How to Generate Investing Money

[Account Closed]

So, I am about to close on my first MFU in 2 weeks. What I'm wondering is how am I going to raise more money to buy more and more property? I know the general idea of keeping expenses low personally, with the property as in doing the repairs myself, and keeping any income. What I'm trying to ask is, is the name of the game save every penny I can get and find a diamond in the rough deal to buy another? I hate the idea of trying to save from your job which can take a couple of years!

[Don Konipol]

It's never to early to begin raising investor capital thru syndications. Once you are successful in your MF investment, write an article about it, give a speech to a real estate club describing it, and perhaps volunteer to teach at a workshop or seminar. All this will get your name out and become available for viewing during an internet search of your name. When the passive investors you approach for funding do an internet search, your name related to real estate will come up.

If you can pull a syndication of perhaps 3-4 investors together to provide the down payment, then various sources of financing may be available for the balance of the purchase price. If you still come up short, the seller may be interested in taking back a small second to accomplish a sale. Add your good management to the property, act in your passive investor's best interests, and at some point in your real estate career money will not be an issue.

I would also recommend reading "How to Finance any Real Estate " by James A Misko. Despite the name, the book provides some interesting approaches to getting a purchase accomplished.