Epic Real Estate Investing - How to Buy a Rental Property With NO Money (Infinite ROI Step by Step) | 1403

Episode Date: January 6, 2025

In this game-changing episode, we’re unveiling the secret blueprint to acquiring rental properties with ZERO upfront capital, even if you’re a complete beginner in real estate. Imagine stepping into the world of property investment without needing a dime of your own money! We’re diving deep into a step-by-step process that reveals how to find motivated sellers through little-known strategies like expired listings and owner financing opportunities on platforms such as Zillow. You’ll also learn how to use powerful tools like DealMachine to spot potential deals that others overlook. But that’s not all—this episode is packed with insider techniques on negotiation—from mastering the art of 'subject to' deals to leveraging seller financing to get the best terms for you. But here's where things get really exciting: we’re going to show you how to use Other People’s Money (OPM) to fund your deals and skyrocket your returns. Whether it’s using private lenders, joint ventures, or creative financing options, we’ve got you covered with real-life examples of how these strategies work in the real world. You’ll also learn the critical importance of paperwork and how to protect yourself in every deal, ensuring your success while minimizing risk. Plus, we'll provide practical tips for building a powerful real estate network and understanding the essential creative financing terms you need to master for long-term success. By the end of this episode, you’ll have all the tools, knowledge, and confidence to start buying rental properties with little to no money down—transforming your financial future and achieving that infinite ROI you’ve been dreaming of! Don’t miss out on this chance to unlock the real estate investing secrets that could change your life! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. By the end of this, you'll know the straightest line to buying a rental property with zero dollars. And it works, even if you're brand new to real estate. And I'll lay it all out for you step by step how this plays out multiple times per month right here in my office. Step one, find the seller. And notice I didn't say find the property because no money down deals lie within the seller's motivation to sell. People who need to sell fast and are willing to negotiate. And I've got 46 different ways on how to find them, but I'm going to give you three right now. The first one, expired listings. There are currently 1,000 listings a day expiring.

That's 1,000 sellers that are frustrated that their homes didn't sell and that they're now looking for it in a different solution. So call them directly and ask, would you be open to me take them over your payments? Second place, go to a website just like Zillow. It can be really simple. Search owner financing and you'll find more opportunities for no money down deals than you've seen in a very long time. These are already pre-negotiated for creative financing. And just call them and ask for starters, what's the lowest down payment you'd consider? And then the third place, the all-new deal machine.

With just a couple of clicks, this app will give you access to millions of motivated sellers nationwide, including their phone numbers and email addresses. So just call them, text them, send them some direct mail or send them in an email asking, would you consider selling your property? And their AI will even do a bunch of the heavy lifting for you. My private client, Jeff, just scored a lakefront resort with 100% seller financing using it. So you can get free access right now at the new deal machine.com. Step two, negotiate price and terms. And you know what the price is all about. You do want to get the lowest price that you can.

But don't put too much emphasis on it because the deal is really in the terms. And there are two specific terms that you need to know. The first one is subject to. With this, you don't actually buy the house outright. You take over the seller's existing mortgage. I mean, imagine a relay race. The seller hands you the baton and then you run with it. So the mortgage, it stays in their name, but you now own the property.

It's like renting a car. But instead of giving it back, you take ownership legally and permanently. The second term is seller financing, and I like this one even better. You see, the seller becomes your bank. They let you pay for the property in monthly installments, often at terms, far better than what a bank would offer. You see, motivated sellers don't care about how they get paid as much as they care about solving their problems. And you, you're the solution. So embrace that, and a whole new world in real estate will open up to you. Step three, put it in writing. Deals don't exist without paperwork. It's the glue that holds everything to

together, protecting you and giving the seller peace of mind. And you need the right contract for the right deal. For subject to deals, your purchase agreement should specify that you're taking over the mortgage. And you want to include a clause, say like this, buyer agrees to make all mortgage payments directly to the lender starting at some specific date. For seller financing, you're going to need a promissory note and a deed of trust. These documents, they outline your payment schedule, the interest rate, if any, and what happens if you default. Grab all the payable. Grab all the pay work I use at epic dockit.com. It's already proven and tested. But here's a pro tip. Always have a real estate attorney or title company review your documents to ensure that everything

there is enforceable in your market. Missing one detail could cost you the entire deal. While most people spend years saving for their first investment property, those who know these strategies, they just skip right to the front of the line. But what happens to those stuck in the old system? Well, they're chained to their savings account. Watching opportunities just slip by. Don't let that be you. And that brings us to step four, using other people's money, OPM. Because here's the golden rule of real estate, is that you can get rich using your own money, but you get wealthy using other people's money. Even if a deal requires some cash for, say, earnest money, a down payment or rehab, you don't need to use your own funds. That's what produces

infinite returns on your investments. And there's three sources of OPM. The first one is private money lenders. These are individuals, friends, family, or wealthy acquaintances, looking for better returns than a savings account. In the pitch here, it's really simple. Hey, would you be open to earning 8% interest on your money secured by real estate? That's how you can start the conversation. Two hard money lenders. These professionals, they specialize primarily in real estate, and they move fast, and they focus more on the property's value rather than they're focusing on your credit score. So if you need, say, $20,000 for rehab, they'll fund it in days. Just make sure that your numbers support the repayments. Number three, credit lines. Your credit score is an asset. Many banks offer

0% interest lines of credit to qualified borrowers. Chase has a bit of a loophole built in right now to one of their programs specifically for real estate investors. You can apply and get the details at loophole lending.com and you can get started there. And here's the lie that everyone believes. You need a fat bank account to get into real estate. Banks, down payments, credit scores, those are all the gatekeepers, right? Wrong. The truth is that the best investors don't rely on their own money. They rely on their creativity. They've mastered creative strategies like subject to seller financing and OPM. Think of these as your cheat codes to real estate, unlocking opportunities that others miss. While the average investor is battling with rising interest rates,

cut-throat competition and endless paperwork, you're navigating the process with ease. You're avoiding all of these optional hurdles that they take on, and you're finding creative deals, just like another private client of mine, Peter, who was contacted by a homeowner in Kansas City, who had their house on the market for six months with no luck, and they had a mortgage at 2.65% interest on their property. That's gold in today's high rate market. So after getting nowhere with traditional buyers, the sellers were getting desperate. And that's when Peter called after their listing expired and asked, hey, would you be open to me taking over your payments if I paid your full asking price? Well, after six months on the market, the seller said, and I'm paraphrasing a bit here,

but it was essentially, this is the best offer to come my way so far. And I'm at a point where I do need to sell. So yes, I'll do that. So think about this. If Peter didn't solve their problem, they were stuck paying for a home they couldn't afford any longer. It would have bled the seller dry after a few more months. And that's where Peter was able to step in and create a win-win solution. And so the deal that broke down like this. One, Peter contacted the seller because their listing had just expired. It turned out that the seller was behind on payments and stressed about losing his home.

Two, Peter negotiated the terms. He offered to take over the mortgage, no money up front, just peace of mind for the seller. Three, Peter put it in writing. He took ownership, so his name went on title. but the mortgage, it stayed in the seller's name, and that was all laid out very clearly in the paperwork. And step four, no down payment or rehab was required. So outside of closing costs, Peter didn't need OPM for this one. And that got Peter to step five, receive cash flow.

Peter rented out the property for $1,800 a month, and that covered the $1,268 mortgage, leaving him $532 in monthly cash flow. So what did $532 a month mean for Peter? That was maybe a car payment, some extra savings. it was just his first deal. But repeat that every other month or so, and you're looking at life-changing passive income in 12 to 24 months. Now, if you're thinking, hey, this sounds amazing, how do I start? Well, here's a three-step cheat sheet. First, grab the tools to find the deals. The new deal machine.com, that's going to get you the most bang for your buck. You're going to get

all the phone numbers and all the email addresses of all the sellers, where with other services, that's an additional cost. Number two, learn the lingo. Understand other creative terms like wrap-round mortgages and balloon payments and deferrals. That's going to give you a ton of other options and putting creative deals together. And I happen to put a list together for you and uploaded it over at epicbreakthrough.com. Number three, build a network. This is a people business. So find investors, title companies and attorneys who specialize in creative financing.

Look into your local real estate investor association group or join the epic community at epicinvested.com. And if you'd like to look into working together, say one-on-one and follow in Peter's footsteps, go to R-E-I-A-Ase.com. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream.

We got to get as low. Okay, only 10 more presents to wrap. You're almost at the finish line. But first? There, the last one. Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.