Money for Your Real Estate Deals

So you need money for deals. You have no money.nnWhere do you start?nnLet's start with 3 basic ways of getting money:n- Save It!n- Borrow It!n- Trade It!nnI will expand on each of the above.nn1) Save It: This is NOT my favorite way, but many people save money by living frugally and/or making more money. Once you have saved enough, you can start investing. Like I said, this is NOT my favorite way.nn2) Borrow It: This is one way to get money. You have to make sure you match the investment to the method of paying the money back. For example, borrowing money for a long term, no cash flow investment is not a good idea. Borrowing money against a cash-flowing investment might be a better idea.nHere is an example: If you have a building that cash flows, then borrowing against it is a good idea. This is basic "arbitrage." Just make sure that your cash flow coming in is HIGHER than what you are paying. For more information, check the "Financial Arbitrage" videos on my blog ( http://www.georgeantoneblog.com ).nn3) Trade It: You can raise money by selling shares in your company. So the investor becomes an EQUITY investor. Anytime you are thinking of doing this, make sure you talk to an SEC attorney to walk you through all SEC compliance. But essentially you can trade ownership in your entity for money. This is good for long term investments. I use this method for my various companies.nnThere are "hybrid" methods of the last 2 (debt and equity) which I will not cover here.nnNow, which method is best for you? nnI gave you some examples.nBut let me say this, you need to consider the downside as well. For example, if you borrowed money to buy an asset, and things went south, what happens then? You are liable.nBut what happens if things went south and your investor has ownership? Well, assuming you worked with an SEC attorney, disclosed risks, and there was no fraud involved, you are fine!nSo always consider upside and downside of dealing with other people's money.nnIn general, here are my 2 cents for NEW businesses: "Trade It" when you are a new business, "Borrow It" if you are an established business with revenues to cover loan payments. There are exceptions of course.nnKeep in mind when you buy real estate with existing cash flow, you are buying an "established" business. Just make sure the cash flow can cover the loan payments if you used the "Borrow It" method.n nAnd now I would like to invite you to claim your Free Instant Access to my free audio CD when you visit http://www.OPMSecrets.comnnFrom George Antone – A Real Estate Investor, Private Lender & Wealth Builder in Northern California.n