Most people think you need rich parents or a huge bank account to start in real estate investing. The truth couldn’t be further from that old belief. Success in real estate comes down to finding the right deal and recognizing opportunities over capital. If you can spot a great investment, funding often follows.
As Pouyan Broukhim, founder of PB Financial Group, puts it:
“You don’t need rich parents to start investing in real estate. You just need to know the numbers, work the deals, and the money will find you.”
What You Really Need to Start Investing in Real Estate
You don’t have to be sitting on a pile of cash. Instead, you need:
- An eye for opportunity: Spot properties selling below their market value.
- A sound strategy: Know how you’ll improve, rent, or sell for a profit.
- Financing options: Be open to creative funding, not just the bank route.
Most new investors get stuck believing they need savings or parental help. In reality, your resourcefulness and research mean more than your balance sheet.
Steps for New Real Estate Investors
- Understand your local market. Research pricing trends and desirable areas.
- Search for undervalued properties. Use online tools, networks, and realtors.
- Analyze each deal’s numbers. Know projected value, renovation costs, and profitability.
- Explore financing options. Learn about hard money loans, private investors, and bridge loans.
- Build your network. Make relationships with lenders, real estate agents, and fellow investors.
The Power of Spotting a Great Deal
A “good deal” means the property’s potential value is far higher than its purchase and repair costs. Take this example from Pouyan:
If you find a property for $100,000 that’s worth $300,000 after renovation, there will be someone willing to fund your deal.
Buying at a big discount is the secret to attracting lenders and investors. The better the numbers, the more funding options you get. Watch the full video for first-hand stories about how investors make it work.
Funding Your Real Estate Deals: Creative Options Beyond Banks
Private Investors
Private investors are individuals with money to put to work. They lend based on the deal’s value and your plan—not your personal wealth. These investors often seek fast, high returns unavailable in traditional investments.
Hard Money Lenders
Hard money lenders are private groups or companies that quickly fund real estate investments. They focus on the property’s value, not your credit or income. Hard money is ideal for short-term projects or when bank loans fall through.
See our detailed guide for more on understanding hard money loans.
Why choose a hard money loan?
- Fast approval, often in days.
- Less paperwork and fewer income requirements.
- Based on property equity, not borrower history.
Downsides:
- Higher interest rates than traditional mortgages.
- Shorter terms, usually 6–36 months.
- Requires a clear exit strategy (sale, refinance, or rental).
Bridge Loans
Bridge loans fill the funding gap between buying a property and long-term financing. They’re perfect when you need to close quickly or renovate before qualifying for a standard mortgage.
Bridge loan process:
- Find a great deal and secure a bridge loan for quick acquisition.
- Renovate or stabilize the property.
- Apply for a conventional loan once improvements are done.
- Refinance to lower your costs and lengthen terms.
Imagine a simple diagram with the steps below:
- Start: Secure property with bridge loan
- Next: Improve or stabilize
- Then: Refinance with conventional bank loan
Bridge loans let you act fast.
Refinancing with Conventional Bank Loans
Once the property’s value is up and you’re ready for longer terms, refinancing with a bank loan comes in. Banks provide lower interest rates and longer repayment windows.
Key Takeaways for Beginner Real Estate Investors Ready to Start
- Always search for properties that are below market value.
- Learn to break down every deal: price, repair costs, value, and projected profit.
- Build your network of private investors and lenders early.
- Approach hard money and bridge loans as tools for quick deals, not long-term debt.
- Plan your refinance before you buy—know your exit strategy.
- Stay persistent and keep learning from trusted sources.
Still have questions or want guidance? PB Financial Group can help you get started. Contact us at 877-700-3703 to schedule a consultation, or visit www.CalHardMoney.com to learn more.
For more tips and suggestions from Pouyan Broukhim check out PB Financial Group’s Facebook and Instagram.
