Where do you find Money Investors?

That is the question most often asked me by new real estate investors - where do you find the money?

One of the most challenging aspects of being a real estate investor, is finding the money to fund your deals. But finding the money people is not as difficult as you might think.

Many people get into real estate investing, and they have the image of a money investor being some highly educated, fancy schmancy, suit wearing dictator that is put on this earth solely for the purpose of making you feel lower than dirt, and destroying your dreams of becoming a real estate investor by laughing at you as they are rejecting you for a loan. But you don’t have to look to formal lenders in order to find the money for your deals. In fact, most money investors, are where you would least expect to find them. Like for me, today!

I had this new guy come to my house to do some “handyman” type repairs. Well, he’s here, doing a great job, and I tell him that I buy and fix up houses and may want to have him do some work for me in the future. He said “great!”, and then proceeded to tell me that what he really wants to do, is what I do, and buy a house and fix it up. He says, “I could make more on one house than I do at this job.” Now, I am not saying much (you learn more by shutting up and just listening sometimes), and he then says, “Yeah, I want to do a house this year yet - I just got approved for a $100,000 equity line of credit on my house, and want to use the money to fix something up. But I am so busy, I don’t have much time to work on anything.”

Are you thinking what I’m thinking?????

To make a long story short, I always have a need for more investor capital, so we are going to be doing some deals together and splitting the profits. Cha-ching!!!

Now here was this guy, just came to my house to do some work ... typical handyman type, dirty from working, rough callused hands ... and the guy has a hundred grand investment capital to work with. Who’d a thunk it?

I start the day just needing some work done around the house, and I end it with picking up another $100,000 investor. Not bad for a day’s work.

Just goes to show, you can never tell where your money people are going to turn up from. Most, are just average every day people wanting to make more money. That’s why you need to talk it up, and tell everyone you know that you are a real estate investor when you get started in this business.

Happy Investing!

Todd

Changes in the U.S. Real Estate Market.

Last year in the U.S. Real Estate Market, it was all about rising prices in a booming market. Fortunes were made, and many thought the party would never end.

Now, of course, everyone is singing a different tune. With the bottom of the real estate market falling out, people are running for cover, getting out of investments in real estate, and some are praying their houses will sell. All you hear about in the media is how bad the real estate market is.

Mistakenly, many people take that as a sign to stay out of the market, but nothing could be farther from the truth. You have to understand, when you hear in the media that the real estate market is “bad”, what that means is, that if you are a homeowner and you want to sell your house and get top dollar for it, then the market is “bad”! What many people don’t realize, is that when the market is bad, that means that typical houses in a typical market are difficult to sell and it becomes a “buyer’s market”.

So, we, as investors, are “buyer’s”. Therefore, this is “our” market. Anytime the market is “bad” according to the media, then it is “good” for us. It’s not that homes will not sell in a bad market, it’s that they won’t sell to the regular pool of buyers for top dollar. This is the market where we can go out and pick up deals at a very reduced price, sometimes simply for loan value owed, just to relieve the seller of the debt. And since we are buying so much below value, we can sell the house below value and still sell it quickly and make a nice profit.

It’s like in the stock market, buy low, sell high. What better time to buy low, than in a “bad” market. Now is the time to get into real estate investing, not when prices are sky high and houses are selling quickly for top dollar.

There are more millionaires made during the so-called “bad times” in real estate investing, then in all the good times combined.

Happy Investing!

Todd