Using only your own resources you can only go so far. Learn to tap into other people’s resources and the things you can do are virtually limitless.

Love Money: It’s not what you think.

You likely have friends, family, and associates out there who want to see you succeed. They can back you up financially. Now before you get concerned that borrowing money could possibly ruin your relationship with them, it won’t if you approach it correctly. Guarantee them a rate of return that is acceptable to them and then offer a backup plan for paying them back in case things go badly on the deal (it happens–and make sure they know it happens and how you’re going to get their money back to them if it does).

Just be up front and honest in everything you do and you won’t have to worry about business hurting your relationships.

401K/IRA’s/Stocks: Do you know anybody who is tired of getting 5% in the stock market (or losing money) who might be willing to loan you that under-performing money if you could offer them, say, 12~20%? Like I mentioned in the last email, anyone can can self-direct their retirement plan and actually use that money to invest in real estate. Set things up right and they can invest and watch their investments grow completely tax-free.

Maybe others won’t trust you with their retirement money at first, but as the market tanks yet again and you get a couple of successful deals under your belt, they’ll come around. If you’ve got their trust and/or a great deal, retirement plans represent a huge source of money for you.

HELOC’s: Like I mentioned before, this money is just sitting there. If you can give someone you know a better rate of return than they’re paying when they take out a HELOC, then you’re showing them how to do what the banks do (namely borrow money at one rate and lend it out at a better rate).

Seriously–banks borrow your money and give you a savings account with 1% interest, and then they lend that money out to others at 6~10% interest. The spread is where they make their money and they’re doing very well at it.

Credit Cards: We talked about how a “15 months at 0% interest” card the same as a free loan (just don’t be late on your payments). Those credit card companies are chopping down trees to send you all those offers in the mail.

If someone you know can pick up a card for 0% interest and you can give them more than that on the money they loan you, it’s a good deal all around.

Give them a better deal

The fact is there are people that you know right now that are losing money in their bank accounts and in the stock market. If you can approach them with a solid plan on how to make them more money, they’ll jump at it. It’s good for them as well as you.

The first couple of times you do anything with anyone else’s money I would suggest, especially if they’re someone you know personally, you give them your assurance that you will pay them back no matter what. Even if things go wrong and you lose their money, tell them/put it in writing that, one way or another, you will get their money back to them.

This will not only help them feel better about investing with you the first time, but it will motivate you to make sure you know what you’re doing before you jump into a deal.

The good news is that finding money for your deals will get a lot easier as you gain a reputation and you get more confident in what you’re doing.

Gut Check:

–If you’re excited about these new possibilities and are already making a mental list of people who you could approach with your deals when you start finding them, you’re thinking outside the box.
–If you’re saying to yourself “I don’t think I could ever ask anyone else for their money” then you either need to change your thinking or perhaps you just need to feel more competent in what you’re doing.

The basic idea is that if you find a deal worth doing, there’s no reason you shouldn’t be able to find the money to do it. And it’s a win-win situation for everyone. You do deals you couldn’t before, and the people you partner with make more money than they would have otherwise. Get creative. Take some risks. Live life.