Epic Real Estate Investing - Five Sources of Funding for Your Real Estate Investments | 853

Episode Date: December 1, 2019

In today’s episode, Mr. Theriault shares 5 sources to access other people’s money to fund your real estate acquisitions! Furthermore, you will find out how you can join Matt’s live training with Ross Hamilton on how anyone can quickly find and flip the properties that are not available to the general public. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit REA.

iAase.com. Here's Matt. Hello and welcome to the epic real estate investing show. Today, we're going to dive into other people's money. And specifically, I'm going to give you five sources of where you can access money for your real estate acquisitions. But before I forget, if you want to access a revolutionary but very simple house flipping strategy that allows anyone to quickly find and flip properties that aren't available

to the general public. And, you know, you're kind of concerned right now about going broke on marketing or generating better leads or converting the ones that you've got. I've got something that might be of interest to you. I'm hosting a live training with my friend Ross Hamilton called drone flipping. And it's how anyone can quickly find and flip the properties that aren't available to the general public. So he's going to show you how to do that.

It's live all week on demand. And you'll be able to potentially flip properties while you're there during the training. It's pretty cool what he put together. So if you like the way that sounds, head on over to drone flipping.com. Dronflipping.com. Drone, like the little thing floating up in the air that you see all the time. They're everywhere now, aren't they? Anyway, yeah, so back to what we're going to talk about today.

You can get rich in real estate using your own money. Absolutely achievable. But really, the reason you want to get involved in real estate is because of your ability to use leverage because you can get wealthy using other people's money. You can get rich using yours. wealthy using other people's money. Leverage is, it's really what makes real estate the record holding wealth creator that it is. It's produced more millionaires for more people than anything else on the planet.

And the reason why is because with leverage, your wealth will typically grow at three to five times the rate when other people's money is in place. And so I'm going to give you five different places for you to find other people's money to build your wealth before using other people's money. However, I want to suggest the following. Before you go out and start accessing other people's money, I want to suggest this. First is to work on your credit. You know, there are many places to access money without needing a good credit score, and I'm going to give you some today for sure. But a good credit score really, really helps, and it opens up your options.

A bad credit score can become good, and a good credit score can become great. So work on your credit. second would be to stash some money away. You know, being liquid on the side in the event of an emergency or moments of slumps because it happens sometimes or even just for the normal maintenance and management of your properties. Stash some money away before you start using other people's money. And then the third thing would be to invest in yourself.

And this could potentially be the biggest one of these three that I just gave you. And what I'm trying to say is just make sure that you know what you're doing before you start using other people's money. There are no risky investments, just uneducated investors. And you don't want to be that uneducated investor because it's you that inserts the risk into the deal and you don't want to be that person. So invest in yourself and then put what you learn to work and start gathering, not just your education, but gathering deal experience and real estate experience.

And that you'll never stop learning, by the way. But just make sure that you work all. your credit, you stash some money away, and you invest in yourself before you start using other people's money because you don't want to be the person that inserts the risk into that deal. All righty? So now that you've done a little work up front to bolster your financial, I guess your foundation, you're ready to start looking for other people's money, for other funding opportunities. So let's start with number one.

It's actually my favorite. And that's the seller. So in the event that you're working directly with a motivated seller, getting them to carry funds back, it's an option that you should always look into. I mean, especially with the regard to if you're going to be holding the property. Because it's really the easiest money when it's available. And it can be negotiated like no other source. You can really control those terms and work them in your favor and work them into your favor

regardless of what price you actually pay. And so you can tap into either their existing financing in the form of, say, a subject to deal or you can get them to act as the bank on the deal of where you'll make payments to them over time. Or you can use a combination of both. You could take over the payments on their existing financing and maybe leverage them for a second or use them for the down payment or the down payment and some additional money later on. Basically, you're just getting them to act as the bank on your deal later on. Boom.

All right. Number two, my next favorite. And I never really considered this until I moved to a market where, it makes a ton of sense. You know, I just moved out of the heart of Los Angeles and moved over to Las Vegas in Nevada. So now this new source of funds that actually makes sense for me here.

And that's FHA financing. So with only a required 3% or 3.5% down, I'm not sure exactly what it is, but I'm taking advantage of this in the new year. And all you need is that small little down payment and two years of work history. and it can be available for most of you. It doesn't take a great credit score.

There's a lot of allowances there. And that being the case, it just doesn't make sense to pass up this type of long-term fixed financing. Now, it is funding for your primary residence. It's not the type of loan you go out to pick up an investment property, but it does work for up to four units if you qualify. So you could live in one and rent out the other units, or you could go and purchase it as a primary residence,

live in it for a while, and then ultimately when you're ready to make that next step or move into that next property, there you've got a rental property already in existence with really great terms, and it just took you a very little bit to get involved. All right, so that's number two. Number three, and this is something that I've done recently,

and that is to tap into properties that you already own that have equity in the form of a home equity line of credit or maybe even a refi. that home equity line of credit is commonly referred to as a he lock. And what that is really, it's money that's locked away in your properties that's taking a break. It's sitting on the bench. It's not working for you there. It could be out on the streets working for you, accelerating your journey to the financial freedom that you are pursuing.

So look at the, even if it's your primary residence, if you've got equity in there that could be used somewhere else to create a better return for you, something you really want to consider. That's money that is just sitting there on the sidelines, and it's lazy money. It's money that's been retired before you yourself have been able to retire you. All righty, so consider that. Number four, another source of money. I think that people don't seriously consider or think about. And that's by tapping into credit cards.

Yeah, that's what the people here in the epic community have been doing for years now over at Epic Fast funding. and it's just, I think because it has the name credit card attached to it, people don't look at it for this type of purpose. And you can just go over to Epic Fast Funding with a very simple soft inquiry. It doesn't impact your credit score whatsoever. In fact, they don't even need your social security number. You just put your name, your phone number, and your address, and you'll get an instant approval right on the next page.

It's pretty remarkable how they're able to do that. And you can get approved for up to $150,000. in credit cards. And $150,000, that's certainly enough to purchase a rental property, maybe even two. Or pay for the down payments on a number of properties or to pay for the repairs of your properties or for to, in this money, it's all up to 18 months at 0%. And then that 18 months, it gives you time to replace those funds with longer-term arrangements like a traditional bank loan.

All right. So consider that. It's still other people's money. going to do the math just like you would on every other source, how much is it going to cost you and how quickly you need to get it back. And if it fits, it fits, right? Who cares what label it has attached to it, whether it has HELOC attached to it or it has credit card attached to it. It's still other people's money and when it comes to leverage, it works for you in the exact same way. So that's number four. Now, number five would be private money. That's the fifth option that I have for you

today. Private money in regards to what I like to call relationship money, friends and family. That can be a source of financing for your real estate efforts. And really, everybody wants to access private money. No one has ever come to me and say, how do I get a bank loan? They don't ask me that. They say, how do I get access to private money? So few of them actually do it. And it's really kind of remarkable that so many people are focused on getting private money, but so few them actually ever get it. And it's not that difficult. And I think it's mostly because people don't want to ask their friends and family for a favor. Can I borrow some money? Can you give me a loan? Can you do me a favor? Can you help me out here? And I think that's where they get it wrong. Because if you have a deal

and it produces a decent return or at the very least just slightly above market returns, you're actually doing your friends and family a favor by letting them participate in your deal. It's a simple little mindset shift. And that's typically all it's going to take for the world of private money to open up for you. And so just kind of recognize that you've got the deal. You've got the power in this relationship. You've got the leverage in the relationship. You've got control of a deal.

And once you've got control of a deal, the hard part is done. Finding the money is the easier part of this whole situation. All right. And then other than friends and family, though, private money can also be made available to you through family offices, a family. office is a, and I actually didn't realize or know what this was until just about four or five years ago and it's explained to me. But there's families out there, very, very wealthy families. And they have a team of professionals that sit inside an office. And they call it a family

office. And their whole job, and it could be a number of people or just a couple, but their whole job is to make sure that that family's financial situation is in shape and that their money is working for them. So it's a great source. They're looking for places to place money every single day on a daily basis. So family offices is a place, crowdfunding platforms, hard money companies, hedge funds, and even local investors that are looking for opportunities in your area. I mean, good private money can be found right there in your local RIA group. And a really good resource for that type of money of all of those things that I just mentioned, like the family offices and crowdfunding platforms and the hard money lending and then hedge funds and your local investors.

All of those can be found at one place called newprivatemoney.com. You can head on over to new private money.com. You put in the terms of your deal. And then all of those people that I just name will start actually competing for the opportunity to give you their money for your deal. And as other opportunities like this, they become available. I'll certainly share them with you. I'll keep you in the loop. but right now, new private money.com seems to be a great source for private money where it's, I don't know, a one-stop shop, kind of like lending tree, right?

Lending tree for loans where lenders compete for your business. And this is the same way. But for real estate investors, they don't do private money over there for your primary residences, though. So that's not a good source for that. But your investments, yes, whether you're holding, fixing, flipping, bridge loan transactional funding, all that's available over there at new private money. All righty. So when it comes to leveraging other people's money, those are five solid options that are accessible to most people.

And it's one is seller financing, two FHA financing, three, HELOCs or refinancing. And then credit cards is number four. Head on over to epicfastfunding.com. You can find out if you're approved for that, like immediately. Not, I was going to say almost immediately. No, but it actually is immediately. And you don't have to share a bunch of private information.

You don't have to talk to anybody either. Go to Epic Fast. Funding.com. And then number five was private money, friends and family, and all the people over there at newprivatemoney.com. A lot of domain names today. Anyway, that's it for today. I will be back tomorrow.

I hope you had a great Thanksgiving weekend. I know I did, and it was an absolute pleasure to share this with you. All righty, so that's it for today. I'll be back tomorrow. Hope you had a great Thanksgiving weekend and got to spend all that time with those that you love and care about the most and got to take it easy a little bit. I know I did sharing this with you today. So God bless and to your success.

I'm Matt Terry O. Live in the Dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home for us, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.