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Quick-Start Guide to Investing – Part 3: Finding Financing and Strategies

Toy house placed on money

Getting a real estate business started can be overwhelming for a brand-new investor. Rather than getting caught up in all the details that cause people to be overwhelmed, we are breaking it down into 8 basic steps:

  1. Understanding Real Estate Cycles
  2. Identifying the Key Indicators in Your Market
  3. Building Your Power Team
  4. Making Offers
  5. Finding Financing Sources for Your Deals
  6. Implementing Finding Strategies
  7. Understanding Exit Strategies
  8. Constantly Learning and Mastering Your Craft

Today, we’ll be covering Steps 5 and 6.

Step 5 – Finding Financing Sources for Your Deals

 This is the step many new investors fear. The truth is if you have done your homework and secured a good deal, financing is usually the easier part of this business. People with money will always come forward if the deal is right.

Don’t get caught in the trap of focusing only on one approach. Once you have an offer accepted on a property (or even before it is accepted), take a four-step approach to getting the money for the deal:

  1. Traditional Loans
  2. Hard Money Loans
  3. Wholesaling
  4. Finding a Partner

If you pursue all four methods on every one of your first deals, the money should be there.

Remember, you can’t have too many sources for financing. Start now and find these sources as outlined in our training courses.

Step 6 – Implementing Finding Strategies

To sustain a growing real estate investment business, you must have a constant stream of potential properties.

A real estate agent can be one way of finding properties. However, it’s not the only way. Some popular finding strategies include:

  • Marketing and Advertising
  • Foreclosure Properties
  • Probate Properties
  • Getting Deals from Wholesalers

Many investors have a marketing budget and use that money to advertise. Done properly, this gets sellers calling them about buying their property. The more phone calls you get, the easier your life will be as an investor. Usually, the most motivated sellers will call you because they need a fast solution to their housing problems.

Foreclosures can be a constant source of finding deals. Keep in mind, foreclosures are more of a finding strategy than an investment technique. Why? Because foreclosure properties can be rentals, lease options, wholesale deals, etc.

Probate properties can also be a great way of finding investments. In many cases, the home must be sold to help pay the estate’s creditors. As a result, you can find some very motivated sellers that have probate properties.

To create that constant source of potential deals, determine what is going to work best for your situation, needs and goals as an investor.

Only two more steps to go! Next time, we’ll finish up with Step 7 and 8.

By Mark Justice

Rich Dad® Education Elite Training Mentor

10 Commandments for Investors

10 commandments1) I shall not assume anything from now on no matter what the circumstance because I do not have a crystal ball and I am not omnipotent.

2) I shall not think for others ever again. Instead I will ask questions to get facts rather than inserting my old theories. I don’t like it when others think for me so I will not think for them from this day forth.

3) I shall always have 4 Priorities each day that I must finish or I won’t sleep.

4) I shall help as many people as possible and also know that many times there will be nothing I can do to help them.

5) I will treat everyone with respect like I wish to be treated, and if for any reason I am disrespected I will be twice as respectful towards them.

6) I shall wake up every morning with a plan already written down from the night before. Rule of thumb: Instead of going to bed with a list of items on my mind, I will write them down, stick them in an envelope, and place them in the mailbox. All items will be waiting for me the next morning in the mailbox and I’ll be rested and ready to tackle them. (I keep a legal pad at my bedside to write down tasks for tomorrow, I sleep much better from not worrying about forgetting those important tasks.)

7) When I get frustrated with people or computers I will “Stop, Take 10 deep breathes, get out of the chair, walk around for 10 minutes then come back and refocus on the task at hand.”

8) If I haven’t an answer to a question I will Google or YouTube it. If I need to have a step-by-step answer for some type of software I will use YouTube.

9) I shall put aside 3 hours of every workday to choose the most important priority that makes me the most money and during these 3 hours all technology that can ring, buzz or vibrate will and must be turned off.

10) Another person can only control me if I let them and I have chosen to keep my control until my dying day.
If this post helped you in your business please a comment, Cheers!

Authors: Travis Howard and Chris Baucom “The Real Estate Nerds”
To Learn more tips or tricks visit us at http://www.RealEstateNerd.com

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