The type of financing you choose will depend upon your financial situations (Step #1), your strategy (Step #2), and your personal preference. You will want to rely heavily on your mentors and your lending team members (Step #5) to help you line up the best fit for you. Seller Financing – This is my favorite type of financing. A seller with equity can allow you to pay the purchase price over time with installments or by using more creative contracts like leases and options.
Then move on to Step #9 to schedule and prioritize your next actions. There are actually many more marketing campaigns that I could share (and you’re welcome to share your own favorites in the comments below). But these are effective options that will give you some choices to start with. Cold Calls – For those who can handle 50 rejections for every 1 promising phone call, this could be an effective method. You can search the online classifieds or local paper to find for sale by owner and for rent by owner listings. Few people will do this, so you may find some gems that others pass up. There are many possible marketing campaigns to choose from.
I’ll explain some of those strategies in the next step. “It takes a lot of work to make a transparent market and we are continuing to work to improve this, ” Mr. Joseph said. “My wife comes every few months to see the children, but the green card will make it easier, ” Mr. Lai said. “It will also help my son when he graduates to find a job. ” After considering several projects, Mr. Lai invested $500, 000 in One Fulton Square, a mixed-use project in Flushing, Queens. Under the federal program, a foreigner who invests $500, 000 — and in some instances, $1 million — in a project that will create at least 10 jobs can apply for a green card. It generally takes from 22 to 26 months to obtain legal residency through the program, as opposed to several years for other visa programs. CREXi, much like LoopNet, allows for the handling of the property sale process from first listing to close.
This kind of focused decision-making process helps you identify knowledge gaps that you need to fill as you go. At this stage, you could create a 30-page business plan that even an MBA would be proud of. You want to know your current stage because depending on where you are, certain real estate strategies will make more sense than others.
It’s not as easy to find seller financing as walking into a bank, but the flexibility of terms make seller financing worth the effort. Private Lenders– The type of private lender varies widely, from self-directed IRAs & 401ks to wealthy individuals. The flexibility and the long-term relationship you get from these lenders make them extremely valuable. Portfolio Loans– These are kept by banks or lending institutions instead of being sold off on the mortgage market. Terms vary, but they usually have a shorter term (5-10 years) and interest rates are competitive. If you find yourself attracted to one of the strategies above but you’re intimidated by how to execute it, that’s ok.
And because marketing is an inexact science, the campaigns that are effective change like the wind. So, I recommend carefully testing different campaigns, and then stick with what works. Sell – Can you sell your car and buy a less expensive one? Do you have expensive toys that you can sell until later in life when you’re financially better off? What about selling a big home with a lot of equity if you’re willing to downsize? Do you have collections of junk in your attic/basement/garage that needs to go away? Selling is one of the safest and most logical ways to raise funds.
The awesome book Getting Things Done by David Allen taught me that getting projects done isn’t really time management. Once you’ve scheduled blocks of time like I suggested above, it’s now aboutACTION management. This means you need to spend your time only doing the actions that will move you forward towards your goals. So, the point of Step #9 is to help you transfer all of this information into organized, effective action right away. First, I’ll make recommendations for scheduling your time. So, decide a rough marketing budget and choose one or two marketing campaigns you will start with.