Many people are hesitant to partner with a private lender. Often, a lack of confidence is triggered by a family member or friend who means well but doesn’t realize that he or she is stealing someone else’s dream to achieve success. A person who must use OPM (Other People’s Money) to start needs to realize its value. They must not let anyone discourage them.

There are many professionals who have money but lack the time and energy to make a real estate investment. Being approached by an enterprising person with good business and management skills could be a good solution. Yes, there is risk, but there is more risk in not trying.

Another idea that works very well is to partner with the owner of a house for sale. There are times when a rental property owner might consider transferring financing up to 100%. The reasons can vary, but one reason could be as simple as the landlord being sick and tired of managing the property. If the penniless person acknowledges the owner’s problem, he may be able to purchase the property at a substantial discount to facilitate a quick sale for the owner. The new owner leases it for 2-5 years, earns the appreciation, and sells it for a substantial profit. On the surface, this transaction might not appear to be a true partnership; however, the previous owner is financing the deal 100% and is confident that the new owner will make payments on time and take good care of the property.

Best of luck to you on your investment.