The Cheapest Way To Start Earning Money In Real Estate

cody hofhine real estate wholesaling Aug 03, 2020

I won’t sugarcoat it... you need money to get into real estate.

Don’t let anybody tell you different.

But there’s a massive, money-saving caveat most newbies miss: You can get in the game for very little.

The truth is start-up costs vary depending on your strategy.

The right strategy is the difference between needing a stockpile of cash you can pull from on-demand or a dirt cheap investment that costs less than your daily cup of Joe. 

Keep scrolling to discover the strategy anybody can use to start closing deals for cheap...


The “Almost-Free” Way To Make Money In Real Estate

Before we dive deeper, a personal story (so you know I’m not blowing smoke): 

I closed my first deal while I was literally living paycheck to paycheck as an insurance agent (side-note: my wife and I were dodging double dates at the time because we could barely cover TV dinners on clearance). 

I made $24K on that first deal — without any previous experience, credibility, or cash.

If I had to guess, that deal alone easily covered the rest of my real estate-related business expenses (and then some) for the next year or so.

A full year of expenses funded by a single deal.

And let’s not forget: I was a total newbie starting from scratch.

I know what you’re thinking; but it wasn’t beginner’s luck, penny pinching, nor blind faith. It was all because I started with the right strategy: Wholesaling. 

Wholesaling is hands down the quickest, simplest, and most cost-effective “starting point” in real estate… if you do it right.


How Wholesaling Works

Before you jump over to Google and assume you’re off to the races, hear me out:

Thanks to wholesaling, you can cash in on massive paydays mostly with sweat equity and ambition… instead of a massive bank account. 

And if you’re like the vast majority of my students, you can close your first deal in less than 90 days without ever being on the hook for cash. 

But most people who are wholesaling (or teaching it) leverage outdated methods that can actually wipe you clean of cash... 

So let’s talk about my “version” of wholesaling that’s easy to pick up and allows you to cash in on properties without actually buying them.

Here’s how the my style of wholesaling works:

  1. Spot properties that can be had for a discount. This is what I call being a “deal finder.” I’ll elaborate in a second. 
  2. Get those properties in front of cash buyers. You don’t need money if your buyers have it.
  3. Collect your finder’s fee. This could be more than $10K a pop.

See? If you can follow simple instructions and put in reasonable effort, you can make money wholesaling.

But as remarkably simple as it can be, wholesaling is not for everyone… 


What’s The Catch?

There’s a reason I said wholesaling is “almost free.” 

It does require some cash — though, the need isn’t obvious (and many “experts” prefer to keep it hush hush as to not scare you away).  

However, it’s just a fraction of the dough you’d need to even have a shot at flipping, landlording, or literally any other form of rest estate investing.

So what are the costs?

Gas money and marketing dollars. That’s it.

To get into wholesaling, you can make up for your limited bankroll with some serious sweat equity.

But no matter how hard you work, you still need to cover these basic expenses to get deals rolling in regularly. 


The Only Expenses You Need To Cover

First up, gas. 

We’ve already established you’ll be scouring town for killer deals. 

And if they’re not popping up in your backyard, your first expense is gas money.

As long as you can pony up for a fresh tank every week or so, you’re ready to roll. And let’s be real: You’d need that kind of “funding” for just about any job. 

And if you want to earn more than just a sporadic payday as you’re hunting down killer deals, you’ll need to grow your cash buyers list.

Hence, expense #2: Marketing.

I can personally trace thousands — if not hundreds of thousands — in deals back to an itty bitty marketing budget devoted to direct mail. After all, your network is your net worth. And that’s certainly the case with wholesaling.

Whether it be direct mail, a phone system, or another technique, a very small marketing budget can get you a very long way.

And once you close your first deal, you can keep some of the profits and reinvest the rest.

So what’s it gonna be? 

Run the other direction because you’re afraid to to make a small investment in a golden opportunity or put a little in now and start building a revenue stream you can count on for the rest of your life?


Close Your First Deal In 90 Days or Less

My advice to you: The biggest bang for your buck as a total newbie is to invest in the Real Estate Freedom Formula. 

I will show you exactly how to close deals by wholesaling — without ever owning a home, investing a single dollar more than you need to, or getting licensed. All so you can build your own real estate empire, escape your day job, and be your own boss.

In fact, we’ll close your first deal in about 90 days or less so you can recoup your investment, cover your baseline expenses, and have plenty left over to do what you please with.

Get a behind-the-scenes look at this proven, step-by-step system for building a profitable real estate empire from scratch here. 

(Warning: the Real Estate Freedom Formula is not for everyone. Only click over if you have big dreams and massive ambition to go along with them.)