I Want a Million Dollars...

Here’s the subject of a recent email sent to me, in summary: 

I want a million dollars." 

Ya…. Don't we all? 

In this market, real estate opportunities just keep on growing. The practice of lenders "bundling" large numbers of distressed properties and selling them for huge discounts is gaining more and more favor.  We see this everyday in posts on Bigger Pockets. 

And, it seems, as a result, I am asked on an ever-increasing basis if myself or someone in The Club would "front" the money to buy them. Well, not the money exactly, but show proof-of-funds, so that an investor can take down these gigantic deals.  Interesting how the investor seems to always be the person who has very little experience! 

Hello... What? Do I look like I just fell off the turnip truck?  

Experienced Investors Just Don't Ask for a Cool Million! 

Why is it that I never get approached by seasoned investors - those who know the financing game - to borrow a cool $1,000,000.00 with the promise of 50% to 100% returns just so that they can get into these deals? 

Why?  I'll tell you why... because experienced investors know that, to take down large multi-million dollar deals, you must first line up the financing. To try to do it any other way is a waste of everyone's time and causes the investor to lose integrity within their market. Experienced investors don’t get experienced by going off half-cocked! 

So... it seems that only the inexperienced investors are trying to hit what would be the longest grand slam in history by pursuing deals that they are ill-prepared to be pursuing... even if they are offering 100% returns. 

And in today's market... this is what I would characterize as a "get-rich scheme"... only everyone seems to lose, rather than make money on the way to getting rich. 

OK... so now we've talked about deals worth millions... let's talk about smaller deals.  Deals that you and I can expect to take down on any given day. Bread and butter deals. 

Where the Money Really Comes From... 

Where does the money come from and how do we get it? 

Well, in exactly the same way as the big time investors do - we create relationships with lenders.... banks and private individuals. So that when we have that perfect deal, our lenders are standing at the ready with money to lend.It seems so simple, yet so many investors miss this crucial point... and lose out on many deals because of it. 

And if you doubt me... just pay attention to all of the posts on Bigger Pockets by individuals asking how to get their deal purchased or refinanced. 

This, the most critical aspect of our business, finding capital and so many investors are clueless!

Hey... times change, markets change, methods change... but one thing is certain... If you don't have the funds to do your deals... you are dead in the water! 

How do you Master the Money Game? 

Simple... relationships.  Relationships with small local lending institutions and private individuals.

If you would like to learn how to approach those with money in this market please click on the "Bankers Report" link to the left of this post and it will be sent to you immediately.