… that can take you from the worst credit imaginable (yes, even if you’ve had a recent bankruptcy or foreclosure) to a 720 credit score within 6 months guaranteed!

Listen to the interview below to get the highlights of this program.

If you have bad credit and want to fix it now, register for the free webinar he put together just for DoHardMoney.com followers using this link:

http://www.dohardmoney.com/720credit

I realized this week that one problem with this method is that I can only address one question, sometimes two – however there are many more than that which come in every week.

Another revelation I had is that we are getting thousands of new visitors that come to the site each and every month.  They are asking the same questions that have been asked previously because they aren’t able to dig deep enough into the blog to find those answers.

A real common theme I’m seeing throughout the surveys is that people want information – specifically free information so they can learn this business and start on the path to a better future.

However there’s a huge problem.  The vast majority of people who want these questions answered expect to be able to pick up the phone and talk to someone about them.

Unfortunately if you have tried to call our office to ask for general information regarding investing in real estate or how hard money loans work, you’ve probably been frustrated because you couldn’t reach someone right away and it took a long time to get a call back – if you did at all.

I’ll be the first to admit that we’ve been struggling to find a system that works for us to be better at answering the phones and returning messages.  The reason we are behind on the phones is simply due to the mass call volume we receive relative to our staff.

We’re working on bringing in new team members that can help with this, but there’s also a fine line that needs to be walked.  You have to remember that we are primarily a hard money lender, and we get over 70 loan applications each week.

There are numerous lengthy conversations, meetings and emails that have to take place with each application in order to get someone to the closing table.  This takes and immense amount of time and resources.

The reason we started providing educational information on our website is twofold:

First, upon analyzing thousands of potential real estate investment deals over the last 7 years, it’s become painfully obvious that most people don’t know what they are doing.  We wanted to be able to help these people become successful.

Second, it is a way to try and reduce call volume and make it easier for people to get their questions answered about simple items and general real estate investing stuff.

While I am laying all of this bare, I should take a moment to also make it clear that we don’t work 24/7.  We are only open Monday – Thursday from 8am to 6pm and Friday from 8am to 6pm.  We are closed on Saturday and Sunday.

Plus, we have a very limited amount of staff as we are a small family owned company.  In fact, right now I only have four people working in my office!

Why am I going through all this?

I really want to be able to set the right expectations with people who are trying to engage us and get information.  That’s numero uno.

And I wanted to make an announcement today that will provide sweeping answers to all of the most pressing questions and issues that people have when visiting this website.

My Chief Marketing Officer and tech team have been furiously working behind the scenes to put a series of free real estate investing courses, tools and resources for you.

Things like iPhone and Android apps that have calculators for analyzing deals…

Video courses on finding and evaluating properties…

Ebooks… webinars… podcasts… CD’s… and more!

We’re going to be rolling out a new page on our site within the next couple of weeks that will make it easy to access all of these items.

The goal here is to provide you with all the answers, tools and resources you could possibly need as a real estate investor – at absolutely no cost to you!

So be on the lookout for this new page, you’ll want to take full advantage of it.

“Is a down payment always required by hard money lenders?”

The really short answer to that question is a resounding “NO”.  But I think we need to dive in deeper here on a few different levels…

First we need to make the distinction between a down payment and needing to come into a deal with money due to a gap from values because there’s a huge difference.

Some lenders will require a certain percentage as a down payment into the deal.  And usually they will base the percentage you have to put down on your credit score.

Here at DoHardMoney.com we have a hybrid model where we do direct loans with our own private money in 11 states and in 27 additional states, we have relationships with different direct lending partners so we can help our clients get deals done.

One of our biggest partners requires a down payment to get funding.  They will ask for 20% if you have good credit and 30% if you have bad credit.

Why do they do this?

All hard money lenders use different underwriting criteria in order to assess risk.  You have to remember that when you are taking out a loan, someone is risking their money on you!

People are only willing to do that if the circumstances show there’s a high probability that there will be a return on the money that they are risking on you.  Otherwise, what would be the point in lending?  People do it to make a profit, not for charity…

The HML’s that ask for a down payment are doing so to lower their risk in the deal.  Plus, by having the borrower put some skin in the game, it usually results in a win/win for everyone.  The borrower puts in the effort to be successful and makes money when he resells the property.  The lender makes money on the loan and the interest.

In our direct lending model, we don’t ask for down payments.  However, many people will be put into a situation where they have a money gap due to their after repair values being out of line with ours.

They usually will misinterpret this gap as us asking for a down payment, but that’s not really the case.  I may seem just like a case of semantics, but let me give you an example.

Let’s say you want to buy Property A to rehab and resell.  You determine after looking at comps that this property will be worth $200,000 after you do $25,000 in repairs.

Based on the market, you make an offer on this property for $130,000.  You need to borrow the full purchase price you offered plus the $25,000 for repairs from a hard money lender.

At DHM, you’d submit to us a loan application and we’d order evaluations of this property.  We would have 3 independent evaluators go out to the property and submit reports back to our underwriter with 18 comps and their opinion of the market.

Our underwriter talks to these evaluators and determines what we feel is the correct ARV of a property like this in that neighborhood.  The after repair value we determined for this property came back at $190,000 – only 10% off what you calculated.

We lend 70% of the ARV we calculate for both purchase and repair.  $190,000 X 70% = $133,000 that we can lend you.  $25,000 of that would be set aside for repairs, leaving you $133,000 – $25,000 = $108,000 for purchasing the property.

If you wanted to close this deal with us, you’d have to figure out a way to bridge that gap between the $130,000 you offered on your purchase contract and the $108,000 we can lend to you.

If you would have calculated the ARV differently and made your offer accordingly, we could have given you the full purchase price and rehab money, so as you can see this is totally different than requiring a down payment on a loan no matter the circumstances.

We also understand that this situation arises and have created avenues for our borrowers to be able to cover this gap without having to use their own money.  It’s through getting a 2nd position lien on the property with one of our gap financing partners who fund these scenarios.

Adding another layer to this conversation, we can touch on how some hard money lenders lend based on the after repair value like we do and others will lend on the purchase price.

Those that lend on purchase price will only give a percentage of what you plan on buying the property for – usually a max of 80%, which means that with any of these kinds of HML’s you will be making a down payment.

I think the core reason behind your question is that you are trying to get into real estate investing with little or no money of your own.

It certainly can be done, however you need to understand all the circumstances that need to align in order to make that happen and what tools you will need at your disposal to make it work too.

That’s why I created the video that you can watch on the next page.  It will walk you through everything you need to know about 100% financing for fix and flip investments.  You’ll also get access to the little know tools and resources you need to accomplish no money down real estate investing.

Just click the button below:

… and hopefully it will do the same thing for you!

They release a report called the Pending Home Sale Index that is an indicator based on signed purchase agreements on properties nationwide.

The March numbers just came in and show an increase of over 4% from February, when it was predicted that only a 1% increase would occur.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing.  “First quarter sales closings were the highest first quarter sales in five years.  The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner.  Rising sales are bringing down inventory and creating much more balanced conditions around the country, which means home prices will be rising in more areas as the year progresses,” Yun said.

The reason I’m so excited about this is that I strongly feel in the future this is the point where we will recognize that our economy finally came out of the doldrums.

I’m also giddy right now because of all the opportunity out in the marketplace.  Being an investor myself, nothing gets my blood flowing more than doing deals and making things happen!

As I’ve been saying all year long on this blog, now is the time to be in real estate in some way, shape or fashion.  It’s going to be a VERY long time before the conditions are ripe like this where you can get in on the bottom floor again…

… if it ever happens again!  I mean if you think about it, I seriously hope it doesn’t.  I never want to see anything like what we’ve experienced over the last 4 years happen in this nation.

If you’d like to jump into the game, but you don’t want to deal with flipping properties or rentals, I have a way that you can participate in this upside without having to actually own any property.

As a fair warning, to use this method effectively you are going to need liquid capital.  This isn’t something that you can do with no money.

What I’ve done is put together a free video on the next page that explains how it works:  Click here

FINDING A GOOD FINANCING SOURCE. THIS IS EVERYONE’S BIG PROBLEM.

How to secure money.

Getting Funding.

Financing.

As I’ve been reflecting on these responses and how I’d answer, I’ve come to the conclusion that on this blog, I’ve beaten the dead horse with the stick so many times on how to get private loans.

It really doesn’t make much sense to continue from that angle since you can look at almost every page or blog post on my website for that information.

But I was a bit perplexed by how frequently these and similar responses have been coming up in the survey, despite all of the information I provide that should solve this problem.

Which got me thinking that maybe I’m taking the wrong angle…

So in this post, I’m going to talk about why you are not getting private loans or hard money loans for your real estate investments.

The first issue is that you don’t know how to evaluate a property properly.  I’ve written extensively regarding this topic on my blog here, so do a quick search and you’ll find numerous articles.

You can also visit our You Tube channel to watch videos on evaluating properties.  There’s at least 10 of them up there:  http://www.youtube.com/user/DoHardMoney

What you need to understand is that if you are not looking at a property the same way a private or hard money lender looks at the property, you are going to have numbers for your ARV that are way different than the lender.

This leads to the second reason why you aren’t getting the financing you want…  unrealistic expectations.

Most newbie investors think they can submit a deal and get the exact amount of financing they are looking for on the project.

That’s never going to happen if you don’t evaluate the property in the same way that the HML looks at it.

Let me give you an example of what happens on most of the applications we receive.  The investor thinks a property is worth “x” on the ARV.  We send out evaluators to the property and discover that the ARV really is worth “y”, with “y” being significantly less than “x”.

That difference is usually five figures and sometimes even six figures.  At DHM, we would still make a loan offer to you in this situation.  However, the difference between what we offer and what you need to close would have to be covered by you.

Which leads to another part of the unrealistic expectations… the majority of these people need 100% financing and think that it’s going to happen in every circumstance.

However, that’s not the case.  First of all, the 100% financing options are only available to our Diamond members.  Second, even if you are a Diamond member, there’s no guarantee that you can still get 100% financing on the deal.

There’s a ton of variables that contribute to that.  You got the area you are investing in – some of the components of the Diamond program are not available in all states, this affects whether gap financing is available.

You also have different components that you can choose to use/not use that can play a role in getting 100% financing.

And finally if you are relying on gap financing, there’s no guarantee that one of our partners will even want to participate in your deal.

So while we champion 100% financing and we make those options available to people, you still have to realize that the ducks have to line up properly in order to get true 100% financing on private loans.

The bottom line is that there’s a boat load of money available through private lenders and hard money lenders.  We just struck a partnership with a group that can do up to $500 million deals!

Finding people that have the money is really NOT the problem that you have either… I mean you’ve already discovered my website.

Your real problem is that you aren’t being patient enough to get the right deal in front of a lender.  And you aren’t getting creative on how you structure deals to get all the funding you need to close the transaction.

Let me give you an example of what I mean by structuring the deal.

I get a ton of people coming to my site that are Armando Montelongo students.  We received an application on a property where the shortfall was $100,000 but the investor still wanted to move forward.

His response to me was – I have $60,000 I can put in and I’ll find someone else to put up $40,000.  We’re closing this deal next week.

The point I’m getting at here is that you don’t have to put up your own money like this guy did, but you have to network and have people in your pipeline that you can bring into deals.

My assumption here is that the people giving these responses are newbies and if you are, you only have to get creative like this for your first few deals.

Get 2-3 under your belt where you have some nice profit and you’ll have the cash reserves that you can put your own money in instead of bringing in a partner.

And just to be clear, all of this only applies if you are in a hurry to do deals!

You can always keep looking until you find that perfect deal and all the numbers align exactly for you to get the 100% financing you want.  It’s just going to take time and patience if you go that route.

To sum everything up, here’s the reason why you are not getting the private loans you want:

1) You don’t know how to evaluate a deal like an HML

2) You have unrealistic expectations of financing

3) You aren’t being patient in finding the right deal to get 100% financing

4) You aren’t getting creative with ways that you can structure deals so you don’t have to wait for all the start to align for 100% financing.

To solve these problems, start educating yourself on evaluating properties and start networking with people that can help you get into deals.

2012 has been a banner year so far at DoHardMoney.com and my time has been eaten up by streamlining our business processes and systems along with training new employees as we expand to meet demand.

Which I’m pleased to announce that we have a new full time loan consultant who is handling the insane amount of applications we receive on a weekly basis.

There’s a lot to talk about with how the market has been increasing hard money loans, but I want to focus on an article I just read over at DSNews.com.

Realty Trac just released a report that shows short sales for January of 2012 are up 33% from the same month last year.  What’s even more interesting is that these short sales are selling at a 21% discount to homes that are in foreclosure.

And with the robo settlement a couple of months in the rear view mirror, the timeline to closing on short sales is rapidly shrinking.

All of this data has Daren Blomquist, VP of RealtyTrac and author of the report predicting, “…2012 could be a record year for short sales”.

Another interesting tidbit is that the amount of foreclosure proceedings initiated hasn’t been dropping in the slightest, with another 100,000 of them started in March.

So what we have here is a perfect storm for real estate investors (and those that fund loans for them).  It’s exactly what we are seeing in my office day in and day out.

It’s funny being in business because as soon as you fix one problem, there’s three more sitting right around the corner waiting for you to attend to.  And of course, there’s always “good” problems and “bad” problems…

… I have to admit that the majority I’ve been facing so far this year are in the “good” category.  The problem I had of being able to meet the demand of getting back to people who apply for loans from us has been solved.

Now I’m running into the problem of needing more investor capital to fund these loans!

The unique thing about our model is that we NEVER touch our investor’s money… all we do is underwrite deals and present them to our investor pool.  Then it’s up to the individual investor to decide if he/she wants to fund.

We schedule closing and give the investor wire instructions to the title company.  Then we fully service the loan.

It’s a win/win scenario for all parties involved.  Our current pool of investors is collectively earning upwards of 15% on loans they fund through us as well.

If your opportunity eyes have been piqued by this, what I’ve done is put together a detailed video that you can watch for free on the next page.

Click here to see the video

Assuming you feel this could be a good fit for you, you’ll be able to request a free meeting with me to discuss this further and answer any questions you might have.

“How do I get started with very little money?  What’s the best investment properties to start with and where?”

There’s really three different questions wrapped up into this, so let’s just tackle them one at a time.  What all of them boil down to is you have to employ creative real estate investment strategies to reach your end goal.

Before I get into the answers to these issues, I want to take a moment to talk about your end goal.  You see, I know that what you are looking for is freedom.  The freedom to do what you want, with whom you want and when you want.

It’s the kind of freedom that only comes with a significant increase to your income.  And you see investing in real estate as a vehicle that can get you from where you are now to where you ultimately want to be.

Now the first question you asked really gets to the heart of the obstacle that is blocking your path to the success you want:  MONEY.

I’m sure you’ve heard the saying that you in business you have to spend money to make money.  Investing in real estate is no different – after all it’s a business too!

The problem is that there are so many gurus out there shouting about how easy it is to get into real estate with no money of your own – without giving the full picture.

It is possible to get into deals with little or no money of your own if you understand the creative real estate funding options available to you.  Let me break this down for you.

Assuming that you have little to no money and possibly even bad credit, you have two options to get money for buying a property and rehabbing a property.

1) Private Money Lenders

2) Hard Money Lenders

I’m not going to get into the nuances of the differences between these two in this article, you can get that from both of those links above…

What I am going to say is that with either of these options, you can get your purchase and rehab money, typically up to 70% of the after repair value of the property you want to buy.

As long as this primary loan can cover your accepted offer for purchase and what you got on bids from your contractors to repair the property, you’d only have a few expenses beyond that, which I’ll explain shortly.

However, if you need more money to close the deal than what you can get on your primary loan, you’ll need to come up with the difference if you want to close the deal.  This is what we call a money gap.

One of the least known creative real estate tricks is leveraging another lender that can cover this money gap for you.  None of the gurus talk about this, but it can happen if you have the connections.  These gap lenders are hard to find…

Aside from your purchase, rehab and potential gap money, here are the other expenses you need to be prepared for:

1) Earnest money.  Most banks are requiring at least $1000, some 3% of your purchase price and Fannie Mae wants 10% of the purchase price.

2) Evaluation fees.  Hard money lenders will charge a fee (we do $550) to have the property evaluated or appraised in order to make a lending decision.  This is the borrower’s responsibility.

3) Points on the loan.  Typical points are 5-7% of the amount on the primary loan.  This is paid by the borrower at the closing table.

4) Closing Costs. There’s other fees for title work, document preparation, etc. that are due at closing.  These fees are usually around $2000.

Let’s say you are borrowing $100,000 on your primary loan and you don’t need gap financing.  Let’s also say that you paid $1000 in earnest money.

Here’s how much money you’d need to have:

Earnest money = $1000
Evaluation fees = $550
Points (5%) = $5000
Closing Costs = $2000
——————————

Total = $8,550

You would need $8,550 of your own money to close that deal for $100,000 loan.  I’m sure now you can see why the gurus don’t lay out all of these fees and expenses that are associated with private money loans and hard money loans!

They say that you can get into real estate with little to no money of your own simply through a hard money lender, but that’s not the case because no HML will roll any of these expenses into a primary loan.

And many HML’s will require some sort of down payment on the loan too.

So how do you get in the game with very little or no money?

First you have to find a good deal so that you can get your purchase and rehab money funded by your primary loan through the HML.

Then you have to know how to get financing for all those expenses and fees I just laid out.  That’s the secret sauce.  Hang in here with me and I’ll give you a solution for this and the problems you posed with your other two questions.

Before I give that solution, I need to address those questions.  As for what the best investment is, that’s really subjective.  What I can tell you is that for me personally, I like to play in the single family home market between the ranges of $150,000 – $250,000.

The reason I like it is that there isn’t as much risk in this market as others.  Prices don’t fluctuate as much and there are more buyers in this market than others.  And of course there’s more inventory too.

In terms of where you invest, again that’s pretty subjective because deals can be found just about any where.  What I can tell you is that you should probably invest in areas where there is low crime, high home ownership rates and prices are predictable.

Just like with the reasons as to why you want to invest in real estate, I deeply understand the obstacles that are blocking your path.  That’s why I developed my Real Estate Millions Diamond Program.

It’s a comprehensive training, coaching and partnership program that will give you access to the creative real estate financing options you need to get into deals with no money of your own.

It will also give you the guidance, direction and help you need to do successful rehabbing in today’s market.  You can get the details of this program by watching the free video I put together and see if it’s a good fit for you.  Just click the button below:

“What is your most important question about investing in real estate?”

Well, today I want to answer some responses to the last question of the survey:

“What could we do to knock your socks off?”

The reason I’ve decided to do this today is that I’ve seen a ton of similar responses in that section AND the first question of the survey so this must be a real hot topic on people’s minds right now.

Ultimately the real heart of the matter has to do with having a good real estate deal.  Let me give the gist of the response and then my answer to this issue…

I’ve had numerous people saying that they want hard money loans which include things like earnest money and evaluation fees.

If you haven’t been around DoHardMoney.com for a while or you aren’t fully up on how hard money lenders work, here’s the basics.

HML’s are equity based lenders, meaning they will primarily make a lending decision based upon the property you plan to purchase.   In order to review the property, the HML will order either evaluations or a full blow appraisal.

This costs quite a bit of money (typically $550) and is an expense that the borrower is asked to pay.

In today’s market just about every bank is requiring earnest money to be put down on a property with your offer in order to get it under contract.  This is usually $1000 minimum and can be quite a bit more (Fannie Mae wants 10% of the purchase price).

The catch 22 here is that a hard money lender will usually want to see a property under contract (or about to be) BEFORE they will make a final lending decision.

So the investor also has to come up with the earnest money out of pocket too…

Most of the people who come to my website and want to get into real estate investing have absolutely no money, which is why they want to get financed for the earnest money and evaluation fees.

Now that you understand the back drop, let me share with you some insights as to why these things are not financed.

I see over 200 investment property loan applications cross my desk every single month.  Out of those 200+ applications we get less than 10% of them to the closing table.

Want to know why?

Because the vast majority of people don’t know how to find a good real estate deal!!!  So let me ask you this…

Does it make good business sense to give 90% of people the money up front for evaluation fees and earnest money knowing that they won’t actually close a loan on the property they are trying to buy?

I’m sure you are saying, “heck yeah it does!” because you need the money… but the fact of the matter is that in less than two weeks, I’d be out of business.

What you also have to realize is that this is a highly subjective business.  What you think is a good real estate deal, they guy next to you thinks is a turd!

I hope that makes sense to you that it just isn’t possible for us to start handing out checks for people’s earnest money and evaluation fees.

Now I realize that these two issues are a BIG hurdle for you people that have dreams and no money.  That’s why I’ve put together my Real Estate Millions Diamond Program.

It can actually solve all of these problems.  First of all, you get the training and personal help you need to find a good real estate deal.  That way you can get funding from us – you’ll be in the 10%!

Second, we have a strategic partnership with another company that can help you get business lines of credit established – regardless of whether you have a current business, any credit or any income.

Most of our members are getting up to $30,000.  You can use these lines of credit to cover evaluation fees and earnest money.

You should know that there is a cost to get involved with the Diamond Program and to get the business lines of credit.  But it’s really paltry compared to the cost of evals and earnest money.

And there’s quite a few other benefits that I’m certain you’ll find useful.  What you can do is watch the short video on the next page and decide if this program is right for you.

There’s a couple reasons behind this.  First, I’m seeing a bunch of questions that are very similar – one of which I’m tackling today – that I would have assumed people already knew the answer to prior to coming to my website or at the very least after viewing it and subscribing to information from us.

Second, I guess that we must not be doing a good enough job of educating people on our site if this is a recurring question.  Which is why this week, I’m going to answer the following with my tongue in cheek:

“Where do I get the money to buy homes to rehab?”

My assumption is that you wouldn’t be searching for terms like hard money lenders or private money lenders if you could walk down to your local bank and get a loan for an investment property.

Also, with law changes and the credit crunch it’s dang near impossible to get traditional loans on investment properties anyway…

You really have two viable choices for rehab funding you can look to private lenders or hard money lenders.  And I guess this is what really disappoints me about the question I got this week and all the ones similar to it…

…DoHardMoney.com is a hard money lender, which is a fact we don’t hide!

I’m not going to spend any time in this post explaining the difference between a private or hard money lender that can provide rehab funding.  You can click the two links above and read the articles on those pages for that description I’ve already given.

The bottom line is that you can get rehab funding from DoHardMoney.com by simply applying for a loan once you have an offer in on a property that you feel you will get under contract or that you already have under contract.

It’s free and really simple – it only takes about 2 minutes to complete the form.  Click here to apply

Once your application is received, you’ll get a call from one of my loan consultants who can give you a preliminary lending decision.  If the numbers make sense, the next step is to order evaluations on the property so that we can make a final lending decision.

These evaluations are paid by the borrower (usually $550) and they get returned to us in the form of reports on what the property needs fixed along with what the property will be worth after repairs and comps.

We make our final lending decision as a percentage of the ARV we determine for this property.  If the numbers still make sense for you at this point, we schedule closing.

The typical timeline to funding is less than two weeks.

A few things you should know:

1) We don’t care about your credit – you can have no credit or bad credit for most of our rehab funding programs.  The only thing your credit will typically affect is your interest rate or if a down payment is required (some loan programs do NOT have down payments).

2) There’s a few things that will prevent you from qualifying for financing – here they are:

a) An active bankruptcy
b) A bankruptcy discharged in the last 12 months
c) Current foreclosure(s)
d) Current judgment(s)
e) Current federal or state tax liens

3) Most investors are going to need at least $10,000 of their own money to get into a deal.  You have to consider that there are origination points and closing costs that you are responsible for paying AT  THE CLOSING TABLE.

There are also other money gaps that can prevent people from getting deals closed.

We are probably the ONLY hard money lender that understands how this can be a deterrent for a huge portion of people who want to get into real estate investing today.

That’s why we’ve developed a unique financing, training and partnership program that addresses those issues.  It’s the fastest and easiest way to get into rehabbing with 100% financing ever developed.

You can see the details of this program by clicking below:

Here it is:

“I understand that making profit is essential to having a successful real estate career, but isn’t it equally important to have an abundance of net worth as well?”

The key thing here that you must understand is that profit and net worth are intricately tied together.  They are NOT mutually exclusive.

If you think about it, the more profit you can get out of each deal, the more (in theory) you can grow your net worth.

The reason I say “in theory” is because you have to develop some kind of net worth building plan when buying real estate investments.

You can make all the profit in the world, but if you aren’t strategically placing a chunk of your profit into a net worth building model, then you are just blowing all your cash and you’ll never achieve the lifestyle that you want…

That begs the question – “What’s an example of a wealth building plan?”

Let me give you the one that I’ve used and that I recommend to all my clients.

Most people starting out don’t have much, if any money.  That’s why they need hard money that can allow them to start buying real estate – preferably with no money down.

The first stage of your real estate wealth building plan is to do 10 – 20 fix and flips as fast as you can.  If you follow the formula for evaluating properties that we teach our clients, you should realistically expect a minimum of $10,000 profit per deal.

With each successful deal, I recommend putting away at least 10% of your profit into a liquid, interest bearing account.  This account is what you are going to use to launch stage two.

Once you have at least $25,000 saved in this account, it’s time to start looking for a good rental property that you can cash flow and use this money as a down payment for purchase.

Same as with your flips, you want to put away at least 10% of your profit from this rental property into the same account you are socking away part of your flip profits.

You then simply rinse and repeat.  Keep doing flips, saving and buying up rental properties.  If you do things right, you will quickly get to the point where you can pay cash for the rentals so you don’t have mortgages on them.

Then you’ll be in the wealth building driver’s seat.

After a good 5-10 years of running this plan, you can start to diversify the money you are saving up in the interest bearing account among other investments.

The first thing that I recommend is that you start to fund hard money loans for other investors because it is so secure and bring a great return.

You can also play the stock market or any other investment that you want to attempt.  Just be safe and don’t take too much risk – you don’t want to get burned like many people have over the last several years!

That’s exactly what I’ve done since 1999 and it’s worked like gangbusters.