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When people think about investing, they often consider options like stocks, bonds, and mutual funds. However, another powerful investment avenue that many overlook is real estate. Let’s dive in and learn more from Dave Debeau and Matt Theriault, seasoned experts in this field.
Investing in real estate with little or no money may seem like an impossible dream for many. Yet, Matt Theriault has accomplished this and made it a teaching point for others. His journey from bagging groceries to real estate wealth shows how people can overcome obstacles with determination and the right strategy.
Matt’s real estate career started with no capital at all. He relied on creative strategies, such as seller financing, lease options, and using other people’s money to purchase his first properties. This allowed him to acquire properties with minimal personal financial risk while benefiting from the property’s potential appreciation and rental income.
One of the keys to Matt’s success was seller financing. Seller financing is when the seller of a property provides a loan to the buyer to complete the purchase. This deal requires great trust between the buyer and seller but can open doors for those with little to no capital.
Another aspect of Matt’s investment strategy was using other people’s money. This may sound sketchy initially, but it concerns forming partnerships and borrowing funds. This allows you to invest money while sharing possible gains and losses.
Lease options were also an essential part of Matt’s strategy. With a lease option, you lease a property with an option to buy it before the lease expires. This strategy allows you to control a property and earn rental income even if you haven’t fully purchased it.
Actionable Tips from Matt
- Start Small: Matt suggests beginners start with small properties. This way, the risks are manageable, and you learn how the market functions.
- Learn the Market: According to Matt, understanding the local real estate market is vital for success. Gather as much information as possible about property values, rental rates, and market trends.
- Build Relationships: Networking is a vital element of real estate. Building relationships with other investors, real estate agents, and potential partners can open new opportunities and offer valuable advice.
The pathway to real estate investment may seem arduous, especially for those starting with little or no capital. However, as Matt Theriault’s journey indicates, it is entirely feasible. It requires discipline, creativity, and a willingness to seize opportunities despite risks.
But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.
Meet the Experts: Dave Debeau and Matt Theriault
Dave Debeau has a deep insight into real estate investing thanks to his long-standing career. A highly regarded expert, he is often called upon to share his expertise and knowledge with those eager to delve into real estate investing. He brings extensive experience, countless successful transactions, and a genuine passion for helping others succeed.
On the other hand, Matt Theriault is a well-known figure in real estate investing. A born entrepreneur, he came into the field with little money yet an unwavering determination to make a mark. Today, he stands as a testament to what can be achieved with the right mindset, demonstrating that overcoming challenges is possible and the stepping-stone towards success.
When these two giants of real estate investing come together, the knowledge sharing is truly immense. They have joined hands on several platforms, sharing their unique insights and experiences with listeners keen to learn and apply their wisdom. Today’s episode is just one such instance, where they discuss ways of clinching your first real estate deal without a vast reservoir of money to boot.
Their discussion centres around key strategies, actionable advice, and real-life examples, demonstrating that anyone with the right attitude and the hunger to learn can make it big in real estate. So, gear up for an enriching episode steeped in practical knowledge and trade secrets that could set you on the path to financial freedom and success.
Understanding the Basics: What is Real Estate Investing?
Real estate investing involves purchasing, owning, managing, renting, or selling real estate property for profit. Unlike stock and bond investors, prospective real estate investors rely heavily on cash inflows from rental income, appreciation of the property over time, and profits generated by business activities that depend on the property. The fundamental goal of real estate investing is to put money to work today and allow it to increase so that you have more money in the future.
There are varying types of real estate investments, each with unique benefits and drawbacks. Let’s consider some of the most common types:
- Rental properties: These are properties that are purchased and leased to tenants.
- Real estate investment groups (REIGs): This can be likened to a mutual fund for rental properties where an investor can own one or several units of living space.
- Real estate trading (or flipping): An investor buys properties to sell for a profit.
- REITs: Real estate investment trusts are like mutual funds but are for commercial real estate.
Real estate investing plays a significant role in an investor’s portfolio since it protects against inflation. While an investment in real estate has risks, it can yield substantial rewards. It can produce income through rent and is a tangible asset that can be appreciated over time. In addition, as with any investment, the potential returns must be weighed against the potential risks.
“Real estate investing is essentially about buying property and then making it work for you,” says Matt Theriault. “It might be renting it out, flipping it for a quick profit, or holding onto it for long-term capital appreciation.”
Tip: Why Real Estate is a Great Investment Opportunity
In the podcast episode, host Dave Debeau invited Matt Theriault to share his insights into real estate investing. Their conversation focused on the idea of how one can get started with little or not much money.
According to Theriault, the key to real estate investing doesn’t always lie in having plenty of money. Instead, it’s about being resourceful, diligent, and strategic. He described some practical strategies to attain this goal:
- Wholesaling: According to Theriault, this method involves finding deals, getting those deals under contract, and selling that contract to another investor.
- Rent-To-Own: Also known as lease options, this method allows one to control a property without owning it outright.
Theriault explains, “It’s not about having resources but being resourceful. And these methods allow you to do exactly that.”
Summarizing the method, Theriault emphasized the importance of patience and diligence in your investing journey. He said, “Everyone starts at the same place, at zero. It’s about taking that first step.”
He also mentioned that new investors should focus more on gaining knowledge and experience first than making huge profits.
Dave Debeau and Matt Theriault have shown that getting your first real estate deal done with little or no money is definitely within reach with the right strategies.
Common Mistakes Success Stories: Real People Who Started with Little or No Money
On the show with Dave Debeau, Matt Theriault shares real-life success stories from individuals who embarked on real estate investing with little or no money. These stories are inspiring and offer valuable lessons for newcomers in real estate.
Story 1: The Risk-Taker
The first story revolves around a woman who dared to enter the real estate industry without prior experience or substantial money. She used her strong negotiation skills to convince property owners to sell their properties. Despite struggling initially, she stayed persistent, constantly learning from her mistakes.
Lesson: Theriault points out that her journey emphasizes the power of persistence and the willingness to take calculated risks.
Story 2: The Creative Problem Solver
The second individual brought into the light by Matt was someone who didn’t have ample finances but had an excellent problem-solving skill set. By creatively dealing with property issues, he was able to generate income from real estate deals that others deemed unfavourable.
Lesson: Matt suggests that this story illuminates the significance of creativity and problem-solving skills in the real estate market.
Story 3: The Planner
The last story presented by Theriault was about a woman who methodically planned her entry into real estate. She saved up, evaluated her options, and, most importantly, established a solid plan before investing.
Lesson: Matt emphasizes the importance of planning and preparation in this story.
Through these compelling stories, Matt Theriault and Dave Debeau outline that having little or no money isn’t a deterrent to launching a successful career in real estate investment. With the right skills, planning, and determination, success is attainable.
Getting Your First Deal Done
Getting your first deal done in real estate investing is often the most challenging yet fulfilling. Let’s learn from Matt Theriault, a seasoned real estate investor and Dave Debeau’s guest on the podcast.
| Key Takeaways for Your First Real Estate Investment Deal |
|---|
| 1. Recognize the Value of No Money Down Deals |
| 2. Master the Art of Finding Deals |
| 3. Network And Build Relationships |
| 4. Learn to Negotiate |
| 5. Understand the Importance of Due Diligence |
| 6. Create an Action Plan and Implement |
According to Matt Theriault, “nothing down” deals can open up opportunities for aspiring investors who may not have large amounts of capital. It’s crucial to remember that everyone started from somewhere, and even with little or no money, there’s always a way to get involved in real estate investing.
Finding the best deals in real estate is an art mastered by constant practice. It’s not merely about using online tools but finding unique sources that are less obvious. Patience, research skills, and determination are crucial.
Matt further emphasizes the importance of networking, implying that, in many cases, it’s about ‘who you know rather than what you know.’ A vast betting network can unveil hidden opportunities inaccessible to the general public.
Effective negotiation is vital to acquire as you delve into the real estate investment world. Nurturing this career will not only help you get your first deal; it’s a lifelong tool.
Before signing any deals, you must conduct thorough due diligence. Verifying all the information given to you and ensuring the property is a good fit for your investment portfolio, there’s no validation like your own.
Lastly, Matt advises creating a robust action plan outlining your steps towards your first deal. But it’s equally crucial to implement your plan. Action is always the key to success in any investment journey.
Conclusion: Taking Action and to Avoid for New Investors
In this segment, Dave Debeau delves deeper into the fundamental tactics that Matt Theriault expertly applies to close real estate deals with no previous experience or money. They emphasize the need for the right mindset, a disciplined approach, and avoiding pitfalls that could derail an investment opportunity.
Matt Theriault underscores the need to have a success-oriented mindset. While real estate investing might appear daunting, he encourages listeners to maintain positivity. He stresses that challenges are part of the journey, and overcoming them is what makes a successful investor. Dave Debeau and Matt Theriault agree that the attitude of embracing obstacles head-on can be a game-changer.
Investing isn’t a get-rich-quick scheme. It demands discipline and strategies. Matt shares valuable insights, suggesting beginners stay patient and consistent throughout their investment journey. Remember that financial freedom isn’t achieved overnight – it involves careful planning and execution. Listening to expert advice and following them diligently can lead to the path towards a rewarding investment career.
Beware of common mistakes that could harm your investment. Matt underlines the importance of avoiding overcomplicating the process as a newbie. Simplicity is key. Stay grounded, learn from your mistakes, and never lose sight of your mission. They further stress that getting misguided by short-term gains may lead to potential pitfalls. It’s essential to remain focused on long-term financial goals.
With these valuable takeaways from Matt Theriault and further elaboration by Dave Debeau, you can take your first step in real estate investing. Becoming aware of what to embrace and avoid might be the perfect recipe for a successful first deal.
If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.