There is always enough money to invest in real estate if the deal is right.
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.
Successful real estate investors know something that the average consumer doesn't know. There is plenty of money available for good deals and you don't have to go to the bank to get it. Why is this? It is because there are private lenders who are ready, willing, and able to fund good real estate deals. In fact, you don't ever have to ask a bank for money for real estate investing.
If you want to buy a property, and you need $10,000 as a down payment, someone with a consumer mindset might say: "The only way I can buy this property is to pay $10,000 as a down payment. But since I don't have $10,000, I can't buy the property." Investors don't think this way. An investor's first thought would be: "Since I don't have $10,000 to buy the property, I'll use other people's money. I know that some one else has the money I need to buy this property."
It is fascinating to realize that a consumer and an investor can stand side by side and look at the same property. Yet, the consumer and the investor will come to radically different conclusions about buying the property. The consumer might say: "I can't buy this property. I'd like to buy it, but I don't have the money and the bank won't loan me enough, because the bank has decided that I am not worthy to receive enough credit.
An investor thinks about the situation differently. The investor knows that there is money available for a good investment. In the same situation, the investor will say: "I don't have the money or credit to buy this property by myself. I do know that there are plenty of private investors who have the money I need." The key factor is whether or not the investment is a good investment. It is not simply about you and your money and your credit. If the deal is good enough, you can find the money you need to buy it.
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