Make Money In Real Estate Investing By Using Other People's MoneyDocument Transcript
Make Money In Real Estate Investing By Using Other PeoplesMoneyWhat is the first rule of real estate investing. Most real estate experts tell you "Leverage - Using OtherPeoples Money".Most real estate investors want 100% financing for a hand full of houses they intend to purchase orthey request that the owner finance the property. The strategy is to buy and hold a handful of rentalproperties for a few years until the equity in the property has increased.Then they either refinance all the properties or sell all the properties of take all the equity out and thenretire rich with millions of dollars in equity or a healthy cash flow to sustain the lifestyle.Within a thirty year period of time real estate market will have at least five downturns. The value ofproperty in some areas can hit the bottom just as you decide to retire. The real estate investor oftoday does not want to wait thirty years to cash in and live the life.Real estate investors diversifying their investment activities. Some are doing quick turn aroundtransactions in addition to the long term buy and hold. If you are an investor. The theory of quick turnaround transactions is finding distressed property get it under contract and sell it to another investorfor a quick $5,000 - $15,000.Some investors are doing short sales and pocketing more cash. Being house rich and cash poor canput many investors in a crunch if some crisis happens. Not having the money to close a good dealprevents some investors from cashing in on lucrative transactions. The first thing new investors needto understand is that lack of money should never be an issue when you plan.Combine the buy and hold method with the quick-turn-around investment strategy to put cash in yourpocket within a matter of weeks rather than years. If you find a good deal with lots of equity sitting inthe property be sure you can re-finance within a short period of time to get the equity out and intoanother high yield interest investment fund that you can access when you find the next good deal.Use ARMs with low start rates that give you 3 - 5 year before they reach their max. Refinance all yourproperty with low start ARMs and put the excess money in an account that builds your equity twice asfast. This financing alternative allows your tenant to make the full house payment while you pocketingYour money. No negative cash flow.Set up lines of credit for your business. You may never need them but in case you do the money issitting there waiting for you to use it to create more wealth. With a line of credit versus a loan, youonly have to pay for the money you actually use.To implement the strategies, you need to align yourself with as many funding sources that you canfind. This strategy will insure that you can continue to add to your real estate empire or to maintainthe empire that you have already built.So, when you are building your real estate empire consider buy and hold strategies in addition to aquick turn-around transaction approach to investing. Build your funding sources so that you are readyto make the offer and close the deal.