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Real Estate Information |
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OPM - The Art of Leveraging
Equity lender, hard money lender, private investor or what ever term one uses can be a great source of funds to do real estate transactions and the question of how to find them comes up often! There are numerous ways to do this, and no two investors are exactly alike, so it's important to be innovative and customize your proposal to the specific "hot buttons" for each funding source. One of the greatest advantages of real estate investing is the power of leveraging other people's money. When a property appreciates, it will appreciate on the value not on the original investment. Therefore, if you 'leverage' the property with "OPM". You can make an investment even more valuable by having the property rented out. The monthly mortgage payment is being paid by the renter and someone else is paying for your equity growth in the property. "Money is a terrible master but an excellent servant." - P.T. Barnum The best source of cash for your real estate business is other people's money. Perhaps one of the greatest "secrets" of the richest people in the world is summed up in those three words: Other People's Money - OPM for short. The majority of most successful people launched their fortunes using OPM. Your goal is to not use your own cash. The most successful real estate investor tends to use OPM (Other People's Money). Keep this in mind as you start to invest. Hold out for the limited money down or no money down deal rather than tying up a ton of money in one property. Leverage, terms and long loans can be great friends. Keep these principals in mind: *Leverage is simply controlling a lot of real estate with little or none of your own money. The more the better. *You should attempt to get the maximum loan to funding possible with each property. *The best loans have fixed interest rates and are assumable without qualifying. *Keep your equity as low as possible so you can keep more cash available for investing. You can find "OPM" by writing to various lenders asking them if they would be interested in your real estate loan. By calling lenders in your area who might be interested in lending on your real estate proposal. By visiting in person lenders whom you think would be willing to help you. By looking on the Internet for real estate lenders who might work with you on the deals you have. By reading the Real Estate Section of your local large-city Sunday newspaper, looking for ads run by lenders in your area. Find properties that has been sold in the past few months by searching the public records at the county recorder's office. Find property that sold to real estate investors by banks, credit unions, HUD, VA, FNMA, or any other major source and if the buyer is not an individual but say a corporation or partnership you have most likely bagged an investor. The deeds should give the mailing address of the new buyer. Send them out a letter and tell them about your ability to locate real estate or better yet give them a call if listed. Any one who has money could be a source of funds for your real estate purchases such as Doctors. Another great source is checking your recorders office again looking for individuals who holds mortgages on property. This has provided me a great source for hard money loans. Retirement plans are a great source of real estate investment funds. Many people don't even know they can use their retirement plans funds to invest in real estate, mortgages and trust deeds. Many, once they stash it away, forget they even have money in a retirement account. Many investors think that money (or lack of money) is what stops them from closing a deal. This is not true it is a myth that holds some investors back. Understand that money is NEVER an issue - IF the deal is right, the money will come. Simply think creatively, go to the source of funds and simply ask for money. The worst that can happen is you get a "NO". Each no only places you closer to a "YES". To your success, Copyright 2005 JMichael Investments About the Author: John Michael is an active Real Estate Investor - Author - Speaker - REI CoachVisit my Real Estate Investing Site at: http://jmichaelrei.com FREE REI Club Site at: http://stealth.thecreativeinvestor.com
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Real Estate Transactions from Dec. 29 to Jan. 2 Newport This Week Goodman Real Estate Aligns Leadership to Support the Next Phase of Sustainable Growth & Capital Expansion PR Newswire See inside this Falmouth home on Oakwood Avenue Cape Cod Times Lawmakers plan new proposals for property tax reductions Gulfshore Business Germany-focused real estate lending platform launches Alternative Credit Investor Data centers account for nearly a third of global real estate investment in 2025 - report Data Center Dynamics Amy Philpott at @properties Christie's International Real Estate Crain's Chicago Business Real Estate: John M. Lee Richmond Review/Sunset Beacon Longtime Loop Alliance CEO to step down Crain's Chicago Business East Cobb Real Estate: Stone Creek tri-level sells for $652K East Cobb News Investors grab Phoenix-area medical buildings as health care sector gains momentum The Business Journals Compass Acquires Top Rival, Creating World’s Largest Brokerage The New York Times Compass acquires Anywhere Real Estate, creating $10 billion firm - San Francisco Business Times The Business Journals A Leasing Officer Prefers to Rent in New Jersey The New York Times Vija Williams named chief growth officer of Realty.com Inman Real Estate News Cohen & Steers Appoints Diana Shieh to Lead Private Real Estate Operations and Asset Management citybiz Real Estate Transfers: January 12, 2026 The Owensboro Times Norfolk County Real Estate Activity Rises in December Franklin Observer Veteran NJ real estate figure and former Livingston mayor tapped for third governor transition team New Jersey Hills Media Group Sentinel Real Estate Launches UK Living Platform With Appointment of Ben Sanderson as Managing Director Business Wire Ashurst Hires First Real Estate Partner for Middle East Team Bloomberg Law News Real Estate: John M. 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