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How do you become a property investor when you don’t have savings set aside. The credit is not so good and funds are low, but we really want to get involved in buying properties and renting them out, how can we get started?

4 Thoughts on How do you become a property investor?
  1. Reply
    golferwhoworks
    January 2, 2013 at 8:58 pm

    get your credit in line and have 25% to put down with the seller paying the closing cost is the ONLY WAY

  2. Reply
    capitalgentleman
    January 2, 2013 at 9:51 pm

    You can’t.

    With no cash, and poor credit, how can you expect to invest in anything?

    You will need at least some cash, and credit enough to buy your first property. Perhaps a dump in a bad part of town, but it will get you started.

    As in many things in business, it takes money to make money.

  3. Reply
    loanmasterone
    January 2, 2013 at 9:56 pm

    You did not indicate what type of properties you were interested in investing in there fore I can only offer a generic answer to your question.

    First of all you will have to educate yourself in the business you would want to be successful in. Therefore you would need to go to your favorite book store and buy as many books about investing in real estate as you can.

    There are many type books available, so you can get an idea which end of the real estate investment spectrum you would like to be involved in.

    The books will give you ways of raising money for real estate investments, as well as an idea as to which investment you would like to pursue.

    #1 You can let others find properties and you put up the money.

    #2 You can find the properties and find others to put up the money for you. (You would need to advertise)

    #3 You can find properties and pass them on to other investors with you taking being paid for finding the properties.

    #4 You can invest in 1st and 2nd trust deeds

    #5 You can buy real estate notes at a discount.

    So as you can see there many various investment vehicles available, you have to select one that you want to specialize in. Of course there will be off shoots when you do one and you will dabble in the others, but you need to specialize in one area of real estate investment until you can hire someone to assist you.

    While you are reading and becoming gaining knowledge about real estate investing you could clean up your credit and find out where you can raise funds from.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  4. Reply
    I Buy And Sell Houses
    January 2, 2013 at 10:09 pm

    Excellent answer from loanmasterone.

    To borrow on and amplify some of his suggestions:

    (1) Birddog. You go out and find properties in distress situations. You relay that information to a real estate investor. If the real estate investor is able to do a deal, you’ll get paid a birddog fee. In many areas, that’s around $ 500-$ 1,000. This will raise money, but won’t–by itself–result in rental properties.

    (2) Wholesale. You go out and find properties in distress situations. You put a contract on the property. The contract is assignable. (This doesn’t work if a property is in the MLS.) You then assign the contract to an investor for a fee. You shouldn’t go through all that effort for less than $ 4,000-$ 5,000. Average sometimes is in the range of $ 10,000-$ 20,000, but sometimes can go higher. This will raise money, but won’t–by itself–result in rental properties.

    (3) Sandwich Lease Option: You find an owner who is willing to do a lease-option. Hypothetically, let’s say it’s $ 1,000 a month rent (slightly below market) and a purchase price of $ 300,000. You find a tenant-buyer who’d like to buy a house, but can’t. You lease-option the property to him: $ 3,000 upfront option fee, $ 1,400 a month rent (at or slightly above market), and a purchase price of $ 315,000. So you get $ 3,000 up front, $ 400 positive cash flow every month, and $ 15,000 if the option is exercised.

    There’s plenty of information out there on all these techniques. You might start at http://www.creonline.com

    Hope that helps.

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