|It Takes Money To Make Money, And Other...Big Lies!
Whoever said it takes money to make money was someone trying to justify why theyíre broke.
It does not take money to make money, and Iíll prove it. Iíll give you a step by step plan to buy and
sell a house, even if youíre absolutely broke, have a negative net worth, no job, no friends, no
credit and just got pardoned from the state prison. The truth is, if you canít make money without
money, you canít make money with money!
When I started in 1982, I had no money or credit. I was broke. I had no credit cards, no
rich relatives, not even a wife working to support me. I was lying in the gutter looking up at the
curb. Iíd quit my job and burned the ships behind me. The only way out was to make it, or get another
job. I had a mortgage and bills just like everyone else, yet somehow I made it happen. I succeeded
in spite of the odds stacked against me.
You wanna know why? Iíll tell ya why! I succeeded because I had no money or credit!
Believe it or not, having money and credit when you begin your career as a real estate entrepreneur
can do you more harm than good. It can ruin you if youíre not careful. Having no money keeps you
focused on doing the deals that donít require money. If your credit sucks, like mine did, you canít
apply for bank loans. Therefore, you have inadvertently avoided the two biggest mine fields. Not
because you were so smart, but because you had no choice.
Whether you have money or not, you should learn to leverage your brain, not your wallet.
When you do that, having money becomes a non-issue because you donít need it to buy houses. If you
write big checks, youíre always worried about losing those checks. If you guarantee loans, you risk
everything you own. Do neither, and you eliminate your risk. I bet Iíve said those words a thousand
times, and I still see people who should know better doing it anyway.
Donít get me wrong, Iím not saying you shouldnít have money. Iíd actually prefer you to
be filthy, stinking rich! Iím just saying youíll get there a lot quicker if buying houses doesnít
depend on your capital or the number of loans you can borrow. Because if it does, youíre a slave to
your limited resources and your business will move at a snailís pace.
How many loans can you get before you get cut off? Only a handful! Then what? How many
deals can you buy if you have to write a check for each? You get the drift. On the other hand, how
many loans can you take subject to before you get cut off? Thatís right, there is no limit! And no
oneís counting, because itís endless. You can buy 500 houses and never ask permission or fill out
an application to submit to a brainless loan officer.
The loans are not on your credit, and you arenít personally liable. If disaster strikes
before the loans are paid off, like a deep recession, itís now the banks problem, and not yours. If
youíre new and I lost you there, subject to simply means the loan stays in the sellers name, but
title transfers to you. You can learn more about this from the For Sale by Owner Cash Flow System and
the Multiple Offer Strategies Boot Camp.
If youíre buying junkers to rehab, how many private loans can you get before you get cut
off? All you want! You should always come away from closing with more than you need to buy and fix
the house. So having enough money to buy a junker isnít a problem. The problem is lining up your
lender or mortgage broker to get you the money, which you can do in a coma once you make up your mind
to get it done and quit using money as an excuse to fail.
"But Ron, I canít find any private lenders or mortgage brokers that will work with
Whine, whine, whine. Well hereís my response to that: bull! What you really mean is no
one has come to you and begged you to take their money, so it gives you an excuse to be a lazy loser.
Have you ever asked for money? How many times? What did you say? Who did you ask? Were they broke?
Have you looked for brokers? If I put a pistol in your ear and gave you ten days to find a private
lender or get exterminated, would you find the money?
Okay, forget private money and forget rehabs. How much money do you need to wholesale a
house? You guessed it: nada! Well, maybe a $10 deposit to the seller. Can you raise that all by
yourself? How much do you need to lease option a house and then sublease it to a tenant/buyer? You
know the answer: none!
So letís recap for a minute. Taking over loans subject to on pretty houses usually
requires no money from you, or, at most, a small amount. Yet you can immediately lease option the
house or sell with owner financing and pick up $5,000, $10,000, $20,000 or more from a deposit or
down payment, all within a few days.
You can also buy junkers and rehab them using private loans. Getting cash when you buy
and sell, never spending a dime of your own money. You can also lease option pretty houses from the
seller and sublease to tenant/buyer, picking up deposits in the thousands within days and huge
back-end checks when they cash out.
Wait, Iím not finished! Donít forget about the bargains! Flip them to bargain hunters
and make $5,000, $10,000 or more and never own the house. All of this with none of your own money
So I ask you, whatís all this crap about how you canít get started or get moving because
you donít have the money? I think I made it very clear, money is not your problem.
Since I donít know you, I donít know whatís stopping you, but Iíll tell you what stops a
lot of folks...grit, or the lack of it! No guts. Afraid of their own shadow. Going through life
avoiding confrontation or pain. Canít grow because they wonít go. You wanna know who seems to do the
best in this business? The people without money or credit, but lots of grit. And how do you get grit?
Itís simple. You first suffer adversity and get beat up and kicked around awhile. Then one day you
wake up and realize they can’t hurt you anymore and thereís only one way to go...up.
When you quit worrying about losing, you can start thinking about winning. You see, people
with grit have learned to quit playing not to lose and begin playing to win. Does this mean you donít
have grit if you havenít been to the bottom? Of course not. Adversity is not a requirement for grit.
It just seems those who are the bloodiest seem to be more fired up and move quicker, with more
passion. Theyíve seen the black hole and they donít want to go back.
Itís quite common for those who begin with money to leap before they look and spend money
on stuff that doesnít produce revenue. Stuff like office furniture, computers, electronics and
foolish advertising that wastes money. A smart entrepreneur will put their money in the bank and
start their business on a shoestring. All the fancy stuff doesnít put a dime in the bank. In order
to do that, you must make offers, and you should be making them without using your money or your
Hereís a simple plan to do your first junker deal from your home using no start up
capital (eliminating the risk). When you get that first check you can use some of it to get the
things youíd like to buy to help you grow the business. This plan applies to you whether youíre dead
broke and bankrupt or loaded with dough and canít wait to spend it.
- Ride around and find 20 ugly, vacant houses. Copy down each address and get a photo. Youíll
find them in the lower priced areas. Hereís a tip: you wonít find junkers in gated communities!
- Call the houses with FSBO signs and see if you can buy them at a wholesale price of 50 to 60%
of the after repaired value or less. Be sure to let the seller name the price first. "He who
speaks first have big foot in mouth." Call the Realtors on listed properties and get the facts.
Make an offer if it makes sense. These will not be your best deals in todayís market and theyíll
require bigger deposits, but can still be worthwhile. Track down the owners of the houses with no
sign and call or visit them to make a deal. These will be the best deals, but require more work.
- Persist with step two until you get a signed contract on an ugly house that excites you. This
step is crucial and you must keep charging until itís done. If youíre broke, it should take about a
week. If youíre loaded, it could take a year.
- Have the title checked by ordering a title search from a title company. When you learn itís
clear, move to step five. If itís not clear, go back to step one or two.
- If itís clear, run an ad for three days in your paper that says "Handyman Special, Cash,
Cheap, 555-5555." Put it in the investment property section.
- Take the calls, tell them youíre asking price (which should be at least $5,000 more than youíre
paying) and send them to the property. Build a buyers list in the process.
- Meet the first person who wants the house at your price and get a $500 deposit and a signed
agreement assuring theyíre ready to close within two weeks.
- Set up a closing date with the title company and let them do a simultaneous closing. Pick up a
check and celebrate. You also may simply assign your contract and get paid directly from your
- Do it again.
Thatís it! Your first wholesale deal. Do you have questions? Of course. So what! Just go
do it and use your best judgment. Will it go much smoother if you get trained first and are schooled
on each step? Yes, it will. No question. But hey, you said you were broke and couldnít afford
training. So just go make a mess and blunder your way through until you get a check. Then get the
training as soon as you get paid.
By the way, Iíve had people do deals from just reading my book, others from attending my
one day workshop, and still others from listening to just one tape they borrowed from someone. These
are my kind of people. People who just do it and donít listen to dream stealers and broke morons.
People who donít let any S.O.B. tell them they canít because they donít have any money or credit.
People with grit.
See Ya - The Guru
About the Author . . .
Ron LeGrand had to borrow money to attend his first real estate seminar twenty years
ago when he was bankrupt and running a gas station. Today, he is recognized as the nationís leading
authority on buying and selling single-family homes for fast cash with no credit, little or no
personal investment or risk. Ron has personally bought over 1500 houses and still invests in real
Author, trainer, lecturer, consultant and entrepreneur extraordinaire, Ron has earned a
reputation as the best in his field. His one-day workshops are routinely standing-room-only and his
Boot Camps continue to grow in popularity. Ronís secret is simple: his programs work -- as evidenced
by the thousands of successful real estate entrepreneurs all across North America who call him by
the affectionate title, "The Guru". Ron is literally creating millionaires all over North
Learn More About Ron LeGrand at
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