| Have you ever read Rich Dad, Poor Dad? Or any | | | | discount rental income. Second, the constant |
| other book that just made you eager to invest in | | | | turnover reaps havoc on your credit score. Third, |
| real estate? If you have, then it is likely that the | | | | recourse debt is leverage that can cause your losses |
| very next thing you did was sit down and wonder, | | | | to be far more severe. |
| how do these people get the money to purchase | | | | The best option, unless you are rich, is to use private |
| real estate? | | | | equity partners and investors. Did you know that you |
| This is a vexing question, and one I can relate to. I | | | | can convert IRAs and 401ks and use that money to |
| bought my first investment property when I was | | | | purchase real estate? There is no limit to the amount |
| eighteen. Eight years have passed and I am still a | | | | of money you get, and the deal structure is only |
| full-time real estate investor. However, the economy | | | | limited by your own creativity and negotiations. |
| and my young age have made this an ongoing | | | | However, you must be sure to do this legally, safely, |
| challenge for me. | | | | and in compliance with all valid regulations. For |
| For a few years, I bought properties with a small | | | | example, do you need to register with the SEC? |
| local credit union backing me. If you choose this | | | | What type of disclosures do you need to make? |
| route, there are three major drawbacks. First, you | | | | What should be included in your contracts? These are |
| must remain below DTI guidelines as though you | | | | all questions that you need to address in order to |
| were living in the houses, which often ignore or | | | | succeed. |