how to invest in real estate with no money

It’s hard to start investing without money. Rob and Melissa found a way how to invest in real estate with no money. They didn’t start with money. They started with a chair that was thrown away by someone else which they used to start learning how to invest in real estate with no money.

They started with one item and then turned that into $100,000 of inventory to sell to buy a rental property.

Today I have Robert and Melissa from FleaMarketFlipper.com with me, and I am so excited to talk to them. They are going to be sharing with us how they started investing, and how they are going to continue investing, in real estate with little or no money.

Listen to the Podcast:

Tell us a little bit about yourself.

  • Robert and Melissa have been married for almost 12 years.
  • They have three kids ages six, five, and three.
  • They enjoy water sports and going to flea markets.
  • Robert and Melissa both grew up near Orlando, Florida, and they love surfing, jet skis, and anything to do with water.
  • They also love jogging, camping, and anything outdoors.
  • They also wanted to learn how to invest in real estate with no money

 

Tell us a little bit about your first real estate deal.

  • About 10 or 15 years ago, Robert was buying houses and flipping them.
  • Fastforward to now, they wanted to learn how to invest in real estate with no money so they started flipping items they found.
  • They have one rental right now. They were living in the house and then bought the house across the street when they outgrew it.
  • They kept the first house and did long-term rentals for about five years, but last year they started renting it through Airbnb.
  • Robert and Melissa love real estate and flipping, because there is so much money to be made and saved.
  • Their long-term goal is to have about ten properties that they manage.

Tell us about the switch from having a long-term rental to Airbnb? Are you making more money?

  • They are making more money through Airbnb.
  • It is more work, because Melissa does the cleaning, but the house is only 600 square feet.
  • The house is perfect for two people, which means they don’t get big parties renting it.
  • The house mostly rents to couples who are looking to move to the area. They’ve had a good experience with it.
  • Robert and Melissa make three to four times as much on Airbnb versus having it as a long-term rental.
  • Renters don’t have enough time to settle into the property, so they take pretty good care of it while they are there.

 

Is this something you will continue doing or will you have both Airbnbs and long-term rentals?

  • They like Airbnb.
  • If the property was larger, they would probably do a long-term rental.
  • Since it is small, it makes it easy to fix and clean up, especially since they are right across the street.
  • With AirBNB, you can also learn how to invest in real estate with no money by flipping items they find.

 

When you buy more properties, would you want to continue that model?

  • They want the rentals to be in the same area in Florida, because it is a very desirable location.
  • Robert and Melissa want to buy another property by the end of the year, and they want it to be in their town, because it is easier to manage themselves and rent as an Airbnb.

 

Robert, do you still flip houses?

  • Robert got out of doing that when he and Melissa met. He had done a couple of houses and made good money on them, but there is a lot of red tape.
  • They don’t know if they will do any flips on houses in the future, because they want to focus on getting ten properties to rent either long term or through Airbnb.

 

With Airbnb you make three to four times the amount you would on normal rents?

  • It is crazy how much more you can make renting a property by the night instead of by the month.
  • Just like a hotel that charges $100 a day, you can rent your property for $100 a day. That is $3100 a month for a 31 day month.
  • That same property would rent for $1400 max if it was rented per month.

What was it like moving from a 600 square foot house to buying the house across the street? Was that planned or spur of the moment?

  • When Melissa was pregnant with their first child, they knew they needed to move but they didn’t know what that looked like.
  • They were friends with the elderly lady across the street, and she said she was going to be moving in with her son and selling her house.
  • They expressed interest in the house and she was happy to sell it to them.
  • Then, they thought it would be great to learn how to invest in real estate with no money
  • Robert and Melissa never had intentions of selling their other house, because they always wanted to get into rental properties.


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I saw your story where you found a chair in the garbage and sold it for a lot of money. Tell us how to invest in real estate with no money.

  • They are doing a 2019 flipping challenge. Robert and Melissa walk to their downtown area, about a mile from their house, at least once a day.
  • They regularly look at the things people put in the trash and in the beginning of January there was a nice looking accent chair somebody was throwing away. They went home, got their truck, and picked up the chair.
  • The owners threw it away, because there was a little piece of wood that was broken on the underside of the chair.
  • It took Robert about five minutes to fix the chair and they sold it for $50 on Facebook Marketplace.
  • After that, they bought two exercise bikes on OfferUp with the $50 and sold them each for $500, which got them up to $1,000.
  • Ever since then, they have been reinvesting that money and they have never put a penny of their own into the pot.
  • Since January, they are now up to over $100,000 of inventory they bought with the money they made from that free chair.
  • They have already brought in about $11,000 of cash, but they have reinvested about $5,000 or $6,000 get up to the $100,000 inventory mark.
  • They want to have $150,000 in cash by the end of the year, so they can buy a rental property with the cash they made from a chair they found in the trash.

 

Tell us about the process of finding something, either for free or at a flea market, and flipping it. If someone was interested, how would they go about doing this?

  • Robert has a passion for finding undervalued items and reselling them.
  • The deals can come from the trash or apps online like OfferUp or Facebook Marketplace.
  • There are people everywhere that are getting rid of stuff for free, because they don’t want to own it anymore.
  • If you have your eyes open and hone your skills, you can buy items or get them for free and then turn around and make money on them.
  • If flea markets and yard sales are not your thing, you can sit in your chair, like Robert, and surf OfferUp or Facebook Marketplace. He scrolls through the deals, sends the seller an offer, and if they accept he picks it up, takes pictures of it, and lists it online.
  • They make the most money and sales on eBay, because of how big it is.
  • This is the best way they found how to invest in real estate with no money

 

Do you need to be handy or creative to do this?

  • It comes into play with the society we live in. You actually don’t need to know a thing, because you can use YouTube and Google to figure out how to fix things.
  • If there is a problem with an item, you can easily look on YouTube or Google and find someone who has the same problem that tells you how to fix it.
  • Not all of the stuff needs to be fixed, probably about 50 percent.
  • Last week, Robert and Melissa sold a commercial compressor. Robert bought three compressors for this challenge and sold one for $5,350. He originally paid $333 for it. All they did was wipe it down and list it online. They didn’t need to fix it.
  • Now, they are well on their way how to invest in real estate with no money.
  • They sold the compressor on eBay to a buyer in California. It cost Robert $315 to ship the compressor from Florida to California. It is a commercial compressor, so it is on a pallet and is about six feet wide by four feet deep, but the buyer paid the shipping cost.

 

Will you continue building your real estate business by what you learned how to invest in real estate with no money?

  • They do things a little differently. Robert finds the property he is interested in buying, goes to the property appraiser’s website, and finds who owns it. If the owners don’t live in the house, whether it is a rental property or it is rundown, he contacts the owners directly and tries to talk them into selling him the house.
  • Robert has never bought a property off the MLS and none of the properties he has bought have been for sale. All of his purchases were done by talking to the owners.
  • This is what they will do in November. They will look at places they want to buy and Robert will do some legwork to see if he can secure a property and get into a contract with somebody.

 

Are you trying to save up enough money to buy the property for cash?

  • They want to use cash to buy their next property, and they hope to buy it for around $150,000.
  • Robert estimates they will be at about $400,000 to $500,000 of inventory at the end of the year. Their goal is to have $100,000 to $150,000 in cash to invest in a house.

 

Is this how you live? Do you have jobs outside of this?

  • Robert and Melissa flip items for a living.
  • They have been keeping the chair money separate from their other income.
  • They have been doing this full time for three years.

 

How are you going to continue to build your real estate business? Do you have any other thoughts beyond the next property?

  • For this year, they are focusing on one house for $150,000.
  • After that, probably within the next two years, they will start doing the same thing to invest in more properties. They do not have a specific plan for how quickly they will acquire more properties.

Will the next property be a long-term rental or an Airbnb?

  • They are aiming for another Airbnb.
  • Their downtown is small and people love it. If the property can be close to that, they will probably do an Airbnb. It depends on the location.

 

Looking back, are there any mistakes you made, either in real estate or in finding items to resell, that you can share?

  • Robert and Melissa had another property that was close to their downtown. They bought it about six years ago and sold it two or three years later.
  • They wish they hadn’t sold the property.
  • The house needed quite a bit of work, but they wish they would have held onto it and either fixed it or bulldozed it and put another house on it.
  • They didn’t have the motivation to fix it up, because they had a lot of things going on in their lives and couldn’t find the time.
  • In their flipping job, sometimes they make mistakes, but they get back up and keep going. That is the best thing they could do.
  • If you own a piece of property, don’t sell it. Real estate is, by far, the way to go. There are ups and downs, but it seems like no matter what happens it always comes back. It is something you can pass down to your kids and it is a wealth-generating vehicle for your entire family.

 

What is something you would go back and tell yourself, before you started investing in real estate and flipping items, to help you get to where you are now faster?

  • The lessons you learn in life are very valuable.
  • Robert wouldn’t give himself any advice, other than hanging on to the property they sold.
  • When Robert bought the 600 square foot house, he bought it with a partner. When he bought the partner out, he had to pay a higher interest rate on the new loan. Michelle would have bought it without a partner.
  • It is hard to deal with partners. People are different and they have different expectations. You need to know and understand each role you have in the deal.
  • If you can buy a property without a partner, do it.


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Hypothetically, if you had to start all over again, what would you do to get your first property?

  • They are able to generate income off of something from the trash. It is amazing to take something and keep selling it and creating income.
  • If you didn’t take it, the item would be taking up space in a landfill.

 

Are you going to continue to try to buy properties for cash and apply how to invest in real estate with no money the same way?

  • That is what they really want to do, because it makes the whole process easier.
  • Everything is easier if you can use cash, instead of having something hanging over your head.
  • Their model is cash versus borrowing money.

 

You are also living off of the items you flip, so you need to make more than $150,000 in order to provide for your family.

  • It gets tricky, because when they buy something, they need to figure out if they want to use the flipping money or if they want it to go to their income for flipping it.

 

Are you having to sacrifice your time and money to get to your goals?

  • Learning how to invest in real estate with no money is time consuming.
  • Robert and Melissa sacrifice a lot of sleep, because they work a lot of nights.
  • They spend time with the kids during the day. The kids go with them to the flea market and they are in the business with them when they are not at school.
  • Robert feels blessed in what they do, because they don’t answer to a boss and they get to schedule their own time. They can spend time with their kids and they are building a business.
  • Robert doesn’t feel like they sacrifice that much, but everything in their house is second-hand because of the business they are in. However, they have high-end appliances and nice stuff, because they are able to find good deals.

 

Thinking of your kids and how you can pass down your wealth and properties to them, how else are you helping your children? Have you thought about how you are going to pass down what you have learned?

  • Their oldest child is six, so they are just getting into more responsibility and learning about money.
  • They just started a system where the kids do small chores and they get a couple of dollars to go to the flea market.
  • The kids understand that what Robert and Melissa do is work.
  • The kids do videos with them for their blog.
  • They want their kids to follow their passion and have a good work ethic so they can afford the lifestyle they want.

 

Is what you do, how to invest in real estate with no money, something that anyone can do?

  • If it is what you like to do, or if it is something you are interested in, then yes.
  • It is a skill you can learn. Three years ago, Robert and Melissa started a course to help people figure out if it is something they would like to do and they teach the skills needed.
  • Robert has been flipping items since he was 16 years old. He has learned a ton of things along the way.

 

How can listeners find you, see what you are doing, or take your course?

 

Check out all of the free resources available on www.masterpassiveincome.com/resources.


making money with rental properties

Making Money with Rental Properties FREE Investing Course

Get it FREE and Subscribe to the MPI Newsletter with loads of investing tips, advice, and advanced strategies for investing in real estate.

 


How to Invest in Real Estate with No Money | Nothing to $100,000 in 5 Months

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