Let's Be Creative...How Would You Make Money? - Posted by Zach

Posted by Sterling on February 21, 2005 at 02:03:55:

Oh, I got the point all right. You just don’t get the joke.

Let’s Be Creative…How Would You Make Money? - Posted by Zach

Posted by Zach on February 19, 2005 at 08:49:24:

I want to understand how different people see opportunities to grow money faster than the average person.

If you had almost no money and nothing to borrow against how would you begin to build some money up (besides a job)?

Okay, now how about if you were a lot better off. Say you had $30,000 to start with, how would you grow that as fast as you can?

Now for the last one, lets say you lived free and clear in a home worth $120,000. You had no extra money but you could borrow against all that equity, what approach would you take?

I think if any of you readers make posts on this it would help me become more creative, as well as help give other readers ideas to help themselves. I’m not neccesarily asking for posts just on real estate investing. I have read through this site and the archives many many times, and have a lot of good information already. I just thought this type of post may help even a little more. Any ideas would be great.


Money is everywhere - Posted by Briton (IN)

Posted by Briton (IN) on February 19, 2005 at 15:13:35:

First read Rich Dad Poor Dad.

Money is everywhere! Money makes the world go around. Learn to take problems and turn them into CASH!

Let me give you an example. Everyone who is married understands that you always have to be thinking about the other person, their feelings and needs. My wife and i both had dogs when we grew up. But as part of our commitment to be rich asap, we have vowed not to get one yet.(actually its a little more my doing:)

My wife tells me at several times a month she wants a dog. She wants the company and comfort when i am gone.

In the winter i have much extra time because i do not have to mow and do all those other summer maintanance things. So one night she brought up how she wished she had a dog and BAM! something came to me.

By the end of the night we had cards made out. They are about 3x3 and state that we will pet sit, house sit, child sit for parents who want to get away for the weekend (my wife also loves kids and is a teacher), tutor, and so on.

We then took these cards to my father’s office and put them on his desk and the waiting area. (my father is an accountant and has about 15 people in there everyday until april 15th) Now this may sound dorking to some people, but the jobs(for lack of better words) are rolling in.

We just got a call last week to watch 3 kids and a house for a long weekend. They want us to stay at the house. We will get a few hundred bucks, eat at their expense, use their utilities, ect. All while doing things we have in common.

Pet sitting is our favorite. We allow them to come to our house and its FUN! And very profitable. People who love their pets will pay good money to have them in a loving home as opposed to being in a cage at a kenel for a week.

I have floated threw my short life never knowing what to tell people I do for a living. I think of telling them I look for opportunities, but they would not understand that.

The money you seek may be right under your nose. It may be easy to find, or even fun!

Good luck in your venture, Briton (IN)

Re: Let’s Be Creative…How Would You Make Money? - Posted by Tarheel T

Posted by Tarheel T on February 19, 2005 at 14:24:48:


I think that the key for each scenario that you present comes down to one thing…finding “deals”.

As you might have read, once you find a real deal the money to do the deal should not be difficult to find.

So whether one has no money or a credit line of $120,000 without the deal itself the money (or lack of money) is not terribly important.

Find deals first and the money will follow.



Great post! - Posted by Anne_ND

Posted by Anne_ND on February 19, 2005 at 17:13:52:


I love your solution. I may have to adopt it. I used to dog-sit for a black lab when my friends were out of town. My cats would chase that poor dog around for hours, everybody had a great time, especially the cats. Thanks for the good idea, we can’t get another dog yet and this will take care of those ‘I want a puppy’ feelings.


Re: Let’s Be Creative…How Would You Make Money? - Posted by Sterling

Posted by Sterling on February 19, 2005 at 18:47:56:

“Find deals first and the money will follow.”

I see that statement a lot, on web sites and in books. The trouble is
that NOBODY ever says just how the money is going to follow. So
you’ve found the deal but you have no money. Now what? I think it’s a
foregone conclusion that the bank is not going to lend it to me. That’s
the essense of DOW. Bank’s don’t finance MHs.

The implication is that if you don’t know how to find the money then
you’re some kind of cretin. That’s insulting.

Cats chased the poor black lab!!! NT - Posted by Briton (IN)

Posted by Briton (IN) on February 19, 2005 at 23:18:02:


Re: Let’s Be Creative…How Would You Make Money? - Posted by Chris (WI)

Posted by Chris (WI) on February 19, 2005 at 21:03:21:

I have listened to a lot of Brian Tracy tapes over the years and have found his information very valuable. One of the principles he talks about is boldly launching in the direction you want to go even if you don’t have all the answers yet. He equates it to looking down a long hallway. On each side of the hallway there are doors of opportunity and doors with people and resources that will come to your aid. But, you can’t see any of them until you launch yourself down that hallway as if it were impossible to fail. If we all had to have all the answers before we started none of would have ever started! Another thing he talked about was failure and that it is an essential part of success. He qoutes an interview with Thomas Watson (founder of IBM) and the question was asked “How can on become more successful faster?” and the answer was “Double your rate of failure” I don’t think he was advocating intentional failure or self sabotage, I think he meant try more things more often. Finally, I got a recommendation for a book that I found very very helpful, it is called “Your Best Life Now” by Joel Osteen. Good luck.

Re: Let’s Be Creative…How Would You Make Money? - Posted by ScottS(NC)

Posted by ScottS(NC) on February 19, 2005 at 20:04:29:


TarHeel T is exactly right! If you find a truely good deal and you Really try, you will find the money. Land homes, that are a great deal, are EASY to get financed. I have several banks that will do these deals hardly even looking at anything other than tax appraised value, versus what I am paying. When they see the 50% or so LTV they love these deals, and will do them all day.

As far as Lonnie dealing, you only need a couple grand!! Do you seriously want me to believe that you can in no possible way, come up with a couple thousand from ANY source in your life. If A great deal is available and you try you will be able to do the deal. This has never failed me! I started with nothing, getting out of the USMC with the clothes on my back. I still found money for Lonnie deals(borrowed). Could I have done a huge deal then, probably not because my thinking wasn’t big enough or positive enough yet.

Sterling, you must think of the glass as half full always! When your glass is half empty you become imbittered and find negative reasons the deal will not work. I assure you, nobody is a cretin! Your mind will allow you to make the deal work or not. Its your choice, the words that fill your mouth and mind will dictate your reality on all levels. Negativity is a crutch we can ill afford to lean on in this business! Take Care ScottS(NC)

Re: Let’s Be Creative…How Would You Make Money? - Posted by Tarheel t

Posted by Tarheel t on February 19, 2005 at 20:02:11:

Maybe you might just decide to take some action (ever heard of that?)and then you could say it doesnt work from experience, because if you believe something isn’t going to work you are usually right and if you believe it will work you will find a way to make it work.
I can see however that the action part is going to be your biggest problem either way.

Good Luck

the money will follow." - Posted by Steve-WA

Posted by Steve-WA on February 19, 2005 at 19:28:27:

well, my parents had a few thousand in a new car account at the bank waiting for a few years until they buy a new car - kind of a “mad money” account - - - two or three LDs worth.

I took a loan against my 401K for a LH deal.

Got any credit cards? We bought a condo in Hawaii with credit cards (thanks, Lori!)

Own a house? I bought my first LH w/ a 2nd mort.

There are usually friends or relatives willing to take a chance on you, if you are confident. Or there ARE hard money lenders who will loan against the property - don’t know about LDs, but I never asked.

Often, there are even people who post here who say, “I would just put up the money if I could find anybody who knew how to get the deals!” Check the archives.

And hey! Nothing wrong with being called a cretin! Business requires a thick skin, so buck up - - - we’re all cretins!

Actually I think it was consensual… - Posted by Anne_ND

Posted by Anne_ND on February 20, 2005 at 16:14:06:

…they were running in circles, it wasn’t clear who was chasing whom, but they all seemed to be enjoying it.

I have large cats.


THAT’S WHAT I’M TRYING TO SAY! Good post Chris - Posted by Steve-WA

Posted by Steve-WA on February 20, 2005 at 10:17:43:

you just said it shorter!


Re: the money will follow." - Posted by Sterling

Posted by Sterling on February 19, 2005 at 23:37:25:

OK, Steve. You’ve listed

(1)Raid parents savings account,
(2)Loan secured by 401K, (is that legal? It isn’t with IRAs.)
(3)Credit cards, (I have one, max $1,000 on cash advances.)
(4)Second on the house, (Wife has to sign, BIG problem.)
(5)Friends or relatives willing to take a chance on you,
(6)Hard money lenders.

Plus someone said that I could surely pull out at least $2,000 from my
own pocket.

To my mind none of these constitute “money that follows.” This is all
money that you can get up front before you even start looking. In
other words, with this money in hand, when you ask a potential seller
Lonnie’s favorite question “what is the absolute best cash price you
can sell the home for?” you know you can act.

“The money will follow” implies that you cannot ask that question
because you don’t have the cash. Or else you do ask it and then when
you make the deal you weasel word your way out of it, getting the
seller to take $100 for an option instead. (Called “carpet bagging”
where I come from.) Or are you saying I should make the deal, give
him $100 earnest money and then pray to God that can find the money
by Friday?

Re: Actually I think it was consensual… - Posted by Briton (IN)

Posted by Briton (IN) on February 20, 2005 at 19:49:20:

Pets are so much fun! My wife had a dog that was scared of the sound his feet made on a wood floor! That dog would not go on that floor for several months.

It been nice pet sitting. We have watched several different types, from large mutts, to 5 pound miniature dogs. Its almost like getting paid to test out different breeeds! My favorite is still Springer Spanials, i grew up with one so that may be part of it…I gotta stop talking about dogs now…back to MH"s…

God Bless, Briton (IN)

Interesting… - Posted by Zach

Posted by Zach on February 20, 2005 at 16:44:19:

Not quite the responses I thought I’d get for ways to build wealth…but very interesting. Thanks to all of you who’ve posted.


Cash Flow Management - Posted by Elizabeth (WA)

Posted by Elizabeth (WA) on February 20, 2006 at 01:25:50:

If you?re an able bodied adult with a job, and can?t get $2,000 together over the course of a year to do your first deal with, then you have personal cash flow management problems. I don?t care if you?re making minimum wage ? and chances are if you have a computer and an internet connection you?re not ? but even if you are, I?ve seen guys from Mexico with nothing to their name and not even knowing English save up impressive chunks of money by working hard, making sacrifices and pooling their resources with friends.

And if you have personal cash flow management problems, then you?re going to have business cash flow problems, and yes, real estate and mobile homes are just another form of business.

So instead of setting yourself up for a great deal of risk by borrowing it all and hoping for the best, why not first learn to manage money better, and then step up to the investing. Don?t try to run before you can walk. Investing is a process, and a process through which you will surely make mistakes in order to learn ? it?s not a magic cure or sudden wealth, or a solution to the rut someone has dug themselves into, as so many ?late ? night ? zero ? down ? real ? estate - course? buyers think.

Re: the money will follow." - Posted by Steve-WA

Posted by Steve-WA on February 20, 2005 at 10:01:26:

apparently, you are a bit defensive. “Raid?” Please.

Couple of points:

the saying that “$ will follow” implies that you are putting yourself out there to sources of money. You seem to want sources of money to seek YOU out. OK, the short answer to your original post, now that I think I understand it, is - it ain’t gonna happen; you’re right, go back to the TV.

Sterling, there are dozens of people within your circle of influence who have the following money, but they do not know of the opportunity you can offer. And they won’t if you don’t a) believe in it yourself enough to share it, and b) don’t share it with them. I can tell you from personal experience, and from the colleagues I have met through this business - once the belief is there, you can’t STOP telling people about it. In fact, one reaches a point where they have to make a concentrated effort to NOT babble on and on.

So get away from the mistaken perception of “money will follow” being independent of your effort.

Additionally, you seem to harbor ire regarding options. Geez, ever heard of an offer contingent on obtaining financing? Same thing. People do it every day - offer on a house, and then go find a loan. What is weaselly or carpetbaggy (mismetaphor, that) about that? You make it very clear to the seller that you will buy at X price by a certain date, or they keep your option fee. And after you wait for somebody with money to call you, (they won’t), then you don’t buy the property. The RIGHT way to do this is seed your garden before finding a deal. Look for sources of money first.

You say that there aren’t any. OK, you win.

Ooh, look! A “Friends” re-run.

My expereince with this - Posted by Dan (md)

Posted by Dan (md) on February 20, 2005 at 08:12:38:

I fit into your first two categories, I started just over two years ago with my own cash (around $5000), I used this to turn 6 Lonnies in 8 months, then I got a bonus at work that put me into your second category, but guess what? I knew what I was doing now, no more newbie mistake (and trust me I made every one of them) now I started to do 1 Lonnie every 3 weeks.

Now the contacts were really working for me (and btw, this is where the money comes from - determination, positive attitude, can do spirit, success in the business and CONTACTS) one of my contacts liked what I did and offered me $15,000 on very favorable terms (8% simple interest over 2 years) so I jumped at that and kept growing. 6 more deals later I had a dinner with one of my “alternate” movers (i.e. he was more expensive than my standard guy but when I needed something done quickly he usually would do it).

At this dinner I told him what I was doing, he looked at me like I was crazy but he saw my enthusiasm, he believed in me more than in what I was doing because he has been in this business for 14 years and had never seen anybody do what I was doing. He ended up writing me a check for $15,000 that night (the money is definately starting to follow now) without any paper work (I brought that up the next day) but more important than the money. He started to bring me HOMES…

true story…the next morning he called me while he was on the road “hey Dan, I have a home, where do you want it?” He did this everyday for a week. Needless to say, I was a bit overwhelmed. Then the mother load hit, my new partner got a contract to close down a park. 39 HOMES and I got everyone of them (we split the profits). He wrote me another check for $25,000 to get this job done. Now I had a full time partner with fairly deep pockets.

I have sold all but 3 of the 39 homes in just 5 months. I’m meeting with two couples this morning to show these last homes, they should be sold by the end of the week.

Yesterday I was sitting in an accountants office who has several very wealthy clients and several very good bank contracts. I have spent the last three weeks writing a business plan (btw this was a great experience, a lot of work, but well worth it). I’m currently asking for $2,000,000 and I KNOW that I will be able to get this because I have a good plan, a solid history, a committed business partner and the CONFIDENCE to make it all come together.

So that is what Steve meant by “the money will follow”

Dan (md)

Re: the money will follow." - Posted by Nathan_AL

Posted by Nathan_AL on February 20, 2005 at 24:03:49:

I don’t have anything else to add to this string except for: yes it is legal and practiced often to borrow against your 401k. I borrowed 9 grand against mine to pay off some high interest credit card debt. You a great interest rate… I think mine was 4% or so and you get the added bonus of basically borrowing from yourself and not paying someone else. Sorry, this is alittle long for not adding much to the conversation.