Is it possible to make money in real estate if you don't have much money to start with?

Question

My husband and I are interested in investing in real estate (house flipping, maybe), but we don't have much in savings. How difficult would it be to get a loan for a mortgage on an income property like this? What are the factors they consider besides credit worthiness (credit scores and such)?

Answer 1

Simple answer: Yes.

What you lack in cash you have to make up by investing time hunting for good deals. Having some money for marketing helps. Having more money does make things easier.

Take a look at the link below. There are active investors there discussing deals. Some started with no money.

There is a book on flipping houses. It is written by a lawyer who is one of the moderators of the legal forum. He explains how to invest with little capital and how to do it legally. I have provided a link to the legal page (not the legal forum). Look for the link on the page related to flipping houses.


I started with very little money. I purchased a book and then took a 2 day class. It was a long time ago and I have been investing for over 20 years.

The number one reason why someone does not succeed as an investor is because they do not work at it and they fail to do what has worked in the past. Too many people give up. It is harder than it seems and yet it is much more profitable than a day job. Those who can will get on with it and those who do not believe will never succeed. Real estate investing is not a short term activity. You will not get rich quickly. Even those who have success quickly rarely avoid the speed bumps later. Get in for the long term or just avoid the field.

Answer 2

Please read up on real estate investing before you get into flipping. There is a lot of great information out there. Yes, you can make money with little down, but most of those programs are scams. As you have heard before, "it takes money to make money."

We flip properties for a living and do very well at it. However, it is a lot of work and very costly.

Also consider affiliating with a mentor; someone who can show you the ropes.

Best of luck

Answer 3

You can definitely make money in real estate with little money...you just need to start small and work your way up. As far as flipping that is not something you want to jump into unless you really know what you are doing and have the money to back you up when things go wrong.

Answer 4

no hope. Now, of course, people will tell you otherwise, but if you buy a property it sounds pretty certain you will have to have sub-prime financing, and since you are new in the business, the chances that you will make enough to pay the interest and fees, the taxes and closing costs (twice, buying and selling) are very slim. Plus, on top of everything it is a declining market right now in most of the US, so the odds just got even worse.

Answer 5

Lets say 1000 people try to make money in realestate with no money down, 970 lose money, 20 break even and 10 make money.
You then make a tv show featuring those 10 people and offer to sell the secret to success.
The real money is made on the selling the secret. The people who made money on the realestate are just the statistical flukes.

Answer 6

Specialize in a niche of real estate that separates you from the pack and become a super expert: get interviewed in business pubs. You will have no problem.

Answer 7

the problem is, you can start slow and flip one house at a time, you can get financing for it, but with the market being so slow, its taking longer and longer to sell. so you will end up making the payments if you do not sell withen 60 days of closing.

Answer 8

The safest way to do this with no risk, no money (well, you'll need a dollar), no loan and no credit is not to flip homes, but to flip CONTROL of homes. Look into something called assignable purchase option contracts.

The only thing you stand to lose is your time and a dollar.

Regards