I’m new to REI, I’m looking to supplement my income. I’m recently divorced, and a mother to 3 crazy boys! I have a full time job, and a mortgage 
I would love to flip a house, but not sure if that’s the best way to start. I have no investment cash. Where go I go from here
Hi,
Learn everything you can about wholesaling as it's a way to make extra money or full time money without very much money or expense, the only thing you really need is earnest money of say $500 to $1000 dollars.
Make sure you read all you can and post questions on this forum so you understand.
Good luck,
GR
How do you become a property investor when you don’t have savings set aside?
Real estate investing without cash means that you need to take it slow and steady to build equity. The worst thing you can do is overextend yourself and trash your credit even further. Here is what I would recommend:
Find a house that you can either sublet, rent to own or by on a land contract. Now you have to make sure that you find a good quality house with either two or three bedrooms. Why? You want to buy a house that others would want to live in and one that is not going to turn into a money pit.
One option is to buy on land contract. Because mortgage rates are so low, this is not always the cheaper option but it keeps you from going to get a bank loan. In a land contract, the owner plays the role of the bank but he will charge you a rate higher than the bank, especially if your credit is poor. You put a little money down, let’s say $1,000 - $5,000, then you make monthly payments to the property owner for generally a period of 3 to 5 years. At the end of the payment period, you have to pay the remaining amount in one lump sum. That is when you get a loan. By then, you have equity and hopefully a higher credit rating. Meanwhile, you rent out the property for at least what you are paying.
You’re definitely looking at a challenge, all things considered. I do agree with the advice on a lease option (LO), contract for deed (CFD) or possibly assigning property. Here’s a few tips though:
- Try to get a CFD with a 7 year ballon payment and very little down.
- Make sure that the property needs no immediate repairs or attention of any kind.
- Look for a property owner who will make the contract as long as possible. Some don’t care about a balloon payment, they simply want a steady source of monthly income coming in. Maybe they paid the property off and simply don’t want to keep renting, due to the headache and you simply present them with a better alternative.
With all that said, your ideal property could be a huge house that has been converted into a duplex (over/under or side by side) if you found the right property you could move in and rent the other unit and if you do it right it could cover pay 70% or more of your monthly payment to the seller!
Just a few thoughts…
I am new to this site and what to start in real estate investing as well. I have a full time job and have worked part time as a realtor for many years. I do not know how to start since I do not have the funds or credit to purchase on my own. Is looking for an investor and creating a business plan the way to start? Is there a different approach I should take? Join a real estate investment club locally? Sorry for the rambling but I am so excited to start.