Sal. Welcome back to the site. If you're looking for information on home buying with low income, we'll need a little more information to make more concrete suggestions. For now, I would suggest looking into house-hacking if you haven't already.

Assuming you will owner-occupy the property, you can purchase a small multi-family building with an FHA Loan at 3.5% down and allow your renters to cover your mortgage. The same strategy could apply to a large, multi-bedroom house as well.

For more information on loan particulars and finding out if you qualify, I would start walking into banks and speaking with mortgage brokers.

For networking, keep an eye on the networking events tab 

(https://www.biggerpockets.com/forums/521-events-an...) @Kevin C. and @Troy Fisher run monthly meet-ups in Lakewood, Seattle, and the Eastside.

Cheers and good luck!

 thanks for the reply and very helpful post. thanks alot. I will keep my eye open didn't know there were groups and stuff like that. I will look into fha and also go to some local banks and see what is possible.