Epic Real Estate Investing - How to Buy Real Estate with No Money Down (14 ways!) | 889

Episode Date: January 6, 2020

Many believe it is not possible to buy a property with no money down but we have an example that proves them wrong and the 14 ideas to show you how to start doing real estate with no or very little means! You’ll also be able to mix and match those ideas to find countless additional ways to do it. Stay tuned and learn more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. Hello, welcome to the epic real estate investing show. This is the show where everyday people come to get the tips. They come to get the strategies and the tactics to escape the rat race using real estate. So if you are just getting started and you're looking to take down that first deal, I'm working with a small group of investors inside of our pilot program called Your First Deal. It's exactly what it sounds like. So if you'd like to join us, you may at free real estate investing course.com.

free real estate investing course.com. And it is the free course that will show you how to do this business with little to no money. The real estate itself, that's the easy part when it comes to no money. But running the business without money, that can be a little tough. But that's what I'm going to show you how to do in this course. Okay, that's what this course is all about. And this free course, it's actually better than free because I'm going to pay you to complete it.

So if you want to invest in real estate and you're concerned about your finances getting in the way, I just vaporized most of your money excuses right there. How'd that feel? And then after that, after we're done with today's show, I'll go ahead and I'll vaporize the rest of your money excuses when it comes to the real estate. All righty. So, you know, as I'm talking about this,

if you're one of those people that don't think this is possible and you think that you can't buy real estate with no money, you're right. You can't. No, if you don't believe you can, I mean, why would you even try, right? Why would you even try? You know, the question is not can I or can't I.

The question is more, how can I? You know, for example, I do this thing in the epic intensive from time to time to really just kind of prove this point that everybody knows how. Even if you don't think you know how, you know how to do this. And what I do is I pull out a $100 bill and I'll ask, who will trade me $20 for this? $100 bill, right? That's a good trade.

You'd give me $20 right now if I gave you $100 and back, right? And everybody in the audience, everybody in the room, everybody raises their hand. And the first person to come up to me and give me the $20, I go ahead and I make that exchange. I give it to them. And then, next, after I prove that point, I go ahead and I hold up $1,000. And I ask, who will give me $800 for this $1,000? And everybody raises their hand because that's a good trade, right?

If you gave me $800 and I gave you $1,000 back, that's a really good trade. No wonder everybody. I mean, no duh, everybody raises their hand. But there's a problem now. You see, not anybody or nobody, not yet at least. Nobody in the room has $800 in their pocket. No one has $800 on them. And I say the same thing.

All right, well, the first person to give me $800, I'll give them, $1,000. And from at that point, we just take a morning break and, you know, we go ahead and we mingle for 15, network to 20 minutes or so. And, you know, everyone during that break is now trying to figure out how. And everybody does, essentially. Everybody can. Most do.

People start, they'll go out and they'll borrow. They'll go get cash advances on their credit cards. They'll partner with other people in the audience. The point is, they figure out how. So right now, if I were to offer you, $1 million in exchange for $10,000. That's all you had to do is you just have to come up with $10,000. And I'll give you $1 million back.

There's no doubt in my mind that you would figure it out. No doubt. I mean, you'd probably sell something. You'd probably borrow some money. You'd probably partner. You might get a loan. You might pull credit cards together. You might do a combination of all those things.

You might pull some equity from somewhere. the point is you would make that happen, right? $1 million for your $10,000, that's a good exchange, isn't it? It is. Yes, and I know you would figure it out. You indeed would figure that out. And you wouldn't need to read a book about it either. No, you wouldn't need to hire a coach.

You wouldn't need to take a course. You wouldn't need to listen to a podcast. You wouldn't need to watch a YouTube video. You wouldn't need to do any of that to make it happen. No, you'd figure it out, wouldn't you? Yeah, and here, if I put a time limit on it of, say, an hour, so panic time, right? Nah, not for a million bucks. That wouldn't get in your way in the slightest, would it?

You'd find that $10,000. So why could you do that, but you can't invest in real estate with no money? The mindset is exactly the same. That's the point I'm trying to make here. The mindset is the same. that real estate represents the $1 million. Now you just got to go find that $10,000. You know, once you embrace that mindset

and you start looking at your deals in that manner, you're going to recognize that money is everywhere. There's no shortage of money. The system is overflowing with money looking for your deals. So the answer, find the deal first. go out and find the person that's got that $1 million in their hand. And then when you do, it's so much easier to find the $10,000. The mindset and how you would come up with the $1,000 or the $10,000, it's exactly the same.

Once you have that mindset, you can do any deal with none of your own money. So with that said, I'm going to give you 13 no money-down strategies to make this this no money down idea work for yourself, all right? And I've got 13 here. There's probably an infinite number, maybe not infinite, countless number for right now, for sure, of no money down strategies because when I say there's a countless number, because I'm going to give you 13 of these things,

and you can start combining all of these things. You can start combining them into various combinations and come up with all of your own little strategies. My point is, if the profit is there, the how is going to be. going to show up. If the profit is there, the how is going to come. All righty? So 13 ways to buy property with no money down. Right. So one through four are all cash transactions. Okay. So you go and you get, you go find the deal. Okay. It's got to be a deal, right? You got to find the

million bucks first if we refer back to that previous metaphor. But you go find the deal. Okay. And now here's how you can do it. You got four different ways of just a deal, just straight, simple, no money down strategy is you can assign the contract before you ever have to buy it. And when you assign the contract, someone is going to pay you for that assignment, for the right to finish out that contract that you were able to get. The second is you can do a double closing, right? You can have where you are the buyer on one contract, and then you go out and you find a buyer for it, and so then you're a seller on the second contract, you match those two together. Ideally, you want to sell it for more than what you're buying it for, and you get to keep the difference there.

there's an all-cash transaction and you can go out and just find hard money. Hard money is really easy. It's all based off of the deal. Very little has to do with you and your own personal credit score. So if you go find the deal, there's, you know, you go do a quick Google search for hard money. There's no shortage. You're going to get pages and pages and pages and pages right there in your town of hard money that are looking for somebody to give their money too.

They walked out of their house this morning, kiss their wife goodbye. patted their kids on the head, got in the car, and on the way that they're driving to the office, they're just hoping that someone like you is going to walk in with a deal so they can put their money to work. And you're walking out each morning and hoping that someone's going to be there

with some money for your deal. If you only knew how the other side was thinking, it wouldn't be so intimidating. All right, so hard money. It's everywhere. Just a quick Google search. And if you got a good deal, here check this out.

If you have that $1 million, what to say that $1 million represents our good deal. and you only need 10,000 to take down that one million, then you could talk to three different hard money lenders and start shopping them and force them to give you the better rate or maybe more money, right? So once you've got the deal, you've got controlled, you've got the power. Then the all-cash transaction, then, you know, a private money lender would work as well.

So it's Aunt Martha, Uncle Bob, maybe it's mom or dad, maybe it's your friend, Maybe it's the person in the, maybe it's the person in the cubicle sitting in that right next to you. Maybe it's the person on the treadmill right next to you. Right. So it's everywhere. So you could do the assignment. You can do a double close. You can do hard money.

You can do private money. Number five. Now you can go in and you can buy a property or add value to it. So you buy a low and then essentially you could refinance that at market value. So you could buy the property with one of those three strategies that are one of those two, I guess, the hard money and the private money. You could buy the property there. You can go through and add value. value and then you could refinance at the actual value.

You understand? So if you bought it at 100 and you put 25 into it to fix it up. So now you got 125 in and its value is 175. You can go in and probably refy that property at 150. I know Rob Kim just did something very similar to that in Minnesota, someone from the epic community. And Mercedes does that all the time. We do it with the epic fast funding, right?

people use that money to go in and buy the property and then they'd get a next day, a next day refinance on it, get all their money back, pay all that Epic Fast Funding money back, and typically end up with a little bit of extra to put into their pocket as well. So you buy low, you add value, and then you could refinance at the real market value. And so you could do that with, like I said, you could do it, go ahead and take it down with the hard money. A lot of people in the Epic community are using that private, not the private, not the private, but the Epic Fast Funding, they're using that as a bridge loan.

And if you want to go check that out and just have that ready, ready at the, armed and ready for you. Once you do find that deal, you can go to Epicfastfunding.com and you can get your bridge loan capital there. Ready? So that was number five. Number six, subject two. So a subject two is where you take ownership of a property.

You actually go on title, but the seller's loan is going to stay in place. So you're taking ownership subject to the. the existing financing. So you're going to take over the existing loan for the seller. You're going to take over the payments. You're going to take over the maintenance on the property. You know, and then maybe you give them some money up front. Maybe you don't.

That's all negotiable. And that would bring me to number seven. So a subject two where a seller actually waits for the equity. They essentially becomes almost a partner with the seller. So you could take that property over subject two. You're taking care of the payments and you're taking care of the maintenance. And the seller just kind of sits around and waits. until you refinance or sell the property.

And then the seller can get their profit that way. Again, no money out of your pocket to make that happen. Okay, very little. Number eight, subject two, and then you can assign that contract. So you get a property under contract subject to the existing financing, and then you can assign it. And this works really well for selling to an occupant owner, a resident owner, someone that's going to live there.

It works really well for pretty houses as well. So if you find the right situation, it's a great solution. Number nine, you can take the property over subject two, and then you could sell it, seller financing. You know, maybe you gave the seller, you took over their payments and you gave them 10 grand to go and get into their new place and move and get out of the way and they can start their own life. You take care of their property now.

And then you sell the property to someone else, but you're going to sell it with seller financing. So you're going to wrap another loan on top of that. And that could be to an investor. It could be to an resident owner. And there's so many different ways that you can make money this way. So you put 10 grand down to take over the property. but when you resell, you could ask for a $20,000 down payment or a $30,000 down payment. $40,000 or $50,000.

It all depends on how good of a deal that you got. And then so you can create some arbitrage there for yourself with the down payment. And then you can also create some arbitrage there with the payments as well, because you're selling it via seller financing. Even if what you're selling it for is at the exact same interest rate as the underlying mortgages, the one you're taking over subject to, right? If that mortgage is 5%, there's $100,000 balance. You're making the payments at 5%.

And you go and sell that property for $150,000 at 5%. There's some space there. There's some cash flow for yourself there as well. So you could create the arbitrage for yourself with the down payment. You can create it with the monthly payments as well. All righty. And so, yeah, the payment that you'd collect from the buyer, it would be greater than the payment that you make to the mortgage owner.

And that's how you'd create that cash flow for yourself. All right? So what number was that? That was number nine. Okay, number nine. Number 10, you can buy a property on a land contract or a contract for deed. Land trust, another term for it you might have heard. Basically, what you're doing is you're taking over the property using, utilizing the benefits of an installment sale.

So you're making really small payments for it. I typically don't like to buy properties this way. It's better to sell them this way. And here's why is because when you buy properties this way with a land. contract, the seller still stays on title. Now, you have a contract that gives you full right and use, the same exact right and use as an owner would, but you're not officially on title until you fulfill the obligations of that contract.

But if it's a nice property and it's something that you want and that's your only means for doing it right now and maybe it's just a temporary situation until you do find the real financing for it, then that's a really good strategy. And then you could just rent the property out for more than what you're paying on the contract and you could create the monthly profit for yourself that way as well. All right. So number 11. Actually said this.

I spoiled this a little bit just earlier, but wrap financing. You know, so you're taking over subject two. Instead of paying off that existing loan, you could wrap another loan around it. So if the seller wants $150,000 for the property, right? And they own $100. They want their profit, right? They want that $50,000. They want $150,000.

They owe 100. What you can do is leave that $100,000 mortgage in place and create a second mortgage of $50,000 on top of that one. That way they get their profit as well, and you get in with almost little to no money down. So even though a property has a mortgage on it, you can still do owner financing with that type of situation. And, you know, with what that said, out there, one third of all properties are owned outright. Most people don't realize that. One third. I think it's a little bit more.

Things like 34, 35 percent are owned outright. So negotiate with the seller finance terms. You know, clients like Corey Kendig, you've heard his name before, Nathan Price, haven't mentioned him in a while, Josh Miller. They've all really embraced these creative structures of seller financing. And they are taking it all the way to the bank. Those guys are all total rock stars just because they've started to leverage this type of financing with the seller and this type of negotiation. in this type of negotiation, this creative structures with sellers. Number 13, lease options.

So lease option, you can lease the property, but you can also purchase an option for a very small amount. I mean, it could be $100, $500, it can be very small, and you reserve the right to purchase that property somewhere in the future at a set price. So, I mean, for a very small, that could be six months down the road, it could be a year down the road, it could be six years down the road. And you've got the right to purchase that property in the future. And so what that can do is you can rent it out.

out in the meantime, and then it gives you the time to go out and find the money elsewhere to take over permanent ownership of it. Okay. And then number 14, joint venture or partnering. Partnerships, they can take a number of different forms. It doesn't have to be, you know, 50-50 money partners, but 50-50 value partners is kind of what you want to look at it. What I mean is some person can bring in the money and you brought in the deal. So that's a 50-50 partnership, right? or maybe it's a 75-25 partnership because you brought in the deal, you're going to manage it, and you've got the down payment, but you just need the credit score to bring in the balance. That could be that way.

You know, one person just, one person finds the deal. One person finds the money is typically how it's going to work. But that's an example. Okay, so just know that it doesn't have to be 50-50 money. It can be 50-50 value. So you can buy, hold, and sell real estate with very little to zero of your own money. And go to free real estate investing, course.com. I'll walk you through the steps of executing the easiest one of these no money

down strategies and I'll prove it to you. There's people inside of that community right now that are cash and checks. There's people that are completing the course. They're getting their money back. They're getting a bunch more money back because they're doing deals. Yeah, I'm going to pay you to complete the course. If you close a deal and post you a picture of your check inside the community there, I'm going to pay you even more for that. So if that sounds like something you want to join us on, go to free real estate investing course.com. Free real estate investing course.com. All righty? God bless him to your success. I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

You didn't know home world. We got the cash flow. This podcast is a part of the C Suite Radio Network. For more top business podcasts, visit c-sweetradio.com