How to invest in real estate with zero money upfront seller financing

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 51%

Health Health Headlines News

20-year-old college dropouts explain how they built a 28-unit real estate portfolio with less than $1,000 in savings combined

Chuck Sotelo and Caleb Hommel started investing in real estate in their teens.This story is available exclusively to Insider subscribers.Caleb Hommel and Chuck Sotelo didn't have any savings when they decided to invest in real estate.

They didn't have any savings — except a couple hundred dollars each — nor did they have any experience, so they started going to local real-estate investing meet-up groups to get some direction. It was at one of those events that someone referred them to a mentorship program calledThe program cost about $250 a month at the time, a lot of money for them to shell out as students, but they figured it would be a worthwhile investment.

They young investors have learned that,"the deal always comes first," explained Hommel."Once we found a deal, then we would worry about raising the money." The main reason they wanted to buy a property that was already occupied by tenants was because they wanted positive cash flow from day one. Specifically, they wanted a 10% cash-on-cash return, explained Sotelo:"And if it's not filled [with tenants], it's most likely not going to be hitting that 10% cash-on-cash metric."

They started looking for the money once they were under contract and figured they had about 60 days to come up with the cash. They reached out to friends, family, and other San Diego-based real estate investors and ended up raising it in half that time, they said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Yea I made a video about how privileged these kids were to be able to get this much real estate as this age

Mommy and daddy’s money/credit.

Love these kinds of stories. College kids building a 28-unit real estate portfolio. You have to love this kind of bootstrapping. REITs_Nareit

Who fucking cares?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in HEALTH

Health Health Latest News, Health Health Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Elon Musk becomes most-followed Twitter account 5 months post-takeoverJust months after buying the platform, Elon Musk is officially the biggest account on Twitter, leapfrogging former president Barack Obama to reach 133 million followers Who gives a shit, he’s a clown He’s going to charge for following him Too bad he doesn't transmit information with as much value as BarackObama.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Office doom loop: landlords face a reckoning as companies move to fancy officesInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Look at what AI created when trying to read a person's mindInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. Looks like AI just doesn't understand humans as well as they think they do 🤷‍♂️
Source: BusinessInsider - 🏆 729. / 51 Read more »

10 top cities Americans want to move to, 5 are in Florida: RedfinThese are the 10 top cities Americans are looking to move to, according to a report — and of them 5 are in Florida
Source: BusinessInsider - 🏆 729. / 51 Read more »