Opium : Is a HELL of a drug to some, but here we call it Other Peoples Money OPM.
The simplest way of using other peoples money to your advantage is by been a middle man helping a vendor and an individual solve their problem. Years ago i was a young lad just entered into the realm if being a realtor and i looked like i was 12, so people didn’t take me seriously when i was trying to sell their biggest investment of their lifetime.
To be honest i didn’t sell a lot of houses maybe because of my childish looks or my inexperience as a new guy, i still needed to eat and pay my mortgage so i had to be creative. Every Sunday i would attend open houses from “for sale by owners” and look around and explain that i was in real estate and i bought and sold houses all the time, and i think this place needs some renovations such as paint, kitchen upgrades, bathroom upgrades and maybe a new garage or landscaping. I would then explain a ballpark value of the cost of renovations and more importantly i would show them comparables around the area that had renovations done and the new sale value of there home which was obviously higher than theirs. Since i was a realtor i could pull stats off the internet and show the the compareables in the area, the people would get excited and i would leave my contact info and let them now if they needed any trades or work done to call me as i will get them a great deal. Waited a few months and the houses i looked at were still on the market and booo-yaaa the phone rang asking about renovations.
My first deal they wanted a new kitchen and bathroom and i had NO idea on how to swing a hammer let alone anything about construction, so i lined up a few contractors brought them through on a site visit let them talk their skill to the homeowners explaining every detail except price. Then i had the contractors submit prices to me, the total bill for what they wanted done was $64,000.00 i then added 10% to that adding $6400.00 to the bill and now i submitted the price to the home owner. The home owner negotiated me down to $65,000.00 which i went back to contractor and said the highest we can pay is $58,000, we then negotiated and settled at at $59,000, BOOM i just made $6000.00 for been the middleman on the job.
The renovation went smooth and 24 days later i got paid and paid my contractors , a light bulb turned on and now i manage many jobs anything from $500 to $2,000,000 projects using various trades for my projects.
So when someone asks if you know someone that can do something, say YES and then get on the phone and find a reputable company and connect the dots!!
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