How Can I Flip And Property Without Using My Own Capital?

Question

I know that is this a very common question in the real estate business, but I'm very curious to know how it is done.

Joe Villeneuve · Answer

I know.  My answers don't change.  What I'm trying to get across is there is nothing wrong with USING your own money.  Spending it is where the problem is.  If you have enough cash to get into a deal, I would do that all day, every day...just don't leave it in the deal.  Get it out ASAP so you can USE it again, and again, and...

Hugh Ayles · Answer

@Joe Villeneuve  I think the question being posed is how can @Tequila Brown

invest in real estate without bringing any of her own money to the table.

The answer is you have to have relationships with private lenders and show them that you can protect their money.  You protect their money by finding good deals with great return.  You also protect their money by showing that you have experience and they will get their money back plus interest.

Joe Villeneuve · Answer

The goal IS to use your own money...just don't SPEND your own money.

Joe Villeneuve · Answer

First, you phrased that wrong.  That should read, "...not spending any of my own...". There is nothing wrong with using  your own funds...as long as you don't actually spend them.

Joe Villeneuve · Answer

The answer is to learn "how money works".  Using money is like playing the game of chess.  There are a number of different ways to fund deals, much like there are a number of chess pieces, each have their own way of moving, pluses and minuses of use, and ways to combine them with others.  Now, some of you are thinking I'm describing the chess pieces, and some the money...and, you'd both be right.

The more ways you know how to use money, the more ways you know how to use the chess pieces, both individually and as a team/partnership and combination, the easier it is to "use" your money instead of "spending" your money.

With that knowledge, you'll want to "use" your own money since you will be getting it all back quickly, and since it's your money, you have complete control over how you use it.  When you have to "spend" your money, as in "one time use", that's when you want to "use" someone else's money...and if/when you learn how to play with all the chess pieces (the different forms of funding), you can take control and their is no the limit to what you can do.

Tequila Brown · Answer

Wow!!! I do really appreciate all the input!!! Thank you Hugh Ayles for answering the question directly.

Kyle Tunall · Answer

Not much of an answer for this beginner.

Joe Villeneuve · Answer

No bush, no beating.  Once my answer is understood, the question becomes moot.

Kyle Tunall · Answer

@joe you know exactly what they're asking. And they're likely asking because they don't have their own money to use. Quit beating around the bush.

Joe Villeneuve · Answer

There's a difference between spending it and using it.  Spending it is when you buy for cash, rehab for cash, and leave it in the property.  you spent it...it's gone.

Using it, is when you use it for buy and rehab, and get it back right away, but retain the property as a rental.  You just used to cash, but never spent it, since it came back to you...along with the continuous cash flow from the rental property.

How Can I Flip And Property Without Using My Own Capital?

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