The 5 “C’s” and One Big “O” of Real Estate Investing Success

4

Some rules are unseen and unspoken. If you violate them… weird things may happen. You may find yourself desperately wanting to be involved in real estate development for example. Yet, you get nothing done in the physical realm and years may slip by and you’ve spun your wheels to no avail.

How to Purchase Real Estate With No (or Low) Money!

One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.

Click Here to Download

The Five Cs:

Imagine yourself gaining clarity on what it takes to get a real estate deal done. It always involves the 5 C’s of banking right? Leverage and real estate are like peas and carrots. So, sit here with me in the … err..forest on the park bench, grab a Christmas chocolate, and lets review:

  1. Cash: The quasi myth of zero down real estate has been a bright shiny object for many investors…don’t get stuck in this narrow realm of deals. Because leverage is so prevalent in real estate it can be counter-productive to invest this way.
  2. Credit: If this is your constraint work hard on fixing it. Evaluate the ways this system is set up and make it work for you.
  3. Character: Life is easy when your word is your bond.
  4. Collateral:  This one can be challenging if you’re trying to break in to the investment quadrant. With the economic realities as they are getting ahead may appear to be tough.
  5. Capacity: This is also a tough one starting out. Example, a lot of banks will put you into a spin saying it takes two years of land-lording experience to get a loan.

How did anyone ever get a loan?

The One Big O

Opportunity….Oh Yeah Baby!

I don’t care what the Grinchy’est Grinch will say, even if you lack some of the above you can force your way into the game. How? If you have big O all the others will find you through joint ventureship and YOU doing a lot of work.

This is why wholesaling is so revered and despised. It’s a great way to start with low cash. However, where most go wrong is they never really learn what is truly a great deal. However, with sweat equity you can market your way into this game.

The key therefore my friends it is to understand how to find then shop Big O. It’s okay to watch late night infomercials and get inspired. If you what to see true results in my NOT so humble opinion…find a true bonafide legit real deal BIG O!
Photo Credit: rishibando

About Author

Douglas Dowell

Douglas Dowell J.D. is a commercial and multifamily investor. His blog will focus on legally raising private money, risk mitigation with due diligence and management science. He is also an avid student of success principles with a focus on modeling success factors.

4 Comments

  1. It’s funny. My big “O” came when I helped to sell a friends house back in 2004. She had a property in Southern California. A 1940’s 3br/2ba. She wanted 350k for it. ARV on the property was 420k. I bought the property on contract for 370k and found 2 investors a week later who bought my contract. 60days later i make 20k. It was a sweet deal. It also gave me a the confidence to keep going. Unfortunately I lost my drive and pretty much stopped after that deal. Big Mistake. But I eventually picked myself up and kept going!.

    • Douglas Dowell on

      I am afraid people’s will sometime get over-stripped by mass marketing. Keeping up with the Jones’s is an easy way to get off track.

      When I practiced bankruptcy law it was odd to me to see people who repeat the process every 7 years. More frequent than I would have guessed. To me it seems bad habits die hard…unless they are committed to change.

Leave A Reply

Pair a profile with your post!

Create a Free Account

Or,


Log In Here

css.php