Myth #1: It Takes Money to Make Money

There you are, sitting in your family’s dining room after enjoying a full holiday meal. You’re a young child; your family is gathered and talking about life. How many times did you see the dreamer in your family get his or her dreams shot down with a bullet like, “You can’t do that. Where will you get the money to do it?”

Were you the dreamer in your family who felt the sharp stab from those well-intentioned remarks? Did people who influenced you keep drilling into your head, “It takes money to make money”? Where is this myth written in stone? And if it were really true, how did people like Warren Buffett and Bill Gates start with nothing and build net worths of billions of dollars?

Success Team—Peter’s Story

“I started investing while I was an auto mechanic working for less than $15 an hour. Not only didn’t I have a large chunk of investing capital to start with, but my wife and I had two small kids at the time. In the home where I grew up, my dad had to work really hard to provide for his wife and seven kids. One day, I reached an emotional low when my boss yelled at me for helping myself to some coffee that he’d set out for customers. That incident gave me the courage to find a way to make investing work for me. Sometimes it does take an emotional low to help you commit to never settling for less again.

Success Team—Coach Emily’s Story

When I started investing in real estate, I had just graduated from college. I was looking for a way to succeed in life without having to work for a big corporation for 40 years. I was scrimping by on my small savings because I wanted to prove to my parents that I really could make it on my own. That’s when I first got started with my investing. Over the next two years, I bought dozens of properties using other people’s money and have been involved in hundreds of deals since. If a new college graduate like me can start with nothing and become a real estate millionaire in less than four years, then you can do the same thing!

It doesn’t take money to make money. It takes specialized knowledge of a profi table niche that you apply with disciplined and passionate efforts over time, taking care to learn and to improve along the way. Even if it really did take money to make money (which it doesn’t), no one said it takes your own money to make money. One of the advantages of investing in foreclosures is that it’s easy to use other people’s money to make money. You can potentially tap into thousands of dollars in profi ts created through buying properties using other sources of funding.

Myth #2: You Need Good Credit to Borrow Money

We can hear you saying, “Yeah, but we need good credit to borrow money so we can make money investing in foreclosures.” This is true if your only source of funding is from traditional lenders. In this blog you’ll learn seven other ways to fund your way into a deal with someone else’s money—no matter what your credit is like.

Success Team—Peter’s Story

I’ve had a hand in hundreds of real estate deals—acquiring interest in millions of dollars worth of real estate—yet I’ve only applied for funds through a conventional lender for a small handful of loans in all those years. If I can do this, you can too. It’s just a matter of learning the real-world secrets that successful investors have mastered.

For example, I bought and made more than $250,000 in profits from a fi ve-bedroom, three-and-a-half-bath house. The seller agreed to act as my bank and carry back all the fi nancing I needed to buy that property after a small down payment. He carried back over $400,000 without ever once asking to check my credit. Was the seller unsophisticated? Was I taking advantage of him? No. He had a net worth several times greater than mine (he was a real estate investor in his seventies and I was just 38 years old at the time). He simply regarded this as a win-win situation.

More to come in Three Biggest Myths About Investing In Foreclosures Part-2