Posted by matrox on February 10, 2002 at 24:12:15:
Below is an excerpt from Joe Kaisers article. He states below that he has a million dollars line of credit. My question is how can I get a million dollar or even a couple of hundred thousand dollars in lines of credit? I have excellent A-1 credit with a good amount of cash on hand.
How do I establish that kind of line of credit?
It takes money to buy real estate
Nothing down is a misnomer. Sure, it’s great to buy real estate with no cash out of pocket, but it’s silly to think a seller will accept that sort of proposal from you. It happens, but not very often and even when it does happen, it likely isn’t such a great deal in the first place.
Buying real estate takes money, lots of money, and it has to come from somewhere.
I buy real estate all the time with no money out of my pocket. How? It’s embarrassingly simple. I have a million dollar line of credit and, whenever I want to buy something, I just write a check. And do you know what…that’s a nothing down deal. Sure, I pay cash to the seller, but it’s someone else’s money more often than not.
Let’s again add to that slate. “It takes money to buy real estate.”
Now we’re cooking. You already know and understand in ten minutes more than I knew or understood in my first five years as a real estate investor. You see, I thought you not only had to force things to make them happen, I also thought that if the seller got any money out of me, I’d screwed up.
You, on the other hand, know and understand that there’s no reason to hurry and that nothing down deals happen all the time, just differently than what most people imagine.