One thing many investors find when they start purchasing real estate investment properties, is they run out of equity or cash once they have a few properties. They find it difficult to fund their next purchases. The banks or lending institutions start to get nervous when they see you are getting a big portfolio and you are highly leveraged.

As any real estate property investor who is serious about creating wealth knows, you will have to get creative about finding money to fund your deals. The banks will not want to know you especially if you are drawing all the equity out of your properties. If there is a mishap in your life or something goes wrong for you, the banks will want their money back and they will liquidate your investment property to get back their money. This is called foreclosure. It is talked about and it does happen. There are heaps of smart investors creating great deals from this unfortunate circumstance.

One way around this money shortage is using private lenders. They are generally people who dont understand the real estate property market. But the good thing for the investor is they have cash or money tied up in their own home or business, which is sitting there doing nothing and making no extra income for them. You can either do a joint venture deal with them or borrow the money outright from them for an agreed rate and time. Most time these people will be time poor as well. They are busy in their business or lives and dont have the time or expertise to chase real estate investment property deals.

Once you source a few of them and get some deals going, they will also have friends or business acquaintances who will be interested in dealing with you as well when they see positive results from their friends deals. So long they see it as a win/win, you will be able to keep buying real estate investment property using their money or equity. This is called Other Peoples Money. Or OPM.

Each person may want to go into business with you for all different reasons. Some may want to buy and hold, some may want to flip the property or others may want to buy rehabs to fix up as a project. The key for you is to be flexible in your approach to each prospective real estate investor and their needs. They will require some convincing and educating, as they will some concerns. This will be all new to them.

This is a great strategy to use to leverage you further to expand your real estate investment property portfolio.

To your investing success.

Leo Love PS If any of your family or friends are interested please pass this on to them.