Originally posted by @Branden Sewell:
I reached out to a lender and I was told I had to have capital of my own. I thought you didn’t have to have capital? He told me any lender is going to require me to have capital. He basically told me to save up some money and try again. It could take me a few years to save up that kind of money.
How the heck am I supposed to get started with no capital. People make it sound like people just hand over money to help with funding a deal but I’m just not finding that to be true.
Anyone have some real advice on this? Or am I just not looking in the right place for funding?
Help me get creative!
Is this a serious post? If you have NEVER done a deal before, why would anyone in their right mind just GIVE you money?
Unless it's private funding (typically friends and/or family), there isn't a lender out there that is going to just give you money with no track history.
Go to a tertiary market, find some less expensive point of entry properties, and start there. Go to some networking events, tell them what you've done, how you're planning on moving forward, what your goals are...
No one, I repeat, NO ONE...is just going to hand over money to some guy just because he claims to be a real estate investor.
I've been networking for over a year now and have only now just found a potential partner and a private lender...I've also gotten my own finances in order so I can use my own capital. Most importantly, I have a deal under my belt and people know how well it's doing despite a couple of initial setbacks.
Sorry if I came out as harsh, but I can't believe people actually think lending institutions will just hand over money with no skin in the game.
Go watch the documentary / movie "The Big Short"...
