THIS IS A SUMMARY OF THE BOOK ABOVE, what is stated here is not a reflection of SARE or its members. This is just a book summary with exercepts from the book for those interested.
Chapter one: the art of creative real estate investing
page 6 “With Real estate, you can leverage you knowledge, time, and creativity to essentially make money from nothing. This is what creative fiancé is all about: replacing cash with creativity, money with motivation, and dollars with determination”
page 7 - “I acquired nearly all my properties while I was either self-employed or working for less than$14 per hour. I simply had no choice: be creative or don’t invest at all.”
You find ways to use other people’s money.
Following rich dad and poor dad, “Rich dad required his children to say “how can I afford it?” His reasoning, the words I cannot afford it shut down your brain. It didn't have to think anymore. How can I afford it opened up the brain. Forced it to think nd search for answers.
Ask yourself “How can I afford it?” and “How can I do it?”
4 tenents:
- When investing creatively, you need to find even better deals than those who invest normally.
- When investing creatively, you must be extremely conservative. Assume the worst case when buying the property. Take it as a given that taxes will go up, your unit will sit vacant for a certain percentage of each year, repairs will be numerous and expensive, and you will need to evict dead beat tenants. Plan for these costs and only buy property that proves to still be a good deal.
- Creative financing requires sacrifice
- Trade cash for creativity. Got to jump through alot of mental hoops. Creative real estate investing is a puzzle that takes real mental effort to put together.
- Creative finance does not mean investing without a cushion
- You can go broke buying good deals
- YOU NEED TO BE ABLE TO WEATHER THE STORMS
- For example: if you need to evict can you handle several months of lost rent and eviction cost along with repairs.
- MAKE SURE YOU CAN GO THROUGH STRESS TEST.