Where Do I Get The Money I Need To Get Started?
|Believe it or not, when I first got started in real estate I only needed $1,000. You don't need much more than that even today. And yes, I was able to turn that $1,000 into millions in just several years. Try getting that kind of return in the stock market or in just about any other investment! |
Getting Started In Real Estate Investing
It's a common misconception that you need to have money to make money. Or you need tens of thousands of dollars to invest in real estate. That would be nice. And if you have it great! But if you don't that's fine too. Keep in mind, our goal is to generate cash flow quickly. So you don't need a lot of money to get started. Do you have $1? Seriously, that's all you may need.
In other cases, you may need more than just a dollar. If you have a home, credit cards, banking relationships - you have access to money. If you were to buy a car, where would you go to get financing? If you were to fix up your house and you need financing where would you go?
Sometimes we make this much more complicated than it really is. Home equity lines of credit, 2nd and 3rd mortgages and advances on credit cards are some of the more common methods to get access to start-up capital. May be not the first choice, but definitely viable options.
Need Financing - Forget Traditional Banks!
Don't rely on the bank. Remember, we're looking for run-down, distressed properties and most banks won't even touch these types of properties. That's fine.
In many cases, you can use seller financing. This is a favorite strategy of mine in which I put down just 10% or less of the purchase price and seller would hold the financing.
You can also use land contracts, assignments, wrap-around contracts and many other strategies that don't require you to come up with ALL the money to purchase a property. The key is to understand the circumstances of the seller as well as the market and apply the financing strategy that best fits the deal.
In the meantime, you're looking for financing, right? No problem. Even though traditional banks may not be lending as much anymore, there are plenty of hard money lenders who are looking to fund deals. Just check with your local Real Estate Investment Association for a listing or google "hard money lenders" for a list.
In just about all markets - even smaller markets - there are plenty of private lenders available who are looking to get a return on their money. Doctors and lawyers are some of the best sources for private money right now. Offer them a percentage of the profits and show them how you can generate a 20% or 30% return on their investment in a short period of time. They can't get that same return anywhere else right now!
Need Financing - Build Relatonships!
Another terrific way to find capital is to go to your local real estate investment club or association meetings and ask other investors who finances their deals. Find out who the title companies are using to finance their deals. Call the phone numbers on the "bandit signs" on the street corners that advertise ""We Buy Houses". Ask them who they use to finance their deals.
There's a ton of cash out there right now. Most of the foreclosures in our area in Florida, for example, are being bought by cash buyers. So there are many people who have the funds available, it's simply a matter of finding them.
A great place to find those buyers is in the courthouse records. By law, buyers of foreclosures must be listed in the public records kept on file in the county or city courthouse. Since many of them are cash buyers, they may be willing to finance your deals - especially if they don't have to do any work.
Show Me The Money!
Here are some of the best sources of funding we're finding right now that are perfect for investors who are just starting out:
-----> Hard money lenders
-----> Home equity loans or lines of credit
-----> Private money lenders
-----> 401(k) plans
-----> Credit cards
|Russ Whitney, a pioneer in real estate investing and training, became one of the youngest self-made millionaires at just 27. From his humble beginnings as a high school dropout and a $5 an hour slaughterhouse worker, Russ began his investing career at age 21. Within a few short years, he achieved financial independence thanks to a unique system he developed that virtually eliminates the risk in real estate investing and creates cash flow for investors to achieve their financial goals. |
A countless number of investors have come to rely on Russ' books, home study courses as well as his coaching and personal mentoring programs with up to 60,000 people being trained every month. Today, Russ continues to share his passion for investing and training by teaching beginners as well as experienced investors how to create wealth for themselves and their families in real estate.
Russ Whitney, is the bestselling author of Building Wealth, Millionaire Real Estate Mentor, and The Millionaire Real Estate Mindset and is also the author of some of the world's most popular home study courses including Starting from Zero and the Building Wealth System.
Yet, Russ has never forgotten how difficult life can be and strives to share his good fortune with others. He's worked with correctional institutions in helping inmates receive a second chance at a productive life. He's provided safe, clean housing for the elderly. And he continues to support the youth in his community with his time and money.
Russ Whitney is a living proof that anyone can achieve the American dream.
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