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• BEDROOMS: Avoid single-family homes with less than two bedrooms. One-bedroom homes are much more difficult to rent than homes with two or more bedrooms.
Use Single-Family Homes for Your Quick Real Estate Start-Up 119
• BATHROOMS: Look for single-family homes with at least one and one-half bathrooms. Single-bathroom homes are hard to rent to tenants today.
? Start with the possible and grow bigger. Small is better at the start. You’ll learn your “trade” from single-family homes and can “graduate” to larger properties after you have a few years of experience.
? Know the numbers of your single-family wealth building. No matter how much you might dislike numbers, they become interesting and easy when they’re about your money!
? Ten single-family homes can give you the same income as a 10-unit apartment house. But it’s much easier to get the 10 homes than the apartment house!
? Set up a Real Estate Riches Success Book to keep a record of your activities in searching for, evaluating, and buying your single-family homes.
? There are thousands of loans available for single-family homes. And some First-Time Home Owner Loans offer 100 percent financing to you.
? Private lenders can be helpful to people without credit and to people with low credit scores. So be sure to include such lenders in your financing plans.
? NEVER PAY FRONT MONEY for any loan! It is NOT NECESSARY to pay front money or advance fees to get any loan.
? Remember the keys to successful renting. They include schools, stores, transportation, sports facilities, parking spaces, and number of bedrooms and bathrooms! Provide what renters want and you’ll get rich sooner than you think!
Your Keys to Real Estate Riches
? Be certain to have every home checked for lead paint, mold, termites, and plot pollution BEFORE you buy it! Your real estate attorney will remind you of these hazards. But in case he/she doesn’t, we DID remind you!
? Never buy an income single-family home until after you have studied the Seller Questionnaire required by some 30 states today. It tells you what defects the seller knows of that you might have to spend money on for repairs. BUYER BEWARE!
Money Estate Wealth Building
Real estate, as you learned in earlier chapters, is a Borrowed-Money Business. No one I know who owns real estate for income purposes ever pays all cash for their property. Why? Because real estate is a Borrowed-Money Business! Remember, always:
It is a given that real estate professionals finance their holdings.
And I want you to do the same because that is the way you can
build your real estate wealth on OPM—Other People’s Money.
In this chapter I’ll show you exactly where you can get the money you need for all your larger real estate deals—multi-family buildings, business office structures, commercial properties having stores, and—possibly—residential rental units, industrial factories, to mention a few. Many of these funders differ from single-family home lenders.
In our last chapter we focused on single-family home financing for you. This chapter looks at two-, four-, twenty-, forty-, and sixty-unit (or larger) buildings you might want to own to build your real estate fortune on OPM. These buildings might be residential, commercial, or industrial. Your present chapter answers the most common query I get about multi-unit buildings, namely:
“Where can I get financing for this beautiful—and profitable—
multi-unit real estate project?” The where puzzles BWBs again
and again, over and over.
Your Money Sources Are Almost Unlimited
Since real estate is a borrowed-money business, there are thousands of funding sources waiting to put money into your hands. And this money can take a number of different forms. Here—quickly—are sources of funding for your multi-unit real estate wealth:
• Loans for your long-term mortgages on multi-unit real estate.
• Loans for your “junior” mortgages—that is second, third, or more, down payment loans for multi-unit zero-cash deals.
• Loans for property fix-up—also called rehabilitation—rehab for short—to bring property up to modern standards.
• Loan guarantees from government agencies—federal, state, county, city, to help you get quick multi-unit financing.
• Grants from both government and private sources to purchase or rehab property for needy families and/or business tenants.
• Lines of credit—direct or indirect—to furnish cash for your multi-unit real estate wealth-building.
• Private sources for a variety of multi-unit real estate financing with little documentation.
• Public sources for large loans for many of your big-money (multi-millions) real estate projects.
• Investor groups for large or small sources of money for you where you do the work while your investors receive profits.
• 100 percent financing funders who will finance your investment properties for every dollar of the property cost.