You don’t need much cash in your pocket to start investing in real estate. You also don’t need great credit. By building cash as a bird dogger, starting with a wholesaling business, and getting your financial stash built by driving for dollars, you can build a nest egg that can put you in place for your first flip while you also keep an eye out for long term investments.
Get In With Other Investors
You can start investing in real estate without a lot of cash if you work with others in real estate who have cash. For example, someone who owns several rental properties may not have the time or the desire to be looking for other properties, but they may buy information on good investments from you.
Look for local real estate investment association groups to join. You can find them on social media as well as on community forums. Talk with the leaders about bird dogging and wholesale options.
Driving for Dollars
Your first methods of raising money can start just by checking out established neighborhoods. You can look for
- For Rent signs that have been around for a while
- Signs of neglect, such as peeling paint or broken windows
- Mail or flyers piling up in the yard or near the door
- Uncollected trash
An existing rental that just isn’t moving any money can be an ideal target for a bird-dogger. Walk around the block while staying on public access points such as sidewalks and alleys. Take photos of the signs of neglect or damage. Get the owner’s name from the county property tax website. If the owner is a business, look for a contact name in the Business Entity Identification Number database for your state and get their contact information.
Win-Win Deals
Your first step is to keep an eye out for great deals. If you live in the Midwest and find a neighborhood of older, stable homes that generally value at $100,000 each per the property tax valuation, your first step will be to do some driving. If you notice five well-kept houses and one with tall grass and newspapers piling up, you have a target to check out.
Your second step is to look for win-win deals. If the neglected property
- is a rental, you are getting the landlord out from under a house they can’t manage.
- is owned by the occupant, you are protecting them from having a foreclosure on their record.
- is an eyesore in the neighborhood, you can boost the property values of the whole neighborhood by getting it sold to a flipper.
According to experts at DealMachine, you’ll want to keep a close eye on your calendar when looking for houses to flip. For example, a house that goes on the market in Denver, Colorado generally doesn’t spend more than 5 days on the market. If you find a house that was listed two weeks ago, you may have access to a seller that is willing to make a deal.
Becoming a Wholesaler
Your guide to real estate investing will include instructions on becoming a wholesaler. If you are tech savvy, the whole process will be a lot easier. To wholesale a property, you need to sign a contract to acquire the property, then pass it off to an investor for a fee. This can be a bit nerve-wracking, but once you have good relationships with your investors, it’s a great way to churn cash. Learning to bird dog is a great way to build the skills you need to wholesale.
Real estate investing takes a lot of hustle, but the skills you learn can work in any city. Start local to build your skills and relationships with investors, then move up into bigger markets.
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