How I Started Investing in Real Estate

October 19, 2018

How did I do it? How did I get started in investing in real estate? How did I buy 15 properties in 11 months? Stay tuned and I’m going to share with you my story on how I did it, and how you can do it too!

Like most people looking to invest, I started with no knowledge about real estate investing. It wasn’t until I became a Realtor that I was introduced to this amazing industry. Then from there, after about a year, I purchased my first ever property, using my own HELOC for the down payment and renovations.

 

Yes, using the banks money.

 

Let’s take step back actually, because the real truth is the 1st property ever purchased was my own home.

 

I had finished school and been working and saving for a couple of years before I bought my own home. Luckily, during those few years, I lived with my parents, which allowed me to save a good chunk of money, which then allowed me to put down a larger down payment.

 

Now, for most people, this luxury is long gone, I get it!

So maybe now you own a home already, or maybe your renting. If it’s the former, then you probably have equity built in your home.

 

If it’s the ladder, then start cutting corners on your expenses and save, save, save. Then use the bank’s option to only have to put down 5% of the purchase price.

Of course, you won’t have any equity in your home at first. Some great options to build equity fast, to pay down your mortgage then, is rent out rooms to friends, or instead of buying a home, buy a duplex and rent out the other unit, or rent out the basement. Then use those funds to pay down the mortgage quickly.

 

By doing that, along with the property appreciating, you can build up equity fast.

 

Which leads us back to my story.

 

Now, I had already built up equity in my home as I saved more in the beginning.

 

With that equity then that you’ve built in your home, you then want to go to your bank and open up a HELOC.

I took the funds from my HELOC, the bank’s funds, and I bought my 1st property.

 

I then flipped that property and with the profits and my HELOC paid back as well, I purchased another, where I then applied the BRRR method, which is buying, renovating, renting and refinancing.

 

By refinancing the property, you get all your money back, well, all the bank’s money back.

 

As you can see, really, none of the money was mine, and now I owned a money-making asset with still no money out of my own pocket.

 

I rinsed and repeated until the bank wouldn’t finance me anymore, so I then went to a private lender to help with financing properties.

 

I also used a VTB to purchase a property.

 

I also used partners to purchase properties, and help with financing.

 

With that being said, this is how you start.

 

Focus on the first property, and continue to grow your portfolio. Just because a bank says no, or you run out of money, doesn’t mean there aren’t other methods out there.

 

As I said, find private lenders, find partners, find silent partners whom will lend to you, find properties where the seller will finance it for you, find friends and family whom will lend you the down payment.

 

It’s not easy, you need to put yourself out there, network, build a reputation, build that trust. Rejection sucks, I get it, but if you put in the work, you will build a better future for yourself. For your family. Put your kids through college. Go on vacations more. Retire earlier. Have a retirement.

 

Investing in real estate works, and this is a great timeline on how you can do it too.

 

For more details on the BRRR method, on seller financing, aka VTB’s, on private lenders and JV partners, download my million-dollar blueprint.

WHAT TO DO NEXT: 


Download my Million-Dollar Real Estate Blueprint

 

 

 

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