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So the big question is this, what would you do if money didn’t matter? So you had millions in your bank account, what would you focus on? Would you spend more time with your family, with your wife, with your kids? Take family vacations.
Would you pursue your gifts and talents and dreams? Serve your local community, teach others, serve your church. You see if what you would do if money didn’t matter, it was pursuing your gifts and talents and dreams to serve others, and that is probably what you should be doing.
The problem is most people are in the rat race, living five inches in front of their face with no time to pursue what they were born to do. That is the problem, and the solution is to develop enough passive income to replace your working income so you can quit your job and be free to live your life the way you were created to.
That is a solution and this podcast will show you how…
Hey what’s up everybody! Welcome to another awesome episode of Cash Flow Dad Life. I’m your host Ryan Enk and today we’re going to be talking about the four step knockout to funding real estate deals.
So talking about you know… I just want to kind of compare it to fighting a little bit.
One of my guilty pleasures, you know, is watching MMA.
I just love watching the art form of fighting, and when I was a kid the first fight that I got was I don’t know I guess I was around 10 or 11 years old in any 80s kids out there super soakers were pretty big for a while at least where I live.
So there was a super soaker 100 then they came out with the 200 than the 300 is just like these big water guns. And we as opposed to many many kids this day and age. And that makes me feel old saying that.
But we would always play outside were always outside playing sports and neighborhood kids and we had our little posse of neighborhood kids that you know lived in the houses around us and then there was another posse of neighborhood kids around the block like these little mini suburban gangs you know.
And so we’re outside was super soakers and this other posse of kids comes by on their bikes and they’re saying you know they’re talking trash or whatever but it’s all fine we’re all kids we’re just having a good time you know. And so I squirt one with my super soaker, and he gets off his bike, and he walks over and he says, “Whoa is that a super soaker 200.”
And I said, “Yeah.” and he goes, “Can see it?” And I said “Sure,” and I gave it to him and then he smashed it on the ground and he goes, “You want to fight?”
And I was like really ticked off that he broke my super soaker was like remembering my parents words to me like, “No if anybody ever asked you to fire just turn and walk away. Use your words.” And I was like, “I don’t think we need a fight. You know you can just go and I’ll go.” He’s like, “Well I’m not going to go.” I was like, “Okay, well I will go then.” I turn around, and as I turn around he sucker punched me in the back of the head.
And so I turned back around and he goes, “Now do you want to fight?” Now I was like, “Yeah I do, actually.”
So we all went into the lawn across the street and all the neighborhood kids are around in a circle and he’s bouncing back and forth. He’s like, “Look I know karate. You know I just got to warn you,” and I’m like, “OK whatever. I’ve got brothers that I buy wrestle and fight all the time.” So I really didn’t…you know I was angry with them, but I really didn’t feel like punching him in the face, just yet.
Maybe as the fight progressed maybe he would hit me somewhere that would anger me maybe that would cause me to punch him in the face. But I was like, “I just don’t know. And maybe a wrestle with them or I don’t know what I do.”
So he’s bouncing back and forth like he knows karate, and so I was like I’m just going to make the first move. I am not going to punch in the face. I’m trying to punch him in the arm.
So I take my window and I do this like lightning strike where I swing and try to hit him as hard as I can in the arm except I completely miss his arm and end up punching him square in the throat which caused him to drop immediately made me look like a bad-ass, but it was completely unintentional just punch the kids square in the throat.
He dropped. Fight was over and that was my first fight…
And so what did I learn from that? I learned to use my words that I learned you know to talk things out or to walk away. Now I learned that there is a one punch knockout that you can use and it’s a throat punch. So every time if I were to get in a fight I would just log that in the back of my head like, “OK here’s a strategy you can use it to throw a punch.”
So the other day my second grader comes up and he basically tells me like, “There’s this kid in the neighborhood that’s bullying him.” Now first of all I think that the word bully is thrown around by way too many parents and kids these days because there there’s this you know big anti-bullying push which is awesome which is great.
But the problem is like kids are starting to interpret that just because another kid doesn’t make them feel good that that’s being a bully which is not always the case. Like sometimes if you’re an older kid and you’ve got older kids game going on you feel like telling a little kid, “No, I don’t want to play with you right now-no. We’ve already got four you would make the teams uneven.”
You know that’s not bullying. That’s kids just don’t make you feel good. It’s not being a bully it’s just maybe they don’t want to play with you go play with someone who wants to play with you anyway. Side point.
So he comes and he’s like, “Yeah there’s this. This kid is bullying me.” And I am like, “Well, what happened?”
“Well you know he pushed me and I fell.” I was like, “Well, what are you going to do?”
He’s like, “I mean, just use my words?” I was like, “No, what you should do is just go up to him and punch him in the neck.”
You know that’s the that’s the knockout punch…
So I will tell you what happened after because nothing has happened, yet but maybe that is in progress. We’ll see how it goes.
But the point that I want to make is a lot of people when they are getting started with real estate they only think that there’s one knockout punch and they can’t use it, and that it’s bank financing…
So what I want to give you guys is if you if you want to pursue real estate but you feel like you don’t have the funds, or you don’t have the money, or you don’t have good credit, or you don’t have enough cash in the bank…
I want to give you guys some four knockout punches that take away that excuse. Alright?
So the first thing, obviously, the first way to fund real estate is just through bank financing, okay?
This depends on your W-2 income or it depends on your credit, and it depends on your established relationship with the bank. You know sometimes it depends on your existing portfolio. So you know if that is a great way to start.
So maybe you’ve got some cash you can leverage that cash against the bank. I don’t encourage you to use your cash or spend your cash but you can use that with the bank to get financing and that’s typically the lower interest rates or bank financing. But even if you are a seasoned Invest Investor even if you’ve got a portfolio of 20-30 properties at a certain point the bank is going to want to tap you out…
They’re going to say, “Alright, you’ve got multiple indebtedness you’ve got too many loans out. And that’s just way past our comfort zone to lend somebody that much money.”
So what do you do at that point? You’re just getting good at it, right? You know if you’ve got four or five six properties under your belt and the bank taps you out you’re like All right well you know maybe you need to move on to some other credit sources or some other ways of funding cash. You don’t have to stop you real estate investing activity. So another way to do it is micro lines of credit. So this doesn’t depend on your cash.
This depends on your credit score and then your business credit score so not even your personal credit score even if you’ve got bad credit. You can set up a business set up an LLC and start doing things to establish business credit like getting an account that Sam’s or or Sears you know different credit lines that you can get for an LLC and that will help you start developing business credit and you can start getting Micra lines of credit 0 percent interest where you are able to get enough of those to buy your first property and all cash.
Okay, So that is another knockout punch that will help you get started in funding your first investment property. The third thing is say you know you’re tapped out a micro credit lines you’re tapped out on bank financing. Or maybe you don’t even really have a good credit score. Maybe you don’t have any of your own cash. Well you can go what’s called the private money lending route.
So this depends on either the relationship with that person maybe it’s at Adna or maybe it’s a doctor friend dentist friend or somebody in your network or friend that you grew up with somebody that knows you or it depends on the deal.
But if they know you they like you and they trust you and you’ve got a good deal a good investment for them then they will lend you money not based off of your credit score not based off your personal finances not based off of your W-2 but they will lend you money based off of the deal that you have at hand and your relationship with them, and sometimes they’ll just that you don’t have to have a relationship sometimes alleging money just on the deal.
But the more they know, the more like you and trust you. The lower the interest rate is going to be. So it’s better if you’ve got a relationship and a deal at the same time. And that is the private money lending route. And then the fourth and last thing which really pretty much takes away everybody’s excuse not to buy their first real estate investment property.
The fourth knockout punch-it works every time-the next punch peak is creative and owner financing creative owner financing. Doesn’t depend on your tax returns. Doesn’t depend on the money in your bank account. Doesn’t depend on your W-2. It doesn’t really depend on your credit score.
Creative an owner financing depends on the motivation of the seller and that’s it. If you’ve got a motivated seller you can get them to become the bank to you. OK so those are your four knockout punches. There is no excuse not to buy real estate. No excuse not to continue to buy real estate if the banks top you out tap you out.
You’ve got bank financing got microcredit lines you’ve got private money lenders and if all else fails you’ve got creative and owner financing. So those are your four punches guys go out there and start snapping necks and cash and checks.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode as soon as it comes out. It hasn’t been an idea or strategy that can literally change your life.
Listen, don’t miss out on the free investor pools that I have on my website https://cashflowdadlife.com/. So go to https://cashflowdadlife.com/ gets a free swag and lists and hit me up. If you want to talk about how we can get you out of the rat race as soon as possible. Until next time. My name is Ryan Enk and this was Cash Flow Dad Life!