Newbie Which way to start L/O or Foreclosuer with no money. - Posted by Don N (IL)

Posted by ADRINA FIELDS on January 29, 2000 at 02:05:15:

Please send me more information about how I can buy forecloused property with little or no money.


Newbie Which way to start L/O or Foreclosuer with no money. - Posted by Don N (IL)

Posted by Don N (IL) on December 04, 1999 at 09:05:15:

I have read a lot but can not decide which path to follow first L/O or Fourclosure. I have no money or is that relevant to this choice?

Re: Newbie Which way to start L/O or Foreclosuer with no money. - Posted by Jim Pasquini

Posted by Jim Pasquini on December 06, 1999 at 21:29:10:

I guess you are going to have to define “no money” for me. I can’t pay for groceries “no money” is different than I have a job and don’t have a lot of extra at the end of the month “no money”.

I learned how to do foreclosure investing, even with none of your own money, through the people at The Wealth Institute. They specialize in California, so I don’t know how much help they are to you in Illinois. You can find them at

I am not well versed in lease options, so I don’t know how helpful my opinion is. I am of the opinion you can do them on a shoestring budget. I’d encourage you to seek out someone that can get you the information you need to succeed.

If you aren’t sitting atop a pile of money you can still do deals. You just have to look harder.

I’d second the wise counsel Bill Gatten offered in his reply.

Re: Newbie Which way to start L/O or Foreclosuer with no money. - Posted by Bud Branstetter

Posted by Bud Branstetter on December 05, 1999 at 11:04:17:

Let’s first get the chiding on the spelling of foreclosure out of the way. Three main aspects of foreclosures-pre, court house steps, post/REO. The last two take cash. Until you have a track record others are not so likely to let you use theirs. Pre-foreclosures allow you to deal directly with the homeowner. Finding and negotiating is somewhat of an art and experience helps. You still need to find someone with money and that is usually an investor. Flipping to another homeowner is much less prevalent.

So that leaves L/O’s. Anyone selling or renting out a house is a candidate. Less cash is needed and many times none of your own. The sales end is much more open also. More people will have a little money, are able to pay you the amount monthly and agree to pay you more in the future.

Re: no money. - Posted by Bill Gatten

Posted by Bill Gatten on December 04, 1999 at 19:19:12:

Don, just remember (for whatever it’s worth):

The two “primary” components of creative real estate investing are – 1) Money, and 2) Knowledge. You can get by quite nicely without one or the other; but not without both. If you have a lot of one and none of the other, you’ll be OK. If you have a little of each, you’ll be OK. If you find yourself with none of either, then step back and get some of both. And both always do come sooner than you thought they would…when you really mean it.


Re: Newbie Which way to start L/O or Foreclosuer with no money. - Posted by Jim IL

Posted by Jim IL on December 04, 1999 at 10:58:03:

First, let me ask you, where are you in Illinois?
I am here as well, and am always willing to talk to other investors.
Networking is a good thing.

So, you say you have read “a lot”. What is a lot? What courses books, websites, etc have you looked into?
I too have read a lot, and continue to do so.
In this business education is key, and never ending.
And, honestly, is quite fun when you start to apply it and make some money.

There was a post a few days ago by Ed Garcia, you may want to read that. It gives some GREAT tips for the newbie investor.
Here is the URL for that post:

I have no idea how long you have been on this site, but whenever Ed Garcia speaks, listen, read, and remember. This man alone is a GREAT source for education, and information.

Then, after you read that post, and a few books courses, set some goals.
Make them realistic, but think “outside the box”.
I can honestly say that when I first started my goals were not realistic, or at least, I missed them.
I decided that in my first 60 days I was going to buy 4 properties, and have a standing balance in my checking account of at least $15k.
We only bought 3, and had a balance of of about half of that from the deals, after expenses.
But, it was fun, and we kept at it.

If you ever want to talk REI with someone in your home state, feel free to drop me an e-mail or call.

I know that I did not address your question directly, but that is because you need to be the one to decide.
And, “NO”, money is not needed to make money.
It does help grease the wheels on occassion, but honestly, I’m usually cash poor, and do most of my deals with little to no cash.

Good luck to you,
Jim IL