How Investors Fund Their Deals

If the deal is right, there is plenty of money available to fund it.

If you think about money with a consumer mindset, you might assume that the only way to buy investment property is to buy it with your own money and your own credit. This is based on the belief that money is scarce and you have to pay for your investment by yourself.

Where do consumers go for money? They go to banks. And what happens at the bank? If you are a consumer, the bank will require you to provide a vast amount of personal information. You might feel that you have to beg to get the money. And after providing all of the personal information, it is up to the bank to decide if you are worthy to borrow the money.

If you are a consumer who goes to the bank to borrow money, you have to deal with banks who decide whether or not you deserve to receive money from the bank. At the heart of the matter is the idea that the most important issues are your money and your credit. Many people who want to borrow get the distinct impression that the bank wants to loan money only to people who already have money. If you don't have money, the bank doesn't really want to loan any money to you.

In fact, you don't ever have to ask a bank for money to fund your real estate transactions. This is because there are private lenders who have plenty of money for real estate investments. This is one of the major differences between consumers and investors. Investors know that they can use private investors while consumers think that they must get funding from banks. If the deal makes sense, investors can find all the money they want from private investors.

Let's say you want to buy an investment property. You'll need to make a $10,000 down payment to buy it. If you are looking at the investment with a consumer mindset, you might think: "The only way I can buy this property is to pay $10,000 for the down payment. But since I don't have the $10,000, I can't buy the property." This is not the way a successful investor thinks. The investor would think: "I don't have the $10,000, but I know that someone else does." The critical difference is that the investor knows that there is money available from other people. So, instead of giving up on the deal, the investor finds a private money lender to provide the $10,000.

This is why a consumer will look at a property and say: "I can't buy this property because I don't have the money, and the bank won't loan me enough money to buy it because I don't have enough credit to satisfy the bank's requirements. The investor can stand beside the consumer, look at the same property, and have a different idea.

In contrast, the investor will say: \"This is a good deal. I don\'t have any money, but I know that other people do have money. Let me see what kind of deal can put together with a private money lender so that I can buy this property.\" The private lenders don\'t make it all about you. They want to know if investing in the property is a good investment. If it\'s a good investment, you\'ll be able to find all the money you need.

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