I’ve been a lurker on the site for awhile now. I’ve read a lot of the articles and posts on here and they are very informative. I’m still a little lost! Can someone experienced tell me the best way to get started in this business with not much money or risk?
Hi ChrissyB,
I was a lot like you up until about a year ago, I read all the posts here and then some, attended my local rei club meetings to network and pick the brains of people who are in this business. I made offers on several properties with the thought of rehabbing and flipping the property.
After getting a few offers accepted (falling through due to inspections revealing problems etc) I felt like I would never get started. I started to rethink my goals and realized that I would probably prefer to be a landlord and build my wealth that way. I found a house that qualified according to the credentials I needed. Financing was done via a HML for the purchase and rehab, the big thing is that now a days you need to have skin in the game or you wont find HML unless the deal just falls in your lap.
The deals are out there but you have to be willing to risk some of your own money. If you are not willing to do that, no bank will risk all of theirs.
Just my two cents.
Define not much money, $500 or $20k?
The best way to get started is to go to a local REIA meeting and make some new friends.
Also start looking for deals, make low ball offers. Gather a buyers list. Begin by wholesaling the deals you find to your friends at the local REIA.
Then after you are comfortable, start rehabbing, or buying to hold for long term.
Just suggestions.
Hi Chrissy
What are you goals?
The above poster is correct about going to the REIA meetings, just be conscious of the Guru’s pimping their expensive products. They are very convincing and there is usually one pitch at every meeting. Outside of the being a member of your REIA and networking with the other members is invaluable.
Chrissy,
You have received some good advice on this forum and it ultimately comes down to knowing what you want (your outcome, etc…) and deciding to take action.
You can do this by attending a seminar or bootcamp, joining your local REIA, committing to read one book a month, networking, etc…
Ideally if you could attend a seminar or bootcamp, you will learn the most in the shortest amount of time. These days you can even find free (or low cost seminars.
If you cannot attend a seminar or bootcamp then read as much as you can online (forums, articles, etc…) It’s free and you would be surprised how much you can learn.
Also, you are going to learn by doing so consider getting a mentor and/or modeling someone successful.
Hope this helps.
Alex Pardo
Chrissy, stop lurking and start doing. It’s human nature to procrastinate, but if you’re not careful a year from now you’ll find yourself standing in the same place.
You asked for the best and safest way to start investing in real estate. My suggestion would be to look into options and lease options.