What can I do when logged in?

You can submit new articles, so we can make unique versions of them and distribute them for you.
If you want to simply publish the same article on 800 websites, you can tell us to do that.
You can see the archive and current status of all your article distributions.
You can order any number of high-quality articles - just let us know your keywords.
You can browse the archive of all the articles we have written for you.
You can order our Complete Service (10 high-quality articles plus 10 article distributions).
You can purchase more credits for our services and check your affiliate earnings.
Much more ...

SpinDistribute.com Article Directory

The following article was published in our article directory on December 2, 2019.
Learn more about SpinDistribute Article Distribution System.

How Do I Finance My First Real Estate Deal?

Article Category: Real Estate

Author Name: William Hawthorn

Its so funny to me that when most folks think of buying real estate, the first thing they think is "I don't have any money, I can't do that!" Or, if they have read a little bit, or watched some videos, they may come to the next question: "who's got the money?"

After doing hundreds of deals for myself, plus that many with clients, I find what's unbelievable is maybe one out of one hundred really get how backwards the theory of looking for real estate money first is.

In this article I am going to cover why this one question keeps thousands upon thousands of ordinary people from investing in the most incredible and profitable industry on planet earth.

Why would I be so bold about saying this? Think about it, its safe, predictable, reliable, and most important – LUCRATIVE! To top all that off ... every day new houses for sale come on the market, and off. So each day resets the playing field. A field where everyone needs a place to live, and you can help those folks.

In fact, as I will show you in this article, it is almost impossible not to succeed when turning real estate into income. And again my statement is BOLD because I have helped so many private coaching clients from all walks of life change their style of living so it is on their terms. True freedom, wouldn't you say?

All right, let's get started ...

Before we get into where you would dig up tons of funds to purchase real estate, let's talk about what you would buy if you had it first?

If you look at the real estate investing industry from a thirty thousand foot view, you would soon realize it is not as complicated once you know this:

It really breaks down to two types of deals structuring ...

1) Buying and selling UGLY houses for cash

2) Or buying PRETTY house with terms

Once you isolate your potential deals into these two buckets you will soon recognize these few stable datum's quickly:

1) When buying, fixing, and flipping real estate you are in the material universe selling kitchens, bathrooms, location, colors, etc. All of which are opinion based. And we all know about opinions. They are like assholes, everybody has one!

2) But when selling pretty houses with terms (monthly payments until paid off) you are not selling the house anymore, but instead selling the financing.

And as of the date of this writing, 81% of all real estate seekers don't qualify for a mortgage to purchase. But still want a house, and will tolerate less pretty houses and turn their cheek on small problems.

Number one above: Here you need to have hard cash to throw around (yours or someone else's). Most of your purchases will be foreclosed property from banks. And banks think they are the only one's with money. So they can be pompous, arrogant, and quite frankly annoying to deal with. Sort of like the Wizard of Oz behind his little curtain running the big machine at the end of the yellow brick road?

Number two above: Is the world of creative financing. Where investor's go when they don't have cash, or can't qualify for loans, or simply want to leverage what cash they have to the maximum amount possible. Thus becoming very familiar with contracts like Options, Lease Options (or rent to own docs), owner financing, agreements for deeds, assuming mortgages (yes you can still do this if you know how!), etc.

Because reality TV has embellished finding the ugliest house in the prettiest neighborhood for pennies on the dollar, fix it, then sell for perceived HUGE profits, it is actually a fade to invest this way as of this writing.

But in fact number two is the oldest way mankind has been buying and selling real estate, even before the Realtor, even before real estate record keeping was available.

Where Is The Money For My Deals Anyway?

Again, after doing so many transactions, I have isolated the four places to get your purchase funds for the sellers request:

1) The banks (ugh)

2) Hard money lenders (these days – banks in disguise)

3) Private lenders (mostly retirement money like IRA's & 401K's)

4) The buyer?

Use the first two above and you are dealing with (what I call) the Real Estate Mafia. Think about it, here is who is at every closing on the first two above:

a) Realtor's bring the buyer to the table

b) Bankers bring the money to the table

c) Attorney's (or closing agents) bring all the paperwork so the banker can collect, and collateralize if you don't pay

d) Insurance agents bring the "protection" so the thugs are safe

e) And the title insurance is there incase the legal beagles mess up the bankers paperwork and they can't break knees legally to collect

Think I am just being cute here ... think of this:

Try to look at a house with a Realtor. Just look at the house, not make an offer yet. They will ask you if you if you have a pre-qualification letter from the banker. And if you don't, guess what – they have a friend.

Once you go to the banker, he will tell you he will lend you the dough, as long as you have insurance. His "boss" won't lend you the roll if it's not protected. And guess what – he has a friend!

Now you head on over to the insurance guy and he asks, who is the "loss payee?" Oh, well you are going to need a closing agent to make sure this gets put onto your closing documents. And guess what – I have a friend!

You get my analogy here with the "MOB?" They bounce you around like a pinball on a Friday night.

Most important ...

You think each of these "professionals" are there to help you close. And they will consult you and help you with something you have never done before (or done only a few times), sell your house. And they do it all the time, thus you are expecting them to be all the wiser?

But ... all they get is their fee. For example: the attorney gets $700 to $1,000. Is that enough coin for him to call you everyday and make sure you are on track? NO!!!!

To hear my podcast on this completely broken down, go to:

http://flippinghousesforrookies.com/podcast/episode-90-battling-the-real-estate-mofia/

Important Note: Money Chases Deals ...

Here is a newsflash ... you don't find money then real estate deals. You find HOT, HOT, HOT deals. Then money will find it's way to you. Greed glands have amazing senses for seeking and wanting to park at increasing the stash opportunities.

Imagine this ...

You find a motivated seller (not desperate but motivated) that is not looking at their real estate as an asset like most. But instead looking at is as a liability (taking money out of their pockets, not putting it in). And this liability (the house) is mentally or financial draining them.

And very often the problems connected to this liability can't be fixed with just money. There are other situations to cleanup before the money. Thus the Realtor system doesn't fully help the seller reduce the stress. Often, it increases the stress.

Let me give you and example: Property is worth $200K. It will only appraise for $190K. Which means the Real Estate Mafia will cause the seller to come to the closing with a boatload of cash to make up the difference.

What if the seller doesn't have it?

How about this one: Divorce? Both parties are in such turmoil trying to "screw" the other one. They have resorted to not talking to each other. Do you think the Real Estate Mafia will take unpaid time to sort these issues out so everyone plays nice, and shows up to the closing table?

Last one ... mom and dad have passed. Their house is left to three kids spread all over the country. And dad was a "pack-rat" who saved everything. House is outdated, but in good shape. Who is going to clean it out, then put up a pile of Bengaman's to make it pretty so that the vultures don't prey on a significantly reduced price killing mom and dad's life savings?

Each of these scenarios is a perfect candidate for a Professional Creative Investor (like me) to help them solve their problems. Often the Realtor system will work for the lack of anything else. But also ads stress to the already pressured problem.

Finding "Hidden" Private Lenders

Before you trot off and start talking to others about your newfound idea of buying and selling house that they can fund, know this about your lenders:

1) They want to know their money is going to be safe and return back to them without loss. They want to know YOU will protect it the way they will.

2) Once they trust you will protect the capital the way they would, they will determine the risk as in "high" or "low" of the opportunity being presented. Is the deal real, or is your evaluation a little under estimated and not as safe as you say?

3) Now that this potential investor thinks they know the risk, and feel they have control of the opportunity. They will then put some sort of a return value on their participation in the deal. Like just money. Money and babysitting you. Doing some work, etc. This is what the Mob calls "juice." The Wall Street guys call "yield." Investors call "rate of return." All the same thing by the way.

Okay, now let's get down to where these funds might be hiding; until the greed glands swell and the little solders (dollars bills) run out from hiding.

Private money is often found in these twelve places:

1) IRA (self-directed) or other retirement money

2) Equity in their homes or other property

3) Savings (or under the mattress)

4) Credit cards (usually 0% cards)

5) Good credit so they can co-sign your loans

6) Credit lines or over-draft protection on checking accounts (especially with credit union institutions that lend money)

7) Credit union loans (usually personally)

8) 401K loans, not withdrawals

9) Law suit settlements

10) Life insurance loans, or sell policies (and still have death benefits)

11) Business with cash, or high cash flow

12) Stock and bonds that can be leveraged within portfolio's

These twelve are all about getting a deep discount on a property and paying cash. What would happen if you could pay your seller top dollar and the seller will let you pay monthly payments until you can pay them back?

This opens the door to a whole other opportunity ... where you make promises to pay, do repairs, maintenance, and make obligations that your buyer will gladly except just to have a chance to live in a home they want.

But that is a whole other topic for another day.

If you want to learn more, please go here and I will explain:

http://flippinghousesforrookies.com/freestuff

I have several videos and documents you can use without busting out a wallet.

Bill Hawthorn
Real Estate Deal Maker

Keywords:

Learn more about SpinDistribute Article Distribution System. We also offer one of the Best Article Writing Services out there - give us a try if you need great articles on various topics!

SpinDistribute.com Network

Each article you submit at SpinDistribute.com is sent through our innovative Article Distribution System to our network of more than 1840 publishers - about 55% of them are high-quality article directories, 30% of them are niche blogs and 15% of them are other content-rich websites.

To achieve the best possible success we only publish your article to most related websites. This means your article will show up on approximately 640 - 880 most related websites which will give you great SEO results.

We also offer a separate Professional Article Writing Service to everyone who's looking for high quality web content and well researched unique articles.