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There is a situation that we all run into sometimes. You have, you believe, a good deal on hand, but you don’t have any money to make an offer. And this is after you called everybody you could think of - hard money lenders, banks, family.

First, ask yourself why everybody is turning you down. It is either the people you are trying to get money from do not have confidence in you, or your credit isn’t good enough, or it is not really a deal (How do you know you have a deal if you don’t have a buyer?)

Normally, if it is truly a deal, the banks and hard money lenders should not deny you a loan. If they are rejecting you, it means somehow you don’t meet their standards. Maybe there is another way to structure the deal or offer some kind of collateral to make the lender more comfortable or get your family and friends over their fears.

So how can you do a deal when you don’t have the credit to borrow and you don’t have any cash? I do have a few suggestions as I have been in that boat before - all successful investors have been there.

1. I don’t believe you have talked about money to absolutely everyone you could find. Sit down and make a list list of everyone you know who may have money to lend i.e. doctors, lawyers, etc., and don’t forget that everyone you know knows someone else who has money. Even if in the end you don’t find the money for this particular deal, it is a useful process that may bring up a contact or give you useful ideas.

2. Financing a deal may not be a right thing to do in this situation. Structure the deal where you can control the house for a little while until you sell it. You can always put the property under contract - only risk a small amount of earnest money - and have 30 days to find a buyer for it. Then either assign the contract or double close the deal.

3. If you just starting in real estate, the deals may not be what you should be doing. You may want to start out bird dogging, finding deals for the investors in your area right now while you build your contacts and develop your relationships.

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