If you’re low on funds and want to know how to get money to invest in real estate, I’ve got just the solution for you. Let’s start you on your path to success!
Are you wondering, “How can I get money to buy an investment property?” Today I’ll show you how to get money to invest in real estate and how to invest in real estate with no money or little money by acquiring funding.
It’s time to learn how to buy valuable, leftover, unwanted real estate for 10 cents and 20 cents on the dollar and use other people’s money to make money for you and for them.
I’m Ted Thomas, and I’ve been involved as an investor in real estate since 1970.
I started with a small condominium in Danville California. Then I grew to single family homes, commercial properties and finally over 3000 apartment buildings in Nevada, California and Arizona.
Want to learn how to make big profits from bargain real estate? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
FUNDRAISING METHODS
In this article, I’m answering your question about how to get money to invest in real estate.
Raising money for investments isn’t just for Wall Street or the big investment companies, like Warren Buffet and Charles Schwab. It’s also for the entrepreneur and small business people across the United States.
I’m going to give you a few unsophisticated methods to raise funds you need, and these methods are easily learned.
WHAT ARE THE RULES?
There are a few rules of engagement.
The federal government has huge agencies looking down on anyone who is raising money. They have a lot of rules, and you’ll need an attorney if you plan to raise money from the public.
The government has one agency titled the “Securities and Exchange Commission,” which is authorized to put questionable money-raising schemes to a quick stop and put the sponsors in jail. It sounds grim, and it is.
So, let’s make this easy. Let’s follow steps that are perfectly legal and ethical that work for the little guy.
FIND BARGAIN REAL ESTATE
First, find bargains with upside potential.
For more than 25 years, I’ve been involved in purchasing and reselling tax defaulted real estate. These are properties that the property owner failed to pay the property tax on.
These tax delinquent properties aren’t usually in the country club. As a matter of fact, they are used and sometimes abused. Most of them need tender loving care and a prideful owner.
They are unwanted and the government has seized, has confiscated them from property owners that might not have cared.
MAKING MONEY THROUGH TAX DEFAULTED PROPERTY AUCTIONS
The big picture is the government doesn’t want this real estate. The properties are sold at public auctions starting at low minimum bid prices like 10 cents to 20 cents on the dollar.
It’s not unusual for entrepreneurial bargain hunters to buy valuable, potentially good C and D properties for 10 cents and 20 cents on the dollar, then resell those properties for 50 cents on the dollar to fixer upper people like you see on those TV shows.
With that foundational material, you could be a bargain hunter, and you could be making the margin between tax assessed value and auction price.
These properties were purchased at auctions, and they have no mortgage.
YOUR ATTITUDE ABOUT MONEY
Money is always available. As a matter of fact, money is the most important part of being an entrepreneur. After all, someone with money will be needed to fund your wild ideas. Investment funds are always available.
You must change your attitude. The attitude change must be, “You’re going to make other people wealthy while you become wealthy.”
WHAT IS THE LAW?
I’ve already said it’s not legal to advertise, but let me be clear, the government will pay you a visit if you advertise.
The people who come to see you will have a black suburban, little badges on their belts and a bump in their back pocket hidden by their coats. You don’t want to see these people.
DOING BUSINESS WITH PEOPLE YOU TRUST
Do business with people you know, you like and who trust you.
I’m a practical, conservative investor. I’ll guide you to be the same.
You don’t need a sophisticated process to start or a 3” manual to follow rules. You don’t need a late-night TV program. You’re going to do business with people who know, like, and trust you.
I have a free gift for you, a 1-hour, streaming-video mini course that will teach you the secrets of one of the safest high yielding investments available and how to create massive cash flow from real estate. Take advantage of it today!
CASE STUDY
How much can you make investing in real estate this way?
This is going to be simple. I’ll give you a case history. Read it more than once. Adjust your mindset.
This case history is about a woman, a school teacher who worked hard. Unfortunately, life was hard. The weather wiped her out her crops. Her husband was a truck driver spending weeks on the road. That is the bad part of the story.
At her first tax defaulted auction, she purchased a property which she was able to resell and make $100,000. She did all that by following directions which you are about to learn.
After she finished my program, she located a tax defaulted auction in King County, Seattle, WA.
Over 200 properties were coming up for auction. Many were single family homes. A few were farms. There was even a small office building.
For those who don’t know the market, I’ll assure you it’s not a low-priced market. She needed money. At that point, we welcomed her to our club because we all need money to grow our business.
MONEY VS INTEREST RATE
This case history could take hours to present with a power point presentation, but I’m going to cut right to the bottom line.
The availability of money is more important than the interest rate. Burn those few words into your brain.
At the auction in Seattle, my school teacher student purchased a residential lot. Her total investment was $37,000. The tax assessed value was $160,000, plenty of margin.
Where did she get $37,000? Before I tell you, if you had $37,000 and were willing to follow directions, you could have done the same thing.
Just so you know, from the time she purchased at the auction to the final sale and collecting the proceeds was 180 days. The profit was $100,000. Now you’ll see how she did it.
ACQUIRING FUNDING
Here’s how she got the money. She followed simple directions which I want you to think about. It’s not difficult if you are flexible and you are willing to follow a script.
First lesson, the availability of money is much more important than the interest rate. Small “thinkers” always ask, “What’s the interest rate?” because they’ve been taught that credit cards are bad and borrowing money is bad.
You are not growing a business without money.
As investors, you always want assurance that money is available. If you don’t have money, you don’t have a business. You’re in the poor house. Money makes deals. Talk is hot air.
HOW TO BORROW MONEY
If you want to know, “How can I raise money to buy property?” here’s the lesson. I’ve overly simplified it.
I told my school teacher to borrow $5,000 – $7,000 from people that she knows, that like her and trust her. Now you may be wondering, “Then how do I get enough money for real estate? Shouldn’t I ask for more?” No.
Everyone else told her she needed $50,000 or $100,000. No one is going to loan you $50,000 or $100,000. You will be disappointed, and worse than that, after you’ve asked for that kind of money, those people will avoid you for the rest of your life.
Only ask people you know who like you and trust you. $5,000 – $7,000 is within the reach of all of your friends. They understand $5,000 – $7,000. It’s not beyond their expectation. It’s reasonable.
OFFERING A RATE OF RETURN
Offer them an outrageous, unbelievable, ridiculous rate of return.
They don’t want to be your partner. Don’t ask them for that! Ask for $5,000 -$7,000 and offer them a 25% return. The insane rate of return will make them an entrepreneur.
Everyone else is offering a 4-6% return, and everyone else is justifying 4-6% because the banks are loaning 1%. Stop being stupid. People are just like you, greedy.
DOING THE MATH
Let’s look at the math. My school teacher friend invested $37,000. The property was worth $160,000, and she had multiple purchase offers. Her instincts said she had done the right thing.
She sold for $134,000. But wait, she had to pay back the investors, not partners, investors. 7 investors invested $5,000, so she has $35,000 to pay back.
$134,000 came in the front door, and the paid back investors leaves $99,000. What about the 25% return? That was about another $10,000.
She paid the investors. -$35,000 and – $10,000 with $89,000 of the $134,000 left over.
Wow! $89,000 that she didn’t have 6 months before, and oh yes, she had to invest $2,000 of her own.
What is the lesson? They know you! They like you! And they trust you. Now they are all toasting you with a glass of wine.
CONCLUSION
We hope you enjoyed Ted’s lesson, “How to Get Money to Invest in Real Estate”
These fundraising tips work for real estate investing for beginners and seasoned veterans alike. First, be aware that there are laws regarding public fundraising, and you don’t want to run afoul of them.
That’s why instead of advertising to strangers, which could get you into trouble without consulting an attorney first, it’s best to go to people you know, who like you and who trust you.
Here’s how to get money to invest in real estate. If you need a large sum, like $40,000, don’t ask one person for all of it because you likely won’t get it.
Instead, ask a handful of people who know you and trust you for $5,000 to $7,000 apiece. $5,000 to $7,000 is a reasonable amount that many people can live with.
Next, offer them an outrageous return on their investment, like 25%. You don’t want to be greedy with the profits. Otherwise, they’ll turn you down, and you need their money to make money.
So what type of real estate are you going to invest in to be able to make a profit margin large enough to easily pay them back plus 25%? Tax defaulted property!
At tax defaulted property auctions, you can purchase mortgage-free property for pennies on the dollar. The starting bids begin around the amount of the delinquent property taxes owed, which are only a small percentage of a property’s assessed value.
So you can buy properties for 10, 20 or 30 cents on the dollar and get them without a mortgage. Then you sell them quickly by offering the property for sale at a discount. Buy low and sell low for a fast sale.
The key is not being greedy. Don’t ask your individual investors for too much and also don’t try to sell the property for too much.
If you want to learn how to get money to invest in real estate and make big profits from your investing, Ted Thomas can show you how to do all of this from start to finish. And we strongly recommend that you start with the Free Master Class.
For over 25 years, Ted’s been teaching students how to do this successfully. He offers full support and a complete training with home study courses, Q&A sessions, live tutorials, workshops & web classes, and personal one-on-one coaching.
If you’d like to know more about tax defaulted property investing, don’t miss Ted’s FREE Master Class. It costs you nothing and only takes about an hour of your time. You can make lucrative profits with real estate. Get started today!
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