How To Use Other People’s Money To Buy Real Estate

 

 

 

You’ve Heard Of The Zero Money Down Real Estate Investing?

Does The Word JV or Joint Venture Comes To Mind?

How Does It Work?

How Do I Find The Investors To Partner Up?

 

There’s a great book out there, “Money, People, Deal” by Stefan Aarnio.  Basically it says that if you have 2 of the 3 (Money, People, Deal), the 3rd one will come.  So if you have the deal and the people, the money will come OR if you have the money and the people, the deal will come.

Sometimes, you ONLY just need to find the DEAL and the other 2 will show up.  “If you build it, they will come” from The Field of Dreams.  In real estate investing, if you find the deal, often times, the people and money will come to you.  

So, how does it work?  

Many people ask me, 

 

But I Don’t Have The Money

 

It can still work if you don’t have the money.  The investors will put up the money and you will then do ALL THE WORK and you’d take a cut of the profits.  That can be negotiated depending on a variety of factors, how lucrative the deal is, your track record, etc…

 

What If I Don’t Have A Track Record?

 

It’s still very possible.  Every person that has a track record had to start from somewhere.  The key is on how you pitch the deal to the investor(s).  It’s like a Dragon’s Den or Shark Tank pitch.  Do you have all the numbers?  Do you have a proforma spreadsheet, ROI calculations, sensitivity analysis, like best case and worst case scenarios?  

Investors are often very sophisticated and if you look like you haven’t done your due diligence, they won’t have a lot of faith in you and hence, won’t want to work with you.  

The key is about how you present the deal.  Be prepared and you better have an answer for the typical question they will likely ask you.  In fact, you should over prepare, because investors want to partner with people who treat the investor’s money like their own.

 

If you want more information on how to prepare, feel free to email or call me.

 

 

 

 

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