Deja Vu All Over Again

It’s DeJa Vu All Over Again…

and It’s Time to Make a Change

by Larry Harbolt

Here we are in what I believe is going to be a bumper year for real estate investors. That is, for real estate investors who decide that they need to change the way they are trying to buy houses in this current market where affordable financing is scarce to non-existent.

Did you see the movie Groundhog Day? In the movie events kept repeating themselves over and over. Today, I am seeing this very same thing happening to real estate investors. Many investors today are still trying to do exactly what they did in the past and it still isn’t working for them. Most of these investors lack the ability to borrow money. Many of these beginning investors are struggling to make a little money, and most are just going through the motions of what they were taught by some guru.

I just spent 5 days teaching with Robyn Thompson at her Junkers to Millions boot camp and I was amazed to hear from her students who were totally unaware of any method of buying houses other than getting institutional financing. I discussed this with most of her audience during my time at the boot camp and found that over 75% of those attending were unable to get any type of institutional financing for one reason or another. Does this sound familiar for you too?

Those I talked with said they either had credit issues or just didn’t have access to people who would help them finance their deals. This is a real problem for beginning real estate investors. If they don’t have access to money, how can they make offers to buy a property contingent on getting some form of financing when they know they won’t qualify if their offer is accepted?

I remember in the early days of my investing career when I had no money to invest and my credit was far, far less than good. I would make an offer to buy a house contingent on me getting some kind of financing to close the deal -- which I knew I couldn’t make happen if my offer was actually accepted. I would make offers then sit up most of the night praying that the seller wouldn’t accept my offer because if he did, I couldn’t get the money I would need to close the deal. I’m sure this has happened to some of you.

One thing I know for sure, money is not available to everyone who wants to be a real estate investor. Because of this fact it’s time for those who don’t have access to money and who have damaged credit to look at some different ways to buy real estate that aren’t dependent on qualifying for an institutional loan. The lender is going to want to see income tax returns from past years, income verification, and run credit checks to see your credit score and income-to-debt ratio.

How about this? How about looking at ways to buy houses where those things won’t be an issue? How about learning how to make offers directly to the sellers that give the sellers what they want even if you aren’t able to get any type of institutional financing? Yes, believe it or not, many sellers do not want all of the money all at once when they sell their property. Some of these sellers really want a check coming to them every month to help subsidize their meager pensions or their income.

The successful real estate investors I personally know who have created huge abundance for their family have done so without the use of institutional banks or lenders in almost all cases. They made their money making payments directly to the sellers every month for up to thirty years or by borrowing money from financial friends who have a large pension plan or a Roth IRA. Remember one thing: there are many, many ways to buy a house when directly dealing with sellers.

Investors who make offers contingent upon getting institutional financing offer to pay a specific amount of money. If the seller rejects their offer to purchase, the buyer usually increases their all cash or financed offer a small amount. If the seller again rejects their offer most investors simply go away and forget the deal. When you are directly negotiating with the sellers, there are many, many ways to make an offer to the sellers other than paying all cash.

If you would like to learn more about how to buy real estate in ways other than being forced to get some form of institutional financing, I have a solution for you.

On Tuesday, May 12th, I’ll be speaking on Seller Financing at the West Florida REIA monthly meeting. The meeting is held at the Sarasota Association of Realtors, 2320 Cattlemen Road and starts at 6:30 pm.

You can find more details and register to attend at

May Monthly Meeting

Go to LarryHarbolt.com where you can find multiple courses that will explain how you can be a successful real estate investor without banks and get started building your real estate fortune starting today.

When you don’t need to get institutional financing there is a better chance you can make deals that will be better for you and hopefully good for the seller without the scrutiny banks put you through to only to later deny your request for a loan in most cases.

Happy Investing,

Larry