Profile picture for JayRS

How do I get started in investment real estate with low capital? Is it possible?

I've recently read some books by Robert Allen that explore the possibility of beginning an investment portfolio with little to no capital down to acquire a property. Is this a realistic possibility or another far fetched get wealthy scheme?
  • January 10 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (13)

  • January 23 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

After reviewing the answers, the folks have me convinced this is pretty much speculation and gambling unless you really know what you are doing.
  • January 23 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
I saw a house flipper program the other day. The people who bought the house did all kinds of unexpected repairs. They were set back a week with each extra day costing them, $600 in interest. After hitting all kinds of expensive repairs they did not expect they did sell the house. They sold the house for $2,200 LESS than they had in it. That meant they worked hard for a few weeks doing all kinds of hard work only to lose money.

That was people who normally had a clue how to flip a house. Just how much better do you think someone who has no idea what they are doing can do here?
  • January 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Anything is possible. First obtain sound knowledge about different investment strategies. Read up on someone like Robert Kiyosaki. After a lot of reading, some classes, and networking I launched in the game of investing. Speaking as an beginner investor, I purchased a property for $7,800 in a town that is not to good of an area. However, the property was in one of the better areas of that town, 4bd 1.5 bath, 1.5 stories 1975 brick. Also, from doing market research and talking with people in the area I learned that the market value for that property is $50K when fixed up and I gained rental interest. This is all before buying it but having it tied up. All I needed to put in it to make it not top notch (granite etc..) but not slum lord was 10K. I now have a renter paying $1200 a month. After taxes and insurance I make $800 a month. In 22.5 months I got my money back. Then I'll just refi or sell it to move up to a better area. Or I may just keep it. Point is, I'm now in the game with a win win situation, with a couple different options with the property, and can move up soon. All of obtaining knowledge. 


  • January 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
Have you read reviews about Robert Allen?  Here's an example.  Investigate carefully before you believe,.
  • January 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Robert Allen?  If you are following Robert Allen, do yourself a favor and stop today. He makes money off of the unsophisticated, (hint: that is you) and NOT by investing in real estate.

Here is an in depth look at your guru: link
  • January 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I'm not sure that "investment" is the right word here.

To my mind, it's an "investment" when you put your own money into the deal and have a plan on how to operate the property for profit. It's a "speculation" when you leverage it to the hilt and rely on market appreciation to bring you a profit.

But to help you evaluate the potential for these deals, make a spreadsheet that factors in the expected income (rent) you would derive from the property and the expected expenses (monthly loan payments, taxes, insurance, repairs). 

All the best,
  • January 12 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It may pay to check and see what municipalities have squatter laws, then you can just bunker down in a foreclosure and wait for the deed transfer. You may want to bring a flashlight and a cat to protect you while you sleep on the floor.
  • January 12 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for K.K. Yan
It is possible like poker game. you may get lucky once and get hooked.   and you will mostly be the one of the losers at the end of the day.
you may want to partner with someone who has money and you do all the legwork, building up your capital, knowledge and network. It is challenging but it is fun.
  • January 11 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Seller Financing ..  Wholesaling (flip contract) ..  Partner with someone ..
  • January 11 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CORONA NICK
You can win the lottery if you play too...fyi
  • January 10 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Owner carry contracts are great for these kind of buys.
  • January 10 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It's only possible if you have the right conditions, however, that is much harder to do today given the little to no equity in properties, and lack of motivated sellers that don't need the cash from their property.

Some good news however is you can still invest with little capital in some markets.  A 20% down payment on property between $50,000 to $70,000 is still only $10,000 to $14,000 with conventional financing.

We have also been offering seller financing options for investors you don't have qualifying credit and limited capital.  (See our website for details.)

Good luck,

Marco Santarelli
.
  • January 10 2012
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.