How anyone can Invest in Apartment Complexes with no cash, credit or income
If you are a current investor or one who has always wanted to get started then now is the ideal time to get started. The great news is that 98% of people who are seeking to do this are chasing the residential single family home market and less than 2% are going after the real money. The big money and the easy money is in commercial real estate.
The common belief is that you have to have a large network and lots of cash to get into commercial real estate. Nearly everyone who has bought commercial real estate who didn’t come from money has stumbled upon it or been shown the ropes on how to do it from those who already have it.
I managed to get an interview with one of the top real estate coaches in commercial real estate to find out more about it. Austin Davis is well known in old real estate circles of commercial real estate and for good reason – he started with very little and has built a large portfolio of commercial real estate in the United States over the past 30-40 years. Using very little of his own money and keeping his assets well protected through multiple trusts, corporations and leaving pretty much nothing in his own name.
When I asked him about how hard it is to get started he replied, “It’s much easier to get started in commercial than it is in residential since the property and funding for it is based on the ability of the property to generate income and not you personally it is a lot easier to get started. You do not have to have a large sum of cash. You just have to know how to get your feet in the door. Once you have property and can show investors and lenders you do – it’s very easy to get funding for deals with little or no cash out of your pocket.”
I was very curious about this and so I started looking into it. When I went looking I could find very few books or coaches in the commercial industry giving any direction on how to get started. I asked Austin about this and he replied “While many of the more public real estate investors are known for investing with little down in commercial real estate – they don’t really share it with people because honestly most investor’s in this niche don’t want more people getting into it. There is a fear it will hurt the industry if a bunch of newbie’s get into it a lot of “old money” that doesn’t like the idea of sharing the pie.” This of course makes since and yet I was curious how income, job, credit and assets would play into commercial real estate.
Austin replied “All of that stuff doesn’t matter a lot while investors, banks and lenders are going to look at that what they really are looking for and wanting is to see you have skin in the game.” I had myself heard that before and it made since. If a lot of newbie’s have nothing in a deal and the investor has all of their money in it that adds to their risk. I asked Austin to expand on that and he explained “If you can get a large cash down payment put in escrow for the deal the bank or investor is very likely to give you funding if the deal cash flows well and they know a cash down payment is being put up on the deal. The kicker is when you find the ones who don’t care where the down payment comes from. Some investors and banks, actually most of them, want you to personally put the money down from your savings or from a lien on other property. Those are what we call the non investor bankers and low risk lenders. There are many lenders who just want their equity protected and are alright with the down payment coming from hard money or private lenders. they don’t really care. Of course they are not going to fund deals that do not cash flow and that can support the debt payments.”
I asked Austin how I could learn more about this and he actually has a very easy program, it’s very short and to the point and explained the process and he even did all my home work for me in it with vendor contacts! You can check out his program as well at http://www.CREprogram.com/austin
