Is OPM Real? Buying Real Estate with Other People’s Money
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Is OPM Real? Buying Real Estate with Other People’s Money


I’m Kris Krohn with Limitless TV and
today we’re talking about OPM, other people’s money. We’re talking about
whether it is myth or legend or whether it’s real. Is OPM real? Oh, opium?
It’s real, it’s like a very serious narcotic, right? Actually I don’t know
what I’m talking about, I’ve never done opium, never done drugs. I just said that
on TV, I did. Hi, so I’m a little naive on the topic, I don’t know much about opium.
I know everything there is to know about O P M, other people’s money. This is in my
world, in the financial world, this is something that you get to become an
expert of. To succeed in business there are some things that you want to know.
Here’s why OPM is such a big conversation piece in our world. We live
in a time when everyone’s trying to figure how to do everything by themselves.
Most things, it takes money to make money so you’re like, okay, I need money, I’ve
got my dream so you don’t I’m going to do? I’m going to work at the job I don’t like
and I’m going to work hard and I’m going to set money aside and then I will have
money then I can do the thing that I wanted to do years earlier and in the
meantime, I was less happy and far less fulfilled because I couldn’t find a way
to manage my resources otherwise. OPM is a shortcut, it’s an idea that says, are
you willing to share because if you want to do it all yourself what you’re saying
is I want a hundred percent of it all but what if someone else brought the
money and you said, I’ll have 50% of it all? Would you rather have
50% of something now or wait to have a hundred percent of something
later? You know, it’s really going to come down, it’s situational but in most cases,
in majority ways, if you understand the velocity of money, I would rather have
50% today rather than a hundred percent tomorrow, so to speak,
because I can take that 50% and catapult that and leverage that into my
next thing. OPM, other people’s money is basically an idea that says someone
else has got it and how do you get it to fund your ideas. Now there’s several
different sources of OPM, one of them you were very familiar with, is a bank and
unfortunately, we only think of the banks so people like, uh if the bank will give
me money, I guess I can’t get money and that’s it but the reality is, is that you
get understand that banks are trying to service at least in America
400 million people so they’ve got to say no to even a lot of good people and say yes
for just the best because even banks have a limited amount of money that they
can invest and play with. So a bank is a very commercial approach to lending
and frankly, it’s never been my most successful approach. You could do hard
money. You know hard money is? These are sharks, these are the money sharks, these
are the guys, they got tail fins that look like this and they’ve got really
scary big jaws with teeth like this and they say, hey, let’s lend you money at 18%
or 20%, you’re like, alright, that’s right underneath the usery laws, that’s a
lot of money. There, now it looks like a shark. And when you take a look at that
18%, if you got confidence in your idea and you can afford it then hey, I’ve done
deals like that before but with time, it feels don’t go according to plan and you
get stuck in a hard money loan, that can hurt, right? Cause banks will often lend you
between 3% and 6%, maybe 8% and out here, the money sharks are
basically saying, hey, we know that you’re probably good for it, banks didn’t take
you, we’ll take you but we’re going to charge you triple of what a banquet. So that’s
another option, not my favorite option. What I really like is, I really like
going private I want to share with you the best video private. Private money are
what I would call non-professional investors, these are people that have
money in 401k’s, IRA’s or other things. They’re looking for their next
investment but they don’t have the idea. You’ve got the idea but you don’t have
the money, it’s a match made in heaven. These kind of things are happening all
the time but they do require personal initiative because there’s not really a
system out there. I mean, I teach a system, I have a system, it’s my partner profits
course but there’s not really a system out there so it’s one of those where the
charismatic are those that can communicate well or think through their
business plan and can communicate it well, they’re the people that are going to
score the private money. I want to share with you one of my hacks today on how
you score OPM the private way, the easiest way possible. Here’s what I do,
figure out a prototype your business which another way of saying that is
proof of concept. You’ve got an idea and you need money to launch it but maybe
you don’t need a lot of money to bootstrap a really basic model and what
you’re doing out there is you’re getting some proof so let me give you an
idea of this. We’re going to do this lemonade stand. I know, you’ve never heard
of this before but what we’re going to do is, we’re going to buy lemonade supplies and
we’re going to mix it up and we’re going to sell lemonade on the side of the road on
this homemade card table stand thing and we’re going to sell lemonade for a buck
and you’re like, I want you to invest in this idea, it’s a good idea. You might
have an investor that looks at your business idea that hasn’t been done and
they’re going to say, well, you better be willing to give me a lot because
I feel like I’m going out on a limb here versus actually, I went out there, I
bootstrapped which meant I found a way to scrounge up a little bit of funds, I
used a lot of sweat, equity, time and resources, I did the lemonade stand and I
did it for 30 days and I found out first of all that it did work and it was
successful and now I want to just do it bigger. You’re going to have a much easier
time getting money from people when you have proof but now here’s the silver
lining. Who do I want you to get the money from? Your customers. The people you
have a rapport with. This is actually a really big concept in the business world
that is so often underlooked, I don’t know anyone that’s actually out there
really teaching it because a lot of business ideas you need 10 grand, you
need a hundred grand, you need $200,000. Real estate,
$30,000, $40,000 a pop, these are small amounts of money and you come
in with a partner offering then let’s say 50% and at the end of the day, who
would make a great customer? First of all, if you have a little bit of proof of
concept or you’ve got some people that you’ve worked with before that I’ve
actually witnessed and they’re like, yeah, I love your lemonade. I believe in your
lemonade, it’s like, hey, how about we partner up and go into business together?This is one of my hacks for to actually scoring my OPM.
Another way of saying it is, produce a test result or a proof of concept with
your ideal customer with the people that actually would be your ideal investor as
well and those are the people that you want to serve so that you can go back
and say, hey, I did this and they’re like, I know, I was there and you’re like, guess
what, check out the numbers, it’s actually kind of profitable. How about we do, you
know, want to do something together?
That’s been something that’s worked out really really well for me and so OPM
isn’t real. I live by it, it’s a 100% real. I got money often to buy my
own real estate with and I still use other people’s money and partner up with
them and walk away from half the profits because I can do it an unlimited number
of times. Here’s my challenge for you, come up with an idea and find a way to
get a quick proof of concept with someone that may want to partner with
you so that they can witness it, experience it, find a way to do it here
in the next 90 days so that you can figure out how powerful you are. You’re
powerful enough to have an idea, put it out there and then go out and pursue it
a bit and then once you have some proof of concept, go back to the same people
and actually raise some capital with them and do it on a bigger scale. OPM is
very very real, it’s so real that it’s one of the two strategies that I do in
my real estate all day long. I’ve housed it in something I call
partner profits which is all about, how do you find the people who are out there
with the money they can tag team with you to get these projects done whether
it’s business, whether it’s real estate and if you want to learn how, you can
even get that $3,000 course completely for free, come check it out here in the
top corner and my team will walk you through what that looks like.

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