The 12 Days of Christmas Cosmetic Fix-Ups for Landlords

The 12 Upgrades After Christmas (for frugal property owners)
(sung to the tune of the 12 Days of Christmas)
On the first day of upgrading, the cheap fix just for you
Replace all old switch covers with brand new.
On the second day of upgrading, the cheap fix just for you
Cabinet handles nice and don’t cost much too!
On the third day of upgrading, the cheap fix just for you
Hand and bath towel bars are effortless to do!
On the fourth day of upgrading, the cheap fix just for you
Classy toilet roll holders in the loo!
On the fifth day of upgrading, the cheap fix just for you
Bright shower nozzles you won’t rue!
On the sixth day of upgrading, the cheap fix just for you,
Shower curtains that won’t spread the mold and flu…
On the seventh day of upgrading, the cheap fix just for you
Mini blinds on windows you see through.
On the eight day of upgrading, the cheap fix just for you
Light fixtures that give you brightness true.
On the ninth day of upgrading the cheap fix just for you
Paint the front door over the old blue.
On the tenth day of upgrading, the cheap fix just for you
New door knobs so visitors you’ll woo.
On the eleventh day of upgrading, the cheap fix just for you
Brass kick plates to sparkle like a jewel.
On the twelth day of upgrading, the cheap fix just for you
Replace all outlet covers with new screws.

ProActive Investors: Market Analysis

We have already warned in our past blogs that real estate investing is active, and requires diligence and determined effort. Another important quality of the most successful investors is that they are cognizant of current trends and events before the crowd has recognized what is coming. Every savvy investor needs to be watching real estate related stocks and analyzing what it means in investment direction and opportunity.

For example, let’s look at a recent better-than-expected profit report from Lowes, the home improvement retailer. This report caused positive reactions from analysts, leading to suggestions of investor confidence in an economic rebound, and consequently, stocks rose about 3%. This was interesting news, particularly in light of the seemingly conflicting report that Lowes first quarter earnings of $476 million were the company’s lowest for that period since 2004.
The investor's job is to take this information, and use it in guiding investment decisions.Further delving into the Lowes situation revealed that consumers were continuing to avoid big ticket renovation projects. This was traditionally the backbone of Lowes bottom line. However, surprisingly, do-it-yourself oriented products such as paint and hardware sales increased. That, in conjunction with improving consumer confidence, and slowing home price declines suggested the economy was stabilizing. This may suggest the worst is over, and a recovery may be slowly on the way.

While home prices remain low and property owners still unsure of the future, now could be the optimal time to deal. There is hesitancy in large home renovation, suggesting that confidence is shakey, but the slowly rising tide of small improvements indicate fingers in the economic winds. When consumers are convinced housing prices have hit bottom, they tend to spend more on their homes.In conjunction with the Lowes report, the National Association of Home Builders reported rises in its housing market index. It may be carpe diem time, and the investor who scrutinizes these kinds of economic indicators will emerge most successfully.

Don't Quit your Day Job!

Keep your day job until you are consistently earning a comparable amount from investing for at least 12 months.This tip is particularly difficult to abide by when you hate your job, or you have a tremendous deal in the works, and you see a future filled with opportunity. It is unlikely that a new investor will equal the salary of a good job in the first 2 years of investing. It is frightfully common for an excited new investor to quit a job before a loan has even been completely processed. First of all, if you are not employed, it is difficult to secure loans. In general, you will need proof of 2 years of investing from a CPA to be able to get a loan, unless you have another job that insures you will be able to repay that loan. The loans that might be available to you without those prerequisites will likely be very high interest loans, reducing the potential for an income generating deal. Many investors make the mistake of calling the money made on a deal "profit" when indeed a large bulk of that money is debt, and will have to be repaid. Then the certainty of vacancies, repairs, and slow periods will quickly become death knells to the investor sitting on the margin of success. Your investing income must exceed your salary consistently for 12 months before you should consider losing the certainty of your day job's income.Some people quit their job insisting they need to close more deals, and want their success with 10 houses to be multiplied tenfold. It is important to consider that in investing in real estate, more is not necessarily better, particularly if you are a landlord. Being a landlord is fraught with difficulties and headaches. Collecting rent, repairs, unexpected vacancies, and difficult tenants may be manageable with 10 properties, but impossible with 100. Investors with large numbers of properties have to hire full time leasing agents, eating away at both profit and control. It is very common to find the owner of 50 properties making more money than the owner of a hundred because his overhead is so much less. Additionally, the more property you own, the more overhead, repair cost, vacancy rental loss, etc.- and thus, the higher reserve you must have. Cash flow is critical, particularly to the new investor. It is always preferable to have less property with a higher cash flow than more property with less cash flow.Remember, becoming a successful investor requires time, hard work, and patience. Like anything worthwhile, instant overwhelming success is not the norm. Be realistic in your expectations, and hang on to your job while building a secure reputation, knowledge base, and success rate. Ultimately, you will insure a longer more productive investing career.

Know your appraised values!

This next tip is one of the most critical in real estate success- be sure you get a good and accurate appraisal!Now, the best investors take classes on appraising, so that they do not have to accept blindly whatever an appraiser says, but there are multiple variables that are assessed and weighed. Like we have encouraged in other tips, don't trust any numbers tossed at you without your own verification of the facts. Educate yourself on some appraisal basics, and apply them diligently to the property in question.There are some basic things you should be sure to know. First of all, don't expect that the appraisal will remain the same or rise over time. It well may not. Appraisals can change dramatically based on the economy, new development near a property, and fluctuations in consumer needs and wants. Whenever an appraisal is bumped up against comparable property, be sure those comps are recent. Also be sure that the appraised property is similar to live in conditions, compared to the comps. Find out how many days a property has been on the market, and what is the average period property in that area is on the market? Be sure to analyze what adjustments were made on the appraisal, both gross and net. It is preferable if very few adjustments, either negative or positive are made. An adjustment is made when comparing features with comp homes, for example number of bathrooms. The property with one less bathroom will have a negative adjustment. Also, be sure the property being appraised is bracketed- that is compared with a house both larger and smaller. It should be bracketed by properties within 3 miles and ideally, in the same neighborhood. You do not want the worst house in the neighborhood, even at a steal. While developers love to keep appraisal values high, if you find your target home is appraised the same as homes you would rather live in, you are likely looking at an inflated appraisal, and you will not be likely to reclaim the full value, and of course, risk foreclosure if you are investing on a slim reserve margin. Go over every detail on the appraisal with a fine toothed comb. Notice things such as other foreclosures in the area. This is a red flag. Be sure you find out why those properties are being foreclosed. If there are foreclosures in the area and the appraiser did not list them, ask him why. If he can explain satisfactorily, it may not be an issue. The important lesson in all this is to be vigilant, educate yourself, ask questions, and analyze carefully why a property is assessed as it is. Be an active consumer of information, and you decrease your margin of error.

Estimate Rents Conservatively!

Our tip today relates to one of our earlier tips about being careful to consider worst case scenarios before you make a deal. This tip is don't overestimate rent! However, don't be afraid to look for rental property deals now either.
In a soft economy, it is very possible that the rent you received 2 years ago will not be what you may receive today. If you purchase property with overly optimistic assumptions on rental return, you may find yourself unable to repay loans or have that important reserve we mentioned before, needed for repairs and vacancies. Now it is true that with increasing foreclosures, the demand for rental property is likely to increase. Additionally, those landowners who are in over their head may be unable to rent their property at a level able to keep up with their purchase obligation, and there may be some good rental distress deals to be had.
There are some interesting subtle clues out there that you can pay attention to discern if the rental market is going to be supporting rental price increases. Watch commercial lenders- are they heating up for multiple family units? If not, this may be an indicator that they believe there are going to be more vacancies. This is currently the case in many markets today. Obviously increased demand with decreased availability will translate to higher rent potential, and vice versa.

Just be cautious. Make your deals based on what the immediate area is likely to rent for now, by analyzing similar properties in the neighborhood. Keep an eye open for the signs of an opening up of the rental potential. If those early signs seem promising, make the deal based on the income you are fairly certain you will get now, knowing you are more likely setting yourself up for a much better return in the future. If you are careful with your expenses now, and cautiously pessimistic regarding rental return, there are definitely deals out there now in the medium to larger rental properties.

Don't Go It Alone!

Our next tip is NO man, or woman is an island. Don't try to go it alone!There are all kinds of professional organizations and groups that an investor can join to network, gain free and valuable advice from others who have been in the field, and educate herself without spending a cent on expensive seminars. The local REA group is a huge resource that should never be overlooked. Amazingly, investors and realtors are usually more than happy to share ideas. A good investor recognizes that there is more than enough business to go around. In fact the best investor recognizes that great deals are created, not just available. The wise investor will surround himself with talented and proven investors. He should seek information and guidance continually. And he should learn to listen and ask questions. The most successful investors are the ones who generate a lot of business, and do so with integrity. Associating with these types have a positive affect on one's reputation, and provide mutual accountability. Successful investors can be very encouraging, especially to the new people, just starting to get their feet wet. Listen to their advice regarding the traps to avoid, and the opportunities to seize. Attend REA group meetings at every opportunity, even if the topic under discussion is not one you would normally be interested in. NOt only will you be likely to make valuable contacts, but you may learn something completely unexpected that may be of value at an unexpected time. No one will be more involved in and knowledgeable about a local real estate community than the local REA. The expensive, albeit often good national seminars are not the place to find the pulse of a local community.So be involved in the local groups, and act like a sponge soaking in every drop of advice and wisdom you can. And remember to pay forward by doing the same for the new investors you meet when you are one of the millionaire success stories someday.

Apprentices and Partners Wanted!

Real Estate is not a passive investmentThere is no real passive investment scenario in the real estate business. Even loaning someone money, and just collecting the returns should involve some activity on the loaner's part- can he trust the borrower, has he analyzed the expected return and risk, what is the equity position, etc. Some investors like to work with a "silent partner"- the one who puts up collateral, and then backs off to let the borrower do all the work. In the end, they split the profits. This is not necessarily bad, but be careful to recognize that a danger of passive involvement is also loss of control, and if the one trusted to carry out the specifics is not skilled, knowledgeable, or trustworthy, the whole investment could backfire.It can be a very good partnership, however, especially for the new borrower who may not be able to qualify for a loan on their own. It is also a good way for a less experienced investor to learn by observing a more seasoned investor go through all the steps that took her years to learn. Possibly the most important benefit for the worker bee is it helps develop a credible track record. This will help her in marketing herself for deals down the road, and also in securing loans for future deals. Investors and venture capitalists are more inclined to fund a known commodity. Even small successful ventures build a reputation.So the important thing to remember is whether in the role of investor or rehabber doing the leg work, property rehab, and eventual sale/rental, to recognize that it is to everyone's benefit to be actively educating oneself, attending to specifics, and be involved as much as possible in the process. That said, I am always looking for apprentices, interested in learning more about investment and willing to offer either time or money to their investing apprenticeship. Please call me at 206-355-1706 to learn more.

Do your homework!

You have heard it said trust, but verify. This holds true for nations, and for real estate as well. Do your homework! Don't rely on other's analysis of costs, profits, etc. Check everything yourself, and get second opinions. If you are hiring a contractor to do repair work, get several estimates. If you are being offered a deal no matter how reputable the seller, have your own trusted contractor price the deal for you. Verify that the potential rental price quoted is indeed in keeping with similar rentals in the area.Real Estate is a demanding, active business. If you allow others to do the legwork, you set yourself up for failure. The successful investors are those who do their own verification of costs and potential profits. Sometimes seemingly simple things are what topple those who lack due diligence. For example, there are cases where someone claims to own a property, when indeed he does not. Something as simple as not checking titles oneself can lead to disaster! Scam artist tenants will sometimes try to sell property as their own. Always go to the registrar of deeds and pull the tax records. Many times this can be done online. If the county operates such that it is not easy to pull up this information on line, many people will not bother, and sometimes great deals can be found by those willing to invest the time. Ask lots of questions- ask other realtors, management companies, attorneys, REA groups- is the property you are considering able to rent at the price being claimed? Gather as much information as you can yourself, and ask those who might know. Don't just trust the seller's word. Find appraisers who will do "desk comp work", where they will pull up information for a nominal fee and be able to tell you what neighboring property is worth in rental potential. By just driving through the area yourself, writing down all property for sale, and then calling the realtors and finding out what the other properties are going for, you can become a remarkably accurate appraiser of the value of the property you are interested in.The way to develop an accurate feel for the value of a property, its rental potential, and learn to smell the spectacular deal is be willing to do the work yourself. Very few people in real estate get rich letting someone else manage all the details. Trust others, but verify that what they say is true with your own diligence and work.

Investor Tip on Estimating Repair Costs

The next tip in our investor series is to avoid the common error of underestimating the need for and cost of repairs. One can never be pretty enough and one can never have enough money set aside for rental repairs. A good rule to follow is always considering the worst case scenario. When you see a soft spot in the floor, even before you consider the cost of replacing the floor board, consider that the joists underneath may be rotten as well. Rarely will you see a fix-over come in under budget. When you are discussing costs of repair with a potential seller, a good strategy is to double it. When you underestimate repair budget and overestimate what a great deal you believe your first big purchase to be, you have a recipe for disaster, and one many enthusiastic newbie investors fall into.When going into a sale, underestimate what you believe the value of the house is, and overestimate what you believe it will cost to rehab it. With this set of expectations, you will more often be pleasantly surprised rather than bankrupt when all is said and done.This mindset is also critical when dealing with contractors discussing the cost of their services. Never settle for an hourly rate; you will almost always spend far more than the original estimate. Get specifics, and be sure to get the contractor's worst case scenario numbers. Set a timeframe, and get it in writing. In fact, if they tell you the job will take 2 weeks, include in your contract the deadline date, as well as a daily charge to them for each day over deadline. This helps keep everyone on a realistic schedule.So remember, prepare for the worst, get everything in writing, and you will be purchasing many sequels to that first sale.

Hot Tip for Landlords

Hot Tip for Real Estate Investors, particularly those in Rental Property, is Always Have a Reserve.This tip is especially critical if you plan on fixing up the property before renting. That of course seems obvious but it is equally essential to have a reserve for those in-between tenant times, when repairs and upgrades will always be needed. If a tenant is willing to settle for shabby quarters in disrepair, they are not the kind of tenants to whom you want to rent.You do not want to face the prospect of having to qualify for a new loan if you have run out of cash, the property goes vacant, and not only are you losing income, but the carpet and paint need replacing.If you own your own home, you should be sure to have an equity line of credit open and available for use. Oftentimes when you most need credit is when you are least able to secure it, so it makes sense to plan ahead with this simple step. Not only can you then finance and borrow with your own money, but you protect yourself in the unfortunate case of lawsuits. Even if your house is paid off, the attorney sees a mortgage amount of your HELOC, and your assets are protected.It is also important to realize that a lender will only count 75% of rental profit as income. They know that 25% of that cash flow will be needed for repairs and vacancies. In securing future loans, it is critical that you consider that.Remember, be prepared with a ready reserve. If by some miracle you don't need it, you have lost nothing, and if you do need it, it may make the difference between disaster and success.

Best Rental Houses

Buying Rental for ResaleWhen you are looking for the deal of the century, be sure to consider the best use for the property given the neighborhood and size of the home. There are many neighborhoods that are perfect rental area, others are ideal retail areas, and some better for lease/purchase options. Some are mixes of all three. When buying and fixing up a property for quick sale as rental property, it is important to analyze the best potential of that area's specific market.Additionally, when purchasing property for rental potential, it is almost always to your advantage to find a 3 bedroom as opposed to 2 bedroom home. Most customers interested in purchasing rental property will pass over the 2 bedroom, unless it is in a high demand vacation location, like a beach house. In unique and unusual areas, one may also be able to effectively market 2 bedroom rentals. Generally however, for rental resale, the best deals are the small 3 bedroom houses in the $50-$70,000 range which will rent on average $500-$700 monthly . A 3 bedroom will almost always be preferred by a renter over a two bedroom. When looking to purchase a 2 bedroom home, always look at the floor plan and consider if there is a way to convert it to a three bedroom to most advantageously market it as rental property.While it is difficult to attract buyers for rental purchase with a 2 bedroom house, it is similarly a small market interested in the high end as well. The cost/profit margin is just too small to make it as attractive to the real estate investor in most cases. Most investors able to secure loans to purchase a 2 bedroom rental home can often qualify for the 3 bedroom home too and a positive return is more likely.So know the area, know the potential, and convert to 3 bedroom when possible to most effectively market rental property.

Landlord, Protect Thyself!

Landlord First Commandment- Protect Thyself! Almost every landlord would state he is a good judge of character, and with the thorough credit report he does on every tenant, he has nothing to fear. He rents in a reputable area, in a nice building, with good neighbors. However, this attitude is naive. Every tenant has the potential to become enraged with the landlord, and if that tenant knows where you live, you and your family are in potential danger. There are countless stories of tenants "flipping out" over perceived injustice, damaging the apartment, and worse, attacking the landlord or his family. Every tenant has an extending circle of direct friends and family. The landlord will also be involved with a multitude of workers, any one of whom could be an opportunist waiting to take advantage of a too trusting manager. Remember, essential as they are, credit reports do not weed out alcoholics, drug users, or violent tempers, which can all be easily concealed in interviews.While this is intended to give you pause, it is not to scare you into selling off all your hopes of owning rental property. There are steps you can take to optimize your safety. Never give out your address, home phone number, or personal information on your family. Have a PO Box and a separate phone number for any business related communications. For $7 a month, get a separate phone number which forwards calls to your home phone, or for $10/month, get an extra cell phone number on the family plan, with voicemail. Take your name and address off of any group or public directory, and identify your wife who answers the phone as "the secretary" and yourself as the "maintenance manager". Use common sense in dark or isolated places, and always be aware of who is around you. Do not place yourself in vulnerable positions, particularly when you know a tenant is upset with you or others. Having a gun may be useful if you are home, but your dependents may not know how or want to use a weapon. The best defense is a good offense- arm yourself with these simple precautions, and you can deflect a host of potential problems.

Sell Houses Fast using the "SOLD" method!

In today's economy, everyone is running for cover hoping to wait outthis recession before it breaks them. Refuse to participate in thisdownturn! There are smart ways to continue to prosper, sell your housein record time, and keep that necessary cash flow spigot open. Excess inventory and falling market prices can be turned to your advantagewith a very simple system that William Bronchik calls “the S.O.L.D. system. “ This is the system that the best investors use, those 20 % of wealth generators who seem to consistently outperform everyone, even in the worst times. Any house can be sold at a fair price within 30 days using this system- even now. The basic principles of the SOLD system are:
S- Salesmanship- how to best market and present your property and close the deal
O- Owner Financing- many people don't have large down payments available, but may be able to buy if the owner accepts part of his equity in payments rather than large cash closings. A larger pool of potential buyers obviously increases the likelihood of a sell!
L- Lease/Options - rising interest rates have resulted in greater rental enthusiasm, with the benefit of higher rental rates. You can lease/option to avoid broker fees and pay no commission upon sale.
D- Dressing it Up- Staging gives your propertythe extra "wow factor" to promote quick sales for the optimal price. Confidence is often the key to success.

Let me help you make your property profitable despite any gloomy economic outlook!

Boys and Their Toys

Enquiring minds want to know? Do men really use their gigabyte better?With the growing use of technology in all business endeavors, do menplay the game better? Let's add a few more idioms.... do men do, andwomen just talk about it? Is it really a man's world?Since 60% of the real estate agents are women, are they at adisadvantage with the computer age? Men, typically described as moreanalytical, and "left brained", more logical and objective, are oftenseen as surpassing women in their use of modern technology, internet,and web based marketing. This is particularly compelling when bumpedup against the research that online marketing dollars spent correlatedirectly with the amount of revenue produced. Surprising to some,research does not indicate a significant difference in how men andwomen use computers in business applications. Men may indeed play thegame, but women do seem to know the score, and are as savvy as men inusing computers to their advantage in the real estate world. Maybe thenew idiom in the real estate world should be "behind every successfulwoman is a surprised man." But the critical factor to remember isonline marketing works, and it is an important tool in any real estate arsenal.

More Thoughts on the Bottom

The housing crash affected markets across the country with cities that had been resistant, like San Francisco, falling spectacularly in the past year by a whopping 32% or more. Most analysts present a pessimistic picture, but seem to believe housing prices have bottomed out in many parts of the country. Prices are at the level seen around 2003, but would need to fall to the levels of 2000, to go back to pre-bubble prices. The silver lining is of course that it is a buyer's market, and there are great deals out there. If the economy rebounds soon, with inflation ignited by the stimulus package, then home prices will rise again. However, albeit with the current very low mortgage rates, home prices compared to average earnings are still higher than they were at the height of the 1989 property bubble. When that bubble burst, it took 8 years for market recovery. This current crash is larger, and the recovery could be respectively longer.
What kind of loan would a savvy investor in our area need in order for their rental to cashflow? The chart below shows the current average rental rates in King and Snohomish counties, as recorded by The Department of Housing and Urban Development's 2009 Fair Market Rent Documentation :
Efficiency-$720
One-Bedroom-$820
Two-Bedroom-$987
Three-Bedroom-$1,395
Four-Bedroom-$1,704

The chart below shows the loan that could be supported by the average rents above:

Payment* Sales Price Loan Amount Cash At Closing*
$1,700.00 $460,000.00 $345,000.00 $122,907.36
$1,500.00 $407,000.00 $305,250.00 $108,971.68
$1,300.00 $355,000.00 $266,250.00 $95,298.93
$1,100.00 $300,000.00 $225,000.00 $80,837.36
$ 900.00 $245,000.00 $183,750.00 $66,375.80

Most investors will be looking for returns that do not require such a large cash outlay upfront. In that case, housing prices still have a ways to fall!

Is this the Bottom?

Now may be the brave loner's window of opportunity in snatching up great real estate, at bargain prices, with record low mortgage rates, as economists predict that we are already into a “jobless” economic recovery. First time buyers have the bonus of an $8,000 tax credit, which is currently scheduled to expire next month. Some markets are showing a cautiously optimistic uptick in activity and volumes are up at both the low end and the high end of the market.Both the Master Builders Association and the National Association of Home Builders predict continued depressed prices until a turnaround perhaps by the end of 2009 and the first two quarters of 2010. Investors would be wise to step up their offers now….

I Buy Houses!

You think you are ready to sell your home, but you are tired of the looky-loos who parade through with no intention to buy. You don't really want to invest in improvements that may or may not increase resale value, and you are terrified of the nightmare of buyers backing out when you have a binding contract with the perfect home, and now are watching your dreams tumble away. Perhaps your situation has suddenly become dire through the threat of foreclosure, or the trauma of divorce. You are panicked as you may have to struggle to pay two mortgages when the promised sale dissolves. This does not have to happen. Your old options of selling your home yourself, or using a realtor with all those fees, have now been made obsolete by the perfect new solution- I will buy your home outright, as is, for a fair price. I am a serious buyer. No fees, no repairs, easy sale, no hassles, immediate cash.....I am an investor who prefers to deal in real estate rather than stocks and bonds. I eliminate your stress by assessing your goals and situation, offering quick sale with no fees, expert handling of all paperwork, and paying all closing costs. You have nothing to lose by calling me, and I can give you an offer within 48 hours. For your home, I offer a fair price, for your peace of mind.... priceless. Call me today at 888-621-4999 or email HomeLandInvestment@gmail.com

Show Me the Money!

You are ready to invest in real estate; you even have found the right property and a willing seller, and now that pesky problem: where to find money?
Many options are available. For example, investigate using your HELOC. A HELOC , or Home Equity Line of Credit, is extended to a homeowner by using his home as collateral. There is a maximum amount that the owner can borrow, but he may draw on that line of credit as desired. The interest charged is usually the prevailing prime rate. Repayment schedules, which can vary form 5 to 20 years, are negotiable as long as the interest payments are made monthly. This option can be particularly powerful for the investor if he has amassed equity in his home, and if low interest rates are available. In this economy, this may be a viable tool for investors.

Secondly, credit cards may be a viable option in the short run. Hang on to those promotional offers!

Often times, relatives and friends are willing to partner in sound real estate investments. Don't forget that rich Uncle! You may be doing him a favor in providing an investment with better returns than his other investments are currently paying. Sometimes co workers or clients are open to investment opportunities, and through pooling such resources, you can accumulate a sizable amount.

Consider limited partnerships- such arrangements may give you the immediate cash flow benefit you need. The seller himself can often be creatively induced to enter into a funding agreement with you, particularly if he is highly motivated to sell, as many are in this economy.

Your 401 K is another source of funds that can be partially liquidated, or you could borrow against the cash value of your insurance policy. Stocks or other equities may be cashed in.

Of course, hard money lenders are always a possibility. Sometimes lenders can be flushed out by perusing the 'wanted to buy" ads, or even a more direct approach- take out a newspaper ad yourself asking for potential lenders who may be eager to invest in a real estate project with you. Tell the potential investor how he benefits- " I have the opportunityto buy a $200k house for $100k, but I need a cash investor. I do thework, you invest the cash, and we split the profits.”

The only limit to finding private money for your real estate needs is your own hesitation. With creativity and a little knowledge, you can be the greatest source of generating needed capital. Sometimes YOU can be the best source for private money- and that's OK!