Where to get the money?

[tbodley74]

Where would I get money to purchase rental properties? If I don't have out of pocket of my own,  where would I turn to come up with money to purchase cashflow properties of my own to hold on to? Income from a 9 to 5 won't cut it. I know that already. I am talking some serious cash money  I can come up with right away to purchase rentals. I don't know if it is true or not but it was said that traditional wholesale flips is not as easy as it seems these days. And that most cash investors are going for rental properties. There may be some truth to that because I had a someone from the local REIA and a real estate agent in my area say the same thing that wholesaling is not as easy to do like it used to especially in my local real estate market.

[justin0419]

I started by taking money out against my CC.  I got a special offer at a pretty low interest rate and took advantage of it.  You don't just need money for purchase.  There will inevitably be some repairs to make to get it ready, carrying costs, etc.  You could try to get someone to loan you the down payment money, but the bank is going to want you to have money in it.  If they know you borrowed the down payment too, it could cause problems.  Things get easier once you get established.  By meeting someone at a bank today, we got a referral and now have been offered a duplex on owner financing.  The same guy also wants to sell his 21 unit complex a few years down the road on owner financing. 

[tbodley74]

There is no one I can turn to to get me the down payment.

I started by taking money out against my CC.  I got a special offer at a pretty low interest rate and took advantage of it.  You don't just need money for purchase.  There will inevitably be some repairs to make to get it ready, carrying costs, etc.  You could try to get someone to loan you the down payment money, but the bank is going to want you to have money in it.  If they know you borrowed the down payment too, it could cause problems.  Things get easier once you get established.  By meeting someone at a bank today, we got a referral and now have been offered a duplex on owner financing.  The same guy also wants to sell his 21 unit complex a few years down the road on owner financing. 

[andydallas]

tbodley, you may not like this answer, but the way to do it is to
1. establish great credit
2. work more hours or get a part time job nights/weekends
3. cut your cost of living down

You just have to increase the amount of money coming in, and not spend as much, so you can save.

if you do that, and establish great credit, you will be able to move forward, but it won't happen overnight

There are ways to buy and rehab houses and end up with no or very little cash out of pocket (I'm finishing the rehab on a house worth $110k now that I will end up with a couple of thousand out of pocket,,,BUT you have cash in the deal while its going on,,and you have to have cash and credit to get it done

I think its great you want to get into real estate, but you have to find a way, if not wholesaling then maybe its a second job, to get the cash you will need.

andy

[justin0419]

Andy is right.  I don't know anything about your financial behavior, but look at things like do you have a smart phone?  The reason I ask is because everyone seems to think things like smart phones are necessities now.  I make six figures from my day job and I have a simple phone that does it's designed job...it makes phone calls.  I don't even have a text plan.  The average person could easily spend $400/mo for things like cell phone, cable/satellite tv, and internet. 
You could also try using craigslist and ebay to sell some of your stuff you don't need. 
Just try to focus on the first cheap little house.  Figure out what you would need to get in the door.  I'd say 25% of purchase price would be good for the down payment.  I have to pay the first year of insurance up front.  That ranges anywhere from $200-450 depending on the houses we buy.  Focus on little achievable goals like you're going to save the first thousand toward your 15k goal by X date.  Nothing economically points to house values shooting up any time soon.  Interest rates are predicted to remain extremely low thru at least 2013.  You've got time to continue gaining knowledge here while saving for your first place. 

[tbodley74]

I don't have a smart phone. I do have a straight talk phone with unlimited talk and unlimited  text messages along with unlimited web surfing. My fincial behavior is I messed up big time by having a degree and no job, which in turn got me stuck with a pile of student loan debt that is not easy to payoff until the next two decades. If only I could go back and not get a degree, I would do it in a split second.

Anyway school debts along with a few more fixed debts I cannot get rid of for a little while longer is what is holding me back from doing the type of real estate investing I want to do. I'm looking for another day job all the time to help supplement money used to get started in the investing business. That is not working out so well at the moment, but I am still thinking of some kind of ideas to make money if not from a 9 to 5 job. Employers are getting more and more unrealistic about who they are looking to hire and what they expect upfront. This is why I want to get out of the rat race in the beginning and real estate investing sounds like just the thing that can break me free from all that. I know you guys have become successful in the business. Things may have not started off so easy for you to be making those six figures, but you got there. I want to be like that some day. I forgot to mention I have no support from my folks if I was to tell them my plan to get into real estate investing. Everything I hear is something negative no matter what ideas I have to make money like you guys did. Negative talk from my folks is crippling to my success in the business. Discouragement is a huge setback for me. I don't have anything of value to sell on Craigslist or Ebay.

Andy is right.  I don't know anything about your financial behavior, but look at things like do you have a smart phone?  The reason I ask is because everyone seems to think things like smart phones are necessities now.  I make six figures from my day job and I have a simple phone that does it's designed job...it makes phone calls.  I don't even have a text plan.  The average person could easily spend $400/mo for things like cell phone, cable/satellite tv, and internet. 
You could also try using craigslist and ebay to sell some of your stuff you don't need. 
Just try to focus on the first cheap little house.  Figure out what you would need to get in the door.  I'd say 25% of purchase price would be good for the down payment.  I have to pay the first year of insurance up front.  That ranges anywhere from $200-450 depending on the houses we buy.  Focus on little achievable goals like you're going to save the first thousand toward your 15k goal by X date.  Nothing economically points to house values shooting up any time soon.  Interest rates are predicted to remain extremely low thru at least 2013.  You've got time to continue gaining knowledge here while saving for your first place. 

[Mdhaas]

The job market is extremely tight right now.  They just laid off 50 people from my employer. So competition increases every day.

With unemployment so high, you will need to get creative to obtain an income. Besides the normal employment ads, you will need to contact employment agencies.  Most employers are using agencies to recruit and process potential new employees. 

Lower your expectations.... you may be looking for and only willing to accept that high paying job.  Find a job, any job, it is easier to find a job if you are already employed. Even if it is underemployed. 

Cleaning companies are constantly hiring. 

[ckorn1297]

Tbodley I can sympathize since I am a newby trying to get my feet off the ground as well, and working at a Bank myself I understand how difficult it can be for someone to get new traditional financing without a successfully operating business in place, great credit, or some form of co-signer. If I were you (and I don't fully know your situation) here are a few things I would pursue for some $/savings:

1.) Where are you living? Do you live with your folks, or on your own? If on your own, consider the monthly rent as an expense you could save if you moved back in with your parents.
2.) If you have a 4 year college degree in a decent field of study and you are not making $40-$50K per year you may consider looking elsewhere for a new position or transfer within the industry in a similar job for a pay bump. I know, I know....no jobs anywhere right? Well you have to be persistent and creative. Go back to the career counseling center at your University and ask for additional interviewing practice, additional leads on job postings, job fairs, etc. Bomb the heck out of any and every posting for a new position that gets you to where you need to be financially to save money. I graduated in 2009 into arguably one of the most depressed job markets and got a great job at a Bank! Network, network, network! Consider getting your foot in the door at a job that, within a few months, you could bump up to the next position, i.e. going from a bank teller to a personal banker or underwriter as an example.
3.) Just last week I attended a local investor round table breakfast gathering. Each person was given a minute to stand up and give their elevator speech on what you offer, and what you need. I stood up, introduced myself to the group, and told them what my goals were. I didn’t state the need for private money at that particular moment, but had I, I strongly believe the cash was sitting in that room.

These are just some simple ideas, you sound like a smart person with plenty of motivation. Gotta keep moving and uncovering stones until something materializes, it will!

[tbodley74]

Yes it is tough. My state still has unemployment going up. I know I shouldn't be so fixed with aiming for that high income job I was hoping for. The problem is I seriously need more money coming in and any job that pays below poverty wages is not helping at all, which is where I am today. I must  have more income than debt to get me on the right path. It gets even worsse because I live at home with my folks and I am doing what I can to help them out during tough financial situations.  Now it is all about the money to get me out of my bad situation and to help them out the best I can. This is a lot to deal with and the stress is mounting everyday with me wondering how am I ever going to get out of this bad situation.

I can tell you there were times I was willing to take any job just to get hired. Then after that happens I had plans to find jobs related to my degree that I can go after now that I am in the door. It seems a lot easier to apply for a job within another department in that company than applying for that same job as an outsider.

The job market is extremely tight right now.  They just laid off 50 people from my employer. So competition increases every day.

With unemployment so high, you will need to get creative to obtain an income. Besides the normal employment ads, you will need to contact employment agencies.  Most employers are using agencies to recruit and process potential new employees. 

Lower your expectations.... you may be looking for and only willing to accept that high paying job.  Find a job, any job, it is easier to find a job if you are already employed. Even if it is underemployed. 

Cleaning companies are constantly hiring. 

[Mdhaas]

I can tell you there were times I was willing to take any job just to get hired. Then after that happens I had plans to find jobs related to my degree that I can go after now that I am in the door. It seems a lot easier to apply for a job within another department in that company than applying for that same job as an outsider.

Then make it happen. Quit procrastinating. Any income is better than no income at this point. If you are looking for a "get rich quick" solution, real estate is not it.  It can become very profitable, but that takes time.  It sounds like "time" is something that you do not have.

Many of the investors on this site started with nothing or very little and worked hard to reach the levels that they are at now.  Success is all about what you are willing to invest in your future.

Set your goals. Then plan your work and work your plan to get there. If that means2, 3 even 4 odd jobs, then that is what it is going to take.

Do whatever it takes. 

[tbodley74]

Read my response in red and look at what I told Mdhass below.

Tbodley I can sympathize since I am a newby trying to get my feet off the ground as well, and working at a Bank myself I understand how difficult it can be for someone to get new traditional financing without a successfully operating business in place, great credit, or some form of co-signer. If I were you (and I don't fully know your situation) here are a few things I would pursue for some $/savings:

1.) Where are you living? Do you live with your folks, or on your own? If on your own, consider the monthly rent as an expense you could save if you moved back in with your parents.  I live with my parents and I am trying my best to take care of my situation and help them out the best I am able to. My mom is in critical conditions from her disability and it is so hard on me and my dad because my father is and always has been the only one working 24/7 to support to keep the family surviving. He has enough income to do a lot of what needs to be done to keep the family going. My job does not pay me enough income to support myself financially on my own.

2.) If you have a 4 year college degree in a decent field of study and you are not making $40-$50K per year you may consider looking elsewhere for a new position or transfer within the industry in a similar job for a pay bump. I know, I know....no jobs anywhere right? Well you have to be persistent and creative. Go back to the career counseling center at your University and ask for additional interviewing practice, additional leads on job postings, job fairs, etc. Bomb the heck out of any and every posting for a new position that gets you to where you need to be financially to save money. I graduated in 2009 into arguably one of the most depressed job markets and got a great job at a Bank! Network, network, network! Consider getting your foot in the door at a job that, within a few months, you could bump up to the next position, i.e. going from a bank teller to a personal banker or underwriter as an example.I
3.) Just last week I attended a local investor round table breakfast gathering. Each person was given a minute to stand up and give their elevator speech on what you offer, and what you need. I stood up, introduced myself to the group, and told them what my goals were. I didn’t state the need for private money at that particular moment, but had I, I strongly believe the cash was sitting in that room.

These are just some simple ideas, you sound like a smart person with plenty of motivation. Gotta keep moving and uncovering stones until something materializes, it will!

[Mdhaas]

And the employment climate continues to deteriorate. Maybe not in your market, but......        http://money.cnn.com/2011/11/18/markets/wall_street_layoffs/index.htm?iid=Lead&hpt=hp_t1
 
Get out there and find something...

[tbodley74]

Procrastinating is not what is going on. Things are a lot tougher  where I am and it is getting worse with unemployment still going up. I have been looking for other jobs for quite some time now ever since the economy got bad.  It is usually the same thing like these. I don't have years work experience. We're not hiring. Thank you for applying at  such and such, unfortuantely we have chosen another candidate who is more qualified. Thank you for coming we will call you if you are a good fit for the job. That's after I have been to the job interview. They never call back and when I contact them to check on the status of my application or whether they reviewed my resume, they had already filled the job I was applying for without so much as a letter or email telling me I got rejected. It just goes on and on with them looking for reasons not to give me a shot at the job. Even if I am willing to learn the ropes on an entry-level position. I am the kind of person that does not like to wait and wait for an answer as to me getting the job or not. I prefer everything to be upfront no beating around the bush. When I leave that interview I want to know right then and there either they want me or not. I am sure they be knowing the whole entire time during the interview if I got the job or not and won't tell me upfront. This is so frustrating and a waste of my time while getting my hopes up for nothing.

I can tell you there were times I was willing to take any job just to get hired. Then after that happens I had plans to find jobs related to my degree that I can go after now that I am in the door. It seems a lot easier to apply for a job within another department in that company than applying for that same job as an outsider.

Then make it happen. Quit procrastinating. Any income is better than no income at this point. If you are looking for a "get rich quick" solution, real estate is not it.  It can become very profitable, but that takes time.  It sounds like "time" is something that you do not have.

Many of the investors on this site started with nothing or very little and worked hard to reach the levels that they are at now.  Success is all about what you are willing to invest in your future.

Set your goals. Then plan your work and work your plan to get there. If that means2, 3 even 4 odd jobs, then that is what it is going to take.

Do whatever it takes. 

[Mdhaas]

Gotta get more aggressive, creative.  What makes YOU more valuable to a prospective employer than the next guy/girl that walks in the door? 

So do you have anything producing income at the moment?

[tbodley74]

Maybe I should scare them into giving me a job who knows if that would help. But seriuosly, it is tough competing for a job when you are not in the same room as the next person. There is no telling what that person said or did to get them the job. I wish employers would give group interviews where they group many of the job seekers in one room and one by one they start interviewing them all right in front of the other job candidates. That would be cool, but a lot of pressure.  This gives each person a chance to find out upfront what to say and how to act and what not to say and how to act. At least this gives a person a chance to see if the company is biased in anyway based on the questions they ask at the interviews. I thought it about that once whether the employers are asking each job seeker the same questions as the next person. For all we know there could be some form of discrimination going on at these places that a lot of people never even knew about.
[#msg251285 date=1321644998]
Gotta get more aggressive, creative.  What makes YOU more valuable to a prospective employer than the next guy/girl that walks in the door? 

So do you have anything producing income at the moment?
[/quote]