Question People vs. Statement People
Here at 33 Zen Lane we feel that our clients are something special. They’re what I call question people rather than statement people. A statement person says “I only have $2000, I can’t invest in real estate yet“. That type of person will probably never take the next step because they will always find something to stop them. A question person says, “I have $2000 to work with, what can I do with it?” That type of person is seeking solutions, and that’s what we’re here to provide.
When I bought my first condo in Denver, I didn’t spend a dime of my own money, in fact I got paid. I really wanted that property and worked hard to put the right deal together. Having limited cash resources does not have to stop you from achieving your goals.
If you have an extra $2000 in the bank, what can you do with it? One example is buying distressed properties from a city who doesn’t want them. It’s not a scam, we’re actually doing this. The photo above is a 4-unit apartment building that I put $500 down on with a final payment of $1500 in approximately 9 months to own the property. Now, something you buy for $2k probably isn’t in great shape, so what do you do with it? Chances are you can turn around and sell it to someone for $3000 and let them deal with the problems. That’s a 50% profit on your cash – I know you’re not getting that from the bank. With 9 months to come up with a plan, you might think of a better option, like finding a money partner, renovating the house, and making even more money.
$2000 might be enough to make a downpayment on an affordable rental, or a deposit on a property your neighbor just wants to get rid of. There are a lot of creative ways to leverage your small amount of cash into a big deal. Keep asking questions, learn more from resources like www.biggerpockets.com, and when you’re ready to take an action step we’ll be here to help.