How do you find money when just starting to invest in realestate?

I am trying to start my realestate investing business. I have read several books and have read were people claim to start out with no money or credit, which describes me perfectly. I have found a few REO properties that need some repairs and I am in the process of working all the numbers. I have checked into using hard money lenders and have possibly found a couple that could work for what I need. My question is: If starting out with really NO money and with a low credit score how is it possible to pay even interest only (15%) payments plus the other holding costs? I know this sounds like a dumb question! I just hear of so many claiming they get started bankrupt and broke! Can this really be done?


I think that the “No money Down” angle is played by getting properties Sub2, that is, finding homeowners who want out, getting control of the property, then leasing it and creating a positive cash flow, pocketing option fee, ect.

The rehab route will require some money, even if you found a house with a ARV that would allow you to borrow repair funds, you would still face closing and holding costs.


I started out with zero down on my first three. They were owner occupant properties and I just got bank loans. I’ve been helping a lot of new investors get zero down loans, owner-occupied and non. You just have to watch your cashflow. It’s pretty tough to get a good property when you’re competing against seasoned investors.

Zero down, FHA, 30 day close…those aren’t great terms for the selelr.