One of my goals is to invest in rental properties. I'm looking at mostly duplexes and fourplexes. I am really looking into something that I can hopefully start building equity. The problem is it seems impossible to me when I look into the reality of it.

Here's my problem, I have no money to put down on anything. I have some credit debt but it's less than 6k. My credit rating is about 670 on avg and I rent, I do not own a house.

Now I am also married and my wifes credit debt is larger than mine, so after our marraige combined we have a pretty big debt (probably around 16K).

I work in the construction/maintenance business where getting paid is not always something that happens. I am owed a lot of back pay so my bank statements are mostly under 1k on avg.

I really want to do this but I feel like I'm tied down. Is there any hope for a guy like me to break into investing in real estate?

If so then where do I start? If not then where do I start?!?

"I work in the construction/maintenance business where getting paid is not always something that happens. I am owed a lot of back pay so my bank statements are mostly under 1k on avg."

I would get out of that line of business.Alot of this zero down stuff was written before the subprime meltdown,higher credit requirements,and less financing out there.

Generally I can find deals at 5 to 10 percent down with owner financing but not 100 percent. If you don't perform and they foreclose they will be out money so you have to bring some value to the table for them to do a deal.

In your situation I would go to work for an investor making a salary and learnign this business.Put away a certain percentage so later on you can start your own deals. You can also partner and do the labor side of the deal in return for a percentage of the profit. Just never beleive anything verbal and get everything in writing and run it by an attorney.

Your score of 670 isn't bad but 100 percent investor loans do not exist anymore. They want to see reserves,steady verifiable income, and time on the job.

"I would get out of that line of business"

I'm sick of dealing with it, that's why I decided to get into real estate, get my license and become an agent. The problem is I know I won't start making money out of the gate. I need the job I have now because it allows 100% flexibility. If I get another job and have to work 9-5 then I'll have no time to put into real estate.

In a perfect world I would have rental income to keep me alive and be able to pay bills while I spend 50+ hours a week being an agent. Unfortunately no world is perfect.

Being a REALTOR is completely different from being an investor - both can easily become full time (and more) careers.

Super's suggestion was perfect - to expand on it - don't get started in real estate if you've only got $1,000 in the bank and no steady income!

Go to work for an investory on a full-time basis if possible and learn the ropes. Scale down your monthly expenses so that you can afford to put some cash away to put towards your own investment, and you'll be fine... but if you try and do that while you're also trying to start up a real estate career you'll end up very far in debt with absolutely nothing to show for it.

ONE THING AT A TIME...and again - you absolutely do NOT want to start a real estate career with only $1,000 in the bank at any given time...you're asking for problems...

I like the advice here about getting a job with an investor but how is that done? Where would you find a "local" investor willing to "show you the ropes"?

Since no one actually answered the original question I'll go ahead. Buying real estate with no money down is a reality. BUT... don't think that's some kind of holy grail to riches, there are many properties that you can buy with no money out of pocket by simply taking over the seller's payments, but you shouldn't do it, because those payments are too high.

That said. I have a few ideas for you or anyone else thinking about getting started with real estate investing.

First, focus on getting yourself out of debt. If you can't manage your own personal finances you won't be any more successful with managing the finances of an investment portfolio.

Next, start with where you live. Are you renting an apartment? Become the superintendent/on-site manager so you can learn how to chase rent money and unclog toilets. If you're renting a house then ask your landlord if he/she will sell it to you on a rent to own basis, many landlords are happy to help a good tenant get on the road to home ownership. And if you're looking for someone to mentor you on investment, why not start by asking your own landlord a few questions?

Available cash, credit, and income are all irrelevant if you're willing to educate yourself and then take action. And forget about all those courses and bootcamps being peddled. You can find all the information you need for free on the internet and from networking at local investment groups.

Some of the investment properties you can find with no money down will require private lending. The challenge is to find a property with no money down which cash flows even though your holding costs / interest rates for private funds will be very high. It's possible to find such deals but you probably have to analyze many deals (hundreds) before finding one that works.

You also have to factor in the TIME it would take to find one of those types of properties. I am all about increasing ROI per hour earnings so time is money.

Many people just look at profit made but do not break it down by time spent to achieve that margin.

A agree. Wholesalers spend a lot of time finding these kinds of properties and their assignment of contract fee is well worth the time saved for the buyer investor.

[quote=super realtor]You also have to factor in the TIME it would take to find one of those types of properties. I am all about increasing ROI per hour earnings so time is money.

Many people just look at profit made but do not break it down by time spent to achieve that margin. [/quote]

This is probably not what you want to hear, but the first thing I would do is work on paying off your credit card debts.
Consider, for a moment, that under GREAT circumstances you might earn a 10% return on your investment through rental agreement each month. Your credit card's interest rate, on the other hand, is probably somewhere in the 12-24% range - costing you more than you would earn from a rental investment.
First, unburden yourself from that debt. Then, save some money, because you will HAVE to put down money, both as a down payment and to pay for settlement costs such as lender fees, title fees, appraisal fees, a million other fees you won't be expecting but will still have to pay for.
I'm a big fan of investing in rental properties, but you have to do it when you're in a financial position to do so properly.
Best of luck to you,

_____________________
Brian
Rental Agreement

With $1,000 in your bank will be very difficult to start. You have chance, find a good property and partner with some hard money lender. There are some of them that are agree for partnership., but you need to have really good property. You can flip and gain some cash. Your split will not be 50/50 but you would be able to find someone with for 50/50 as well. Good luck.

I believe the only way to buy no money down right now is for an owner occupant VA Loan. The days of zero down investment property buys are long gone.

Yes it is a reality. I do it all the time. Don't listen to anyone who says it can't be done. The whole idea is that money will be used to purchase a piece of property, It just won't be yours. Making it a no money down deal for you. Look up the terms "Private Lending" and "Hard Money Loans" when you get a chance. That will be some good reading for you.

In regards to your question "where do I start?"

Im a full time investor myself, and here is my advice. Go to google and search for the nearest REIA (Real Estate Investor Association) Group after finding it, go to the next meeting. If its a small fee for none members, go ahead and pay it. Walk up to investors and tell them that you are interested in bird-dogging for them. (A bird-dog basically locates deals for investors) Find out what they will pay for a deal, and let them know that you are trying to learn the business and this is a means to do just that. After a few conversations with a few investors you should be good. If you like that REIA then join it and take advantage of all the useful resources you can.

I hope that helps...

Use to be (2 years ago) you could do zero down, BUT no more. Not only that but if you could do zero down and have the rents cover the "nut", then you knew you bought the property right. Sadly, those days are gone. Very tough to refinance as well, especially with the fantastic rates currently.

Yes you can buy property with no money down and also cover the rehab cost and roll in all closing cost if you find the right property with enough equity. There are still private lenders who will lend up to 70% LTV or ARV on investment properties. So if you find a property you can purchase around 60 to 65% LTV and factor in the closing cost it can be done.

John Broussard
Newbridge Investments
www.newbridgehomeloans.com
http://twitter.com/hardmoneyTX
http://twitter.com/houstonlending