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How did real estate tycoons like Donald Bren & Donald Sterling buy large amounts of real estate? How, exactly, did they get the huge loans?
- loanmasteroneLv 74 years agoFavorite Answer
You do not start out being a rich real estate tycoon. You slowly build into this position. Being a real estate investor is like being in any other career field, you do not start at top. You have to crawl before you walk. In other words you have to pay your dues.
You start out by the purchase of a single family property.
You would have a plan to flip and sell some of the investment properties you purchase and some you would keep for passive income and wealth building.
Eventually, over time, you would be able to purchase 5-6 commercial rental for your portfolio and wealth building.
In most instances, by the time you have reached a certain level of income, you would want to protect your self and form a corporation of some type to legally protect your investments.
Over time and with careful financial planning you would be able to borrow money from banks you deal with to purchase investment properties.
In order to be a successful real estate investor you are required to educate and be knowledgeable about the real estate investment field.
Purchase several books on the subject of real estate investing.
Buy and read as many books as you are able in order to learn the various investment vehicles and techniques used to obtain these investment vehicles.
The books will give you ways of raising money for real estate investments, as well as an idea as to which investment you would like to pursue.
You would be able to purchase these books from your local book store as well as Amazon. You would want to keep your library current so, buying the latest books keeping abreast of the current trends would be to your benefit.
A. Distressed property
B. Foreclosure property
C. Short sales
D. Probate properties
E. Wholesaling real estate
F. Flipping properties
G. Structuring the purchase of property, so as to use as, little of your money as possible. (There are many techniques in doing this. You need to learn about 2-3 that you would be successful at doing, and is able to do in your sleep.
Some of these books would have a few forms you are able to use in the buying of investment property or making a decision if you would profit by buying a property.
In some cases you might be required to edit or alter some of these forms to fit your situation.
#2. Real Estate Investment Group
Join a local real estate investment groups.
Being a part of the local real estate investment group would give you first hand knowledge of individuals that have purchased real estate investment properties. You could possibly find a mentor that would assist you in the buying of properties. The real estate investment group members would validate the information you would learn in your books.
This group would also be instrumental in informing you of alternative means of obtaining investment funds.
There are many techniques where you would need little if any of your money to purchase properties to flip or use a rental to get passive income. You would learn how to use the :subject to the existing mortgage loan, controlling the property with a few hundred dollars and wholesale it to other investors.
Making a contract that allow you to do the rehab work, and not paying on the mortgage until the rehab work is complete and you would then pay anyone you owe once it is sold.
You would have to Google for this real estate investment group followed by the city and state in which you reside and want to invest.
I hope this has been of some benefit to you, good luck.
- linkus86Lv 74 years ago
Leverage. They attain the large loans by leveraging their other assets as collateral. In addition not all of the capital comes from loans but other investors who want a taste of the return on investment they are after, including venture capital companies who set the terms how the money is to be used and paid back.
- RobtLv 74 years ago
How exactly ?
Seriously kid we don't have a clue obviously.
Do you know what where how to use libraries in ur area?
Plenty of books(biographies) about successful people.
Go do ur own research there.