Real Estate Investing Using Other Peoples Money

Even in today's marketplace, there are still many ways to invest into real estate using leverage (OPM), such as credit cards, lines of credit, home equity loans, investors and many other techniques.

Getting Started

In my beginning days of real estate investing I was lacking both credit and cash. But I did have the determination to succeed. I just loved the idea of investing into real estate and I had purchased many books on the subject.

A few years back I was talking to a friend about this very same subject. How do you purchase real estate without much credit or cash? My lady friend had just gotten her real estate license and was eager to get something going.

Selling real estate as a licensed agent can be extremely competitive in most areas of the U.S. I had explained to her how I had chosen not to go that route, but instead, I chose to pursue the 'rehab' market. I showed her a few examples of some small, past investments that I had done and she really liked the concept of it.

In fact, she had liked it so well, that we decided to invest into a project together. So we did!

I had always's made it a point to pick out different areas of town and to drive through the neighborhoods. I would be on the lookout for that 'diamond in the rough' property. The type of property in a nice area that had the overgrown weeds in the yard and was in desperate need of repairs.

Although there are many other ways to find these type of properties, I especially liked this way because it kept me in tune with the 'pulse' of the area.

Several weeks prior to our meeting, I had come across an unique piece of property. I had already ordered a property profile through a local escrow company and found that the property was on an acre and a half parcel and consisted of two buildings.

One was a small, 2 bedroom 2 bath house and the other building was a 2100 square foot barn with 6 stables. Both buildings were in need of repairs, but both were structurally sound with good roofs.

It was also located adjacent to a larger parcel from which it had eventually been subdivided from.