If you are a new investor and you want to get your first investment property, then we need to talk! WAY too many new investors get knee deep in debt and I don’t want that to happen to you.
There are a gazillion ways to make money in real estate investing. But, I want to show you how it is possible to finance your first investment property with a $10 bill.
Got $10? You can Finance Your First Investment Property!
When I first got started with investing, I learned all about lease options and fell in love. Let me tell you, there is nothing that I have fallen in love with more! It is AMAZING!
At the time, I learned all of the basics of lease options. This included the possibility to make $100,000 in 90 days without using money, credit, or a license. But, instead of just learning about it, I dove headlong in.
I signed up for classes, got a mentor, and dropped $15,000 to learn how to buy houses with $10. Seriously, y’all, it cost more money to learn how to buy houses with little to no money than it did to actually buy the houses. Who knew?
So, I put the money on my credit cards. Then I got to work to figure this whole thing out.
I was bound and determined that this was going to work.
Two weeks later and a week before I even talked to my mentor, I was in a seller’s kitchen. Their situation was unique and they needed to get out of their property quickly. They were a retired couple who had recently learned that their daughter needed to move back in with them. And, she was pregnant. Consider that a wrench thrown into their plans.
All of a sudden, their plans changed. The house was fine, but it was no longer a good fit for their new situation. They needed to sell it fast.
So, I met with them after I found them on Zillow with a For Sale By Owner listing. They told me they needed to move quickly, and I assured them I could definitely do that. I had no idea what I was doing, but I was determined to find a way to help them!
We trudged through, figured out a plan, and worked out a deal.
The plan we came up with was that they would do seller financing and sell me the house for what they owed ($122,000), let me make the payments on it for about 3-4 years until I could cash out. During that time, they agreed to move out (within 2 weeks) and I would have 90 days to make my first payment. We signed a piece of paper I had from this boot camp I had paid for and that was that.
Now, I let the sellers know that we had to have some money invested to be able to do these deals, so I wrote them a check for $10. TEN DOLLARS and I was all set with the deal.
I was excited…but I still had no idea what I was doing just yet.
The next day I called my mentor and told them I had a contract I needed help to work out. He was stunned but ready to help me hit the ground running.
Now, the seller followed through, moved out. And, two days later, I put it right back on the market with an open house. Lots of people came through, but a couple from Chicago arrived, loved the house, and wanted to make an offer.
Well, this couple had actually seen the house on Zillow the week prior for $135,000, and now I had it listed for $145,000. They really liked the house, so they made an offer for $135,000 and I decided to accept it. Remember, I had the house under contract already for $122,000, so right away I knew I would make $13,000.
We discussed a lease option for 2-3 years, but the couple was confident that their house would sell pretty quickly. Now, that might have been the situation, but since no one wanted them to get stuck in that process and get into a problem, we agreed to do the lease for a year. Then, whenever their house sold they could simply cash out and that was that. Simple.
It was an excellent first investment property opportunity!
These people were ready and hungry to settle down and the original sellers were eager to move on. WIN-WIN.
So, we signed the contract and they gave me $3000 the first day they ever met me! This money covered three months of rent right off the bat. Keep in mind, this was rent before I even owed my original sellers ANYTHING. This was on a Thursday (in March), and by Monday they called to tell me they had a contract on their house in Chicago and should close in May!
I did not quite believe it would work out that way, so I assured them that in the meantime they were all set for the lease. They had paid for three months’ rent and could move in for the time being or put it towards their non-refundable option fee.
Then I realized that since they were possibly going to cash out by the middle of May we could simply write up a purchase and sale contract with a rental agreement so that they could move in before closing!
My mentor was awesome, especially since this was really my first investment property, and got this new paperwork all situated.
Lo and behold, the house sold perfectly, and our contract closed perfectly, and within a few weeks I got a check for $13,102 before I paid a little in closing costs. AND, I had already made $3000 from the original money the buyers gave me. It was beautiful.
I made over $15,000 in eight weeks! It was the exact same amount I had invested in my mentor and I made my money back within 2 months. That meant that I had my mentor free and clear for the rest of six months. And during that time I made as many deals as I could and made $100,000.
Your first investment property does not need to put you into debt!
Investing does not have to put you into debt. It is the best way to get yourself financially ahead. I LOVE teaching women with First Deal Done Fast how to build their passive income with real estate and to change their lives with investing. There is nothing quite like it on the market that highlights and zeroes in on lease options to keep out of pocket costs WAY down.
Now, while your first investment property does not need to put you into debt, it is important to invest where it matters. Remember what I said: I invested in my mentor and my education and I made my money back by more than 10X!
Invest where it matters when it comes to your money so that you learn a skill that will pay itself back! That is the goal and it is achievable.
Your first investment property does not need to be painful, but make the investment in yourself to learn how before you jump in headlong. I know it is tempting to think that education should be free, but let’s be real. People do not do anything unless they put some skin in the game.
When you get something for free, the value is low in your mind. You have to invest in yourself and play big games if you want to make big money.
Yes, you can finance your first investment property for $10…
But, how much you get out of that $10 depends on how much you know. Invest in yourself, be ready to do the work and take action, and do not just be a learner without being a doer.
Doing is everything, but you can only do what you have learned to do well. How far you go is up to you.