Joe: Let's get started.
Yesterday, I told you what we're going to do and what the overview of this whole video
series was about, i.e. analyzing deals, learning how to find the deal in a very short period
of time, whether or not it's going to make sense for you as an investor, whether you're
going to be able to have a good exit strategy for it and be able to make a profit on it,
or whether it's going to make sense to be able to sell it to another investor.
In the first 8 or 10 videos, I'm going to talk about the theory behind this process
and in the last 10 videos, I'm actually going to take specific deals and we're going to
over them one by one, based on a lot of different types of deals that you guys sent me.
A couple weeks ago I sent out an email asking you for your deals: 'Send me the deals.
I'm creating a new video series.
If you send them to me, I'll try to analyze some of them for you.'
I got flooded with deals.
I'm not going to be able to do them all, but what I am going to be able to do is try to
take a representative group of all of the different types of deals that I got so that
you'll have a good understanding of how you can analyze each different type of deal rather
than just staying all in one arena.
Joe: On this video, though, I'm going to talk about zero down and no credit deals and how
to analyze those types of deals.
The way that you do it is by using the hierarchy of zero down structures that I created.
You've heard me talk about this before and I talk about it in a lot of the different
videos and training programs that I teach and a lot of the free stuff that I give away.
So I'm not going to go into them in detail.
As a matter of fact, I teach this to my mentor students, and on the Push Button Method, it
takes me two and a half hours to go through this whole deal hierarchy.
Joe: Understanding how to do zero down structures is vital if you're going to have a real estate
investing business.
Zero down structures are the most valuable tool in your kit because they make it possible
for you to do deals in many different ways and use many different structures to make
it work.
Joe: The hierarchy is this.
And by hierarchy, I mean the way you would structure a deal.
You're going to look at a deal and say, 'Okay, can I first do the top layer in the hierarchy?'
The hierarchy's set up so that you are safest in the transaction at the top of the hierarchy.
You want to do the deal that's at the top of the hierarchy.
But you can't always do the top deal in the hierarchy.
Sometimes you have to come down in the hierarchy in order to make it palatable to the seller.
So what I'm going to show you how to do is how to know what that hierarchy is so that
you know what your safety margin is and where you're at as far as being in control of that
transaction.
You're always safer in a transaction if you're in control of it.
Okay, the hierarchy of zero down structures.
Joe: The top one is buying a property subject to the existing loan.
And this is when you're buying a property, not selling it.
If you're selling a property, you're not going to sell it subject-to.
You're only going to BUY a property subject-to.
When you a buy a property subject-to, it means you are getting the deed to that property.
The seller (the person who has that property right now) who has the mortgage on that property
is going to sign the deed over to you or into your company's name.
And you're going to start making payments on their loan.
You're not going to be applying for their loan.
You're not going to be qualifying for their loan.
You're not going to be responsible for their loan other than your own moral responsibility
to make sure that your seller is taken care of.
So basically what happens is you're able to take over a property without putting any cash
into it, without using any credit, and you get the deed to the property.
The deed is ownership of that property -- that's the sweetest position to be in as a property
owner.
Now, there's lots of ways to be a principle in a transaction, but to actually be the owner
of that property, to be on that deed -- that's the strongest position you can be in and it's
the hardest one for anyone to dislodge you from if ever there is a dispute in that transaction.
So you want to be on that deed.
And there's lots of different ifs, ands, or buts about subject-to's; why you should do
them, what the risks are, why you shouldn't do them, what to look out for, all of those
different things.
I'm not going to cover those things here (I've only got a few minutes here in this video
to get through all of these structures so listen to the other stuff that I teach) but
having the subject-to deals -- that's the top of the hierarchy.
That's going to be your first choice to buy any property.