The world of commercial real estate is sometimes looked upon as an exclusive players only club. Many people believe that only the people with money are involved. They believe that the rich get richer and it takes money to make money. In reality, these clichs hold little weight. The truth is that anyone can get involved if they know how to go about doing it. If you dont have capital, you can get it. Raising capital is at the heart of every successful commercial real estate transaction.
The most important general rule in raising capital for a real estate deal is that it does not have to be all your money. Many people are hesitant to invest in commercial real estate because of the relatively large investment. They probably dont have the money required by themselves. If you dont have any money, youll need to familiarize yourself with the concept of OPM or other peoples money. Of course, these other people will require some sort of incentive to give you their money, but it will be well worth it. Whether it is a lending institution or a private investor, OPM can get you in the game much faster. Sure, you can take the long road and save a little bit every week until...