I’m 24, I’m in a lot of debit and I want to be financially free, I read Rich Dad Poor Dad, which I’m sure most of you know and I got inspired. I want money to work for me not work for money! I have read about 5 real estate investment books now and many of them have said you can make cash and build long term wealth with real estate investing starting from nothing. Can anyone really give me sound advice on how to do that? I see a lot of “training videos” and boot camps that seem like a bunch of crap, people just trying to make money off of me. I want to know does flipping houses working in the down housing market of today? Does subject to’s or lease option contract investing work? What are some good stragities, how do I start and what do you reccommend I do, read, get in contact with? How are these things done legally and how to aprooch sellers in a honest way and make a deal that will work for everyone? Anything would help, I just wantt straight good information that I can run with. I am determined and want to make this work and will I just need the right education. Thank you kindly.
Yes, you can start with “no money” but it isn’t as easy as the “experts” are trying to tell you. As you already noted, those same experts will give you the “secret sauce” recipe if you’ll just pay them the $5,000 fee they require. :bs
Having a vault of cash makes everything easier, including buying real estate. But with even just a little cash, yes, you can start slowly as progress as an investor. I suggest you look at lease options as a low cash, low risk strategy to begin your real estate career. Best to you.
If you’re a student of RDPD, then you’re familiar with the concept of using OPM (other people’s money).
Successfully starting with ‘no money’ does not mean starting with ‘no money.’
You will “have” to leverage money from somewhere. You can either leverage the seller’s equity by getting him to finance you, or you could leverage another investor by borrowing, or bringing in an other party that has the cash you need to invest. Either way, money has to be leveraged, if you don’t have it yourself. Of course, that flies in the face of the unicorn-chasing, holy grail of no-money wholesaling.
I love Robert Allen’s book that outlines about fifty creative ways to come up with a down payment. Several of the ways are just simply having the seller carry part, or all, of the financing. Other ways are highly sophisticated, if not terribly powerful.
When I started, I was using OPM like it was a steroid. I’m still doing that, but only in a much more sophisticated fashion.
A few months ago, I had a discussion with one of my fellow investors in Newport Beach that does high end sub2 deals. She is personally leveraging $4.5M on a sub2 deal that she lives in. She has the same money ‘invested’ in this deal that I might on a $200k Sub2 rental.
Another investor friend of mine in San Diego, is leveraging a $750k house that he could rent for $3500/mo, but instead lives in it and is paying $1k/mo. for the privilege. He did plow in some remodeling work, and is in negotiations with the bank on the price. Meantime, he’s paying just enough to cover the insurance and taxes.
Another investor friend of mine finds empty houses and options them from the owners, and rents them out until the bank forecloses. Talk about leverage!!! And where’s the downside risk?
So, open your mind to other opportunities, other than trying to save up money for real estate deals, or remaining flat-footed, because you think you need money to start. You don’t. You need an idea and a plan of action.
Now, all that said, you can beat your head against the wall figuring out how to do this without any education to start off with, or you can buy the plan of action. Again either way, it’s going to cost you something to learn; time, or money, or both.
javipa,
It is called Equity Skimming and if caught you can get Free Room and Board at a Penal Institution, maybe to some this is not a downside.
John $Cash$ Locke
There are laws against ‘rent skimming,’ but in CA it applies only to owners in the first 12 months of default. After that, anything goes.
What I find hilarious is that the worse the negotiations go for a short sales, or some other mitigation of the default, the more money they make off the properties. I guess they hope the banks continue to slowly foreclose …like over four years. I don’t know.
I don’t know what a serial, defaulted loan, landlord’s liability actually is after the first 12 months of default.
Good post.
No money down is assignable purchase contracts or by using other people’s money.
You can also get your real estate license. As a broker, some of my best clients are doctors looking to use their money to gain profit or tax shelters as they have the money but no time. So I either find flippable deals or find them investment property and put tenants into it.
I’m 25 right now… my only income is through online selling and online job… i need advise on how to save my money… i m a “one day millionaire” … i want to save…
Come on now $CASH$ everyone wants to know how to live without a mortgage/rent and you are against Free Room and Board at a Penal Institution?? Do you know a fasted easier way to get to the goal of living debt free you would like to share with the group?? :biggrin One quick crime and you are debt free for the next 10-15 years! LMAO