DGHM - Dean Graziosi Hard Money

I recognize your position as a young father and what an awesome responsibility you have. You have to plan for your family's future and that alone requires a lot of hard work.
You clearly have a desire and an interest in being a real estate investor and that is an excellent choice. It also takes work obviously. When you know what you are doing it can happen quickly but we can not see it as a way to get rich quick. Even when Dean started out it did not happen quick and he had to put a lot of sweat and work into it.
We just can not get ahead of ourselves and must do our due diligence. Know this - "trust is key". I say develop people skills, gain knowledge and study the different strategies, learn about your market close to home. Maybe look for a FSBO and negotiate with the owner. Then use it as a rental for passive income and let the renters pay the mortgage. This is just one possibility and there are many ways to work a deal.
I really hope this will help you.

Everything that Esteeanna said PLUS this. I think your idea of a buyers list is misplaced some what. A buyers list is not for finding buyers that fund your deal or split the deal or lend you money. A buyers list should be filled with buyers that will buy your killer wholesale deals. That is how you make money. Real buyers look at the deal you bring them, they don't care if you are 6 years old and NEVER have done a deal. Wholesaling is getting a deal under contract (no money out of pocket) and flipping the deal to your investor buyer and making your fee or the spread. You are done and out of the deal and you find another property and flip it. No money needed if you have buyers waiting to buy your deals.

Bottom line Brian. You don't need Dean's money to wholesale. You don't need anyone's money to wholesale.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Brian,
get some deals, post on this site and help others, then enter the send me away video competition... and if you win, DG will partner with you on your deals... obviously, the deals will have to meet his criteria

Everything above DG-ers have said, plus.
There are funds available through Hard Money Loans, Private Lenders, Transactional Funding, Gap Loans, Bridge Loans, and Rehab Loans. They are collateral-based loans. Some do not look at personal credit. While others require you bringing 'skin' to the deal. Most hard money lenders require 650+ credit score and closing costs. HM lenders have their criteria (75% ARV) & monitor your rehab deals progressively thru draws, for short term (3-6mos.). The interest rates are high, plus points. But it's a short term loan for the purpose of buy/rehab/flip. Some offer extensions up to 12 mos. And some do not charge any pre-payment penalties. Other loans are specific to the need. It depends upon the exit strategy determined prior to purchasing.
Wholesale some properties to your investor buyers to begin with to build some "seed" money for yourself.
Most Investor/buyers look for (ARV X .70) minus Repairs = Buyer Price, configure your price point share at (ARV X .65% minus Repairs) and make offers lower than that for some wiggle room negotiations. You can profit from the deal with 5%. When the property is under contract broadcast the deals to your buyers.
Like Michael said, REAL buyers will show up.
Aim to do 1 wholesale deal per month. Cover your monthly expenses and find another deal! (That equals $60K+ annually).

PS. There are plenty of Buyers to be found at REI Clubs. At live auctions, too. Capture their contact info.

PPS. Wholesaling houses is similar to wholesaling cars, tires, flooring, food, bed linens, etc. You are the MIDDLE man. That's all.

there's money everywhere.

get out there, crank some deals out....money will find you.

You can add passive income without income or credit too. (creative term deals)

get some solid buyers and wholesale your booty off. Serve your buyers. Become #3 on speed dial. Right after spouse and mom! lol
Some of my best PML have come from previous buyers. When your name gets out there that you are a closer and doing a ton of deals! You will draw people to you. When I needed it the most couldn't FIND $10, now that I have choices.....get approached weekly for someone looking to extend capital. I just declined on a sizable venture......well simply put, there was a conflict of ethics/morals and I only do good deals with good people. Point is, may be a 'challenge' today.....but remember sometimes our greatest struggles are our greatest victories!!

My advice:
wholesale, wholesale, wholesale = bank some money, build a reserve for your holds, pay down some debt, buy a property to add to your portfolio (refi pull $$ back). Rinse and repeat as many times as necessary to achieve the desired result. Then the JOB becomes optional.

Nothing in the world like wholesaling that you can pull money quickly and almost out of this air.
But only in the dictionary does Success come before Work!

What you learn and gain while wholesaling will only be a value add for when you do a retail flip or hold properties. I personally wouldn't recommend anyone attempting a retail flip or buying a rental until they have the skills and mastered wholesaling. To be a good wholesaler you have to know your market in and out, rents, sales, areas, rehab est, have multiple team members in place, know the #'s, etc. Why not get that nailed before money is at stake?!?
just my thoughts.....

Best wishes and God bless,
Jen

I understand your reasoning and thoughts behind this; however, I have to say I don't know if it would be the best thing. Part of this journey is making mistakes and learning from them. My first hard money experience was horrific; absolutely a terrible experience. BUT... the lessons I learned from it I will never forget. I believe I learn A LOT more from my mistakes and failures than my successes, and that is why it essential to go out there and do what you need to do and take all the action to make it happen ON YOUR OWN. Because, if you don't go out and take the action and MAKE the mistakes, you aren't going to learn the crucial things you learn through your mistakes.

There are so many things Dean gives us to help us to prevent the mistakes he makes, however even Dean himself constantly makes mistakes and fails daily. Keep that in mind as you are out there doing something outside your comfort zone and not totally 100% sure of what you're doing. You have to OVERCOME the fear of doing the unknown; if it was all given to you up front, you wouldn't be able to conquer and therefore succeed at your mission. Fail often=learn often. Fail repeatedly = continued learning = SUCCESS!!!

For the same reason we have to put out some money to buy the advanced things Dean offers; we need to use what we are given and have something at stake to lose, there is a higher probability of us going out and taking action so we don't feel we've let our money goto waste. Now go out there, do it AFRAID, make some mistakes and fail over and over again and SUCCEED!

It is CERTAIN we will SUCCEED! Every day in EVERY way I am becoming better and better! What the mind of man can conceive and believe , it can ACHIEVE! I laugh at the negative thoughts that enter my mind! They are NOT me! I am a CHAMPION! I AM A FIGHTER ... I WILL NEVER CONCEDE TO THE VILLIAN WITHIN!!! Nothing will stop me, not even ME! I fail, therefore I SUCCEED!!!

this is why I love this site. It appears my rant lead most to believe that I don't want to do the hard work to achieve success. Please accept my apologies if that was the case, that is not what I meant. Thanks to everyone for their advice and kind words.

Diane - I'll see what I can find along the lines of FSBOs.

Michael - Please let me know how I can put a deal under contract with no money out of pocket? When I contact the realtor who has the property listed, they want some earnest money. I've been asked for no less than $100, but I don't understand how I don't lose that money if my buyer falls through. Is there some sort of clause I can put in the contract?

Valerie - Trust me, once I get some deals done... I'll be sure to post them on DG.com and I'd be honored to win the Send Me Away video competition and partnering with DG. I think about RE so much that if I could make this my full time job, I'd be released from my shell and be just as passionate about it as DG and Matt Larson. (I think my family gets tired of hearing me talk about it.)

Kathleen - Thanks for the numbers break down and the other ideas for lenders, however, my question sort of still remains. If I don't have the credit score or money for my skin in the game, the lender is completely exposed due to my lack of experience and I would imagine would tell me, "thanks but no thanks." (I don't know that for sure, that's speculation) The only HML I've spoken with said they wanted at least 5% down because my credit wasn't good enough and I didn't have the $4,500 to get my skin in the game.

Jen - Thanks for your advice. It appears all agree that my strategy should be to wholesale first instead of buy and hold. Now I just have to figure out how to wholesale with very little risk. I'm going to re-read 30 Days to Real Estate Cash to see if there is something I'm missing.

Update:
Tammy - Thanks for the motivational response. It was very inspirational and thought provoking. It looks like I need to get out there and start doing the uncomfortable, start failing... so I can succeed.

Again, thanks to everyone for taking the time to read my rant and respond with your advice.

I just love it. Nothing but helpful information and insight. Uplifting and encouraging direction and guidance. Perfect.

I had purchased a copy of the 30 days to fast cash and then when I went to the EDGE 12 event Dean gave everyone there a copy. So I have two and I have read both of them cover to cover, turned down page corners and hilited and underlined in red, put check marks and stars or big dots next to important items. Well anyway it is right up there with the Holy Bible which is in fact the greatest success book ever written. I want that information to be so imprinted within me as I transform myself that I can not go wrong. I will fail and I will make mistakes but that will take me to success. Dean gave us the blueprint so all we have to do it follow it to the letter, be teachable and just do it. I am talking to myself as much as I am talking to you. I believe in you and I believe in me. I believe in us. Thanks for starting this thread. We can all learn something from each other no matter how new or how seasoned we are.

"AMEN"

It was actually entertaining and informative reading all your post. I do have a question for Tammy. You said your first deal with a hard money lender was horrific. Did the end buyer not pull through? Did you have to loose the property to HML? or did you loose out most on your profit? These are the fears I have once I start working with a money lender so I would like to know how you got through this, if any of these was the problem. What happens if the property is not sold during the time frame of the hard money?

about HM Lenders. Seems there are true hard money lenders and then there are BROKERS of HM Lenders. I was informed/advised to go directly to the actual lender!
Just a heads up on HML. FYI. Buyer beware.