Borrow private money from folks who are not in the business. Let me tell you what that is. Basically a lot of folks that are close to real estate, also understand money and they understand interest rates and they understand the power of that and they understand just how much profit you can make by allowing them allowing you to borrow their money. Typically when you’re close to real estate, you’re actually paying more for the money if you’re borrowing it from another real estate investor or if you’re borrowing from a private money lender that’s affiliated or associated with real estate.
If you think about it this way, there are lots of people on your cell phone and you think about all the different contacts that you’ve got there. Many of them have money and you don’t even know it. Why? Because you’ve never discussed it with them. You’ve never discussed if they have an IRA or a 401k or personal funds that are not invested. Imagine that you could tap into that money. Now imagine that you could borrow money at say 4% interest and no points and no closing costs. Wouldn’t that be phenomenal?
Well, that’s exactly what I teach you how to do. I’ve got a system called borrowing. You can find out more about that at streetsmartinvestor.com and then click on tools and click on Borrowing. That includes a script of what to say and how to say it. But it’s just amazing that there’s so much money available out there.
When you tap into folks that are not close to the financial world, it’s amazing that they will accept. Because they’re currently earning zero to 1% on their money. Imagine that they could put their money to work using safe, secure real estate at only 4%. Well, 4% when you compare that to CDs, when you compare that to what banks pay when the money’s just sitting there in the bank, that is a blessing and you can bless a lot of people in your world simply by telling them who you are and how you can help them with their money.