One of the most common excuses people make when discussing why they haven’t gotten started in real estate investing is that they have no money.
No money for advertising.
No money for deals.
No money to rehab the property.
Many people who have the passion to get started in real estate investing get stuck and never end up doing a deal. They assume that because they don’t have money built up for investing, that they’ll never be able to become a real estate investor.
This answer is simply incorrect.
Let’s break down the 3 most common excuses people are making that are money related.
The first, is a big one.

I Have Terrible Credit

Personal credit scores affect your personal ability to obtain a loan for your car or mortgage for your personal residence, but it doesn’t have the same power for investment funding.
Every lender is different. No matter what your credit score is, you most likely have opportunities to get non-recourse, asset-based loans. These loans are typically referred to as Hard Money Loans and the lender is lending based on the equity position in the deal.  
This means that they don’t necessarily care about your credit and know that if you don’t repay your loan, they can take the property as collateral and have the equity as possible profit.

I Don’t Have Money for Marketing or Funding Deals

The realization of how much money you’ll need in order to send out so many direct mail pieces over the next 6 months can scare off the best of us.
We all hear about investors who are mailing out thousands of direct mail pieces a month. We know that they’re spending thousands of dollars on marketing and as a new investor, you feel like you’re going to get zero visibility because of market saturation.
This just means that you have to be more creative with your marketing. Most of the “big” investors are mailing to lists they purchased and are mass sending out direct mail.
For those without a large marketing budget, you’re going to have to hustle a bit more but the personalization is what will catch the eye of some sellers.
You can create door hangers to put on the front doors of distressed properties you drive by, for example.
Keep a yellow legal pad in your car and drive through neighborhoods looking for distressed properties. When you find one you think would fit your business model, write up a letter to the owner about your interest in their home and how you can buy the property as-in and close quickly. Leave your contact information, stick it in a letter, and address it to the property owner and drop it in the mail.

I Don’t Know Anyone with Money

You might have heard that a lot of investors rely on other people’s money (OPM). This way they don’t have to have a lot of capital while doing deals.
Private money lenders are fantastic for real estate investors. Most of the time they’re your friends or family. If it’s your first deal, they might be hoping and praying that you’re buying at the right price but after you’ve done a few deals, they’ll be able to see first-hand that there is money to be made in this business.
If you know of someone who could potentially be your private lender, make sure to prove that you know what you’re doing and produce profit for them. Show that you can responsibly borrow money and quickly pay back with interest so that they want to continue as your funding source.
Remember, most private lenders have the capital but they want to be passive investors. You do the legwork, they’ll fund the property, and everyone wins.
Not sure of anyone who could be a private lender?
That’s not a deal breaker! For wholesale and rehab deals, you can usually utilize hard money. As we talked about before, many of them are asset-based lenders. Their rates will usually be higher compared to other options but for a short-term loan, the benefit a lot of times will outweigh the costs involved.

Stop Making Excuses About Money

It’s an easy excuse to make.
Thinking about all the costs involved with starting a new business can be intimidating. You want to have a nice stash built up for marketing, closing costs, holding costs, repairs, etc. but it doesn’t have to be your own money for it all!
Some of the biggest real estate investors out there are using other people’s money for their deals.
If you have the passion and the drive, don’t get hung up on how much money you’ve set aside to start investing. Do your research and see what financial opportunity fits your business model best.

Hannah Alley

Hannah Alley

I'm the operations manager here at and have a passion for real estate investing and have a background in writing and business. I focus on providing content that is aimed for newer real estate investors and those who have the drive to become a full-time real estate investor. With so many strategies to utilize within the real estate investing industry, I aim to break down any barriers and showcase that real estate investing is obtainable and can truly bring financial freedom.