The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

What can a young person do for finance?

Denim Chicken

Silver Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
222%
Jun 5, 2010
425
942
California
For someone young who graduated college but has no job yet and no capital to invest, what can one possibly do in terms of finance to invest in real estate? Quite a few years ago even there were zero down mortgages and lending was insane which obviously isn't happening now. I took Real estate finance at UCLA and majored in Economics and studied some stuff on my own but things like ROI, short sale tactics, flips, foreclosures, whatever niche you go into, the buck stops at FINANCE! If you don't have even the basic % to invest even in a small property, it seems hard to get started. If you have no income (unemployed/student) and no capital, are you pretty much shit out of luck?
What if you have some capital, I may be able to work hard and save $10k but income is iffy. IF it comes down to it, I'm willing to sell my computer, my assets and my car to liquidate into some capital if there's a chance I will get lending somewhere. With capital like that and no income, I'd probably look at very cheap starter homes or mobile homes or something that requires very little investing and hope to step up.

Does anyone have ANY advice for me? I'm open to everything.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

VictorB

Contributor
User Power
Value/Post Ratio
73%
Dec 28, 2012
30
22
34
Bucharest, Romania
Hello.


Well, I guess you could trade your time for money. If you're really certain real estate is for you (and that's a big IF) I would learn a new skill like After Effects or Photoshop (0 investment) and then hit 99designs.com or videohive.com or any other platform and start creting a customer base. After a few months try to work directly with customers.

You should be earning 5k/month in a year, that will get you on your feet and ready for the next step.

What I've described above should work if you have enough dedication and this plan is intended for people with 0 money to invest.
I've personally seen two close friends do this
 

InLikeFlint

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
96%
Nov 19, 2012
492
471
Michigan, USA
You could start with Option Real Estate, where you work for investors finding houses that fit their criteria, your job is to establish a relationship with the seller, sign a few contracts, appraise some damages, get a quote, and sell the info/contracts to the investor who takes care of the rest. There was a great post about it on the forum not too long ago.
 
D

DeletedUser2

Guest
here are 2 posts I wrote in other threads.

Rather than rewrite them I suggest you read them.

zero money is a great way to start, because it makes you solve problems instead of wastefully spending money to accidentally learn the hard way..


https://www.thefastlaneforum.com/ge...os-4.html#post182813?highlight=golden+nuggets


https://www.thefastlaneforum.com/real-estate-investing/44110-hard-money-lenders-post255706.html

Good luck


Z
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited by a moderator:

Denim Chicken

Silver Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
222%
Jun 5, 2010
425
942
California
Hello.


Well, I guess you could trade your time for money. If you're really certain real estate is for you (and that's a big IF) I would learn a new skill like After Effects or Photoshop (0 investment) and then hit 99designs.com or videohive.com or any other platform and start creting a customer base. After a few months try to work directly with customers.

You should be earning 5k/month in a year, that will get you on your feet and ready for the next step.

What I've described above should work if you have enough dedication and this plan is intended for people with 0 money to invest.
I've personally seen two close friends do this

Do they sell motion graphics and things like that and rely on sales? I looked into this but for website design and development over at Theme Forest but man, the competition for it is rough. To break into $5k a month would be so slim.. especially when I see really good themes that don't have much sales.




You could start with Option Real Estate, where you work for investors finding houses that fit their criteria, your job is to establish a relationship with the seller, sign a few contracts, appraise some damages, get a quote, and sell the info/contracts to the investor who takes care of the rest. There was a great post about it on the forum not too long ago.

Hm I've never heard of Option RE. Is this kind of like bird dog? Where would someone start with this?

here are 2 posts I wrote in other threads.

Rather than rewrite them I suggest you read them.

zero money is a great way to start, because it makes you solve problems instead of wastefully spending money to accidentally learn the hard way..


https://www.thefastlaneforum.com/ge...os-4.html#post182813?highlight=golden+nuggets


https://www.thefastlaneforum.com/real-estate-investing/44110-hard-money-lenders-post255706.html

Good luck


Z

Thanks Z, i read all 4 pages of the first thread and the other one as well. Found the post about cash flow and capital gains informative. I am trying to do that and all it takes is one good flip. I know capital gains done on a large scale requires lots of hours scouring deals and doing multiple deals at once, etc. whereas cash flow is more analytical. I would like to invest in a cash flow property even if it's a single family but don't have the capital to. I took a class in real estate investing on this and we learned all the analytical stuff and had a project due to find a local property to "invest" in.

My plan is to get 1 good flip. If I can get some profit of it, do a few more and build enough capital to buy a cash flow property and so forth. I'm also looking into owner-building and land development deals as saving 25%+ off contractors fee and designing a very sellable home is an advantage of doing that. Just LOTS of actual hours put in for 1 deal. But I am willing to do that and go through 6 months of house planning to flip 1 house to make $50k. Once I have start seed money I can look into rolling it and stepping up.

Is there any way I can finance a rental or cash flow property with 0 down and have the cash flow cover the mortgage? haha is that a dream
 
Last edited by a moderator:

InLikeFlint

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
96%
Nov 19, 2012
492
471
Michigan, USA
It's sort of like bird dogging but on a larger scale, and you can grow it to any size that you want and make as much money as you are willing to put in time.

I can send you the PDF if you send me a message
 

Denim Chicken

Silver Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
222%
Jun 5, 2010
425
942
California
It's sort of like bird dogging but on a larger scale, and you can grow it to any size that you want and make as much money as you are willing to put in time.

I can send you the PDF if you send me a message

Sure that would be so helpful thank you. Message sent!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

NJRealEstate

New Contributor
User Power
Value/Post Ratio
23%
Jan 18, 2012
47
11
Cranford, NJ
Is there any way I can finance a rental or cash flow property with 0 down and have the cash flow cover the mortgage? haha is that a dream
from my efforts that is a dream. Lenders want to make sure you have skin in the game, they dont want to risk you walking, and if you have $0 invested you are highly likely to walk when the going gets tough. Also if interested in rentals they are afraid if you have no cash then when there is a vacancy you will not be able to pay them.
You can try to find homes not listed on mls and get seller financing, or an option to buy.

If you have no cash you need to 1. Save money, sell stuff, somehow get cash 2. Find a person willing to partner with you because they believe in your business plan and work ethic 3. wholesale properties or bird dog for other investors. 4. Get your RE license and work as an agent, earn some commissions
There are TONS of people who will try to sell your courses about how to buy properties with $0 down, no cash, no credit, ect but unfortunately from what I have seen this is a business where cash is king.
 

Denim Chicken

Silver Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
222%
Jun 5, 2010
425
942
California
from my efforts that is a dream. Lenders want to make sure you have skin in the game, they dont want to risk you walking, and if you have $0 invested you are highly likely to walk when the going gets tough. Also if interested in rentals they are afraid if you have no cash then when there is a vacancy you will not be able to pay them.
You can try to find homes not listed on mls and get seller financing, or an option to buy.

If you have no cash you need to 1. Save money, sell stuff, somehow get cash 2. Find a person willing to partner with you because they believe in your business plan and work ethic 3. wholesale properties or bird dog for other investors. 4. Get your RE license and work as an agent, earn some commissions
There are TONS of people who will try to sell your courses about how to buy properties with $0 down, no cash, no credit, ect but unfortunately from what I have seen this is a business where cash is king.

guess you're right. im "flipping" my parents' house but more like managing the subs and contractors, design, etc. and doing the valuation and comps. Once it sells, there will be about 30k I can use to decide to put down on their new home or divy up into some investment. 30k doesn't go very far esp in socal so I guess the best option is to find a fixer-upper or reo that can actually be a primary residence for 2 years and get a 203k loan with 3.5% down and fix it up while residing in the house. Flip it for a profit and roll the equity and step up. Do this about 2 more times and assuming that the profit margin is big enough to clear the rehab as well as the capital gains taxes (2 of 5 year rule won't be fulfilled) and there will be decent seed money to maybe invest in 2 or even 3 properties at once. Well that least that's the plan
 

andviv

Gold Contributor
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
40%
Jul 27, 2007
5,361
2,143
Washington DC
If I were in your shoes, I would be looking for a job.

Yes, a job.

I would apply to a bunch of mortgage brokers and lenders.

I would be applying to banks to their real estate lending divisions.

I would be scanning classifieds in Craigslist for job posts related to RE.

And I would go for one of them.

Imagine that, getting paid while learning from people in the profession.

Of course, you won't stay there for long, as you are just looking for ways to get started.

It all makes sense to me, but do not pay too much attention to what I say, I have not had my morning coffee yet.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

NJRealEstate

New Contributor
User Power
Value/Post Ratio
23%
Jan 18, 2012
47
11
Cranford, NJ
203k loan with 3.5% down and fix it up while residing in the house. Flip it for a profit and roll the equity and step up.
This is how I got started, but no need to wait 2 years to sell. As long as you make a good effort to 'live' there and its over 90 days you are ok to resell. The only issue I would have is that you can not keep getting 203k loans, at some point someone underwritting will figure out what you are doing. However you can take the profits and roll them into another flip.

If I were in your shoes, I would be looking for a job.
Also what you probably will have to do(or at least I did) as no one will lend you any money if you have no job.
I would be applying to banks to their real estate lending divisions.
This is a really smart idea (much smarter than what I did), as you will get to see things from the other side of the table, learn what banks want to see. You will also make some money and have a proveable income to help you to qualify for a mortgage
 

globalmargaret

New Contributor
User Power
Value/Post Ratio
40%
Jan 9, 2013
5
2
Alaska
1. Know the industry you are planning to take over as well as possible. If you are looking for a job anyway you might as well not delay getting in to the network. Look for a job with a real-estate company, property manager, heck even the companies that stage apartments and homes for sale. Anything that you can get a decent check while learning more about your end goals is going to be a win-win.
2. I purchased my (then condemned) building two years ago. It is now a thriving functioning business with an apartment for me and rental income on the side. I had to do a LOT of trading time for dollars just to get the numbers on the mortgage paperwork to turn out in my favor. No one is above a desk job as long as the end is in sight.
 

andviv

Gold Contributor
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
40%
Jul 27, 2007
5,361
2,143
Washington DC
I purchased my (then condemned) building two years ago. It is now a thriving functioning business with an apartment for me and rental income on the side. I had to do a LOT of trading time for dollars just to get the numbers on the mortgage paperwork to turn out in my favor.
Oh please DO tell!!!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top