Over 10 Methods to Create Money for Investing

I believe firmly in education. So I take a lot of classes and attend a decent number of seminars. With all of that info coming at me, it's easy to lose sight of all of the cool things I learned.

So I am reviewing my mass of notes. I'm a slow reader, and it takes me a while. The upside to this is that I can enjoy this great stuff for bunches of days.

So...what's this have to do with my title?

You may have guessed, already, but I came across a memory that SHOULD be mental candy. I really like candy, so I'll make a lot of "sweet" references.

Here is one by Darrick Scruggs, the owner of My First Michigan Home and many other companies.

"Most of your problems will disappear if you become world-class at raising money."

Most people will read this and say, "Duuuuhhhhh!" Many of these same people will say that they don't have any money. If they had money, they say, THEY would be raking in millions, too.

I'm here to tell you that you NEED money, but nobody said it had to be your own. I know! Many of us have heard that, too.

Besides using your own cash, have you considered....

1. Making money as a middleman (a.k.a. wholesaling)
2. Borrowing from a lending institution (not always so easy nowadays but still can be done)
3. Refinance your home
4. Cash in on credit cards (for INVESTMENTS--NOT a new TV!!!)
5. Get a second mortgage (tap into your home equity)
6. Invest with your retirement account (401K, 403b, Roth, SEP, etc.)
7. Solicit other investors (they're always looking for good ideas)
8. Team with other investors
9. Finance with friends and family (Be careful with this one! Really!!!)
10. Work with a hard money lender (think cheaper credit card but shorter terms)
11. Explore Land Contracting

My friend took a loan from his 401K. He has to "repay" it at a rate of 4% or 5%. He used it for an investment that pays over 30% annually. Do you think he's being irresponsible using his 401K? I'm not even counting for the fact that he could cash in that investment (about 6-8 months later) and TRIPLE his original money.

Make sure that you have a plan and that you thoroughly thought out that plan. You do not want to make a habit of using borrowed money just to lose it. We all make mistakes, but make sure you do your due dilligence. Calculate your risk.

No matter your investment, remember this! NEVER...I mean NEVER "invest" more than you can afford to lose. That's called GAMBLING on the Hope-n-Pray method. Save this for your fun money. Feel free to ask me more questions about that.

For more information about Darrick Scruggs, the person who provided me this information, see his website http://www.myfirstmichiganhome.com/, especially if you want to learn more about key facts for first-time homebuyers. As a real estate investor, this is your biggest market right now. Go see his website, especially if you're in the beginning stages of investing.