How to Get a Good Deal Financed : “How To” Real Estate Investing Class
My first year investing, one of the “Big Unknowns” for any deal that we were working on was financing. We were doing our best to just get a good deal under contract let alone even think about what we were going to do once we contracted one. That was the first big hurdle.
But, then the inevitable happened…we got a great deal! We did exactly what all the books and courses teach you. We were so excited running around high fiving each other and decided that it deserved a night out on the town. The next day after a particularly long night, I remember waking up and thinking, now what do we do?
Long story short, we ended up getting the deal financed because one of my partners went door to door to real estate agencies and mortgage offices until someone realized we had a great deal under contract. THAT WAS AFTER ABOUT 25 NOs!
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Per - sist - ence
-noun
1. the act or fact of persisting.
2. the quality of being persistent: You have persistence, I’ll say that for you.
3. continued existence or occurrence: the persistence of smallpox.
4. the continuance of an effect after its cause is removed.
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The reason that I’m even writing about this is because of a conversation I had with one of our students recently. Several weeks ago, on one of our monthly coaching calls, we talked about financing strategies for one of his deals. He contracted a great deal and wanted advice on the best way to secure financing. He passed the investment opportunity by a few people but with no luck. He wanted to know what to do next.
After our book club meeting this past Wednesday, he updated me on the deal. He looked into getting a credit line from a bank. But, he got turned down…
The decision that he made right then in that moment is what makes all the difference in the world and defines those who succeed as investors and those who don’t.
HE CHOSE TO PERSIST! And you know what happened…two banks later he got the financing that he sought after. A credit line for the exact amount that he wanted for the deal.
Let this be a lesson to anyone that is having difficulties getting started as a real estate investor. He made a decision to get what he wanted. If you ever have a great deal under contract and you say so yourself, “How am I going to get this deal financed.”
Remember…
PERSISTENCE! THAT’S HOW TO GET A DEAL FINANCED!
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Patrick Riddle:
Dusty Keefe:
[...] Original post by "Best Darn" Creative Real Estate Investing Blog on the Planet : MustKnowInvesting [...]
That’s pretty awesome! I would have thought, and I’m sure others would agree, that after 8-10 NOs, nobody would have blamed you for “giving up.” I guess that is what separates good from great.
“Genius is one percent inspiration and ninety-nine percent perspiration.” ~Thomas Alva Edison
I love that quote by Edison.
For anyone that hasn’t read Think and Grow Rich, Napoleon Hill defines the role that persistence plays on the path towards personal achievement. If you haven’t read it yet, check it out.
Great Point. Persistence can turn a bad deal better or a good deal great. Frank Bettger in his book “How I Raised Myself From Failure to Success in Selling” calculated how many “No’s” he got before each “Yes,” how much each “Yes” was worth in profit to him, and then, finally, how much he “got paid” for each “no” response he received. Whenever he heard the word “no” he would thank the prospect and mentally tell himself how much he had just made. Even “no’s” can be valuable.
I am the one that spoke with Patrick.(These guys are great coaches!) I want to tell everyone that persistence is the way to success. After the first bank told me no, I asked what he was looking for and why. Then the second bank said no for the same reasons. Each bank that told me no was an opportunity for me to get educated on what the banks were looking for. The third bank said that they would be able to loan me the money for my business. I am a living witness that persistence will take you places that you never dreamed you would go. Most people would have stopped after the first bank told them no…I encourage everyone to set your goals and don’t let anyone stop you from reaching them.
Randy Adkins