Conventional Wisdom (Will make you Poor).
As a Real Estate Investor you must continually learn how to adjust to the economy. You cannot force what you already know and & are comfortable with to work when you’re dependent on outside agencies for your success.
Imagine you’re in a canoe heading down a stream & a bend comes up. The natural thing to do is guide your canoe around the bend.
This adjustment is exactly what you should be doing as an investor.
So in this article the outside agency is the bank and the bend is the lack of funding.
BIG MISTAKE needing lenders or money. You must learn how to operate your business without the need for any funding. No banks, No hard money lenders, No Private lenders, NO LENDERS what so ever. I understand this sounds impossible buy it’s actually very easy. I have followed that principle for decades, so has my staff as well as my students.
Once you have eliminated the need for any type of lender, Real Estate becomes one of the most lucrative ways of making some serious money, as well as being able to impact people lives in a positive way (My Personal Preference).
I want to be clear here. I’m not telling you to ignore using lenders. What I’m saying is you must know how to make money without the need for your own money or a lender of any type.
So let’s look at how Murphy’s Law applies:
- If the banks can’t write checks like they used to, due to the secondary market drying up (2008-20??)
- If you own more than 4 pieces of property banks won’t lend to you (2010-20??)
- If the interest rates are too high, say 14-16% (Late 1970s & into the 1980s).
- If the Stock Market is doing very well ROI is 15-25% (1990s).
All of the above cause you to either not be able to borrow money or it’s too expensive to borrow. Either way “they” set you up for failure.
Every investor will suffer sooner or later if they don’t build a strong foundation under their business. The foundation I’m referring to is buying Real Estate without the need for #1.Your money; #2.Credit; #3. A lender of any type. You will hear the other GURUS say #1 & #2 all the time but the ones who haven’t learned my system won’t say #3.
Big Mistake #2 another point to focus on in building a solid foundation under your business is having the buyers lined up first. In other words you must learn to have your properties sold before you buy them. Again I know you’re thinking that’s also nearly impossible today, again I’ll say it’s a regular thing my students and I do. How regular? Anywhere from 2-75 deals per month but one every 3 months is all you need as a good foundation.
New & Experienced investors don’t need to run up a tab in holding costs. Your system should be to control the property while you find an end buyer without spending a dime. Or you could have the buyer on hand who has already given you money toward a house you control in the future. I do both on a regular basis.
For more in depth information you may order my book titled “Timeless Real Estate Investing”. Go to http://absoluteinvestmenttraining.com/book
You may call my office at 1-866-573-8880 & talk to one of the staff members directly!!
Starting in Real Estate
January 21, 2019
Is There a Blog in Your Future?
January 18, 2019
Negotiating Tip 66: Pulling A Concession
January 18, 2019
Four Tips to Create the Perfect Podcast
January 17, 2019
Negotiating Tip 65: The Sugar Sandwich Walk Away
January 17, 2019