How would you like to be WAYYYY better than Donald Trump at lending money in the real estate sector? If beating a billionaire at his own game sounds good to you, then you’re going to love today’s episode. I’m Carole Ellis. This is Episode 63.
So how would you like to learn how to lend money in real estate for way better returns than Donald Trump is getting in HIS most recent lending foray, and without having to be a billionaire first to get started? I’ll tell you all the details in just a minute, but while we’re on the topic of everyone’s favorite (or favorite to hate) republican presidential candidate, I’ve got some other interesting news to share. The Donald is starting to see some fallout from his outspoken ways that never really bothered anyone before he took on the 2016 presidential race, and a certain high-profile owner of a certain condo in TRUMP PALACE has announced he’s dumping his property and taking a loss just so he can stop (and I quote) “spitting” every time he “hears, sees or says” the name of his home, Trump Palace. “Frankly, I’m running out of Trump spit,” the angry owner said. Find out who is selling and just how deep the discount is in our News & Networking Section at www.rei.today.
Now, let’s get back to being much better than Trump when it comes to lending money, even if you don’t have your own billions to lend. Here’s what’s going on:
Trump recently made headlines because he is lending millions and millions of dollars that he never expects to be repaid on. In fact, he’ll ruin his reputation if those loans make good. The “fine print” of this matter? (because you’re right, this doesn’t sound quite like the Donald we know and either hate or love)…He’s lending it to his own presidential campaign! Media outlets went NUTS when it came to light that Trump was lending his “self-funded” campaign money, speculating that he’d use donor money to repay those loans at a later date. However, Trump is actually doing the same thing that Mitt Romney and even Steve Forbes (of Forbes Magazine) did during their presidential campaigns, and it’s commonly accepted that although you structure the funding as a loan, you DO NOT pay it back, although obviously you hope somehow it all works out to the good (which it didn’t for Romney or Forbes, you might remember).
So anyway, it’s well and good for Trump to make loans he’ll never collect on, but wouldn’t you like to participate in a billion-dollar lending industry (even if you don’t have billions to lend) and MAKE money back? Of course you would! And one of the best things about getting an “in” in this particular sector is that not only can you fund other people’s transactions (you’ve heard of OPM, other people’s money, well I like the idea of making a profit on OPT as well – other people’s transactions!) but you can also leverage that lending ability and knowledge to fund your own deals as well.
Anyway, I love this idea and I bet you do too, so I interviewed creative financing and real estate expert Lee Arnold to get some more insight on the topic. Lee not only is an active real estate investor, but he can secure capital on just about any type of investment deal that you can come up with (obviously, as long as it’s a GOOD DEAL, right?!) He has been putting together packages of real estate deals and other land transactions for years and working with hundreds of other investors to fund those deals, and in fact he mentioned during our interview that he’s presently seeking more deals because he has money SITTING AROUND that would be far, far more productively leveraged if it were out there funding deals instead stagnating. So you can see, he’s a pretty good source of information for GOOD types of lending practices instead of the kind where you know in advance you won’t get paid back!
Anyway, Lee described four what he called “perks” of brokering loans, which means basically bringing good deals and the money to fund them together. First, he said, there’s no license required. “You don’t need a special finance degree or years and years of experience to get started,” he explained. So brokering is fast. I do like that.
Second, brokering-generated income doesn’t come with lots of responsibilities. Lee actually compares it to other forms of passive income because, as he said, “there is no ongoing, residual services necessary.” Of course, if you’re bringing in your OWN deals, you’re going to be handling the real estate side of things as well, but if you’re just out to get in the middle and make money off that OPT (other people’s transactions) then you don’t have any responsibility past putting the lender and the deal together – and they pay really well for that, as you’ll see in a next.
Third, there is HUGE (yep, that’s a tribute to Trump) income potential! Lee said that one of his best brokers actually generated about $200,000 over the past two years, and he’s not even doing this full time. He’s just using the broker fees to expand and grow his own real estate business.
And fourth, there’s no selling. In fact, it’s kind of the opposite of selling because people will be BEATING DOWN YOUR DOOR once they find out you have funding. “Once I was teaching at a live event and in between the time I broke out my top 10 Craigslist ads for brokers to use and the end of the session (about 90 minutes) one student had posted an ad on the local craigslist and generated several viable leads! People want and need funding,” Lee said.
Now, when you make money in lending, there are several points in the process where there are payouts made. Understanding these will help you see how you can beat Trump’s lending method for his presidential campaign (which is basically get paid NEVER) all to pieces by getting paid at least once, and maybe even twice depending on the deal! Lee explains exactly how this works, where to look for profits and how to find the best deals whether you invest in real estate already, want to start, or never want to lift a hammer or sign a closing doc, by getting involved in brokering funds. You can get all the details at www.rei.today/paidtwice – I picked that because some investors actually get paid twice on their deals! – but space is limited so please do not wait to check it out. That’s www.rei.today/paidtwice (no spaces just PAIDTWICE) to get all the information.
If you want to check out the visual diagram for Lee’s PERKS of being a broker (and view his “Secret Fifth Perk” as well, once you get registered head over to the REI Today Vault to view that diagram. Not yet a member? You know I’ve got you covered! text REITODAY no spaces, no periods to 33444 and I’ll immediately send you the information you need to get that access and ALSO provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.