Buy property with no money down now this is
something I actually know quite a bit about because I started out at nineteen
years old and I had no money so I’ve been doing this over 30 years and I’ll
show you how I’ve done it and how you can do it too before I get into that I
want you to take notice here I have an app and if you’d like a copy of it free
I’m gonna it’s ready I’m not gonna send it out till I get a thousand people
signed up already getting really close already but just write me at [email protected] and put your OS in subject line you know your iOS or your OS I
should say for your you know just write Android or iPhone and then I’ll know
what you need any I’ll be giving away the Android version first and the iOS
for for the iPhone soon after so let’s get into it let’s talk about buying with
no money and when I say no money I am talking about none of your money okay it
always takes money to buy it’s got to come from somewhere but it’s not
impossible to do I’ve been doing it for a long time and you can too and I’ve got
a one-man studio here so bear with me I gotta hit refresh on the screen here and
then if you got any questions I’ll be able to take them because I can see him
over on my other monitor all right so I’m gonna take you over to
the whiteboard all right so how do i buy real estate with no
money okay sounds unbelievable and some of the
times I’ve heard people talk about it in ways that are actually quite
unbelievable and nearly impossible but I’m gonna show you exactly how I have
done it so I know it’s possible okay so first of all the only way you’re gonna
really be able to buy a property with no money down is you have to have your
bases covered when I say that I mean you gotta be you got to have a deal you
gotta have a very good deal okay and there’s reasons for that we’re gonna get
into it but the only way you’re gonna get a deal on a piece of property is you
have to understand the values you have to know the values of the properties
that you’re focusing on so number one is you gotta understand the values in the
neighborhood of which you plan on buying okay I
always tell people buying your own neighborhood because it’s one you
frequent the most often it’s the one that you’re gonna catch and see if
something’s odd and I’m talking about whether a property becomes vacant or you
know a property I has you know for sale sign because getting there first is key
and getting a deal okay so I’ve got tons of videos now on making deals and Shawn
deals that I’ve made even recent ones in the last couple of months or weeks and
you will know that I always say be relentless be there first that’s key and
please share and please subscribe please and like videos you play you’re at it so
number one the way you’re gonna get a deal that is below market and the best
deal you can possibly get you got to start calling on for sale signs now not
just to find a deal but this is where you get your education so that you know
a deal when you see one listen I’ve lost tremendous deal once
why it’s not very often but I have lost I’ve lost some really good opportunities
because I was looking before I was was prepared for the neighborhood that I was
looking at and you know sorry I somebody handed me a deal and I wasn’t quite sure
it was a deal and by the time I could figure it out somebody else took me out
and so you don’t want that to happen so it’s it’s key that you start looking
immediately and start understanding values in your area so how do you do
that okay like I said start calling up for sale for sale signs no not just that
you’re gonna talk to the agents okay that have these signs up and make them
your friend talk to them you know tell them that you’re interested that you’re
a player you’re gonna buy and ask them for their opinions what do you think you
know what’s what’s a deal in this neighborhood because they probably in
the beginning they know better than you but before you’re done you’re gonna know
probably better than they do so always talk to agents when you see a sign up
you call on it and when you see a sold sign on it call back talk to the agent
now they’re really not supposed to disclose and tell you exactly what they
sold it for but many of them are pretty kind and and will let you know a pretty
good ballpark of whether it’s sold full price or maybe it went over over the
asking price that happens too sometimes but that way you’ll be able to discern a
deal when you see one because you’ll know what you know what a 3-bedroom
2bath is and this doesn’t this extends to all property all real estate of all
kinds I bought more than a hundred pieces of vacant land acreage many many
many single-family homes some duplexes multifamily apartments fantastic
incredible deals on multifamily apartments also on land land is a huge
opportunity where you can buy with little or no money down so I’m gonna get
to today’s video is just about buying with no money okay I’m gonna show you
how I’ve done it and then the ways that I’ve done it okay so you always call on
the sides you always talk to the agents that have signs and you always talk to
people that are selling you know independent people that have a for sale
sign by owner and you talk to a man you stay
tattooin okay it’s very important you want to make everybody your friend but
you also need to stay in touch often because if you’re not in touch often
you’re gonna be forgotten if I’ve seen it many times and one of the reasons I
get the deals that I get is because I’m very very you know disciplined I contact
people constantly I stay in touch and it’s easier than ever now with it you
know the text an email or but you know nothing beats person-to-person but it’s
still very important that you stay in touch one way or another you know
because what it does is it puts you in the forefront of their mind and I’ll
give you an example you know you can call on a property one day and and then
you call back the next or a week or two later and you’re gonna find out oh they
drastically dropped the price or you find out that they drop the price a week
ago and now it’s sold and now it’s under contract by somebody else they didn’t
call you they didn’t think of you they didn’t they didn’t think of you that’s
what happens but what probably happened is somebody
called that day the same day that they just lowered the price and they said hey
we just lower the price come take a look because that’s how it works that’s how
it works the agents as soon as that as soon as the news changes they spread it
out to whoever’s nearby so you have to constantly stay close okay okay so said
make everybody your friend okay also let everyone you know let everybody
know that you are a buyer deals always make it clear they you know you buy any
age you start say look I’m buy I’m a buyer but you know I’m always looking
for a good deal I don’t want to buy just anything I’m looking for something
that’s a good deal otherwise you’ll get handed all kinds of stuff that is just
an average deal and you don’t want that okay when you do all these things now
you’re building your own personal database in your mind you’re gonna
understand that you know when you look at enough three bedroom two baths or
whatever a land or vacant land or one acre or two acre lots whatever you’re
going to know if maybe they have sewer maybe some as a walk
déméter these are all things you’ll figure out as you as you discover a
neighborhood and depends on what type of property you’re looking at but it’s all
relative to every different kind of property doesn’t matter if it’s
commercial or office or industrial I bought all properties this way and in
some nearly all I probably done with no money at some time or another so you’ll
know a deal you’ll know a deal when you see one and that I can’t tell you you’re
gonna hear me say it a lot because that is the most important thing if you don’t
recognize a deal when you see one you can’t take advantage of it so you would
have to do these things that I just told you you have to do there’s no shortcut
there’s no mentoring program where somebody’s gonna put their arm around
you and make this happen this is a hundred percent dependent on
you and you alone okay once you know a deal then you can sign for a deal right
you go in and it’s gonna be you know you agree but you’re agreeing to buying this
property for amount that is less than what the property is worth what the
market value is cuz you know values so you go in the siding you write your
check for your deposit and now I know it says you know no money down but you know
relatively speaking a few hundred dollars there’s no money but whatever if
you have to go borrow borrow the deposit you know write a check and and and then
borrow the difference or whatever you got to do but there’s no getting around
a deposit check if you try to get away with no deposit you’re gonna look like a
flake and nobody’s gonna trust you so I want to qualify no money maybe you
borrow the money okay that for the deposit okay no big deal so you’re gonna
get the deal you’re gonna get the deal signed now once you’ve got that the deal
signed you’re going to this is the key thing once you have the deal signed
where you have built in equity meaning if you’re buying it for 70 cents on the
dollar so you got basically you have a 30 percent equity this is what makes a
deal a deal is getting it under market when you have a deal you can produce
that to could be a hard money lender or a potential partner the
so where this is where the no money comes in they’re gonna give you the
money right if you have heavy equity that’s what every bank looks for that’s
why when I buy a building now they want me to put 25 percent down if it’s not an
owner-occupied I might get away with 20 percent if it’s a big industrial
building and I plan on occupying it but in general they have to have equity to
feel secure I just bought a lake house that was
worth several hundred thousand dollars I got for $80,000 this is less than six
months ago I got a hundred percent financed okay and I didn’t even need it
100% financed I’m just gonna pay cash for it but I knew that hard money lender
and I showed up and I said hey listen I got this thing it’s a steal and I said
you got any money so now I don’t hardly have any money Tom I have probably less
than a hundred grand I said hey that’s great I only need eighty okay
so 100% financed that was a no money down deal for me and that can be for you
too and now briefly I’ll talk about this you’re gonna find hard money dealers
they’re gonna learn two points maybe and they want to get a 10% interest listen
if that’s a stranger loan to you that’s a fine deal that’s a fine deal and what
do you care about paying ten percent interest on something that you’ve got
heavy equity in that you can turn and flip or whatever so you do what you got
to do to get that money that’s you know that it’s cheaper money that have an
apartment and which is also an option to you if you get a partner them that pays
for the whole thing are gets the loan or whatever you’re gonna split all the
money anyway so don’t be afraid of hard money lenders you know I I borrow money
as a favor to people but I only pay four percent because I’ve got great credit
and I don’t have to pay more than that so any of them built in equity that’s
gonna lead to you getting 100% financed deal
or go find a partner now it’s 100% financed again no money for you right
now assignments okay now assignments is not
really a way to an assignment is a way for you to make money and this is one of
the first ways that I discovered how to make money this way is I found a large
industrial property kind of a commercial actually it’s kind of a combination it
was a in the front it was retail in the back it had a big roll-up door and it
was a plumbing outfit anyways I recognize this as a deal and
I’ve a little bit of details – bottom line is I got it signed where I could
buy it for like 110 120 thousand dollars went to somebody that had money said hey
you smell bosses hey boss you know what you want to you want to go in on this
with me and he said man that’s a great deal Tommy he goes but I don’t want a
partner and he said how about I gave you $20,000 and you just take and and you
just go away and I’ll buy it by myself of course
perfect that’s all I wanted that was great to me I made a deal just like that
so you have that option but if you’ve got a deal you can either find a partner
or you can find a hard money lender they can look at the property and determine
okay yeah no problem plenty equity here if you don’t pay me I’ll take the
property back I’ll make even more that’s how I would do that’s how I would feel
okay so let’s talk about backups to this let’s say you have a deal on a property
and you’re not gonna be able to get a partner for whatever reason okay good
this is other ways I’ve bought property and I’m gonna talk about you what you do
is agree to a very short term financing in other words you say let’s sign this
deal let’s write it no money but I’ll pay you off in six months six months or
or what you do is you just kind of get a long escrow one of the first property I
bought when I was 19 years old I got it owner financed but I got a six month
escrow that six month escrow also allowed me access into the property so I
turned the lights on I moved into the property moved my company and the
property I just started the cabin shop at the time so I had no payments now for
six months so that allowed me to save basically I paid rent to myself and just
save that rent and at the end of six months
it was essentially a no money me down deal because I would have been paying
rent to my previous landlord but now I was the landlord and I had no payment
because I didn’t quite own the property but I had the rights to it so at the end
of the six months I had like ninety five hundred bucks and and and had my down
payment to buy the property and it was owner financed and it was fantastic okay
that that’s one way okay another way is if you don’t get the
extended term like that to get your money so you in other words you use the
property that you have but you have the freedom to use it to make money with it
until closing and then so you’re using the property to
make the money to come up the down payment to buy it and then of course
then after that takes care of the payment contract for deep contract for
deed is something I haven’t used that often but I really really like this this
tool I bought about one of my first homes with this one that spent third or
fourth home that I actually lived in but I don’t a lot of real estate buy now and
but I found this property I wanted to buy and told the owner I said look I’m
gonna have can I pay cash for this thing here and about I don’t know six months
and can we do a six-month escrow and I said I’ll just pay you rent and he said
well let’s do a contract for deed he wanted it he wanted to have a contract
for deed now what that means is it’s almost kind of like a lease option to
buy kind of not quite the same buddy but it’s a contract that says I’m gonna pay
him and maybe in my deal is I was paying the electricity I was paying I was
paying all the utilities of course cuz living in place but I was also paying
the taxes on an any upkeep that there was and then at the end of I think six
months a year I remember exactly I would come up with the rest of the money to
buy the whole place in the meantime every payment that I gave him he was
givin me a little bit of credit towards purchase because part of that paint
money I was paying him was paying part of the mortgage or I’m sorry he was
paying part of a mortgage he had but but so he’ll out a certain amount of it as
principal but even if it’s interest only in his mind it doesn’t matter your
you’re getting the property held for you until you can get a loan but essentially
you you know this isn’t necessarily a
purchase but it’s a way of getting time and it’s a contract for a deed okay this
is a backup if you can’t make some of the other stuff work but it’s also
something that suits people it suits people sometimes
let me give you an example let’s say I liked you and I wanted to sell you my
property and I know that I’m gonna take the
proceeds of this property that when I when you do pay me off cash I’m going to
buy something else okay so I know that you’re gonna eventually have the money
so I might give you a contract for deed with the reason being is I’m not ready
for this to close because this property once it closes I’m gonna have cash and
I’m not gonna have anywhere to put it yet so what I might do is say give you a
contract for a deed and now wallet we’re waiting for you to get your contract I’m
gonna prove that expires and you have your money to pay me I am gonna go look
for the next property that I’m going to buy with your money so that’s a reason
somebody might give you a contract for a deed they don’t want to close the deal
because as soon as it closes then they either have to have an accommodator you
know the clock starts for deferring taxes you know in other words deferring
the gain off this property into another so anyways that’s just another reason
for contract fatigue okay so the other backup to that is like a road here is a
long escrow and a long escrow surgery if you can have access to the property it
buys you more time and even if you don’t have it it buys you more time to go find
a partner or to go find a hard money lender if you watch any of my last more
recent videos you know that I’ve been having to close deals all cash and on
very short notice I mean I have a three-day deal I have an 11-day deal I
think lakehouse sent a bottle so all these
properties just bought in the last few months the lake house I think also I
mean I think I bought that inside of three weeks and that actually was a long
escrow compared to the other ones so that’s it I don’t know if anybody has
any questions or any questions at all any fears any fears with doing this
stuff for a Ryan how you doing anyways any questions you have this is
good time or if you think of them later you can always put them in the in the
you know below in the comments and we’ll certainly circle back and get to answer
them try to think of what else I can cover here with you well one thing when
you do contact agents and you talk to agents is you learn about the area you
want to ask them questions like you know hey how much is the property also you
know why is it so much if it seems like a lot because you might go why is it so
much why it seems like it’s high and you’ll find out that that may be you
know there’s that happens that happens and so a lot of tension well one that
seems high you know and anyways I can give you a
perfect example and this is actually deal I lost recently actually less than
a year ago I lost this deal and so let me explain what this was because believe
me you’re like you know failures the failures you’re gonna learn from like
like no others so I have a guy well yeah Ryan you oh yeah I don’t even know what
we have to talk about when you go to buy it of course you got it you want to have
clear title so you’re gonna go to a title office and you’re gonna want to be
sure to have an insurance policy for sure so but let me tell you about
property and a property it was industrial okay it looked like this next
to it was a house behind it was a duplex a little two-story duplex okay okay I’ve been in touch with this guy I
was doing everything right I was staying in touch
he told me he wanted to keep his house but he wanted to oh I think he wanted a
nine hundred thousand or a million dollars for just this maybe a million
with with this other property here but he would he did not want to sell the
house he didn’t want to sell the house so all of a sudden this thing shows up
on the MLS and I see the pictures and he wants a million dollars and I’m like
yeah that’s not it’s probably too much yeah it’s too much you know I’d already
talked to her enough well I find out I talked to another investor find out he
bought and I go are you kidding me how do you make sense of that he said well
he goes you know a building and a duplex and a house I know what do you mean a
house he said yeah no one I got the house with it I know you gotta be
kidding me so this guy and again this goes to that
when I say keep in touch be relentless otherwise you’re gonna be forgotten this
case should have called me I bet I even helped this guy get a
contractor for his underground I can’t believe you didn’t call me but anyways
it happens I’m not really too surprised at all so this is what happened he’d
been talking about these two properties this one and this one together okay for
1 million just a little bit too much just a little bit too much he didn’t
want to sell this one well now he puts her on the you know in the MLS and it’s
an agent and he includes this one but I talked to him so much I’d already knew
it wasn’t included that made it a beautiful deal so I lost it that’s what
happened all right okay great thanks Stacey glad you’re here okay
Stacey if you buy 60 anchors and split it in one to two acre sections but its
owner financed how do you sell off the tracks since the owner still has the
deed okay so Stacey you’re talking about mine 60
acres and it’s being owner financed by somebody else okay so
so let’s say you put 20% down and you know let’s just say how much you paying
for the property just give me a ballpark it doesn’t really matter but I’ll wait
free to answer all right well anyways here’s the deal Stacey’s
guys talking about 60 acres and she wants to split it into say one or two
acre parcels let’s just say though okay one hundred and ten thousand okay
beautiful okay first of all you need to make sure that you can break it up into
those small other parcels and if you can fantastic
so let’s just say you’re gonna break that sixty acres into two acre parcels
okay so you’re gonna get 32 acre parcels out of this thing so what did you put
down on this 20% or what do you think you’re gonna put down on this my next
question is going to be what do you think you can sell that the two intrabar
CIL’s for per per each because what I would do is what you’re gonna do is
you’re gonna you can go ahead and do everything you’re talking about it you
can break it up just like you’re saying but depending on how much money you get
per two acres you may have to go ahead and put those in escrow and kind of
close a few of them concurrently so they you have enough money either to pay off
the guy that you owe the money to or you may go back to him and say you
know let’s get a you know a drawdown agreement and what you would do is you
tell them that every time you know let’s just say you have these two acre parcels
and let’s just say for you know let’s just say you’re gonna get you’re gonna
have thirty two acre parcels and you’re gonna sell them for ten thousand dollars
apiece okay so you make an arrangement for this guy with the person that you
bought it for it he’s going to release his interest in each of these two acre
parcels as they’re sold and if your so much to say you’re selling them for ten
thousand dollars he will agree to release them for for $8,000 per parcel
okay because at $8,000 per parcel you’re gonna have him paid off in like you know
in like 12 parcels like 12 times 12 times 8 is 96 thousand so with the first
12 sales he’s gonna be paid off and then the balance of those will be your own okay you’re buying it for 2,200 I don’t
know I don’t understand with that what you mean by that I understand you want
to sell it for 8 to 10 so if any of the bottom line is this Daisy
the numbers don’t matter that much let me explain how it works so so what you
do so here’s your law listen let’s just say this is your encourage okay and
you’re breaking this into will just say that’s 30 parcels okay let’s just say
it’s 30 goes on okay you you’re putting would you tell me you’re putting down I
don’t know well I’m just gonna assume that you’re gonna put 20,000 down see
you oh you owe 90,000 so let’s just say you paid 110 like you wrote you Oh
ninety ninety thousand so and you say you plan on some of these eight to ten
will be conservative you’re gonna solve for a two piece okay okay so you’re
gonna make a deal you’re gonna have 30 times AIDS you’re gonna have you’re
gonna have two hundred and forty thousand in parcels and you only owe
this guy $90,000 okay so you when you sell 12 of these twelve times eight okay that equals 96 okay so you can make it
or you can make a deal with him say look we want to pay you off incrementally and
we want to give you you know maybe you would
maybe you don’t even want to give him 8,000 permit you know I worst case you
give them you just give them the full price as
your seller okay you give him hate and after 12 Lots he’ll be more than paid
off and what you can tell them is is that every time you make a sale you’re
gonna give the whole eight thousand if you can talk them into taking six
thousand that’s probably even better because if you do it at six thousand
okay six thousand you give him six thousand you keep 2k for yourself
so after fifteen lots with the six thousand each I’m sorry
your son for eight thousand each but after fifteen Lots sold at eight
thousand you keeping two for you six for the note holder I’ll just say the owner
of the previous owner okay so 15 times six there’s his ninety
thousand right there okay so after fifteen lots by the time you burn up
half of the property you’ll have thirty thousand dollars in your pocket you’ll
live recoup your money Galland plus whatever probably you spent on doing the
subdivision and now the you’ll have the remaining fifteen lots that you’re gonna
sell on your own over you know but now now you get all the money because he’ll
be clear by the time he gets here that that’s not uncommon at all you know you
can ask him it’s not gonna happen probably because you got to be a fool to
do this but sometimes people will come in with the idea of developing and they
want the guy that they owe the money to to subordinate to a new second or the
cost you never want to do that you never want to do that as an owner when you
sell you don’t want to do it because you’ll be stuck with all the liens if he
doesn’t know what he’s doing so but do you understand is that clear I think
everybody understands that right you just basically get the guy that owns it
to do a release on each lot as they’re going he just releases that he releases
it he releases it but he’s doing it for money and it’s a good way it’s a great
way to sell and buy and sell it’s not a problem at all all right okay well
Stacey you’re saying so how do people by the lots build yeah I’m not sure how
did the people buying the Lots build I assume they either have a builder or
they are a builder I mean I’ve flipped a lot of lots to
builders lots of property so you know sometimes people just buy a property
with the intent of you know building you know two years down the road people go
out to the country and they buy a lot you know they finish up whatever they
plan on doing on the home that they have or maybe the kids are finished in school
and kids go to college they move out to the country how was all the time there’s
a lot of reasons for moving and I’m just assuming you’re in the country cuz you
got a you know 60 acres so I just sold 52 acres there’s 180 homes on it now and
that’s in less than two years and I made over two and a half million on that
property so I like where you’re going I didn’t even subdivide mine but I Rizzoli
so that it could be subdivided to smaller stuff so that’s what I would do
is you just you just get a release an owner’s release on the properties as
they’re being developed and that’ll take care of that it’s about that simple so
if you’re just now watching please like the videos please subscribe and please
get in line for I got an app I’m giving away it’s a hundred percent free and
it’s I’m gonna release it as soon as I have a thousand people that signed up
for it made a lot of money in real estate been doing this since I was 19
it’s a great lifestyle and it is much easier than most people realize it
really there is no school they can teach you what I can teach you this is all
experience but it you know you can learn it you know I’ve just learned it by
doing and but I can probably shortcut you a lot and save you a lot of time okay I assume there’s a delay okay
gotcha understood thanks thanks Stacy
appreciate the questions but so look I have four kids I have two in college I
have twin 14 years old the purpose of my blog here
is to to leave a guidebook for my boys to follow you know my family I got
Alzheimer’s runs in my family my dad died of my grandmother died of it and
I’m hoping I miss it but I may not and I’m kind of an old dad now so I I just
I’m afraid that in 10-15 years I may not have the capacity to train my boys and
to show them what I know and and that’s probably gonna be the most hungriest to
learn although they’re actually doing pretty good already you’ll see them in
some of my videos too but depth please like my videos again please share and
subscribe if you can get on the notifications that’s a good way Stacy I
had I asked her to get on the notifications last night and her husband
had been writing me I told them I you know I answer their questions if they
you know if they come on live and I appreciate it and see your questions
help educate everybody else so I really appreciate the fact that you you know
you you did come back and ask me online so everybody could get the benefit of
the answers so again Tom that flip anything and I don’t I don’t
sell seminars I don’t do any personal mentoring Stacy and Wilbur can attest to
that they asked me to contact when I get other I get calls all the time for such
things but really this is how I want to mentor I want to mentor like this and I
want to do it in a communal way where we can all learn from each other and and I
believe me the only payment I want is I want to see you make money because if
you’re making money it means I’m doing this right and if I’m doing this right
it’s gonna serve my kids later on so that’s it for now I’m gonna say goodbye
so please stay in touch please please join please subscribe I’m gonna be doing
this I mean until I can anymore okay so that’s it for now flip anything USA
again share subscribe and like thanks a lot