How to buy real estate without a lot of free money?
How to buy real estate without a lot of free money?
Come on friends post for Friday.
Theme today
How to buy real estate… when we do not have a lot of money available?
I was once in the lecture of some American real estate cannon, and one of the sentences I remember saying was that the business starts to get interesting when you run out of money.
I know we all go through this:
What fun I have 200000 NIS, I buy a house in cash in the US, buy renters, start seeing rent. $ 400 and another month another $ 400 .. and after two or three months .. you say walla. Spin, but a little slow. What to do ?
How do I make the 400, 800, brother 1600, 3200…?
So.
Let's start with the simplest
Loans.
There are mainly local banks that will lend without Americans. Try to look for a smaller bank, in the area where you operate, you may get a mortgage. It's not easy, but definitely possible. I sent an email to dozens of banks in the Detroit area. Most of them did not care, some said thank you but no thanks. One of them told me to come to the meeting.
In Israel: Please note that you can take out a mortgage on your property at today's interest rate, which is relatively reasonable for interest rates in the United States.
And also from provident funds.
We will continue with the second and interesting option, medium range option:
I return to the subject of learning and relationships with local professionals.
Remember we talked about the crucial importance of your success in the US and one of the most important conditions is your team? The better your relationships with the brokers and REALESTATE AGENTS, with the profanity companies and contractors, with the insurance agent and the lawyer, you will suddenly get a message from one of them, that they have sold a neighbor friend who is selling a property. And cheap.
So obviously this is not the solution for tomorrow morning. It will work in the longer run. It is only my understanding and my experience to reach the level of closeness and friendship with these friends, for at least months. If not more. But we're here for life so there's no problem.
Note that this phone and your quick action can create an interesting situation for you:
You have obtained an asset worth 50000 $ in 35000 $
You bought them and immediately took them out for sale. You've earned $ 13000, you're on your way to buying another property.
Long term option:
OPM or OP.
Money of others.
If you invest a lot of effort in a particular area, you will study it over and over, create connections, establish a local team, build a property on your own,
If you invest in this, something interesting will happen to you: Someone will turn to you and tell you that, let's help me buy. I also want to hear, let's buy together.
The friend will bring the money to you and the management knowledge and connections. divide up
The member will invest for example, 80% of the investment you 20%.
Divide in any way that looks good to you.
(I have some partners who happen to be good friends, who I bought 50% with each investment with, and I do 100% of the work a bad deal for them, I hope they bring my friends, relatives, neighbors who will be my clients later and if not .. Not bad I have Affiliates in Yielding Properties)
Any additional property you install will increase your monthly income.
If you are strong enough to amass money in the US you can use that money to buy another property.
That's my goal, that's where I aim, and that's what I do. Every day. From 2011.
Have a wonderful Saturday
Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum):
http://bit.ly/2GG121T
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
Or we all get together and buy together
Yoni Ifergan
Today I say in my meetings to potential investors this:. If you came to buy one house, spend your last $ 50000… not worth it
Too bad for the trouble. In one property everything can happen. Will not be rented. They will not pay rent. Uncle would go. The stove will go. One month you will receive a lease that will be approved, and one month you will not get will be on the floor. Not suitable. Anyone who thinks about a US realtor .. In my opinion minimum 5 properties and 10 it starts to be a serious business.
Excellent post! Thank you
The principles of running out of money are reminiscent of the parable of the egg and the chicken, what comes first? Money on the side for buying houses or buying houses (without excess money) that will bring more money in the future…
The whole idea is to expand our narrow and familiar reality using methods as you mentioned, but there is no doubt that whoever stays in the comfort zone and purchases only through equity will not make the big leap.
Kobi Ben-hayun
Hello friends. I remind you that Shai Bar is our entrepreneur of the week until Saturday night. You have a lot to learn from him and we are glad he devoted his time to us. This post will be in the top as part of the "Entrepreneur of the Week" program. Shai will continue to update us also once a week on interesting posts of value. We won! ♥ ️? ♥ ️
Excellent Post Shai Bar! There is also a possibility of gap financing that someone has money that is currently not in use and he accompanies me a certain amount for a relatively short period at high interest rates that gives a nice return on money.
It's a great solution to 2 parties and by the way if you know someone like that we are looking for 85000 $ to 4 MONTHS