So you're trying to shortcut years of nine-to-five labor to retire young and wealthy?" "Right!" she says, delighted, "early retirement, reading in the hammock, gardening, travel, enjoying the kids"----I interrupt "affording college tuitions, taxes, insurance, mortgage, car payments." She draws her face near, "I know real estate is the key; the problem is I dont' have any money to get started."

We all want the same thing she does. It's called Financial Freedom: the ability to maintain a certain standard of living without having to work. But amidst the hustle and bustle of daily life, most of us feel submerged in bills and anchored by responsibilities (and more bills!) You may feel that you don't have the time to go chasing a dream, but the truth is that financial freedom is closer than you might think.

With as little as $5,000 to $10,000 per month most people could maintain their current standard of living without a job. The fastest and easiest vessel by which you can create that extra income is real estate. Methods such as landlording, installment sales, tax sale, lending money, consulting, or wholesaling are just a few of the many ways real estate can solve your monthly income goals. Best of all, you don't need money to make money!

Creative financing is the answer if you want to enjoy the benefits of real estate, without a lot of start-up capital. Over the years my family, my students, and I have experimented with dozens of creative ways to find that elusive substance called money. As you seek real estate investment opportunities, consider some of our creative financing techniques. With your new-found cash reserve you'll be ready to control property, build equity, and secure cash profits. Here are a few:

Control and Roll

You don't have to purchase property to make money! Instead, use a small amount of cash to control the property for 60 to 90 banking days, and sell it before closing. To do so, find a property which is discounted for at least 20% off market price. Then, control the property with a contract which includes the right of assignment, and the right to market. Advertise the property, and sell it for slightly more than your purchase price. The Control and Roll method is one of the easiest ways you can make $10,000 within 60 days. My students who become proficient with the technique often use it several times a month!

Friends and Family

We have a saying at Investors United School of Real Estate, "Find an opportunity and the money will come." An opportunity is an opportunity, even if you lack the capital to make it work. When you find a "good deal," you should always be able to find someone willing to take advantage. Often, the capital you need is right under your nose.

Start by designing an Investment Proposal. Your proposal should include a conservative narrative about the transaction, your intent, the investment reqested, return and security offered, time frame, and specifics about the physical and financial situation of the property. When complete, present your Investment Proposal to friends, family, co-workers, and others until you find a taker. The better your proposal, the faster the money will come.

Friendly Joint Venture

Another easy way of deriving investment capital is through the power of numbers. By assembling five to ten people, each with $5,000 to $10,000 you can create an investment syndicate of $50,000 to $100,000! Form a limited liability company (LLC) with an operating agreement which gives you control as managing member. Invest the funds wisely, then close the joint venture in twelve months. Split the equity and profits!

"You don't need money to make money!"

Consumer Finance Companies

Consumer Finance Companies specialize in loans secured by consumer goods such as television, cars, and mobile homes. Given the risk involved in the consumer goods market, these companies jump at the lower-risk opportunity to lend money secured by real estate. They can also be more flexible and credit-wise then conventional lending institutions. Although their interest rates are high, so is real estate profit potential. After all, if you can roll the money over in the short term for a handsome profit, who cares about the interest? Consumer finance companies such as Rose Shanis, Household Finance, and American General can be found simply by looking in the Yellow Pages. Meet with the local managers to talk about your plans. (Don't forget to bring an extra copy of your investment proposal.)

Credit Unions

These institutions usually offer lower interest rates than conventional banks. If you belong to a credit union, the money you need may be accessible through a personal loan.

Private "Hard Money" Lenders

Where else can you borrow tens of thousands of dollars within a day or two without giving your social security number? Being investors themselves, private lenders understand real estate in ways that conventional lending institutions do not. They know that if the borrower does not perform, they have the opportunity to step in and take the deal for themselves. For those reasons, private lenders are flexible for, and especially useful to investors with no money or marginal credit.

Most hard money lenders prefer to make relatively short-term loans at very high interest rates. A typical loan might have a term of 6 to 24 months, and a rate of 14 to 18 percent plus a couple of points. Monthly payments are usually interest-only, with the principal paid in full at the end of the term. Though the terms are tough, the money is fast. Again, who cares about 18% interest if you turn a $25,000 profit in 60 days? Private money lenders can be found by visiting a local investment group such as The Maryland Real Estate Exchange, or simply calling this author!

Angel Investors

An Angel Investor is a private lender who doesn't know it yet, a person with money, or new to money, who may be interested in lending their funds for business or real estate ventures. The key difference between an angel and a private lender is experience; and given the lack of lending experience, an angel will almost always offer incredibly attractive terms with little to no qualification. For example, as a new investor I found an angel who loaned me $60,000 in 24 hours on a handshake. Find one by advertising in a local newspaper. networking at a local investment group, or sending a personal appeal to folks in wealthy neighborhoods. Ours is one of the most wealthy countries in the world, and people with money are all around.

Although, I do not have the space to get into the dozens of other creative financing methods, the techniques herein are enough to raise significant amount of capital. Look for more tips and techniques in Million Dollar Creative Financing Ideas, part 2. Thanks for reading, and, as always, send me an e-mail if you need a partner!