Table of Contents
Foreword 12
Introduction to the 2nd Edition 15
Chapter 1 The Art of Creative Real Estate Investing 18
Who Am I? 19
It's Not About Being Broke or Irresponsible 20
This Book Is Not About Getting Rich Quick 20
Who Is This Book For? 21
You CAN Afford It 21
Should You Really Invest with No Money Down? 23
The Four Rules of Creative Investing 24
No Money Down: Myth, Scam, or Secret? 27
Having the Right Tool for the Right Job 28
What to Expect in This Book 29
Will Ali These Strategies Work for Me? 29
Chapter 2 Owner-Occupied Investment Properties 31
What Exactly Are We Talking About? 31
FHA Insured Loans 38
The 203k Loan 41
Summary of the 203k Loan 46
The VA Loan 46
USDA Loans 47
Wrapping it Up: Owner-Occupied Investment Properties 51
Chapter 3 Partnerships 52
Let Me Introduce You to "Bob" 53
Building Your Brand 54
How to Work with Bob: Four Strategies 57
Dangers and Pitfalls of Using Partners 64
Wrapping it Up: Is a Partnership Right for You? 67
Chapter 4 Home Equity Loans/ Lines of Credit 69
Where Do I Get a Home Equity Loan? 70
Risks and Drawbacks to Using Home Equity 77
Wrapping it Up: Home Equity Loans and Lines of Credit 80
Chapter 5 Strategies for Using Hard Money 81
What Is Hard Money? 81
Trouble on the Horizon 85
Will a Hard Money Lender Fund the Entire Purchase Price? 86
Wrapping it Up: Should You Use Hard Money? 91
Chapter 6 Raising Private Money to Fund Your Deals 92
What Is Private Money? 92
Who Are Private Lenders? 94
How to Find Private Money Lenders 94
How to Talk with Potential Lenders 97
Meeting with Your Potential Private Lender 98
Getting Your Private Lender to Commit 100
How to Structure Your Private Loans: Interviews with Four Real Estate Investors 101
Legal Issues with Raising Money 111
Risks and Drawbacks to Using Private Money 115
Wrapping it Up: Should You Use Private Money? 116
Chapter 7 Lease Options 117
What Is a Lease Option? 117
Why Use Lease Options? 120
No Money Down investing with a Lease Option 122
Risks and Drawbacks of the Lease Option 132
Wrapping it Up: Lease Options 134
Chapter 8 Seller Financing 136
What is Seller Financing? 136
Why Use Seller Financing? 139
Three Ways to Find Seller-Financed Deals 144
Risks and Drawbacks of Seller Financing 145
Seller Financing Doesn't Mean "Buy a Bad Deal" 146
Chapter 9 Real Estate Wholesaling 147
What Is Real Estate Wholesaling? 148
Example of a Wholesale Deal 149
Real Estate Wholesaling 151
Does Wholesaling Require Money? 151
Marketing for Great Deals 152
Is Wholesaling a Job or Investing? 156
Wholesaling Math 158
The 70 Percent Rule 163
Estimating Rehab Costs 168
The Difficulty of Being a Wholesaler 171
Making Your Offer and Negotiating with Sellers 172
Finding and Working with Cash Buyers 176
Legally Putting Together a Wholesale Deal 183
Wrapping it Up: Wholesaling 187
Chapter 10 Syndication 188
The Organizational Structure Of A Syndication 189
Syndication Fees: Making Profit Before Profit Is Made? 190
Can You Really Syndicate With No Money Down? 192
How To Find Limited Partners For Your Syndication 193
The Legal Side Of Syndications 194
Putting It All Together: Your Syndication 197
Chapter 11 Creative Combinations 202
Wrapping it Up: Where to Go Next? 206
Final Thoughts 207
Bonus Chapter Even More Inspiration 208
Paul Savage 208
Miguel Palos 209
Shawn Rea 209
Pete Osceola III 210
Lauren Griffin 210
Kelly Cook 211
David Pere 212
Christian Hall 213
Cody Stegeman 214
James Baker 214
Jon Huber 215
George Iliev 216
