Other Peoples Money

- Conventional loans- Seller Financing- Private Money- Hard Money- Business Lines of Credit- among others

There are also other sources that one can be creative with:- Rental Deposits- Real Estate Agent’s commission- Notes- and many more…

It is important that every wealth builder understand Other Peoples Money and the legal aspects of OPM. When I was was starting out in investing, one of my New Year Resolutions was to master 3 of the above sources of OPM in a 12-month period. It was the absolute BEST thing I ever did!

Now, I have used every single source of Other Peoples Money above plus a lot more.

The CHEAPEST source of OPM is SELLER FINANCING (it is not uncommon to get 0% interest!).

The EASIEST source to QUALIFY for is SELLER FINANCING (many times, no one checks your credit).

The 2nd CHEAPEST source of OPM is CONVENTIONAL FINANCING (as far as interest rates).

The fastest one to make you a MILLIONAIRE over and over again is PRIVATE MONEY (if used right).

The FASTEST one to close on a real estate deal is SELLER FINANCING followed by HARD MONEY.

The fastest way to $1 Million is to borrow $10 Million (or however much to make the $1 Million).

In future posts, I will touch on some of these sources, but here are things to think about:

1) Know what the LEGAL ASPECTS of each are. Whenever you are dealing with OPM, The SEC (Securities and Exchange Commission) comes into play. You always want to comply with the SEC!

2) Anytime you talk about other peoples money, you are talking about LEVERAGE. So study LEVERAGE first before getting into OPM. I have supplied you FREE videos on “Financial Leverage” on this site. Click on the “Financial Leverage” on the right hand side.

3) No one source of OPM is perfect for every deal. Understanding when to use what is important.

What are some of the OPM sources you should focus on? I cannot tell you, each of you are different. It varies so much on where you are in your investing, what you are doing, and what you are comfortable with.