If you look just about anywhere on the internet, you’ll find programs that can teach you how to buy real estate with no money down. Is this really true? Absolutely! We do it every month and we do this by utilizing the greatest strategy in the land known as “OPM”. That’s not OPP….yeah you know me. It’s OPM or Other People’s Money. How exactly do you do this? Well, it’s actually quite simple.
Step 1: Find a deal. Whether that be through REO purchases, bandit signs, auction, probate, foreclosure, etc.
Step 2: Prepare your deal in a report that is professional. Show exactly why it’s a great deal. Show the comparable sales in the neighborhood. How many days are the houses taking to sell in that market on average? Show the economic growth of the area. Show the demographics of the area. Be prepared to show an investor in your project how they will get paid back and how long it will take to get them paid back.
Step 3: Show your deal to people in your network that have money or people that know people that have money. For example, you can show your deal to your accountant. Ask them who they know that is looking for places to invest their money. Take your deal to your local REIA (Real Estate Investing Association) and talk to investors. If you’ve got a local self-directed IRA provider that has meetings, go to one and present your deal. Post your deal on Facebook and LinkedIn in investing groups.
Step 4: Present your deal and get it funded. Decide with your capital partner if it’s going to be a joint venture deal or if you’ll just be paying them a flat % on their money. Your capital partner gets to hold security in the property and you do the work to get the property flipped or rehabbed or whatever your strategy is.
A great deal will always find money. I hear so many people that get intimidated about talking to people about money and I think the main reason behind this is that they aren’t educated enough about money itself, or they don’t have enough confidence in their deal to approach someone. If either of these are a problem, you need to educate yourself in a number of areas besides real estate. Sales training and perhaps some public speaking training through a Toastmaster’s Group would serve you well.
A word of caution. Stay away from people on the internet that claim to be private money lenders. They often aren’t and most people with private money aren’t out advertising it. They are networking to find the deals the same way you should be networking to find the money. If someone asks you for an application fee, they aren’t a private money lender, they are likely a scam.
If you have money of your own and are looking for investments with a great return, we’d love to talk with you about how we can work together to help grow your wealth. Send us a message today!