Make Money in Real Estate Even If You’re Dead Broke

Folks are always telling me, “I would love to make money in real estate but I’m just too broke.” I would  respond every time, “So was I.” Back in the late ’80s I started reading books on how to make money in real estate. Every time they kept telling me, you find a good deal, then you go get a loan and buy it, fix it, sell it or hold it. That’s when I would say to myself that it sounded too good to be true. Later I learned it is too good to be true. I learned how to wholesale properties. I learned what I would say was the greatest technique in real estate: how to buy a house without actually buying the house.

Let me tell you how that works. I compare it to when I would go to garage sales with my wife on the weekends. We would drive around looking for SIGNS! You know, garage sale signs. We would find a sale and then look for a deal, and we always seem to find at least one deal once we started making offers and negotiating. (By the way I have taught thousands of students whose number one fear is to make an offer. But the second you put them in a garage sale they start making offers so low it was like kicking the seller in the knee cap.) Anyway we would finally agree upon a price. And many times we realized we didn’t have enough money on us to purchase the item. So we would ask the seller to hold it until we came back with the money. And voila Garage Sale Real Estate!

I know you’re thinking. What? Well let me tell you the secret to this. At the garage sale we would run to the ATM to get the money, come back, and pay. Now take this principle a little deeper as we teach in our Wholesale Classes. Tell the seller to hold it. How? A simple purchase contract. That’s when you tie up the property until you have the money. I know, I know you’re broke! That’s okay because while it is under contract we contact other investors who are looking for deals! That’s right, we are deal finders finding deals for our customers. These investors have CASH! Now we just assign the contract to them for a fee. And now you just got paid!

Sometimes we even use a double close to close on the property because the profit margin is so large. That one is a lot of fun.
Well, hopefully by now you at least can see a glimpse as to how so many investors can make money in real estate without having money.

Did you know when you go to a car lot, or even Wal-Mart, the items you purchase from them have most likely not been paid for by them yet? That’s right. Wholesaling has been going on in most businesses forever.

Now the question is, are you up for some garage sales?