Investment Strategies - When Credit News Brings You down:

Don't Fret - Use Other People's Money

Everywhere you turn these days there is a newspaper headline, grocery clerk, or smart uncle reiterating the fear that is tangible in the current real estate investing environment: "The costs of the credit crunch mount" or "now people are even defaulting on their credit cards have you heard!?" and the more horrifying "credit score requirements are at an all time high - you'll never get a loan, man!" The message outside is "Be Very Afraid."

What if I told you there are investors out there who have permanently tuned out these messages and are open to opportunity when everyone is crying wolf? Interested? Then read on?

Perhaps you have fantastic credit (congrats in this case!). But, if you are one of the many Americans who have mid-level credit or simply an average debt load with no desire to add to the stack of bills in order to pursue a passion for real estate, consider this - Use other people's money.

This may sound too simple. But the reason it works in the end is because you do the leg work to find the right properties which takes the time out of the investor's busy equation. Using an investment team to mount a case to purchase a single property or multi-unit complex to an investor who has the credit and liquidity to invest now is crucial.  The trade off equation looks like this:

    You + Time = Leg Work Investment in the Project
    Investor + Money = Project Accomplishment

In fact you do have to spend some time on the ground which includes getting to know some real estate leaders in your community. But, this can be as easy as starting with your mortgage broker or realtor and asking around. Someone always knows someone who knows someone? well, you get the picture.

Start building your investment team by talking to those you trust that can refer you to knowledgeable players in the industry.  Before you know it, you will have a team in place. But it starts with one other person who shares your vision and passion for real estate investing. 

There are less loan options available in this market, but not for the reasons the media tells us.  Many lenders are simply looking for more right now. More meaning more liquidity (some savings in the bank), more stability of income (longer time in one field of occupation) and in most cases, a higher credit score.  Why not let someone else's financial/investing experience as well as available liquidity guide your passions so that when the Starbucks lady hands you a coffee in the morning and some "the market is terrible" advice, you can say "I know - isn't it great?"