That is the question most often asked me by new real estate investors – where do you find the money?
One of the most challenging aspects of being a real estate investor is finding the money to fund your deals. But finding the money people is not as difficult as you might think.
Many people get into real estate investing, and they have the image of a money investor being some highly educated, fancy schmancy, suit wearing dictator that is put on this earth solely for the purpose of making you feel lower than dirt, and destroying your dreams of becoming a real estate investor by laughing at you as they are rejecting you for a loan. But you don’t have to look to formal lenders in order to find the money for your deals. In fact, most money investors are where you would least expect to find them. Like one investor I picked up a few years ago!
I had this new guy come to my house to do some “handyman” type repairs. Well, he’s here, doing a great job, and I tell him that I buy and fix up houses and may want to have him do some work for me in the future. He said “great!”, and then proceeded to tell me that what he really wants to do is what I do, and buy a house and fix it up. He says, “I could make more on one house than I do at this job.” Now, I am not saying much (you learn more by shutting up and just listening sometimes), and he then says, “Yeah, I want to do a house this year yet – I just got approved for a $100,000 equity line of credit on my house, and want to use the money to fix something up. But I am so busy; I don’t have much time to work on anything.”
Are you thinking what I’m thinking?????
To make a long story short, I always have a need for more investor capital, so we are going to be doing some deals together and splitting the profits. Cha-ching!!!
Now here was this guy, just came to my house to do some work … typical handyman type, dirty from working, rough callused hands … and the guy has a hundred grand investment capital to work with. Who’d a thunk it?
I start the day just needing some work done around the house, and I end it with picking up another $100,000 investor. Not bad for a day’s work.
Just goes to show, you can never tell where your money people are going to turn up from. Most are just average every day people wanting to make more money. That’s why you need to talk it up, and tell everyone you know that you are a real estate investor when you get started in this business.