No money, no income, how do I get started in Real Estate?

[Jas]

Here's a no money down deal I found.

http://www.somersoft.com/forums/showthread.php?threadid=8536

Do your research thou. It might not be for you.

Jas

 

[sbe]

Now we're getting somewhere.....


Will, I need to understand how some of your idea's can be done.

Practical examples of buying assets without any money, generating cashflow with little money

1. 'Trade' your skills for assets rather than money
2. Get in contact with 'entrepreneurial' friends and flesh out ideas
3. Vending machines
4. Mail order business
5. Work for a friends business in return for an ongoing share of the profits or shares in the business
6. Flipping mobile homes http://www.real-estate-online.com/ss-195.html
7. Search the internet for 'cashflow generation' ideas



1 - Absolutely possible. Good idea ! (Mind you, pretty much a job). What sort of assets, and how would it help?
2 - Yep
3 - Buying them with what?
4 - Yep, but often have upfront buy in costs..
5 - Excellent idea, good thinking. (Mind you, pretty much a job, better upside tho)
6 - Could be difficult without cash, but not impossible. Thanks for the site (damn ! More reading!!!) - Question. Why would someone buy something for $5,000 that you bought for $800? What's the angle?
7 - Yes, but be careful, there's sharks out there too.


Jas - Like the idea, but that particulat place (if you could get the finance) would be significantly negatively geared, and with no income to claim against - ouch. But I like the idea. Captain - search for one like this, but in a more affordable area where yield will more than match expenses.

Other thoughts I've heard of:

Short selling stocks. Done correctly, an amazing way to make money. Who'd believe you can sell something you haven't even bought yet. Of course, get it wrong, and.....

Look for houses run down. See if there's an opportunity to buy under market value, with a longer settlement, get access before settlement. Beg, borrow and work hard to tidy place up, flip or rent out with rental income to secure loan. Harder to do (you'll need a good mortgage person)

Any other innovating idea's out there?

Must remember though, assume no money to buy anything over say $1,000. No income to support / qualify for a loan.

Lets see what we can some up with !

Will's on the right path - think how you can generate a cashflow...

 

[Captain_Picard]

Update on The Captain

Wow, didnt expect this thread to stretch on for three months! I thought i would give an update on what has been happening to me lately. I am happy to report that I am working full time, for a successful property investor here in Brisbane, who is experienced, and has over twenty properties under his belt. Shortly after I posted my original post back in Febuary, I rang him every day, often several times a day, for two months straight. He finally gave in, and took me on, saying that what he liked about me was my tenacity. Now I am learning all about property investing from a guru who has years of experience, not just how to run the business, but to find great property deals, in return for basically working for free. Things are really looking up, and I have high hopes for the future. This is a cliche, but where there is a will, there really is a way. Another one is that necessity is the mother of invention. And yes, to the person who asked, I have read Think and Grow Rich, and found it very inspiring, to say the least.

Also, for those of you in Brisbane, we hold regular bi-weekly meetings in the city, where 20 to 30 property investors come to network, exchange ideas and even do property deals further along the line. If anyone is interested, let me know, and I will give the details privately by email.

 

[WillG]

Hi Captain Pickard,

Great to hear you are on your way. Sounds like you are trading your skills, enthusiasm and time for leads onto an 'IP with nothing down'

SBE,

I don't have practical examples for some of the idea's discussed in my post but are thinking of ways to achieve them.

'Start small think big'
It may be easier to finance smaller assets (vending machines) to help fund larger assets like IP's. Get a job with a vending machine company in return for 'Vending Machines'. I use 'Vending Machines' as an example only

 

[paulzag]

Acquiring vending machines without capital.

1) Find someone with a high income and no time. Offer to partner with them for a share of profits or a business loan backed against the machine.

2) Set up a run servicing business fridges on an honour system. Fill the office fridge with standard mini-bar items at vending machine prices. Leave a moneybox in the fridge.

3) Get a credit card (almost anyone can get one) put the first machine on it. Establish location and buy another one with profits. Scale up.

4) Run an ad in Sat SMH personal loan wanted.

5) sit down and brainstorm a list of 20 other ways to finance this deal.

sbe try that rather than asking WillG to flesh his ideas out. Exercising the brain is worth it.

Regards

Paulzag
Dreamspinner

 

[Tibor]

Hi Captain,

reading your update, it seems to me that you are on the right path. What is interesting that what you just wrote is the same I read in Rich Dad Poor Dad!!!!

The rich do not work for money. They work to learn how to make money.

Thanks Paul for your insights. Excellent toughts from a very seasoned person. I hope others also will take note.

Simon, It is not a theory I wrote. There are people (I am not one of them, but I am not so successful either) who can do it. But I also started in OZ with $100 in my pocket, so not completely hopeless. Last month PI magazine mentioned a girl in NZ. Very interesting story.

I am also sure that in this Forum there are people who done it on this way. They know much more than I ever will. I know it looks hopeless and frightening at the beginning. As time passes by it will become easier and easier.

Tibor

 

[qaz]

I found this thread while doing a search on Craig Turnbull. I think its gold and should be on the best threads ever list.

 

[Tikki]

O ye of little faith,

Be creative!! So many people get scared of doing something different especially if they don't know what the legalities are or if they get laughed at once by their bank manager or friends ...or by people on a forum... just get out there and TRY it! THINK!!!

I'll highlight a classic example in Robert Allens book "The Road To Wealth" and strongly recommend you 'unbelievers' get your hands on a copy. And don't tell me any excuses such as 'that type of thing is fine in America, but it can't work here in Oz'

Example:
A year earlier Mr X had sold a house in Sydney to move to Melbourne. The sale price was $52K with the buyer giving an $8K deposit and agreeing a lump sum payment of $17K in a years time. Mr X bought a house in Melb using the $8K as his deposit and agreeing a lump sum to BankXYZ of $17K in a year, relying on his buyer to come through from his house in Sydney. However the Sydneyite buyer ceased mortgage repayments and moved out of the house. Mr X now has a problem with two mortgage repayments and a $17K note now due and BankXYZ is threatening to sell both from under him.

Say his mortgage balance on the Sydney home is $27K, the current value is $60K and all he wants from the property is $17K cash to get the bank out from on top of him. Hence what do we have? a $44K property (27+17) valued at $60K. Captain Picard sees this and thinks 'hmm, how can i get $17K without a JOB? the bank will laugh at me and so will my uncreative friends’.

Perhaps the Capt could find an investor or money partner? If this person used his credit to borrow the $17K from the bank, he'll use none of his own money. The Captain arranges for a second mortgage of $17K which goes straight to Mr X and the investor buys the property for nothing down AND he's made an instant profit of $16K (60Kvalue - 44Kloan). a WIN-WIN situation. Do you think he would be willing to share that profit with Captain Picard? In fact I’m sure that he’ll be banging on the Captains boat to go and find him another lot!!

Okay, so it may not exactly be 'investing', but you're sure getting some $$$ AND the contacts in investors willing to share AND a knowledge base of market values. Once you have enough $$$ from a deal like this, go and buy these for yourself!!

Alrighty, so you can't find a money partner? Have Mr X get a second mortgage on his own property! That's right, it CAN be done. Then Captain Picard will take on the loan payments himself. He can rent the house out to cover some payments and bring in a partner to cover the -ve cashflow for a portion of the profit!! Perhaps you may even then want to sell after a while. For Sale: Appraisal $60K, Will Sacrifice For $50K... Or vendor finance for $60K no deposit.

Cash in bank without you spending a cent of your own money. You may be 'working' but you don't have a 'job'.

Steve McKnight and so many others are promoting WIN-WIN situations. Don't knock em until you've tried them. It's scary but that’s why they have scaled the cliff face and so many others haven't.