The Keys to Creative Finance & Reaching Financial Abundance with Gabriel Hamel

Gabriel Hamel, a highly successful real estate investor with a portfolio valued at over $50 million shares his knowledge with us in this episode.

Gabriel started his journey with single properties and no money down, and through his commitment and perseverance, he has built a significant portfolio using creative financing strategies.

Today, we will learn about Gabriel’s journey, his successful negotiation of seller finance deals, and his transition into the triple net industrial space. There are valuable lessons to be learned from Gabriel’s mindset and approach to success in real estate.

Getting Started: From Military Service to Real Estate

Gabriel’s journey in real estate began after his military service in Iraq. He joined the Army National Guard Infantry Unit at the age of 17, seeking a different path than traditional education. After reading the book “Rich Dad Poor Dad,” Gabriel became inspired to pursue financial freedom through real estate. He bought his first house in 2005 with no money down and rented out two of the bedrooms, a strategy now known as house hacking. Gabriel continued to buy properties with seller financing, leveraging his lack of funds to get creative with deal structures. He focused on finding sellers who were willing to carry financing, allowing him to build a portfolio of cash-flowing properties.

The Power of Creative Financing

Gabriel’s success in real estate can be attributed to his ability to think outside the box and find creative financing solutions. He discovered that many sellers were open to carrying financing because they wanted the income without the headaches of property ownership. Gabriel built relationships with these sellers and negotiated favorable terms, such as no down payment and lower interest rates. He shares, “The thing with seller financing is you can be as creative as you and the seller can get.” This creativity allowed Gabriel to turn poorly managed properties with deferred maintenance into profitable investments.

Adapting to Changing Market Conditions

As the market conditions changed, Gabriel adapted his strategies to continue his success. He shifted from seller financing to private money lending and hard money loans. He also expanded into different asset classes, such as apartments and mobile home parks. However, he never lost sight of his focus on cash flow and investing in properties that made sense in the present. Gabriel explains, “I’ve really focused on not relying on the upside… I’ve kept that investing philosophy all the way through my investing career.”

Applying Creative Financing to Commercial Assets

Gabriel’s creative financing mindset extends to his investments in the triple net industrial space. He shares an example of a recent deal where he was able to negotiate a rent guarantee and put down only 5% on the property. By leveraging his relationships with brokers and banks, Gabriel was able to structure a deal that minimized his risk and maximized his cash flow. He emphasizes the importance of building genuine relationships and being clear about your investment criteria. Gabriel’s success in commercial real estate demonstrates that creative financing strategies can be applied to any asset class.

The Importance of Building Relationships

Throughout Gabriel’s journey, he emphasizes the importance of building relationships and sharing your goals with others. He believes that every deal he has done came from a conversation or relationship. By being open and passionate about real estate, Gabriel attracted sellers and brokers who were excited to work with him. He advises, “Get real clear on what’s most important to you and spend as much of your time and energy on those things.” Building genuine relationships and staying true to your goals can lead to incredible opportunities in real estate.

Gabriel’s story is a testament to the power of creative financing and the importance of mindset in real estate investing. His journey from military service to a $50 million portfolio showcases the potential for success with the right mindset, commitment, and perseverance. Gabriel’s ability to think outside the box and build relationships has allowed him to overcome challenges and find profitable deals. As he looks to the future, Gabriel remains focused on living an authentic life aligned with his values and goals.

The keys to successful creative financing in real estate lie in being open to unconventional strategies, building genuine relationships, and staying true to your investment criteria. Gabriel’s story serves as an inspiration for aspiring real estate investors, showing that with the right mindset and approach, financial freedom through real estate is attainable. So, go out there, share your goals, and embrace the power of creative financing in your real estate journey.