Using other people’s money sounds like a scam, but it’s not.

When we talk about using other people’s money, we’re talking about the tenant’s money and the bank’s money.

Banks love to lend money – that’s their business, and that’s how they make a profit. Tenants need to pay rent to have a safe place to live. With Investment Real Estate, we use the tenant’s money to pay the mortgage and all operating expenses.

After the property is owned for several years, we find most investors want to get their initial investment back, but have easily recognized the value of owning Real Estate, and often do not want to sell.

This provides another great opportunity to use the bank to further profit. Instead of selling the property, we instead refinance it, pulling equity out of it. This equity is then returned to the investor as a repayment of their initial investment.

The beauty of this system is that you still own the property, and have absolutely none of your own money tied up into the property. This frees your investment capital to go back into the market, and get it working for you again on another property. This cycle can be repeated many times, potentially doubling your Real Estate holdings every three to five years.