Do you struggle to find the money to do deals?
Are you nervous about asking family and friends to borrow their retirement funds?
Have you tried EVERYTHING?… and NOTHING seems to work?
Are you excited about the opportunities in this Real Estate market, but just need some money to do deals?
If you answered yes to any of those questions, you are in the right place!
I once was a struggling Real Estate Investor too. I got started in 1993 and immediately realized that if I was going to make it in the real estate investing world I needed quick and easy access to one very important thing…
Other People’s Money
Real Estate involves a lot of money… but I wasn’t going to let a lack of funds stop me!!!
I didn’t know what I was doing… I stumbled and bumbled around until I found what works… and ‘boy-oh-boy’ did I ever discover a GOLDMINE!
I figured out how to invest in Real Estate with no money… and I suddenly became the go-to investor in my area. I had leads and opportunities that I could not have gotten any other way.
And today I want to share with you just how I did it…
When I bought my first house, I used bank financing… but nowadays I want nothing to do with banks when it comes to funding residential investment properties.
The hassle isn’t worth it. Because I’m “self employed”, they are suspect of everything and I’m basically guilty until proven innocent, and then they only let us do so many deals before we have to find another lender… I HATE BEING INTERROGATED AND THEN LIMITED BY BANKS!
Because of that, I have been using creative real estate strategies to get money for my deals since 1995 and I have it down to a science…
No more bank hassles…
No more “financial-oscopies” (as I like to call them)…
No more producing MOUNDS of paperwork to satisfy their underwriting departments…
No more excruciating, nail-biting 45-day wait periods to close on a property…
No more dead deals because someone else is deciding if you’re worthy or not.
If you like the sound of that, then you’ll love my top 3 methods for…
Getting Access to Unlimited “OPM”
Now you can start investing in Real Estate With No Money and make true ALL CASH OFFERS, even if you’re brand new!
3 Ways to Buy Investment Property with No Money Down
1. Money Partners
Early in my Real Estate investing career, I met a guy named Russ who was looking for a better return on his investment. We agreed to do a deal together. He put up the money, I fixed up the house, and we split the profits, 50/50.
He made a very high return on investment and that got him excited so we did another and another…
Well, he must have been hanging with his buddies one night when he spilled the beans because out of the blue I got a call from his friend who said… “hey, I heard through the grapevine that you’re doing deals with Russ and get him amazing returns on his money, how would you like to partner with me on some deals? I have cash for you… and I am willing to do a 60/40 split with you”.
I politely declined out of loyalty to Russ… but I felt empowered by that.
I knew I was on to something!
So I called Russ up and politely asked for a raise.
I had done a bunch of deals with him at this point, and there was little (if any) doubt that every deal I did with him was going to make him a lot of money.
I told Russ about the phone call and better offer I received… and then I asked him the magic question…
“What would you do if you were me?”
He quickly agreed to pay me 60% of the net profits… which was still a huge ROI for him. Then, after a while I met a lady that was also tired of Money Market and Bank CD returns who offered to split 70/30 with me, and boom!.. I got another raise!.
Now, I have a question for YOU…
Would you like to make money in real estate with no money out of your own pocket too?
With relationships like this… you can!
It could be a friend, business associate, family member, or even someone you have never met who has money in a Money Market or Savings account or even a retirement account that is eager to make a higher return and who would be thrilled to make real estate investment loans. Keep in mind that many have never thought of or even considered funding real estate deals; but when they learn about how safe it is and the returns they can earn, believe me, you’ll get their attention.
In today’s, low interest world, millions of people who rely on their returns are suffering in silence and are dying to learn about what you have to offer.
Consider this… they need you more than you need them!
Now if you follow my system , then you will have access to the best deals in your market….
And if you have the best deals, finding financing for real estate investments is a piece of cake.
Who wouldn’t want 50% of the profits on a hot fix & flip or high-cash-flow deal?
And all they have to do is write a check and get paid.
Yes, there is some risk for them, but if you follow my lead, that risk is wildly minimized and you set your money partner (and yourself) up for success.
So how do you find a money partner?
You let everyone you know, that you are looking for Real Estate investment financing secured by local property… with a ton of equity.
Most will not be interested, and not everyone has enough money… but with enough talking, you will find someone in your circles who is excited about financing investment property. If you’re on social media, that will help a lot, by they way.
Remember…
They NEED you, more than you need them.
If for any reason, you are not interested in going that route… you can always download private lender leads and ask them to be your money partner.
The key thing to note here is that by accessing private lender leads you’re getting access to known private lenders who’ve proven they are already comfortable lending money on deals just like yours.
2. Hard Money Lenders
Some inexperienced investors may think hard money lenders are scam artists.
That has NOT been my experience.
Yes, they charge a high interest rate and several points… but it is short-term money that carries a higher-than-average risk.
Hard money loans tend to cost about 15% interest and in the neighborhood of 5 points. Maybe more maybe less, but in that range.
1 point is 1% of the loan amount and so 5 points is 5%.
If you borrow $100,000 from a hard money lender, they usually want about $5,000 for doing the work of providing you any money to invest in real estate. That’s one way they get paid for what they do..
Usually a hard money lender is a mortgage broker whose job is to find borrowers & lenders and connect them together.
Why do they charge 5% instead of 2% or whatever a typical loan officer charges?
The amount of money transacted is usually less. A typical wholesale deal is acquired at 50-70 cents on the dollar… so right there… their commission is almost chopped in half.
Another big reason they charge 5% is because of supply & demand. For every 100 houses that are sold in a given year, only 3 of them (on average) were wholesale deals. There is much less demand for hard money, then conventional financing.
The third reason they do this is because of accountability. You know the saying “you need skin in the game”? That applies here. If you are a newer investor, a lender is more nervous about lending to you than someone who has done a hundred deals. But don’t worry… I have kept this in mind through all of my trainings. I purposely teach in a way that makes you more credible and professional.
Pro Tip: When you find a great deal, it speaks for itself.
Ok, great! The 5% in points part has been addressed, but why 15% interest then, when conventional lenders are much lower?
The INTEREST RATE you pay is based on market conditions… supply & demand, risk/reward, the federal funds rate, and many other factors.
To charge 15% is not usury, in this case.
We are talking about a short term loan here. They don’t get the luxury that conventional lenders get of originating a loan and then receiving interest on it for years to come.
In order for a hard money lender to put up their cash, they have to do a lot of work:
-They have to find the borrower
-They have to find the investor to fund the deal
-They have to analyze the deal
-They have to analyze you (yes your credit matters to them)
-They have to forecast market conditions (they want to know how much the house will be worth after you fix it up)
-They have to tie up cash (which means they are saying “no” to other opportunities)
-And they have to foreclose on borrowers from time to time
This is a full-blown loan… with the main difference being… they are taking a bigger risk than a conventional lender.
They don’t know you, they can’t forecast the exact amount of repairs, they can’t predict the exact sale price when you sell to a retail buyer, and the biggest risk of all… the value of their time.
You are taking a short term-loan… say for 4 months.
That means that they have to go through that whole process mentioned above, 3 times per year… while the average conventional lender can rely on people moving only once every 7 years or so.
If you do the math, that is 21 times more transactions than a conventional lender… which means 21 times more work.
15% doesn’t look so bad anymore, does it?
In fact, and you might find this hard to believe but, when you crunch the numbers, hard money is actually cheaper than money partners.
I have found that my profit at closing is about the same with a hard money lender as when I get my money partners to agree to pay me 70% of the net proceeds.
If you agreed to 50/50 split with a money partner, you could be making more if you switch to a hard money lender…
But I don’t recommend doing that if you are new…
You still have to “cut your teeth”.
A hard money lender is less likely to lend you money if you have never done a deal similar to the one you are requesting money for… it could be a waste of time to look.
And when you are just getting started, you are more likely to make mistakes.
Since you are paying 50% of your profit to your money partner, you have more room for mistakes.
So my advice is to start with a money partner and graduate to a hard money lender.
3. Private Money Lenders
OR… you can just skip both of those steps… and go straight to private money lenders.
This is your best option…
This is where you ultimately want to be…
This is where you can enjoy interest rates of 10% or less…
This is where you pay NO points…
This is where you have the most flexibility… full control of the deal… and access to unlimited cash.
But it takes a little more strategy…
You have to be more pro-active.
Private lenders are not advertising their services… in fact, many of them have never even heard of private lending.
It is for these reasons that you are able to make a better spread.
You have less competition, access to more money, and with no middle man, you get to keep more profit.
But before you get too excited…
Put yourself in their shoes…
They have worked hard all their life… they have been diligent and socked away money for retirement, and now they are getting closer to (or are currently in) retirement.
Since the average retiree has $104,000 in their retirement account (per Government Accountability Office), they have to think carefully about how they will spend that money.
If they just use it for living expenses, it would be gone in a few years.
If they invest it in a traditional investment account (money market, CD, etc.) … it will not provide enough income to live off of.
And if they become day traders, they risk losing it all.
So they tend to look seriously at Real Estate… with caution.
Securing a money partner or a hard money lender is quicker and easier because they are actively seeking a high rate of return.
With private lenders, YOU have to teach THEM about private lending… and that takes some skill… a skill worth developing.
Not only will private money benefit YOUR business tremendously, it will also benefit your private LENDER tremendously…
Millions of retirees in this country are trying to figure out how to navigate retirement…
The simple fact is, our economy over the last couple decades has made people nervous about “not having enough in retirement”.
The majority of them are worried about completely RUNNING OUT of money…
Maybe they thought they would get more in social security… maybe they never learned how to invest… maybe their portfolio was wiped out during “The Great Recession”.
Whatever their reason, they are looking for solutions… for ways to get a better rate of return so they actually have some cash flow in retirement.
They are desperate for a rate of return higher than 1% (which is typical for money market accounts nowadays)…
Take a look…
Do you see how you are now looking like a hero?
They are going to get excited about your offer to give them a high rate of return, with little risk.
I have been investing in real estate with no money down since 1995 and after many successful deals, I am now in a position where I can use my own cash to buy properties… but usually I choose not to.
Why?
Because I make more money using other people’s money.
So if private money is so great, why even address money partners and hard money?
3 main reasons:
Building a stable of Private money lenders can take time to develop
There is a ton of paperwork involved
It is governed by the SEC
This is the most profitable method of using other people’s money to fund your Real Estate deals… but it requires specialized knowledge.
You can get that specialized knowledge via my training program called:
Where to Get the Money to Fund Your Real Estate Deals!
I will teach you:
How much to offer your private lender so that you are helping them out while getting your best rate
The easy way to get all of the paperwork done correctly so that you can spend more time finding great deals (where the real money is made)
How I paid off a 30-year mortgage in 13 years (with no changes in my lifestyle)
How to create an amortization schedule so that your lender can visualize the loan (makes you look like a PRO)
Who I use to “self-direct” funds… so that you can teach ordinary people with ordinary retirement accounts how to get an extra-ordinary return on investment (this opens the floodgates of people you can work with)
And SO much more!
You are going to learn all 3 strategies… how to “get started” with money partners, how to “increase profits” working with hard money lenders, and how to “build your empire” using private money.
And… I toss in a bonus module just in case you have some resources of your own…
I will show you how I successfully used credit cards to raise money and how to assess your situation to see if you have some financial resources right now (you may have access to cash right now that you don’t realize you have access to).
Click here now for more details on “Where to Get the Money to Fund Your Real Estate Deals!” and get access to more money than you can handle.
Or if you have any comments on this article, please leave them below. I will personally respond to you as soon as I can.
Regards,
Cameron Dunlap
The post How to Invest in Real Estate With No Money appeared first on Cameron Direct.