I am an aspiring investor, with good credit but no money or income right now. I have spent countless hours researching (books, seminars, online articles etc…) I feel I know enough to get started but have yet to get a true answer from this question: What do I do first? Do I start with a wholeseller even though I don’t have any capitol? Do I start with a hardmoney lender even though I don’t have a contract secured? Do I find an inspector to inspect a house I don’t have money to buy yet? Also it seems hardmoney lenders will only loan 70% of ARV, but in the Bronx this would be around a 120k profit to the rehabber. No wholeseller will give that away. Networking seems like the answer, but who wants to network with a zero expieriance newbie? Someone please help me out.
You don’t need to buy from a wholesaler you can find your own deals you can search here for hard money lenders.
It’s hard to rehab with no money. There is a lot of expense and carrying costs.
Perhaps you could consider a few deals that are less cash intensive and save your profits up to try rehabbing?
With good credit, you can borrow the money, but without any income, how are you going to meet the carrying costs?
This is a slow market almost everywhere. How are you going to make all the payments if it takes you longer than expected to sell your project?
NO INCOME???
Forget it.
DUDE, GET A JOB!!!
How the hell are you even going to LOOK at deals without INCOME.
I don’t want to slam you here. I respect your desire to improve your situation, but come on. NO MONEY and NO INCOME???
Get a job, put some money away.
No BS…You want THE best advice your going to get here???
RUN… don’t walk… RUN down to your local book store and buy a $5 copy of “The Richest Man in Babylon” read it from cover to cover. Then RE-READ IT!!! Follow the directions EXACTLY as they are written in the book and I GUARANTEE that if you do… In 1 short year you will be well on your way to a successful investment career.
That’s not a joke. The KEY to this book is developing the DISCIPLINE that is required to be successful in ANY investment. By learning the simple rules that this book lays out ANYONE can build a future for themselves. I’ll warn you…this book is very simple. It might take you 2 days to read it. The ONLY way it will work is if you follow the RULES outlined in it. It’s a crash course in BUILDING WEALTH. This book should be MANDATORY reading for every kid in this country. We’d be in FAR better shape financially if it was. It’s that good. But, like anything, if you read it and do nothing, you might as well lite a cigar with that $5 bill.
I have NOTHING to do with this book. I think it may be older than I am. But it gave me my start. EVERY single rule in that book is GOLD! Follow them and you CAN NOT fail.
I appreciate the info so far… but still haven’t got what I’m looking for. When I say I have no money, that dosn’t really mean I have no money. The same goes for the income part. I see no reason to waste everyones time with that. So let’s look past that for a second, many investors do not use thier own money, how do they start in a deal?
They are being pretty hard on you because it is really true. You need some cash and credit. I, for example, use my own money to do rehabs but the bank refinances me out of it at the end. I get my money back and end up with no money in the deal, but I have to put earnest money down toe buy the house. I pay for the appraisal and inspections. After I buy the house I need to buy the materials and pay the contractors weekly until the bank pays be back. I actually need several thousand dollars to do a rehab. There may be a way to do it without cash but you also have to remember you own that house until you turn it over. If the average days on the market is 60 days and when it sells it can take 45 days to close you can be paying 4 house payments utilities etc until you get your pot of gold. If carrying costs are $1000/month you need to be prepared to pay out $4k to $5k not including marketing costs until over all. That means you have to have some money.
Everybody on the TV always talk about no cash and no credit……What that does is appeal to people who need money. These people are easier to sell books and tapes to. What actually should happen is they should market to people that are most likely to be able to be successful at the business of real estate. I always say that the worst time to start a business is when you need the money from that business. That is because if the business needs the cash and your kids need food, you are going to crash the business to feed your children.
Or how about just clicking on this link? Save that 5 bucks for FMC stock!!
I also believe that they are being pretty hard on you - if you don’t get out and learn your market, analyze the numbers, analyze the sales, find a good rehab team, build a good network of buyers and money providers you will never begin investing!!
The market is really slow at the moment, I think that new investors should become wholesalers for 3 - 6 months to learn the market and get some cash in their pocket.
If you can earn a few $K profit from your deals and keep it for investing purposes only then you can reinvest it into a house and grow your portfolio and track record within a few months.
Thanks
Alan
Now that is some good, realistic info. Thank you all. Anyone else?
Have you read many books on REI?
“Lack of self discipline” can be attributed to many of the problems of the world today including the reason why the 90/10 rule still applies today.
Obesity= “Lack of self discipline”
My point being…that if people here are to guide you in the direction that
you desire, I suspect they want to actually give you sound advice. I guess the question is do you think you’ll be better off bypassing the knowledge needed to be able to make sound financial decisions.
By the way if you do decide to bypass the knowledge needed, when you do find yourself in a pickle, let us know we do buy other peoples problems but only at a HUGE discount.
If you have good credit, you have a few other options in addition to the othere advice so far. You sould open up a charge account at the nearest Home Depot etc… Then you can find a hard money lender that can give you the best option for your situation. You absolutey have to assmeble your team. There are many books to help you to do that at you local bookstore. " Find it Fix it Flip it for Profit!" is a good one. I may have messed up the title a little but close enough. If you find a good enough deal, you may be able to finance a lot of the purchase & closing costs. If you put a lot of the materials on your Home Depot card, they have no payments for 6 months or a year. You may be able get a lot of the costs financed in one way or another. Then, when you sell, you can pay everything off and pocket the difference. In this slow market, be prepared to rent it out and refi until its sold. Beware of who you take advice from however. I say this because I sound like I know what I’m talking about but I’ve never actually bought any RE… yet. HEY! I CAN BE A GURU AND SELL ALL THIS INFO SO I CAN START INVESTING TOO!!! :rolleyes :shocked