In order to become a successful real estate investor there are several major skills that must be mastered. One of these skills is acquiring the money to fund your real estate investments. This skill should be learned, developed, practiced, and perfected.
The best way to learn a skill is by actually doing the skill. You learn to find money by contacting people who have money and asking them what you will need to do in order to use some of their money and the more you practice the easier the skill becomes.
Wilber Wright (inventor of the airplane) once wrote: “Skill comes by the constant repetition of familiar feats rather than by a few overbold attempts at feats for which the performer is yet poorly prepared”.
Many real estate investors fail because they do not understand the importance of the constant search for the money. There are plenty of good deals to be found but in order to take advantage of those deals—you must have access to (or the skills to get) the money needed to fund them.
A good place to start searching for money is at local—state banks. Many locally owned state banks have programs just for real estate investors. Note: When you find these banks you should also ask them how they dispose of their REO properties.
You will also need to make contact with lots of banks and mortgage companies to find out their terms for investors. If you are turned down for a loan from a bank or mortgage company—NEVER let that stop you from applying to others. If you stop applying for loans—I can guarantee that you will never get one but if you are persistent you might just be surprised at your results. Having a positive attitude, a good credit score and persistence are three keys to finding all the money you will ever need for your investing business.
Learn to play the credit game so that your credit score will be an asset to your search rather than an obstacle.
Finding money is like finding good deals—you have to make a lot of offers to get a great deal and you have to keep searching for money to find what you need.
Of course there is much more to finding money than just applying for and getting a loan at a mortgage company or a bank—and most of the time you will only be able to borrow a portion of the money you need from lending institutions.
Your goal should always be to purchase as many properties as possible without using any of your own money. So if you are able to get a loan for 80 or 90% from a lending institution you shouldn’t stop there—but continue to look for the rest of the money from another source.
Some other sources and tactics for money include;
- Owner financing
- Bank lines of credit
- Create a note
- Credit cards—Partnerships
- Investor loans
- Subject To
- Hard Money
- Notes & Combinations
By far the easiest way to get nothing down financing for a property is owner financing. With owner financing you not only get the property with none of your own money but you avoid credit checks, loan apps, banks, waiting, most closing costs, stress and the list goes on.
Remember finding money is a skill you must master to become a successful real estate investor. There is plenty of money available—you just have to learn to find it. If you will study to improve the skill of finding money, learn and work to improve your credit and constantly search for money—“All the money you will ever need will be available to you.”