Pete Fortunato (PeterFortunato.com) has been one of my main real estate investing teachers for many years.  The guy is phenomenal! (Not to be confused with pneumonia…I’m dyslexic – what happened to “spell it like it sounds?”)  Pete is one of the best and most creative deal structurers on the planet!

Pete has a great saying: “Use what you have, to create what you need, to get what you want.”

Until recently, I’ve never fully understood what he meant.  But finally, the light turned on!

As real estate investors, we’re often asked by prospective tenants or buyers, “Will you work with me on the deposit?”  The usual answer is, “No.  Are you nuts?”  Ok, perhaps we only think the “Are you nuts?” part.

Point is, we’ve always required the cash up front in order to make the deal work.

Similarly, when we’re buying a property, all too often, the homeowner also wants all the cash up front.  Since I’m always light of having the amount of cash the seller needs, the deal is lost.

Now, let’s think like Pete.  It’s not the cash that the seller wants, is it?  Isn’t it what the cash will buy or do that’s the key? Read More→