This is Part One of my Getting the Money Power Strategies article.

In the last few weeks I’ve seen two polls of real estate investors asking how many deals they’ve done.

The results were consistent with 52% of investors saying they have never done a single deal.

Now, I suspect that there’s a certain percentage of people who will never actually do a deal no matter what. The reasons are varied but usually it’s fear based or they take a course expecting a “get rich quick” scheme and once they realize there’s actual work involved, they bail. On to the next scheme.

For the others who are struggling, the reason they typically give is that they can’t get financing.  I guarantee if you ask any real estate investor what the toughest part of investing in real estate is they’ll all say the same thing… “getting the money!”  Maybe you’re feeling that way right now.

It’s true. Getting the money is tough. It requires work. And persistence. And if you’re doing it the conventional way you also need lots of other stuff like good credit and cash reserves and an appraisal that is accurate.

I’ve spent the better part of the last 10 years trying to figure out every angle of financing for real estate investors. When conventional financing took a big hit last August, I started educating people about portfolio lenders. That’s helped hundreds of investors across the country who have written in to say thanks and tell me about their new blanket loans, unseasoned cash out refinances and mortgages in the name of their LLC’s.

But lately many of the questions I’ve gotten go beyond the portfolio loan solution. Investors need cash (or access to it) and that’s never going to come as a result of any loan program. So, I went back into the lab and came up with my top 6 Power Strategies for Getting the Money.

These are creative strategies for getting access to cash or alternative financing to invest in real estate. And I’ll share each of them briefly with you in this two-part article.

Owner Financing

Owner financing is my favorite way to buy AND sell real estate. This strategy includes lease options, subject to, master lease options, wrap mortgages, performance deeds of trust and shared appreciation mortgages.

I regularly use owner financing when buying properties ala the master lease option on apartment buildings and I use owner financing when I sell properties. I typically do a wrap mortgage or a shared appreciation mortgage so I can still participate in the appreciation. (not a lot of that lately but still… )

You do not need credit and usually you don’t even need much cash to pull this off. I’ve never once had a seller ask to see my personal financials.  If the seller does require a little cash into the deal or you need some funds for rehab, you can get the money using one or more of the other six power strategies for getting the money.

I’m working on an Owner Financing course that will be ready in November. If any of these concepts sound good, then watch your email for the launch announcement.

Private Money

I love private money. Private money is the #1 Getting the Money power strategy. Private money works in EVERY situation EVERY time. It’s a problem solver, a deal getter and a millionaire maker. Actually a billionaire maker as this is the strategy that the big guys like Trump and Zell use.

Over the course of my investing career, I’ve raised more than $24 million in private money.  That $24 million has locked up many millions more in equity and cash flow for the investors and the equity partners (private lenders).

Can’t get financing? Raise private money.
Don’t have money for rehab? Raise private money.
Don’t have any money for a down payment? Raise private money.

I honestly can’t think of a single situation in real estate investing where private money isn’t the answer. Or at least part of the answer.  I have trained thousands of investors on private money strategies in the Private Money Blueprint along with my partners Patrick Riddle and Trevor Mauch. The success stories of students have been awesome and are truly inspiring.

And as far as the SEC is concerned, it’s something you should be educated about. There are certain private money raising structures that require SEC registration and are bound by SEC guidelines BUT not all of them. The SEC provides guidance and the local office will typically answer any questions you have about your private money raising activities you are engaged in or have planned. I will tell you to do your own research here. Do not rely solely on the advice of others as I learned the hard way.

Private money is huge. You must master it in order to succeed in real estate investing. It’s as simple as that.

Government Grants

Government funding for real estate investors is an area where I still have a lot to learn. For a long time I was under the (mistaken) impression that grants and tax credit programs were only available on multimillion dollar deals and that they were so full of red tape that it wasn’t even worth the effort.  Dumb!

The first time I personally saw government funding in action was when a client of mine bought an apartment building in Kentucky that the sellers had already gotten approved for government grants and tax credits. The grants were going to pay for the rehab and the tax credits just put a lot more profit into the deal.

On a smaller scale, a wholesaler I know in Kansas City sells turn key investment properties to other investors. His model is to buy foreclosures, rehab them, get them Section 8 approved, get a tenant and then sell the whole investment to an investor. Cash flow, guaranteed rents and instant equity. Not a bad deal.

Several of my neighbors have also used Historic Tax Credits to renovate their Victorians and Queen Anne’s in my neighborhood. Here’s just a sample of the grant and tax credit programs available from the government for real estate investors:

* Affordable Housing Trust Programs,
* Neighborhood Stabilization Programs
* Federal Home Loan Bank Programs
* HOME program
* Community Development Block Grants (CDBG)
* Low Income Housing Tax Credits (LIHTC)
* Historic Tax Credits
* New market tax credits
* Section 8 programs
* VASH program (for Veterans)

I’m interviewed Sean Carpenter, an expert in government funding programs for real estate investors on Thursday, October 8th. Here’s the replay:

http://www.getpublicfunding.com/replays/lassiter/

These are just three of my top six power strategies for getting the Money.  Be sure to watch for the next installment which will feature part 2 of my Getting the Money Power Strategies.