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Dave Lindahls Seven Secrets to

Real Estate Wealth


Detailed Success Outline
Secret #1: No money? No problem27 Ways to Invest
in Real Estate With No Money Down
Ive been buying and selling multi-family buildings for over 14 years now.
In the process of building my real estate fortune, Ive used many techniques
to structure the purchase of a property with no money down.
I dont want to mislead you into thinking that every deal can be done with
no money down. Some deals will not provide cash flow if you put no
money down. Heres a real secret: Even when good deals require money
down, it doesnt have to be your money!
In the weeks ahead, well be covering 27 methods to finance your deals.
Even after youre wealthy, youll be using many of these methods so you
can control as many properties as you can while tying up little or no money
of your own.
Here is a summary of the techniques well cover:
1. Owner Financing

The most common way to buy a property with no money down is to


use owner financing. This occurs when the current owner agrees to
finance either all or some part of the purchase price, instead of getting
the cash now.
We will cover the four types of owner financing to that you could ask
for.
2. Borrow From A Private Lender For Down Payment

If youve got a great deal, but dont have the money for a down
payment, find a private lender. This is any individual that has extra
money set aside that you can use for your purchase.
Where these people are hiding in plain sight in your community.
How you approach them, and exactly what to say to them thats easy
and natural.

Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

After you get one or two lined up and you start to use them
successfully, watch what happens: They will tell their friends, who
will tell their friends, and so on. Its human nature to brag at cocktail
parties or at the gym about what a great investment they just made.
Before you know it, you will have all the funds you need, and your
business will explode.
3. Signature Loan

Ill share with you some guidelines to follow when taking out this
type of loan at your local bank for the down payment.
4. Subject To

Just like single family houses, you can take over multi-family
properties subject to the existing mortgages. This means that the
mortgage stays in the current owners name, but the deed is
transferred to your name.
Why this can be a great way to take over a property with no money
down.
Ill go over when this situation usually arises, and how to negotiate a
successful subject to deal.
5. Equity-Share or Debt-Share Investor

This means you will share any equity which is created in your
property with an investor who will give you the money for a down
payment.
You can also structure a transaction where the investor provides only
debt, and does not share in the upside or equity of the property. I
will explain how both arrangements work.
In fact, I will also outline how it might even be possible for me to
become a partner in your deal.
6. Equity Share Owner

This is where you are not attracting other investors, but you do an
equity share deal with the owner. The owner transfers title to an entity
in which the two of you are partners. The property is refinanced for
the purchase price. The owner gets out as much of his equity as he
can, and becomes an equity partner for the rest.
I will explain the typical way these deals are structured.
7. Repair Allowance
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

When using a repair allowance, you inspect the property and


determine what needs to be done in repairs. You add up the cost and
have that money given back to you at the closing.
Ill show you how this can provide money that you otherwise
wouldnt have had. You can use this money for a down payment. I
have a student who bought a property for $800,000 and got a
$100,000 repair allowance. Not only did he use that for his down
payment, he did some repairs that needed to be done immediately.
Hes planning on using the rest as a down payment for another
property!
8. Refinance With Seller Carrying Back A Second Mortgage

This scenario is very similar to the Equity Share Owner situation but
the owner does not become an equity partner; he becomes a second
mortgage holder.
This saves you a great deal of money in the long run, because you do
not give up 20% of the profit and 20% of the equity. Ill go into more
detail on how these arrangements work.
9. Create Paper

How its possible to create a note secured by a second mortgage on


your house or other real estate in the amount of the sellers equity.
10. Trade

Just as they did in the old west, you can barter the down payment for
anything else that you hold ownership to. This includes equity in other
real estate, notes you own, personal property, servicesthe list does
not end.
Ill explain how you can use your imagination and get really creative.
11. Use Part of the Sellers Property as Collateral to Borrow Down Payment

Often a multi-family building will have several different parcels


associated with it. Ill show you how to get the down payment by
putting the property under contract and coordinating the sale of one of
the parcels to use as your down payment.
A student of mine from Augusta, Georgia, used this technique to buy
a 100-unit complex. The property was built with the intention to sell
as condos, so each unit was separately deeded. He sold 40 of the units
to other investors, making enough profit to purchase the other 60
units, free and clear of any debt!
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline


12. Sell off Dirt, Timber, or Plants

Heres how I once lost a million-dollar profit in real estate: When I


was starting out, I offered to partner with a wealthy friend to buy a 48acre parcel that I thought we could subdivide together. Not having
money, I offered sweat equity and the fact that I found the deal as the
basis for my partnership.
After inspecting the property, he decided to buy it behind my back
because it had four huge piles of gravel on the property. It was a
special type that we use for our septic systems in New England. So he
bought the property for $340,000, and sold the gravel for $2 million.
What you may be able to do is buy a property and sell off the special
dirt, trees, plants, or other resources to finance the deal. This is not
theoryit happened to me.
13. Substitution of Collateral

If you are purchasing a property below value (property A) and own a


property that is being used as collateral for the financing that is on it
(property B), you may be able to transfer the collateral from property
B to property A. This would free up the equity in property B to be
used as the down payment. Ill give you the ins and outs of
doing just such a deal.
14. Issue Stock

How you can form a corporation and issue stock to sellers for their
equity. It solves their management problems and starts a real estate
business for you. They get an equity position in the company.
15. Acquire with future profits

Ill explain how you can acquire a property at an agreed price, with
the sellers equity to be paid out of future profits as the project is
turned around.
16. Tax Credits

The government has a program that involves low-income housing tax


credits. These credits are like gold because they allow you to get
substantial reductions on your taxes as long as you follow certain
guidelines. You can even take those tax credits and sell them at a
discount to corporations that are looking reduce their taxes. The
money you get can be used as a down payment for the property.
Sometimes you get so much money, you can use it for a down
payment for several properties!
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

Ill cover how these deals work, and how one of my students bought a
170-unit building using tax credits. He got a $22,000 a month positive
income from that property.
17. Hard Money

When youre investing in multi-family properties, hard money is also


called mezzanine financing. If the deal has certain characteristics,
many mezzanine lenders will finance you with no money out of your
pocket. Why? Because the value is in the property.
Ill explain what these lenders are looking for, so you can get a quick
yes when you bring them a deal.
18. Family Loan

Do you have a family member with big bucks? Family members may
also have a lot of equity in a property that they can loan you some
money from. Perhaps others have a lot of money in an IRA that they
would love to get a higher rate of return on.
Ill explain the best way to approach family members to be part of
your deals. If you do this right, everyone wins. If you dont get my
guidelines, then youre gonna have a pretty awkward Thanksgiving
dinner.
19. Acquire with a First and Second, Then Sell the First for Cash

How to buy a property with the seller carrying back both a first and
second mortgage.
Theres an important twist to this arrangement and Ill explain how to
make it work.
20. Land Sale/Leaseback

Ill show you how to offer to acquire a property subject to finding a


purchaser who will buy the land under the building out of escrow, and
lease it back to you subject to the existing financing. Cash from the
land sale goes to the seller as down payment. You get depreciation on
the improvements and you can also deduct lease payments.
21. Assume the Mortgage; Seller Keeps the Land

Its possible to buy the improvements while the seller retains


ownership of the land, which you lease from him. The seller gets out
of the responsibility of management and receives land-lease income.
You get income and depreciation with no down payment by assuming
the existing mortgage.
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline


22. Pledge Future Income as Down Payment

If you have a secure job or future investment income, Ill show you a
great way to have the seller wait for the full down payment, along
with ways you can give the seller additional security. You get
immediate ownership and the seller eventually gets the down
payment. Its a win/win deal.
23. Lease Interest as Down Payment

Ill outline how to offer one years income in the form of free rent as a
down payment. The seller gets continued use of the property for one
year in lieu of cash down. You get ownership but with no outlay of
cash.
24. The Performance Second

Youll discover how the performance second is a great way to test


the sellers faith in the value placed on the property. You can buy at
the sellers asking price with payments on the second mortgage
subject to the income on the property. If income is less than the seller
has represented, then the payments he receives on the second will be
less than he would like. But if the net income is greater, the payments
increase. It will all become clear after I lay out the details.
25. Broker as Lender

If you are working with a successful broker, dont count her out as a
lending source. Considering that she will receive a commission out of
the down payment, there is often the possibility that she might like to
make a sound investment at a high interest rate, using in part the cash
she receives as commission. Thats cash she will not receive if your
deal doesnt go through.
Because Ive been a real estate broker for years, I am in a position to
explain the best way to make your broker want to be part of your
deals.
26. Line of Credit

Ill show you several ways to establish a line of credit secured by you
personally, but also sometimes secured by several other types of
assets.
27. Seller Insures Buyers Loan

Often a seller has faith in the buyer (you) but the lender may not. Ill
explain how to arrange for the seller to insure a portion of your loan.
In this setup, a seller may guarantee the top 10% of your loan by
depositing that amount in the bank. When you pay down the loan by
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

10%, the sellers funds are automatically released.


You may wonder why a seller would do such a thing. Ill discuss how

it happens all the time.

Secret #2: Know nothing about real estate? How to


profit even when you have zero experience
Why sometimes zero experience is better than lots of experience.
The three things you absolutely must be doing throughout your real
estate careerand theyre things which require no experience.
The key skills you should hone at your own comfortable pace in order
to be super-successful.
Ill share with you specific scripts Ive created, tested, and refined so
you dont have to bother with all thatyou can go straight to success.
How the real estate market is always changing, and how best to stay
on top of those changes without spending a bunch of time doing so.

Secret #3: Short on time? How you can do your first


deals even when you only have scraps of time
The dangerous belief that you need to dump your current source of
income in order to pursue real estate. Why you should not believe this
nonsense from other gurus.
How 30 minutes a day is all you need to get started.
Forget about coming home, changing clothes, and going out to knock
on doors to find deals. How my system allows you to use direct mail
and other sources to find good, fresh deals.
The exact form of marketing materials you can use to attract
profitable deals.
Why you need to start assembling a Dream Team of advisors earlier
than you think you need them.
The misconception most people have that Ill get a team together
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

after Im wealthy and successful. How that idea is holding them


back from making real money, and how you can start to get your team
together on an absolute shoestring budget.
Who exactly should be on your Dream Team.
The specific scripts you need when recruiting your team members.

Secret #4: Live in a lousy real estate market? So did I.


Heres the great news: I found a way to make fat profits
anyway. Let me show you how to do it, too.
Why you should forget about what the newspapers are saying about
real estate in America or even in your state or city.
Why lousy markets are the absolute best time to make a fortune in real
estate.
How to know when youre in a temporarily depressed market that
soon will turn around, versus a long-term dog of a market you should
stay away from.
The best kinds of real estate to own in each phase of the real estate
market cycle.
Specific lessons of what I did wrong in different markets. By
knowing what I learned from my costly mistakes, you can easily avoid
them.
The level of cash flow you can expect from different types of
properties in various phases of the market cycle.

Secret #5: Cant wait for profits later, but need cash
flow NOW? My system is a Cash Cow you can milk
every month.
The very best type of property to buy for substantial cash flow.
Why too many investors work too hard. They dont build their real
estate business on the right foundation, but instead mistakenly think
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

that big fortunes are made only through hard, slogging work.
The four types of properties you will find in almost every market.
How to get good-quality RIGHT managers to manage your properties.
The type of property you should really stay away from until youre
very rich. Otherwise youll toss and turn throughout the night,
sweating about these deals.
What a value play is, and how it can set you up for a lifetime of
cash flow and wealth.
When it makes sense to wholesale or flip a deal, and when it
doesnt.
Why fear and inaction can be just as dangerous as foolhardiness.
How to navigate between them and make money with confidence and
without big risks.
The giant myth most real estate investors think is true about hiring
management companies to run their properties. How this myth will
keep your competition poor and make you rich.
Your Number One Responsibility when building your real estate
fortune.
My Tried-And-True Wealth Formula.
Why you should not start your real estate business way outside your
comfort zone. How you can stay comfortable and confident and still
make money.

Secret #6: Worried about the recession? Get this: The


worse the recession gets, the better my system works!
(Its working great right now.)
Why you should regard recessions as your friend. In fact, why you
should look forward to the next recession as your next major profit
opportunity!
Why your local real estate market can be absolutely horrible and you
can still make money in real estate. (I know this sounds crazy, but Ill
prove it to you.)
In the Wild West, a few people could put their ear to a railroad track
and hear the train coming from miles away. Ill show you how to hear
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

the next major markets that will be roaring in a few monthsafter


you have already bought properties in those markets at low, low
prices.
The very best time of all to buy real estate.
What you must be continually doing throughout your real estate
career, and how this will make you more money than anything else
you could do.

Secret #7: Dont like to work hard? How one single deal
can make you financially set for life.
Where is it written that you have to work a solid year in order to make
a great income for that year? What if you could do one single deal
and make enough to replace your previous income for this year, and
every year after?
And what if each deal you did was just as large? In effect you could
decide how many multiples of your current income youd like to have.
I will give you specific examples of how my students have done just
that.
How you can succeed in real estate if youve never gone to college,
never had a job outside the house, and never started a business.
The best sources for current, realistic, proven real estate investing
advice.
What a repositioning is, and how you and your competition
probably drove past one of these great hidden deals today.
What a momentum play is, and why they are some of the sweetest
real estate deals on the face of the planet. (Plus how to make one of
these deals happen.)
If youre not getting at least $200,000 per year from my system, well,
youre just not following the system! Why you can have an
achievable goal with my investing system of between $500,000 and
$1 million per year, every year.
What successful people regularly do. This one characteristic is
perhaps the most important trait of all. Its something you can do
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Dave Lindahls Seven Secrets to Real Estate Wealth: Detailed Outline

right now, regardless of your current situation.

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