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Real Estate Information |
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OPM - The Art of Leveraging
Equity lender, hard money lender, private investor or what ever term one uses can be a great source of funds to do real estate transactions and the question of how to find them comes up often! There are numerous ways to do this, and no two investors are exactly alike, so it's important to be innovative and customize your proposal to the specific "hot buttons" for each funding source. One of the greatest advantages of real estate investing is the power of leveraging other people's money. When a property appreciates, it will appreciate on the value not on the original investment. Therefore, if you 'leverage' the property with "OPM". You can make an investment even more valuable by having the property rented out. The monthly mortgage payment is being paid by the renter and someone else is paying for your equity growth in the property. "Money is a terrible master but an excellent servant." - P.T. Barnum The best source of cash for your real estate business is other people's money. Perhaps one of the greatest "secrets" of the richest people in the world is summed up in those three words: Other People's Money - OPM for short. The majority of most successful people launched their fortunes using OPM. Your goal is to not use your own cash. The most successful real estate investor tends to use OPM (Other People's Money). Keep this in mind as you start to invest. Hold out for the limited money down or no money down deal rather than tying up a ton of money in one property. Leverage, terms and long loans can be great friends. Keep these principals in mind: *Leverage is simply controlling a lot of real estate with little or none of your own money. The more the better. *You should attempt to get the maximum loan to funding possible with each property. *The best loans have fixed interest rates and are assumable without qualifying. *Keep your equity as low as possible so you can keep more cash available for investing. You can find "OPM" by writing to various lenders asking them if they would be interested in your real estate loan. By calling lenders in your area who might be interested in lending on your real estate proposal. By visiting in person lenders whom you think would be willing to help you. By looking on the Internet for real estate lenders who might work with you on the deals you have. By reading the Real Estate Section of your local large-city Sunday newspaper, looking for ads run by lenders in your area. Find properties that has been sold in the past few months by searching the public records at the county recorder's office. Find property that sold to real estate investors by banks, credit unions, HUD, VA, FNMA, or any other major source and if the buyer is not an individual but say a corporation or partnership you have most likely bagged an investor. The deeds should give the mailing address of the new buyer. Send them out a letter and tell them about your ability to locate real estate or better yet give them a call if listed. Any one who has money could be a source of funds for your real estate purchases such as Doctors. Another great source is checking your recorders office again looking for individuals who holds mortgages on property. This has provided me a great source for hard money loans. Retirement plans are a great source of real estate investment funds. Many people don't even know they can use their retirement plans funds to invest in real estate, mortgages and trust deeds. Many, once they stash it away, forget they even have money in a retirement account. Many investors think that money (or lack of money) is what stops them from closing a deal. This is not true it is a myth that holds some investors back. Understand that money is NEVER an issue - IF the deal is right, the money will come. Simply think creatively, go to the source of funds and simply ask for money. The worst that can happen is you get a "NO". Each no only places you closer to a "YES". To your success, Copyright 2005 JMichael Investments About the Author: John Michael is an active Real Estate Investor - Author - Speaker - REI CoachVisit my Real Estate Investing Site at: http://jmichaelrei.com FREE REI Club Site at: http://stealth.thecreativeinvestor.com
MORE RESOURCES: Boathouses Go Next Level at These Five Mansions Mansion Global Sonoma County real estate market turns turbulent, though 7 areas show improved year-to-year sales prices The Santa Rosa Press Democrat Homes for Sale in New York and New Jersey The New York Times Erie County real estate transactions Buffalo News Downtown Knoxville IRS offices included on list of possible federal real estate spending cuts WBIR.com The Great American Insurance Retreat: Climate Change, Uninsurable Homes, & The Future Of Real Estate CleanTechnica Trade Alert: Independent Director Of Apollo Commercial Real Estate Finance Carmencita N. Whonder Has Sold Stock Simply Wall St REAL ESTATE | VIDEO | Perfect country property in Dodge County | By Wendy Wendorf - Homestead Realty washingtoncountyinsider.com Central Mass. real estate transfers, Sunday, March 9 Worcester Telegram U.S. Government Hits Pause on Massive Commercial Real-Estate Sale The Wall Street Journal Macomb County real estate transfers recorded Sept. 30-Oct. 4, 2024 The Macomb Daily An investor's 3-part 'build-to-rent' strategy is making him $330 a month per unit. It has him on track to retire early. Business Insider Crain’s Cleveland hires Smith to cover residential real estate Talking Biz News DOGE claims $13.6 million in real estate savings in Alaska Alaska's News Source How Nigerian leaders spent millions on SC real estate amid US retreat from dirty money fight The Post and Courier Real Estate Property Transfers Spring Hill for Feb. 3, 2025 Williamson Source Vendor & Real Estate Partners Dollar Tree, Inc. Exclusive | Blackstone Raises Largest Commercial Property Debt Fund With $8 Billion Haul The Wall Street Journal In Good Company: Discover Brooklyn’s Real Estate Gems with MM&Co. (sponsored) Brooklyn Bridge Parents Berkshire region real estate sales – March 7, 2025 theberkshireedge.com Trouble Signs For Real Estate Market In Palm Beach County BocaNewsNow.com America Builds: Making Federal Real Estate Work for the Taxpayer The House Committee on Transportation and Infrastructure The Michael Houck Real Estate Guide for March 9 Oil City News ‘They just gutted it’: Latest Trump job cuts in Oregon hit agency managing real estate OregonLive Godfrey - Home for sale RiverBender.com Palm Beach house sells near Trump's Mar-a-Lago, marks fourth sale there since mid-December USA TODAY China’s real estate market keeps stabilizing as government policy support boosts confidence: Minister Global Times DOGE claims $17 million saved in federal real estate terminations in Georgia. Here's where Online Athens Suburban cities, developers eye office space but high-rise downtowns outside Austin still years away The Business Journals AI will change real estate more than the disruption that made Amazon a property powerhouse - Fortune Charming Southern metro nicknamed the 'Scenic City' sees housing boom in state with NO income tax Daily Mail Pushback in eXp, Weichert settlements called ‘self-serving’ Real Estate News This CT metro area has the 'hottest' real estate market in U.S., according to realtor website CT Insider Inside Saratoga's largest mansion, now listed for $24.9M The Business Journals Smartleaf Asset Management LLC Buys 479 Shares of Fidelity MSCI Real Estate Index ETF (NYSEARCA:FREL) Defense World Healthcare Commercial Real Estate Finance Veteran Amy Heller Joins Meridian Capital Group Business Wire Real estate stocks down with import of timber, lumber, derivative products under scrutiny Seeking Alpha DOGE cuts 13 real estate contracts, federal offices in Mississippi. Where are they? - Clarion Ledger National Bankshares Forecasts Strong Price Appreciation for Bsr Real Estate Investment Trust (TSE:HOM.U) Stock Defense World $1.3 million Dover townhome tops Strafford County market. Here's lowest-priced home, too. Foster's Daily Democrat Real Estate Stocks To Keep An Eye On – March 7th Defense World Apollo Commercial Real Estate Finance (NYSE:ARI) vs. Arbor Realty Trust (NYSE:ABR) Head to Head Survey Defense World Chetrit family faces a reckoning after decades of success in NY real estate Crain's New York Business Red Bank's Denholtz has created a $2B real estate empire; now they want to get bigger Asbury Park Press Chattanooga housing market heats up in Tennessee Fox Business UW and NFL great Lawyer Milloy lists Woodinville estate for $7.8 million seattlerefined.com Real estate sales in Peoria, Tazewell and Woodford counties for March 8, 2025 Peoria Journal Star Real Estate Newsletter Articles this Week: Property Insurance Costs Rose at a Record Rate in 2024 Calculated Risk County Official Sees Growing Strength in Real Estate Franklin Observer What were the 5 most expensive homes sold in Petaluma last week? The Santa Rosa Press Democrat ‘Extremely pissed off’: LeFever Mattson investors wonder why troubled real estate moguls have escaped accountability The Santa Rosa Press Democrat A couple making $28,000 a year in passive income from real estate used an out-of-the-box approach to buy their first rental Business Insider REAL ESTATE | 92+ acres of farmland in Rubicon, Wi | By Jim Emmer – Emmer Real Estate washingtoncountyinsider.com Up to the Minute Greenwich Property Transfers, February 24-28, 2025 Greenwich Free Press Is a 6.5% Mortgage Rate the 'Magic Number' to Turn the Local Real Estate Market Around This Spring? TAPinto.net Raymond James Has Lowered Expectations for Minto Apartment Real Estate Invt Trust (TSE:MI.UN) Stock Price Defense World National Bankshares Has Lowered Expectations for Minto Apartment Real Estate Invt Trust (TSE:MI.UN) Stock Price Defense World Gambling on Las Vegas? Sin City Housing Market Softens as It Suffers Affordability Crisis Realtor.com News Here are recent property transfers up to $1.4 million St. Albans Messenger Indoor pools, fish ponds: Inside the most expensive Central Jersey homes sold in February My Central Jersey Artis Real Estate Investment Trust (ARESF) Q4 2024 Earnings Call Highlights: Strategic Debt ... Yahoo Finance |
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