How do I use other people's money (OPM) to invest in real estate?
Hi all,
I've heard several people mention using OPM to invest in real estate. While this sounds great, how does this actually work and does it actually turn a profit? For instance, if I manage to raise private capital to fund a deal and purchase a successful rental property, how would this actually benefit ME when I have no skin in the game (i.e. money of my own invested)? Wouldn't all the cashflow go towards paying back my private capital lender?
I'm very curious to know how this actually works. I feel that most people make this sound really good because it gets hype and attention online, but I have yet to hear anyone actually explain in real terms how this works...
I've heard several people mention using OPM to invest in real estate. While this sounds great, how does this actually work and does it actually turn a profit? For instance, if I manage to raise private capital to fund a deal and purchase a successful rental property, how would this actually benefit ME when I have no skin in the game (i.e. money of my own invested)? Wouldn't all the cashflow go towards paying back my private capital lender?
I'm very curious to know how this actually works. I feel that most people make this sound really good because it gets hype and attention online, but I have yet to hear anyone actually explain in real terms how this works...
Most Popular Reply
@Gabe Morrell
Gets tons of hype and attention but it is not easy at all and if not done properly there can be significant legal ramifications
I recommend people should have done 10 deals by themselves before considering using other peoples money
Prove the theory that you can do it without losing your own money before putting other peoples money on the line
- Chris Seveney
7e investments
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