You know, I find it interesting that most so called guru’s spend more time peddling their course and going around the country giving high priced seminars then they do actually employing their methods and moving deals. It just seems to me that more money could be made on the deals themselves then on the books and seminars….maybe I’m missing something….? OR, MAYBE, it’s an issue where most “creative” techniques while theoretically will work, aren’t as easy to employ as the guru would have you think.
Those of you that are seasoned investors, what are some of the things that you are doing in today’s market to make money? Clearly there are tons of good deals out there right now, but acquiring the financing for them is next to impossible. Investment loans are almost extinct. The ones that are still out there require 650+ scores and at least 20% down. There may be a few lenders out there doing 90+% on NOO, but I doubt it.
That brings us to creative deals….options and subject to….are you seasoned folks finding that sellers are more willing to carry financing then they would’ve been under normal conditons?
Clearly there are tons of good deals out there right now, but acquiring the financing for them is next to impossible. Investment loans are almost extinct.
Investment loans are not extinct. I financed 4 buildings/11 rental units in January with 100% financing (100% of purchase price, less than 50% market value) from a small local bank.
I do agree with you that you need excellent credit.
Also keep in mind that lending to someone with a sub 650 FICO, no money down and none in reserves is exactly why we're in this "credit crisis". I believe the lending restriction will affect mainly the people with sub-par credit. While there are surely ways to finance like HML, Private Lenders etc.., I think it's a good idea to have control over spending, credit usage, etc.. before you start running a business like this. Without that type of discipline, you're only headed for trouble. The gurus like to make it sound so easy because they're #1 priority is to sell their product. Not teach. This site has a wealth of honest and realistic advice. Good luck :beer
There are smaller state banks everywhere. I live in Dallas and while sure there are thousands of Wells Fargos, and Bank of Americas there are also tons of local banks like Prosperity Bank and Northwest Bank as well. Get your phone book out, blow the dust off and start calling around.
If you are unable to obtain financing then go the route of real estate wholesaling. If you learn to wholesale real estate you won’t need cash or credit, because you only work with homes that you have sold. There are countless options out their regardless of your current circumstances in life.
From the guru question, I think it comes down to what people enjoy doing most. Some people just enjoy helping people more than they do making money. I would have never believed it had I not experienced it myself. From my experience once you obtain a certain amount of money you realize that money is not the end all be all. Most people don’t make it to the point where they get to see past the illusion that our culture has built up around money.
Most people spend their lives looking for the pot of gold at the end of the rainbow, but those who reach that pot of gold realize that the pot is empty if you obtain the gold doing things that you don’t truly love.
You know, I find it interesting that most so called guru’s spend more time peddling their course and going around the country giving high priced seminars then they do actually employing their methods and moving deals.
I think you’ll see a bunch of these “gurus” go out of business (and go bankrupt) over the next year or two). The real estate fad is over and won’t be back any time soon. I doubt if many of them can survive actually running a real estate business.
In terms of investment loans, yes I agree your local hometown bank is a great option if you have good credit. They have the luxury of loaning their own money and servicing their own paper, so yea they can sit right there in-house and make a decision. I was actually referring to the investment loans that you would have normally obtained through your local mortgage broker….those are the ones that have gone to the way side.
Didn’t the real-estate market crash back in the 80’s as well…kinda like what we’re experiencing now? There where probably more millionaires made from real estate then, then in the 2000’s. I don’t know much, but “IF” you’ve got the credit to do it and/or cash, this is a great time to get into investing if you can buy and hold/rent. I think most areas will rebound in the next 5 years…albeit not to the extent they where last year but it I think you’ll start to see some stabilization and “normal” appreciation in most areas over the next few years. You’ve got so many desperate sellers right now you can get some smoking deals. I’m seeing builders offer 12 months no payments and a free BMW. I’m sure there is no shortage of renters right now either…