Believe It or Not, Using Your Own Cash is NOT Required (or Recommended) When Getting Involved in Passive Income Cash Flowing Real Estate Deals
Here's the reality of the "real estate guru" circuit: they teach you all these "secrets" and "strategies" about how to invest in real estate but they NEVER tell you HOW to get the MONEY for your real estate deals. Do they?
I remember one of my students telling me about how she paid upwards of $20,000 for a three-day "bus tour" conducted by one of the many sleezy TV real estate "gurus" out there. The Big Promise was that this guru was going to divulge exactly how to get the funding for your deals at the end of the three-day event.
Do you want to know what he told everyone at the end of the three day?
He had everyone who had savings, a 401K, or a retirement account stand up in the audience. Then this guru said, "Look around you. All these people who stood up, these are the people you can borrow the money from for your real estate deals."
What a bunch of complete bullsh*t!
So, all these people paid $20,000 to be told to borrow their down payment money from other people who attended the event who have savings and retirement accounts? Talk about a total sham! (Even worse, they could have used that $20,000 to buy a cash flowing piece of property!)
What I'm about to share with you is the REAL way to get funding for your real estate deals...a way that those sleazy "gurus" will NEVER share with you!
"Creative Financing" and "No-Money-Down" Deals is NOT the Right Strategy Either
Have you ever done the math on a true "no-money-down" deal?
In MOST CASES, you'll be upside down on the property deal. In almost all cases, you'll be in a NEGATIVE CASH FLOW.
Now you might be thinking, "Monica, how else can I afford to get a property if I have to borrow the down payment?"
My response is this: you're NOT thinking outside of the box. You're not thinking about this correctly at all if you're thinking that you have to "borrow" the down payment and to take it on as a second loan.
Or even worse, having the seller carry paper at a second position and paying it back to them over time as a second loan. That sucks just as bad.
But what if there was ANOTHER WAY?
Investor Partners = The Ticket to MASSIVE CASH FLOW Without Using Your Own Money
There are millions of people -- we call them the "mass wealthy" -- who have access to LOTS of liquid cash but they have NO INTEREST in finding real estate, buying property, or managing tenants.
That's where YOU come in!
There are a lot of people out there who have a lot of money, they want to "diversify" their investment portfolio, but they're just too busy or disinterested in buying and managing a portfolio of cash flowing property deals. They're willing to write the checks for the down payments and other costs associated with acquiring a property but they simply DO NOT want to have anything to do with the execution or management of these assets.
And you'd be surprised at how many of these people are EVERYWHERE...looking to invest in highly profitable cash flowing deals where they will SPLIT the proceeds with you so long as you oversee the acquisition and management of these assets FOR them.
Use Their Money to Buy the Property, You Both Split the Profits...And Everybody Wins!
But think about it this way...
Pretend that you're a high-net-worth dentist, for example. You have a lot of liquid cash and other assets, you're unhappy with the performance of your current investment portfolio (mostly stocks), and you'd LOVE to get involved in passive income real estate.
But here's the problem...
You're just too busy working at your dental practice (about 60 hours per week) that you have NO TIME and NO INTEREST in learning how to invest in these cash flowing deals yourself, actually going out to find these properties and, even worse, trying to manage all of it while running a profitable and busy practice.
And That's Where YOU Come In...You Are a "Service Provider" AND a "Part Owner" in Each Deal
You come along, present a highly profitable deal to them, and you assure them that you'll find the most profitable cash flowing property, you'll handle all the acquisition requirements (due diligence, closing, etc.), and you'll oversee the rehab (if needed) and the management of the property deal...
All while he does NOTHING except for taking in the profits on the property.
Trust me when I say this: it's NOT a "hard sell" to sell any prospective "mass wealthy" investor the idea of them putting in the money on a joint property venture (fully collateralized because it's real estate...so there's very little risk), have them put up the money for the down payment, closing costs, rehab, etc., and YOU oversee all the management responsibilities (with the help of a manager or management service), all while BOTH of you split the monthly profits AND the gained equity of the property.
These "mass wealthy" investors are lined up to do these kinds of deals WITH you.
So, why is it that so many of my students shy away at taking full advantage of getting this easy capital because of a lack of confidence in themselves?
Listen, if you're going to be successful in real estate investing, you MUST start somewhere. The easiest way to jump right in is to do investor partnership deals. But for that, you MUST exude some kind of confidence.
Confidence Comes from Knowledge
If you don't know what you're doing, you're NOT going to have confidence moving forward.
For example, if your best friend (as a joke) entered you into a baking contest and you've never successfully baked a freaking thing in your entire life, you'd be sweating bullets because you'd KNOW you'd fail and lose...all while looking like an idiot, especially if it was on a TV show.
If your aunt who owned a bakery on the east coast for 50 years decided to have you come over to her bakery for a solid 3 weeks to show you everything you'll need to know to be able to participate in the baking contest, when you completed the training with her, you'd walk into the bake-off with sky high confidence because you'd have the know-how and knowledge needed to hold your own in the contest.
Hell, you might even WIN the contest at that point. (It would definitely be a high probability, that's for sure!)
Knowledge is Power!
To become "good" at real estate investing -- even before investing in your first property -- what's the next best thing?
It's learning from someone who has been in the trenches of real estate investing since 1995.
In other words, you can "borrow" experience (at least for now) until you acquire your own experience in the business.
This is why there is such a thing as trade schools. You "learn as you go," starting from taking a "crash course" from someone who has been in the business of whatever it is that you're learning to do. And then after taking that "crash course," you will THEN have the needed CONFIDENCE to move forward into the real world to utilize your newfound skills.
Yes, You WILL Learn As You Go With REAL Real Estate Deals But...That's HOW You Learn!
All you need to do is get ENOUGH KNOWLEDGE in multi-unit real estate investing to be CONFIDENCE in the eyes of your investors. Then you can invest in deals using their money and the skills I'll be showing you to move forward in passive income real estate investing. The knowledge is what gives you the CONFIDENCE you need to work with these investor partners.
But here's a mistake a lot of my students make: they want to learn everything they possibly can about real estate investing before investing in anything. And then 10 years goes by, they invest in nothing, and their confidence is deflated because they sat around in a state of "information paralysis." DON'T let this happen to you. Learn just enough to get by, to acquire the confidence you need to work with investor partners, and then get your ass out there and learn the way the rest of us have learned: by being in the REAL trenches of real estate investing, learning as you go!
If You Feel Like You Are Spinning Your Wheels Getting Your Real Estate Business Off the Ground...
It's because you probably don't have access to enough money to close your deals. In fact, here are the core reasons why people can't seem to get their real estate business going:
- Lack of money for EMD, due diligence, down payments, fees/closing costs, rehab, or all of the above
- Not enough cash flowing property deals where they are looking
- Inability to look attractive to investor partners who may want to invest in them and their property deals
If you're not finding and funding your passive income real estate deals, it's likely because of one or more of the above listed problems.
"I just don't feel comfortable telling an investor partner that I'm an investor or that I need money."
If this is the case, GET OVER IT!
Think about it: if you had $100,000,000 in the bank and someone came to you wanting you to invest, say, $5,000,000 in a profitable commercial building but they seemed weak, undereducated about real estate, sleazy, unprofessional, and lacking confidence... Would YOU invest in that person or their deal?
For Investors and Private Lenders to Give You Money for Your Deals, You MUST Look Attractive to Them or They WON'T Give You the Money!
Have you ever wondered how people like Bernie Madoff or others have been able to swindle such large amounts of money from investors over the years? There's one key secret. They are an "attractive character." People LIKE them. People are DRAWN to them. People TRUST them because they exude confidence.
So, if you don't have any confidence in yourself, you'll never raise a dime from anyone. How do you get confidence? It's easy. You start educating yourself on EXACTLY how to pull off a profitable cash flowing real estate deal and you will then be able to exude that confidence in what you're doing to any investor partner or private lender you are trying to sell the deal to. And this is exactly what I talk about in my brand new book...