Manage episode 283383356 series 2516289
Finding suitable funding for deals is the biggest hurdle investors face. It’s the one thing that holds people back from pursuing real estate as a path to financial freedom.
But money doesn’t have to be a hurdle if we know where to find it.
There are so many creative avenues for financing deals, even if we’re just starting out.
If we want to move our investing along faster, work smarter and more efficiently, we have to look beyond conventional funding sources. Instead of thinking that one strategy fits every single property, we can tailor unique strategies to each deal.
From lease options to joint venture deals, the money we need to invest in properties is easier to access than we think. It all comes down to understanding how money actually works.
My guest, Daniel Wood, has identified 25 sources of capital that investors can tap into.
What are some of the unique ways we can get the money we need, and how do we structure deals that protect our profitability? What is the “Holy Grail of investing” and how can we implement it?
In this episode, entrepreneur, investor, and co-founder of Momentum Property Education, Daniel Wood talks about his international investing operation and shares how new investors are raising money for deals.
Three Things You’ll Learn In This Episode
Why we should always consider the buy-and-hold option On average, properties double in value over 7-10 years if we’re buying in good areas. If we sell a property that’s good enough to keep, we give up equity and the cash flow we could have been making, as well as the chance to refinance and buy more property.
The one funding source that gets new investors into financial trouble When we borrow money from friends and family, we have to be careful not to bring them in at a fixed interest rate. The compound effect is a powerful force, but when the interest rate we’re paying is higher than the income we’re making, the compound effect works against us.
How to get funding through friends and family without compromising our profitThere isn’t just one way to finance deals through our friends and family. Instead of borrowing money from them, we can set up a joint venture with an option for us to buy them out. This way we aren’t exposed to the high-interest rates that cause many new investors to lose money and struggle.
Daniel Wood is an entrepreneur, property investor, coach and podcast host and co-founder of Momentum Property Education. He has over 10 years experience in business and he specializes in raising finance. He has co-founded 6 companies together with his wife Gisela.
Daniel is also the CEO and chairman of the board of the Swedish Wealth Institute AB that supports entrepreneurs and investors by bringing the teaching of experts from all over the world to the Nordics, among the partners they work with are Rich Dad Organisation, Kim Kiyosaki, Randy Zuckerberg, Success Resources, and through them Tony Robbins.