In order to grow a real estate business, you are going to need to attract private money for deals. These funds could come from friends, family members or total strangers who earn a great income like doctors, lawyers, and business owners.
When most people think of investing in real estate, they automatically assume that, they either need to have a significant amount of cash sitting in a bank account or a line of credit on their home they can dig into. That is far from the truth. While these are traditional ways of investing, and are still very popular, looking at other creative options dramatically increases the potential scope of your capital-raising efforts.
Initially, the majority of my Private Money Partners were not aware that they can use funds from a number of different types of retirement accounts to invest in real estate, notes, mortgages, and precious metals, not just stocks and mutual funds. For the most part, the folks that I attract don’t have tens or hundreds of thousands of dollars lying around in a checking account. Most of them have their money invested in some type of tax-advantaged retirement account, like an IRA or a 401( k).
My job is education…to teach them how they can roll money from a retirement account, especially a Self-Directed IRA or solo 401( k), into a real estate investment. Additionally, I inform them that they can also use money from Coverdell accounts, Health Savings Accounts, home equity lines and, of course, cash they have available, to invest; in order to begin earning better than average returns.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).