Broke Don’t Mean You’re a Real Estate Joke
Here’s the good thing about being down and out. You learn. You learn to adapt, you learn to fight for survival, and if you’re smart, you learn how to talk to people into getting what you want. That’s called negotiation my friends. Being broke is no exception. That’s not to say when you’re broke you don’t wish you had a fist full of dollars to wipe your ass with, but when your piggybank no longer rattles and rolls when you shake it, try not to think of being broke as a bad thing altogether.
Au Contraire Mofrer: You Can Buy a Home Without Your Own Dinero & Without a Deposit.
Ok, so I don’t speak French or Spanish, but damn I sounded sexy, huh? If you don’t have enough money or any money for that matter for property investment, what’s the obvious next step? Drum roll………………….find a private money lender who will loan you the money for purchase and renovation costs – 100% of it if necessary. Will some lenders turn you down? Of course! So get a set of cajones and power through it. Be persistent, confident and always be humble, and sooner or later, you’ll get the loan.
Flip Tip: Be willing to give up some of the deal. I’m not gonna try to blow wind up your skirt, if you have no experience, its gonna be pretty hard to get private lenders to fork over hundreds of thousands of dollars for you to sink into some crappy house. Heck, I wouldn’t lend my mother that much money – if she had no experience. Unless of course she was willing to “sweeten the pot.” Always be willing to sweeten the pot.
NO MONEY DOWN
Let’s say for instance that you find a house for 100,000, and you are absolutely sure the rehab required is, $45,000 – and comps show the ARV is a solid $250,000. But you have no money. You come to a guy like me and say – will you lend me the money? I say, uh….sure it will cost you 15% interest and 50% of the deal. What do you say to that? Do you walk away in disgust, or do you jump at the offer and chance to work with an 8 year pro who has done hundreds of rehabs? I don’t know about you – but I’d jump at that offer. In fact, I did. I had no money – not one dim for my first rehab. My father-in-law to be put up all the scratch, and I did the work. In 90 days, we rehabbed the house and split a total net profit of $98,000.00. I didn’t spend a dime of my own money and I netted, $49,000.00.
I’ll ask you again. What would you do?
REAL ESTATE SUCCESS
Those who have mo’ money than they know what to do with (bastards) are experiencing real estate success right now. Good for them, right? But listen- you can too. Be persistent, work your plan, and tell everyone you know that you are trying to get in the game. Ya never know – that next person you tell just might be enchanted enough to be your Sugar Daddy!