The One Common Characteristic of Every Successful Real Estate Investor

Without exception, every successful real estate investor that I know has one thing in common – they all know where to find the money. They understand that money is the life blood of the real estate investment industry and they’ve all invested their time and resources to find reliable sources of finance for their deals. 

I firmly believe that the opportunity always lies in the obstacle.

In real estate investing the lack of money is a huge obstacle that most investors can not overcome. Very few investors ever find a solution to the “money” problem. This means that those savvy investors who do find a solution to the money problem face considerably less competition for deals and can cherry pick the best deals. 

Think about it a little differently – why is it that we’re taught to make “cash” offers and “close in one week” when trying to buy a property at a discount? It’s because sellers know that cash buyers have the means to actually buy and close on their property. Most sellers would rather accept a sure thing cash deal than a higher offer with financing contingencies. 

If you had all the cash you needed would you be a successful investor?

The great thing about buying real estate is that although you need money it doesn’t need to be your money. It’s called OPM – Other People’s Money. It’s a trillion dollar industry and its goal is to assist people to buy real estate. Companies like banks and lenders want to lend you money. All you need to do to get their money is understand their rules. 

The most undervalued part of investing in real estate in finding the right financing for your real estate investment deals. My philosophy is “follow the money” because once you have the money, doing deals is no problem. 

Most people associate real estate investing with going to a conventional lender, completing a loan application and getting a home loan. As an investor, unless you plan on holding long-term, conventional finance is one of the least attractive ways to fund your deals. 

There are many ways to finance a deal. You can get money from a conventional lender, a private lender, the seller, any third party, the property itself and even gift or grant programs.

Don’t limit yourself to traditional funding and don’t be afraid to be creative.

In my next post I’ll show you where to find the money.

About Ross Hair

Ross Hair is the Real Estate Advocate and President of eRealEstate, a social network for real estate investors and professionals.