Help! Need Encouragement for First Step


I am finally going to take the plunge. I have never invested in real estate but have extensive experience in commercial banking. This is my first foray into become somewhat financially independent. I have approximately $30,000 saved up. Credit score of 720 and six figure income with minimal debt. I don’t know where to start.

My goal is to purchase for longterm wealth appreciation.

I just don’t don’t know where to start. How can i leverage my $30,000 to buy multiple properties? I believe I have the personal income stream to debt service. This is the first time in my life I am at an impass.

I am not scared just don’t know what is the best strategy to use. For instance, should I use hard money or not.


Thanks you all


Congratulations on things running! You’re at a good starting point. First thing I’d offer to you is to enter into the real estate arena you need to know what you are doing. So this means you need to get some education. I’m not going to suggest anything specific, but I’d say to visit the bookstore and start reading everything. Hook up with an active investor with experience in your area and have them mentor you. Make it worth their while by helping them run their business in whatever way (maybe with marketing) to get a hands on education. Learn the different techniques. Learn about negotiations and HOW to do it. Learn about win-win for everyone. LEARN ABOUT THE IMPORTANCE OF MARKETING. Learn what makes a deal, and take things from there. Learn the fact that no matter how hard you try, you will make mistakes too. Learn the fact that you will have to be tough and overcome those mistakes. Also a big point I’d suggest is to learn no money down techniques and forget about spending your own cash or using your own money. Building your wealth is entirely possible without having to risk either. I suppose if you tried really hard you could risk losing money and good credit, but if you do no-money down techniques for sure it will be hard. Good luck to you.

Thanks Chuck. I kind of know what direction I want to go. I do not want to do wholesale investing. I want to buy from wholesalers in order to either flip or rent.

The only thing i am scared of is whether I should use all my capital. If I do, I can always refinance or whether I should use private money and reserve capital. If I do, then i have a limited amount of time to rehab and refinance.

I have read and read and have started to participate in my local REI Club this week. I guess what I am really afraid of is using private money and not be able to refinance if I can’t sell, no matter how good my DTI and cash position is.

Your thoughts.

I really appreciate your feedback

So are you looking to buy from wholesalers in order to rehab, then flip or rent? If so, you can do this and bypass the wholesaler and keep more of the profits. It’s just a matter of learning the art of negotiating. My personal opinion on using your own capital is this. Anytime you put a penny of your own at risk it is possible to lose it. You can pick up properties in a variety of ways without putting money down INCLUDING rehabs. Just need to market for sellers then negotiate them down enough. Even a cash deal can work on rehabs with no money down. Some folks on this board very sucessfully invest using either their own cash or other people’s money. I’m sure at your local networking meetings it is possible as well for you to meet people who have the money that they want to risk, but they don’t want to do the hands on stuff. So you might be able to joint venture with them and split the profits. I’d say to get lots of experience doing no money down techniques FIRST then once you’ve got several years experience in this business and have lots of cash on reserve you might then decide to venture out using your own.

I answered your question on one of the other forums. Look for it.


Sounds like you’re in a great position to get started. We buy & hold for rental and have been very successful at doing no money down deals. We developed a great relationship with a local banker. Big banks have programs and guidelines & will not stray from those guidelines. Our local banker will loan us enough to purchase and often rehab as well if the deal is good enough.
You need to get a start somewhere. If you can only find a deal where you’ll have to put in some of your money, it could be worth doing that way rather than passing it up and waiting to find something to make it no money down. You can always ask sellers to carry a second position, but your bank may want to know YOU have some of your own money in the deal.
There’s lots of good stuff in the forums here for someone wanting to do rentals. The amount of info is great and more centralized than reading 30 books.
Here’s something to consider. You don’t know if you’ll like this (or more appropriately put - be able to stomach this) or not. It’s generally going to be easier to unload a single family home because your potential buyer pool is larger. Potential buyers are investors and people looking to be homeowners. Potential buyer pool for a multifamily building are investors only.

Thank you all for you input. I have bought more books than necessary. It is time to take the plunge. I really do not want to find motivated sellers because i don’t have the time to look and negotiate to that extent. I rather negotiate with the wholesaler and buy a rehab property even if the profits are 5-10% lower.

This is not a get rich quick opportunity. I am looking for long term capital appreciation.

Thanks a million.

I have a potential for a first deal and will send it around to see how to best structure.


You don’t need any extra time to find motivated sellers! Say you stop at 7-11 to buy gas and a Coke. You then hand the clerk your cheap, little business card that says:“I’ll Pay you $1,000 CASH if you can find me a good, cheap house to Buy!” + Name and phone number.

You tell the clerk that you’re just too darn busy yourself,“But you please call me if you know someone that’s gotta sell something.”

It’s a thousand bucks, man! Someone will be getting back to you. You pay them-- CASH-- in person, the day your deal closes escrow. Now you have just created the world’s most motivated Birddog for yourself.

There are lots of posts on here from FDJake with his amazing finding tips. Read them and memorize. They are gold in your pocket. BECOME A BUYER. GET THE MINDSET.



that’s actually not a bad idea. I really like that idea. Where can i get more like that? From your perspective, how much actual profit percentage do you lose on getting deals from wholesalers?

Just curious.

Great post


I’ve never bought a house from a wholesaler.

I was a Real Estate Broker who bought about a property a year to hold on to and rent out. My original plan was to buy a rental house for each child’s education; by the time they hit college it would have some equity and could be sold. This was a simple forced-savings plan. I knew I would always pay that monthly mortgage payment. I used the rent from the tenant to do that. That plan has worked out for my family.

These last few years I have bought, renovated and furnished modest rental houses. I developed a business where I rent them out for double or triple the rent of unfurnished. I didn’t like the rental rates in the town that I moved to, so I created a market for furnished rentals, sort of like an extended stay hotel.

The point of all this is to FIND YOUR OWN PATH. You can try one thing, and if it doesn’t suit you, try another.

I would NOT use hard money (expensive money borrowed from private parties or non-traditional lenders) if I were a beginner in real estate investing. That borrowed money is SO expensive that you need a proven track record of previous profitable deals. You can lose your shirt–or your property if you don’t know exactly what you are doing.

LOOK TO YOUR OWN ROOF FIRST. This is a great beginner mantra. Do you own a home? Are you paying rent money to someone else–in other words buying their roof for YOUR LANDLORD?

If you live in your first project you have both control and convenience. I would invest near home, in a neighborhood that I am comfortable in. I would have a plan all figured out on paper as to timelines and how to do it. I would know the worst possible case–like what is the rental market if I can’t sell this renovated building?

Give us some more information–Do you have a family to house? Do you have lots of spare time or none? We’ll help you think through it. Several people on this site have posted their years-long plans and we have applauded as they moved forward.

Good luck on yours.

You say that you don’t want to wholesale real estate. :shocked

Do you not understand the benefits of learning wholesaling first before you actually start flipping! You should know that wholesalers get a piece of the money also, so if you learn how to do what they do, you will not have to depend on them to send you deals. You can start generating leads on your own, getting the best price on these homes.

You are already ahead because you have cash saved up. Wholesaling is not a hard job, but if your goal is to retail/flip then learning the tricks of the trade will be very beneficial to your business. Trust me!

What you do is set up a system to generate leads, then you either hire someone, or a phone service to take the calls from your lead generating campaigns. Once you have the leads filtered out, you are able to pick out the gold from the batch.

Try it, it works. :bobble