The Book on Investing In Real Estate with No (and Low) Money Down: Real Life Strategies for Investing in Real Estate Using Other People's Money

by Brandon Turner, Joshua Dorkin (Foreword by)

Overview

Is your lack of cash holding you back from your real estate dreams? Discover the creative real estate financing techniques that savvy investors are using to do more deals, more often.

No matter how much money you have in your checking account, there is always real estate you can’t afford. Don't let the contents of your wallet define your future! This book provides numerous strategies for leveraging other people’s money for amazing returns on your initial investment.

Active real estate investor and co-host of The BiggerPockets Podcast, Brandon Turner, dives into multiple financing methods that professional investors use to tap into current real estate markets. Not only will you be able to navigate the world of creative real estate finance, but you’ll get more mileage out of any real estate investment strategy.

Financing deals just got easier—learn how to be a smart investor by using creativity, not cash!

Inside, you'll discover:

The truth about no-money-down investing―Investing with little to no money down is possible, but it’s not about a step-by-step strategy. It’s about a mindset.

How to get started investing in real estate―Looking for your first deal, but you have no money or experience? Learn the best strategies for getting your feet wet without paying thousands!

Numerous strategies to mix and match―Creative investing requires a creative mind.

How to attract private money, lenders, and partners―There are millions of millionaires walking the streets. Discover the best way to attract them to you.

The ugly side of creative investing―Learn the downsides to all the strategies mentioned in this book, as well as tips for overcoming those problems.

Strategies for wholesaling, flipping, rentals, and more―Find success no matter what niche you plan to use to build your real estate empire.

Product Details

ISBN-13:	9780990711711
Publisher:	BiggerPockets Publishing
Publication date:	08/13/2014
Series:	BiggerPockets Rental Kit Series , #1
Pages:	187
Product dimensions:	6.00(w) x 8.90(h) x 0.50(d)

About the Author

Brandon Turner is an author, entrepreneur, and active real estate investor with more than 500 rental units and dozens of rehabs under his belt. He is the Vice President of BiggerPockets, co-host of The BiggerPockets Podcast, and author of four books, including The Book on Rental Property Investing and How to Invest in Real Estate. Brandon has also been featured in numerous online and print publications—like Forbes.com, Entrepreneur.com, and Money Magazine—where he enjoys showing others the power and impact of real estate investing and financial freedom. A life-long adventurer, Brandon (along with his wife and daughter) splits his time between his home in Hawaii and various other destinations around the globe.

Table of Contents

Foreword 1

Chapter 1 The Art of Creative Real Estate Investing 5

Who Am I? 6

It's Not About Being Broke or Irresponsible 7

This Book Is Not About Getting Rich Quick 8

To Whom Is This Book For? 8

You CAN Afford It 9

Should You Really Invest with No Money Down? 10

The Four Rules of Creative Investing 11

No Money Down: A Myth, Scam, or Secret? 15

Having the Right Tool for the Right Job 16

What to Expect in This Book 16

Will All These Strategies Work for Me? 17

Chapter 2 Owneroccupied Investment Properties 19

What Exactly Are We Talking About? 19

FHA Insured Loans 26

The 203k Loan 29

The VA Loan 33

USDA Loans 34

Wrapping It Up: Owner-Occupied Investment Properties 36

Chapter 3 Partnerships 39

Let Me Introduce You to "Bob" 40

Building Your Brand 41

How to Work with Bob: Four Strategies 44

Dangers and Pitfalls of Using Partners 49

Wrapping it Up: Is a Partnership Right for You? 52

Chapter 4 Home Equity Loans/ Lines of Credit 55

Where Do I Get a Home Equity Loan? 56

Risks and Drawbacks of Using Home Equity 62

Wrapping it Up: Home Equity Loans and Lines of Credit 65

Chapter 5 Strategies For Using Hard Money 67

What Is Hard Money? 67

Trouble on the Horizon 67

Will a Hard Money Lender Fund the Entire Purchase Price? 72

Wrapping it Up: Should You Use Hard Money? 77

Chapter 6 Raising Privatemoney to Fund Your Deals 79

What Is Private Money? 79

Who Are Private Lenders? 81

How to Find Private Money Lenders 81

How to Talk with Potential Lenders 84

Meeting with Your Potential Private Lender 86

Getting Your Private Lender to Commit 88

How to Structure Your Private Loans: An Interview with Four Real Estate Investors 88

Legal Issues with Raising Money 99

Risks and Drawbacks to Using Private Money 102

Wrapping it Up: Should You Use Private Money? 103

Chapter 7 Lease Options 105

What Is a Lease Option? 105

Why Lease Options? 108

No Money Down Investing with a Lease Option 110

Risks and Drawbacks of the Lease Option 120

Wrapping it Up: Lease Options 122

Chapter 8 Seller Financing 125

What Is Seller Financing? 125

Why Would Sellers Sell Via Seller Financing? 128

Three Ways to Find Seller-Financed Deals 132

Risks and Drawbacks of Seller Financing 132

Seller Financing Doesn't Mean "Buy a Bad Deal" 134

Chapter 9 Real Estate Wholesaling 135

What Is Real Estate Wholesaling? 136

Example of a Wholesale Deal 137

Does Wholesaling Require Money? 139

Marketing for Great Deals 140

Is Wholesaling a Job or Investing? 144

Wholesaling Math 146

The 70% Rule 152

Estimating Rehab Costs 156

The Difficulty of Being a Wholesaler 161

Making Your Offer and Negotiating with Sellers 161

Finding and Working with Cash Buyers 166

Legally Putting Together a Wholesale Deal 174

Wrapping it Up: Wholesaling 178

Chapter 10 Creative Combinations 181

Wrapping Up: Where to Go Next? 185

Final Thoughts 187

More From Biggerpockets 189

What People are Saying About This

From the Publisher

PRAISE FOR BRANDON TURNER’S BOOKS

“An insiders’ perspective, full of encouragement and resources for newcomers… Interested readers will still find the book substantially useful as a starting point.”

—Kirkus Review on How to Invest in Real Estate

“I only wish this book had been written in 2005 when I was starting my real estate investing journey!”

—Ken Corsini, Real estate investor and star of HGTV’s Flip or Flop Atlanta

“I think this should be required reading for anyone considering real estate investing... Countless hours, months, and—frankly—years this book would have saved me!”

—Ben Leybovich, Real estate investor, syndicator, and founder of JustAskBenWhy.com

“There are very few books that provide a detailed, step-by-step framework for accomplishing real estate success. Brandon Turner’s The Book on Rental Property Investing does that, and does it in a way that puts financial freedom through real estate within reach of anyone who wants it.”

—J Scott, Bestselling author of The Book on Flipping Houses

“I have not read a more comprehensive discussion in my 20 years of investing. This is a great reference for beginners and experienced rental owners!”

—Al Williamson, LeadingLandlord.com

"This book is an A-to-Z guide for the real estate investor—not just buying and selling, but also strategic planning, which is all too often forgotten. The real-world examples really drive it home."

—Brian Burke, CEO of Praxis Capital

“The Book on Rental Property Investing fuses passion with a system-driven, business-mindedness that provides a very big resource to help establish and achieve your personal investment goals.”

—Bill Syrios, Owner of Stewardship Properties

"I wish I had The Book on Managing Rental Properties before I made all of my expensive property management mistakes! Brandon and Heather Turner have covered the biggest challenges for landlords and solved each one with step-by-step systems. I literally gave the information in Chapter 6 on tenant pre-screening to my own team and said, 'Use this!' It's that good.”

—Chad Carson, CoachCarson.com

“It's practical, real, and comes across very open and unbiased… This is great for beginners as well as anyone who is in another field of real estate investing looking to cross over.”

—Lisa Phillips, AffordableRealEstateInvestments.com