Remember that old clee-shay about investing with no cashola?
(yes, I know it’s “cliché”, but I’m out to annoy the spelling/grammar police today…)
Put another way:
How To Invest In Real Estate With Little To No Money of Your Own.
That’s what creative deal structuring is all about.
That’s why we’re having Maria Giordano as our featured speaker at Traction REIA this month.
Creative Deal Structuring is the perfect technique to learn if you:
#1. Want to do MORE deals
(because you aren’t limited by your own funds)
#2. Need to GET STARTED now but don’t have any funds
(because you get other people’s or get the seller to “carry” financing)
I asked Maria to tell me more about handling these 2 “problems”. Here’s what she said:
Tom, I often hear from people that, “I can’t invest in real estate because I don’t have any money.” or “I have bad crwdit and can’t invest in real estate.” (TZ: more fun intentional misspellings)
How many of you honestly believe when we discuss investing in real estate using little to none of your own money you think you need to go to the bank and get a loan?
Don’t go to the bank.
Banks don’t lend money to people who need it, and banks aren’t your friend.
What you need is to learn how to invest in real estate with little to no money of your own.
My husband Gary and I got our start investing in real estate by NOT using our own money. In the first 6 months of getting started, I made over $200K and I got paid by other people to use their money to do it.
Wouldn’t you like to know how we did it?
I’m going to teach you just what Gary and I did to attract, leverage and retain the right investor.
How to invest in real estate without money.
You see there are tons of people out there every day looking for deals or ways to invest their money, but they don’t have the time to find the deals or do the actual real estate work.
That’s where you come in.
Just like a financial advisor, you need to get paid up front. You see, when you charge people to use their money, and offer them a percentage, you are getting paid at least three ways. If it’s a long-term hold or rental property you are getting paid 3 ways.
Yes, it really is that easy, but first, you need to know where to look for investors or clients.
You need to go out and network. The best places to find these investors is not always at real estate clubs or events. The best way to go out looking for investors is to go where they are and do the things they like to do. I have found new investors at business mixers or networking events, financial conferences, wine tastings, little league games, the local watering hole (aka bar or pub), golfing, even at horse shows, etc.
These examples may not be things that you do, but that’s ok. Start brainstorming what it is you like to do and where can you find people who have extra income or disposable cash to invest in you.
Don’t forget the Baby Boomers. Baby Boomers are usually looking for a safer way to put their money to work for them. Many of them have IRAs or retirement accounts. Which brings us to Self-Directed IRA’s. Self-Directed IRAs are a very powerful way for someone to make money and have it taxed deferred. You can also do that with your kid’s college accounts.
Another great way to make money in real estate when you don’t have it is to find deals that the seller will finance at 0% interest and little to nothing down.
These sellers are often landlords who are used to getting a monthly cash flow but are burnt out on having tenants. They have become sick of the three T’s: tenants, termites, and toilets.
Their motivating factor is they like having the steady income coming in every month. Think of it as being like an annuity for them.
One of my favorite ways to make a lot of money in real estate without having to worry about needing money is to wholesale.
Wholesaling is by far the highest dollar per hour. However, like fix-and-flip, you’re only getting paid once.
“One and done” as I like to call it.
I received a check for over $60K on one of my wholesale deals and all I did was shuffle paperwork. This is the best way to collect a quick check or get paid without the worry of needing your own money.
The other way that hardly anyone is using is taking over a property with the existing financing in place.
In this strategy, you are closing on the property with the deed transferring to your name and keeping the existing financing in place. These deals are the most lucrative when the mortgage has been in place for more than 10 years and they are really starting to pay down the principle.
If taking over the property still scares you, you can always do a “sandwich lease option”.
With a sandwich lease option, you are getting paid three ways. Just like a sandwich, all the meat is in the middle. You are actively marketing to sellers. Basically, you are leasing a property with an option to purchase that property at a later specified time for an already agreed upon price. Then you are going to turn around and lease that property to someone else with an option for them to purchase it. You as the person putting the deal together is “sandwiched” in the middle. This is why we call it a sandwich lease.
These are just a few ways you can make money in real estate using very little to none of your own money.
Making money in real estate isn’t always about paying all cash or coming up with 100% of the money yourself.
Get creative! Think outside the box. Explore ways to negotiate seller carry deals and to use Other People’s Money (OPM).
This is what I will teach you at Traction REIA on Thursday April 22nd & Saturday April 24th.
#1. Main Monthly Meeting
TOPIC: “Dynamic Deal Structuring: Investing with No Limits”
SPEAKER: Maria Giordano
Thursday April 22nd ONLINE using ZOOM.
Works nationwide. Join us from anywhere.
#2. Training Intensive with Maria Giordano
TOPIC: “Dynamic Deal Structuring: Wealth Builder Blueprint”
Saturday April 24th ONLINE using ZOOM.
10am to 2pm Eastern
9am to 1pm Central
8am to 12Noon Mountain
7am to 11am Pacific
Works nationwide. Join us from anywhere.
12+ Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!