Your Questions About Investing In Real Estate

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Richard asks…

how do i start investing in real estate with absolutely no money?

i am doing my final year at university and work part-time at a property development firm.my long term goal is to own something similar.i am passionate about real estate and would love to start with investing but i have absolutely no money.how to i start,what can i do?i read tonnes of books and articles but i would love to have something tangible to add.
please advice me,all advice is welcome,except negativity!

financi4 answers:

We have bought property with no money down and we have bought property where we have been paid to take the properties. There are deals out there, but they are hard to find, and you need connections. We have been in real estate for 25 years and have the networks. With you just starting out, it is not impossible, but very unlikely that you can find nothing down deals. There are a lot of real estate gurus who will tell you that they can show you how to buy property with nothing down, but these gurus are just trying to sell their courses. You need to find a mentor and you need to gain experience. I know that’s not what you wanted to hear 🙁

Michael asks…

What is the most easiest way to get into real estate investing?

What are some ways to begin in real estate investing with litttle or no money? Can you start in real esate investing with no money?

financi4 answers:

Join a real estate investing club if there is one in your area. The education is priceless.

Find a wholesaler…these are mostly the guys that have the “I Buy Houses” ads on the street corners and newspapers.

Find a lender who will lend based on Appraised Value rather than on Purchase price. This is not easy to do, but it is possible. You can also work with Hard Money Lenders…steep rates, but often worth it.

My first deal was a house from a wholesaler. It appraised for $51,500 and he was selling it for $26,200. (He got it from a bank for $10,000 I later found out).

I had a hard money lender loan me all the money and then refinanced one week later (which is not easy but can be done) and cashed out at 80%. The hard money lender arranged everything.

In short, I bought a house for $32,000 ($26,200 plus fees and closing costs) with hard money. Refinanced at $42,000. Left closing with approx. $10,000 (42k-32k) and still had almost $10,000 in equity. Not one dime of my own money.

Thomas asks…

How can I find funding through grants or loans for real estate investing?

I am doing research on starting in real estate investing. I have heard that grants or loans are available from government or other sources to buy, rehab, or otherwise start in real estate investing. Where can I find out about these?

financi4 answers:

Most government grants are in blighted areas where they want to spur rehabilitation of neighborhood properties. As far as I know there are no federal grants avalable unless you are revitalizing a property which will end up on the national register of historic properties, but these would have little to no profit potential due to the high cost of rehab to get the property to standards. The local programs generally only give 5-20k for help in rehabbing homes, but unfortunately come with so many strings attached that you will be begging them to take their money back just so you can get them out of your hair. Once you invite them in, you many times lose the grandfather clauses on any number of code requirements that have been put in place since the particular home was built and you have to spend as much if not more than the grant money to get the place up to the government standards that they require in exchange for the grant.

In my honest opinion, better to just get your own loan and go it alone….

Joseph asks…

What does it take to get into real estate investing?

I am 19 years old and i am trying to figure out my career. I have a big interest in getting into Real Estate investing. But I don’t know how to get into it. Everybody tells me to find a mentor, but they are either so expensive or theres the decision if its worth the money or people tell me you have to be rich to start. There has to be a way around that. What does it take? Whats the best way? How do you start out? What are the steps?

financi4 answers:

Have you heard of Robert Kiyosaki, who wrote a book called Rich Dad, Poor Dad? Check out one of his books @ the library, read it, and then go signup up for RichDadWorld.com – there is free information there on how to start. Best of luck to you.

John asks…

How to get start in Real Estate Investing?

I have been doing research about real estate investing and have a few questions about the process. Is the first thing I need a broker, banker, or a seller? Do I need to see mortgage company or can I just take a loan out form the bank? What kind of down payment do you need? Does anyone have any information about tax break, cuts, or property taxes regarding real estate. Any additional information would be helpful, I’m still in a learning phase.

Thank You

financi4 answers:

First thing you need is a plan. You ask a lot of good questions, and as Eddie G said, a real estate book may be your best bet. Once you are done with that, meet with an financial planner and an accountant. This way you have a better idea of what is your strategy and what direction you want to go in.

Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.

You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.

Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don’t have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.

As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.

Good luck!

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