See what I am saying? This person has no money, but they have the right mindset about money. They are in debt for a good reason AND have been diligent about debt repayment.

You HAVE to get control over your finances before you buy a real estate property. Even if you have nothing for a down payment. You need to change your lifestyle so you are living beneath your means. From now until the end of January track every single penny you spend. Then see how that compares to the money you made in the same time frame. If you spend more than you make, you need to make changes!

Oh - I hear it already - but, Dave, it's Christmas! I have to get the Wii Fit for my wife, and the kids will hate me forever if they don't each get an IPhone. Well, if you've saved up for those gifts, great! Go for it! But, if you are going to go into debt for those gifts then you are a SPENDER, not a SAVER and you're obviously not serious enough about growing your wealth and becoming a rich real estate investor.

So, in answer to the questions about money and down payments, like these ones:

• "Should I approach other investors for partnering when I have no money for startup? I feel like I will be swallowed by sharks even though they all seem nice enough. I have seen several nice properties (4 plex on up) but I need to make the big leap to action." - a reader from Portland, ME
• "Now that my credit is "good", coupled with the changing real estate landscape, how much upfront capital is needed?" - a reader from Matthews, NC
• "I hear a lot about using credit card, home equity line, owner financing for down payment. What is a realistic timeline to see a positive r.o.i. to reimburse funds?" - a reader from Cleveland, OH
• "How can I do deals like Robert Allen - no money down, cash back on closing" - a reader from Hamilton, ON.

the general answer I have is for you to track your spending, and make sure you spend less than you make, each and every month. Then, use the excess to pay down your debt or save for your real estate investments.

In our real estate investing newsletter I answered each of these questions specifically, but to keep this simple let me just say that:

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