Money to Invest

Have you ever read Rich Dad, Poor Dad? Or any other book that just made you eager to invest in real estate? If you have, then it House Closing Process For Seller is likely that the very next thing you did was sit down and wonder, how do these people get the money to purchase real estate?
This is a vexing question, and one I can relate to. I bought my first investment property when I was eighteen. Eight years have passed Real Property Value Definition and I am still a full-time real estate investor. However, the economy and my young age have made this an ongoing challenge for me.
For a few years, I bought properties with a small local credit union backing me. If you choose this route, there are three major drawbacks. First, you must remain below DTI guidelines as though you were living in the houses, which often ignore or discount rental income. Second, the constant turnover reaps havoc on your credit score. Third, recourse debt is leverage that can cause your losses to be far more severe.
The best option, unless you are rich, is to use private equity partners and investors. Did you know that you can convert IRAs and 401ks and use that money to purchase real estate? There is no limit to the amount of money you get, and the deal structure is only limited by your own creativity and negotiations. However, you must be sure to do this legally, safely, and in compliance with all valid regulations. For example, do you need to register with the SEC? What type of disclosures do you need to make? What should be included in your contracts? These are all questions that you need to address in order to succeed.

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