I am in Dallas and new to this community. I am very excited about real estate investment but do not have to capital or credit to get started. Are there any suggestions of how I can get my feet wet overcoming these two issues? Any help is very much appreciated.
I use hard money lenders but they are expensive. I just closed on a $30,000 house and it cost $10,000 in points, 4 months prepaid interest, inspection fees, legal fees, title fees. I felt raped when I got up from the table. I hope I feel better when I sell it. It is a lot of work and risk. Could have never done the deal any other way. I am in Chapter 13 and 7 and have no money to even make my current house payments. This house and a few others will help a lot if i can get them fixed and sold. I only needed $1350 of my own money and I borrowed that from a friend and business associate. It can be done with no momey or credit but most HML’s want experience doing rehabs. If you have done no construction I would suggest getting a partner or even a job working on rehabs until you get the experience to handle a major rehab and resell. You may get lucky ( working hard ) and find a deal that needs little work and can still turn a profit.
Like David said, education is the key! Join and REI Club in your area. Come to this site for an hour a day and read.
In terms of getting started with no money, I would start out ‘wholesaling’ deals to other investors in your area. You could then befriend them, watch how they rehab and sell their properties and eventually start retailing yourself.