What Can A Real Estate Mentor Really Do For You? By: Curt Cloyd â€“ Director Personal Wealth Academy, LLC In this post, I want to address a recent question that came into one of my surveys. Now in case you haven't visited this blog before, I send a survey out to all my subscribers asking them a series of four questions. The first question is "what is your most important question about investing in real estate?". I write a post at least once a week where I directly answer one of these questions so that I can help the people visiting my site to overcome the obstacles that are blocking their path to success as a real estate investor. This question came in last week: "How can I get started with not so good credit?" There's two reasons that I want to address this question today. The first is that I know for a fact that a lot of people are faced with the unfortunate situation of having bad credit right now, due to the economy. It's one of the reasons that so many people are attracted to real estate investing in the first place... because of the opportunities to get started with bad credit, little to know money or even a job. The reality of the situation is that there are actually numerous strategies for investing in real estate that don't involve credit whatsoever. And I'll get to how you uncover those in a moment... But before I do that, I think it's important to dispel a myth that's perpetuated by many of the socalled gurus who sell information products on real estate investing. It has to do with getting into this game with zero money. The problem is two fold. First, let me say that there are strategies available for making money with real estate using no money of your own. However, most gurus position them as being incredibly easy. All no money of your own strategies are going to have a trade off for you not having any skin in the game. You will have to do a LOT more work to make it happen. And I'm talking about at least 20 hours a week here. Also, you are going to have a LOT harder time finding deals that will work. In order to fit into no money strategies, the deal has to meet extremely tight guidelines that only the sweetheart deals fall into. Because of the competition in the market right now, those sweetheart deals are extremely hard to come by. This is just one reason that I am such an advocate of having a real estate mentor in your corner.
A course or book becomes outdated in this industry within six months because the market is changing so quickly. The only way to stay on top of those trends is through a real estate mentor. Given the fact that I myself am a real estate mentor to many clients, my free advice to you right here is to avoid trying to become a real estate investor if you don't have any money of your own. And when I say any money, what I mean is you should have at bare minimum $1000, preferably $2500 saved up to begin your real estate career. Now that I've got that out of the way, let's circle the wagons back to answering the original question :) Typically when people are taught about bad credit real estate strategies, there's three major options discussed: wholesaling and flipping using hard money or private money. Let's talk about each of those a little more in depth. Essentially, wholesaling is putting a property under contract - most often one that needs major repairs and assigning that property to another investor (read rehabber) at a slightly higher price. Your profit is the spread between what you got the property under contract for and what you were able to sell it to the rehabber for. To make this model work, you need to be great at evaluating deals. You will also need to be great at finding those deals, which takes a lot of concerted effort and time. You'll hear a lot of gurus talking about wholesaling because it's a sexy message. However, this strategy is one that is not working very well in the current market. The reason being, wholesaling is dependent on having an end buyer lined up. Just a couple of years ago, good deals were still relatively difficult to find, so rehabbers relied on wholesalers. In the current market, good deals are all over the place, so rehabbers don't have to rely on wholesalers - particularly new ones. The only people successfully wholesaling right now are those that have lots of experience and a huge pipeline of investors already built. This is another reason that you absolutely should be working with a real estate mentor. Someone who has an intrinsic interest in your success. A guru only wants to sell you a product and ultimately could care less if it works for you or not. A real estate mentor gets paid to bring you results! Flipping houses using private or hard money involves buying a property that is in need of repairs, knowing that once those repairs are done, it will have a certain market value that it can be sold for quickly. You make your money on the spread between your re-sell price, minus all expenses.
Many hard money and private money lenders do not require any certain credit score to get a loan and a few of them will loan you 100% of your purchase and rehab money. There are a few problems with this model too. First, in order to get a property financed, it has to meet some strict buying formula. Usually you will have to buy the price at 60 - 70% of the after repaired value. The amount of properties readily available in that range is slim picking right now. Also, when you are writing offers on properties, you have to show that you are getting financing on the deal. With all the competition, the banks are taking offers from investors that have all cash first. So unless you have a bunch of your own money, breaking into real estate flipping houses right now is very difficult too. Again, this is something that any good real estate mentor would discuss with you when developing your game plan to begin your real estate investing career. Here's another way that a real estate mentor can make a huge difference for you. There's actually many other strategies for investing in real estate that don't require credit - ones that work like gangbusters in the current market! I'm not going to list them here because these strategies are ones that Personal Wealth Academy specializes in. And they are so little known that we consider them to essentially be trade secrets to our real estate coaching business. But you will get full knowledge and access to them if you end up working with a real estate mentor from PWA... I think you can easily see how important it is to have someone in your corner in this business. And I also think you can see that Personal Wealth Academy is the most qualified company to help you get to where you want to be. However, you must know that we don't work with everyone. In fact, we only work with a select group of a few clients at any given time. To find out if you qualify to work with a real estate mentor from PWA, it's really simple. Just enter your email in the box to the right and register to take our short real estate investor success quiz. You'll get an instant answer if PWA is a good fit for you along with what to do next - even if you aren't a good fit at this time. Go ahead and take the quiz now, while it's fresh on your mind. You'll be glad that you did!
Description : In this post, I want to address a recent question that came into one of my surveys. Now in case you haven't visited this blog...