As a real estate entrepreneur and investor I hear a lot of things from a lot of different people.
For example, something I hear most is that you need money to invest in real estate, which couldn’t be further from the truth.
If that were true I wouldn’t have the properties I do now… and I wouldn’t be in the middle of negotiations for a 14-unit apartment building in Charlotte, North Carolina.
Or maybe you think I’m so rich that I can just go buy any property I want?
No… I invest using OPM or “other people’s money.”
You have probably heard about that strategy, but maybe you think it’s a myth. It’s not. It happens all the time. I’m not the first to use the strategy and I certainly won’t be the last. In fact, I know a whole bunch of other people just like me who use it with very successful outcomes.
These people have been trained to raise private capital in the same way I have… and it involves being willing to invest in one’s own education.
But I’ll cut your learning curve by giving you a bit of insight now.
There are four things you need in order to close any deal…
As my mentor J. Massey says, “You only need one; you can leverage the rest.”
He also says, “There’s more money than experience.”
But what does he mean by those statements?
Let Me Explain How “K, T, M and C” Works…
People think that in a deal everything needs to be equal to make it a win-win scenario. That’s not accurate.
If I have the knowledge of how to do certain strategies so that my properties will bring top cashflow and you don’t, but you have the money or credit and I don’t… isn’t that a pretty good scenario?
Is it “equal”?
Not really, but it doesn’t have to be because it is entirely fair to all participants.
Because I have spent a few years learning my way around real estate transactions, creative acquisitions, creative financing, and how to structure deals that make the most sense and the greatest profit, that means my knowledge is worth more than money.
If I am willing to put the time in that it takes putting the deal together and making all the working parts work well for all involved, that’s also worth a lot. Most investors understand that fact.
So if money and/or credit is what I lack to do the size deals I like (refer back to my Investor Identity), that’s something other people will bring to the table if they want to participate in my bigger deals… or with other real estate entrepreneurs in their deals.
That brings us back to what my mentor taught me… about money being far more available than knowledge and time!
If I have the knowledge and time… and you have the money and/or credit… we could do business together time and time again! We just have to learn more about each other to see if we’re a fit.
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