In order to become a successful real estate investor, there are several key skills that must be mastered. One of these skills is earning money to fund your real estate investment. These skills must be learned, developed, practiced and perfected.
The best way to learn a skill is to actually do it. You learn to find money by contacting people who have money and asking them what you need to do to spend some of their money and the more you practice the easier the skill becomes.
Wilber Wright (inventor of the airplane) once wrote: “Skill comes with a constant repetition of known accomplishments rather than with some of the more daring attempts at feats that the player has not poorly prepared for”.
Many real estate investors fail because they don’t understand the importance of the constant earning of money. There are lots of great deals to be found but in order to take advantage of them – you need to have access to (or the skills to get) the money needed to fund them.
A good place to start making money is at local banks. Many locally owned state banks have programs only for real estate investors. Note: When you find these banks you should also ask them how they dispose of their REO property.
You will also need to make contact with many 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. If you stop applying for a loan – I can guarantee that you will never get a loan but if you are persistent you may be surprised at your results. Having a positive attitude, a good credit score, and persistence are three keys to finding all the money you need for your investment business.
Learn to play the credit game so that your credit score will be an asset to your quest and not a hindrance.
Making money is like finding good deals – you have to make lots of offers to get great deals and you have to keep looking 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 bank – and most of the time you will only be able to borrow some of the money you need from the lending institution.
Your goal should always be to buy as much property as possible without spending your own money. So, if you can get a loan of 80 or 90% from a lending institution you shouldn’t stop there – but keep looking for the rest of the money from other sources.
Some of the other sources and tactics for money include:
- Owner financing
- Bank line of credit
- Take notes
- Credit card – Partnership
- Investor loans
- Depends on
- Hard Money
- Notes & Combinations
By far the easiest way to get financing for anything property is owner financing. With landlord financing you not only get your own cashless property but you avoid credit checks, loan applications, bank, waiting, most of the closing costs, stress and the list goes on.
Remember, making money is a skill you must master to become a successful real estate investor. There’s a lot of money available – you just have to study and gather information to find it. If you will learn to improve your money-making skills, study and work to increase your credit and are constantly making money – “All the money you need will be available to you.”