Learning how to start a rental property business
with no money gives you the ability to start creating positive cash flow every
single month. Even if you look at your bank account and there's no money there.
When I first started my rental property business I didn't have any money. I had to start bootstrapping
it just like all of us did. A lot of us investors get around and talk sometimes and we're like,
you remember when we first started our rental property business? Because we all started off with
no capital. So it doesn't matter your age or when you're starting. If you're starting with no capital
you started where most of us start. So, again, don't be discouraged because you have no money. It's time
to just figure out all the strategies you can use with no money to start landing rental properties
and creating positive cash flow. Let's get at it. The very first thing you can do is partner.
One of the things people don't understand when they get into the real estate business
is how much partnerships drive deals. Partnerships are really really really one of the lifeblood of
real estate deals. In fact, if you drive by a pretty large apartment building I can nearly guarantee
you that is owned by multiple people. Because partners can get a lot more deals done faster
and really earn more revenue and it takes so much more time to earn the kind of revenue to invest in
properties on your own. So, partnering with other people is one of the fastest ways to get to the
finish line with a rental property business if you don't have any capital and what you could
do you could be the person that finds the deal. So if you become really good at deal hunting
and you can find deals and bring them to people who have money you can partner on those deals
both take a piece of the equity and guess what? You have a rental property business and you don't have
any money in those deals. So you don't have to start with capital. This is why learning how to
build a rental property business with no money is huge. Because you don't have to have the capital
to still leverage the amazing real estate gain. Because a lot of people see real estate investors
they earn a lot of money and they say, "I really want to start investing in real estate.
But is that really for me? Because I don't have any money to do that. Because you know it takes money
to make money." It's terrible statement because no it doesn't. It takes understanding. It takes mindset.
It takes strategy. But it doesn't take money. You could own a lot of real estate without any
money. 2020 we bought 15 million dollars in real estate we didn't put one single dollar into the
deal. My wife and I have zero money into those deals. Guess what? All those rental properties
I get paid because I found those deals and put the deal together. You can do the exact same thing.
Partnerships drive real estate deals and if you don't have money those are simply the partners
you need to find. The second thing you can do is rent out properties and Airbnb those properties
after you rent them. You said, "What do you mean?". Do you know you can actually rent properties and then
Airbnb them or put them on vrbo or any of the vacation rental sites and you can make money
on properties you don't even own. So you can start the passive income when you don't own
the property. So let's say you don't have capital go rent an apartment just like you would and then
Airbnb that apartment and make money every single month. People that use this strategy make anywhere
from 500 to as much as 2500 on each unit they own like that and guess what? As you continue to
make more money you can take up more and more and more and more properties in an area and continue
to Airbnb those properties. It's a powerful way to leverage property that you don't even own. Meaning,
capital you don't get and you can start earning passive revenue with real estate. Now, you have to
understand in that model you don't get to share in the upside. Meaning, as that property increases
in value you don't get to leverage that the owner will leverage that. But it allows you to get into
the real estate game and generate positive cash flow not owning any real estate. They call this
rental arbitrage. Rental arbitrage is when you rent something and you either sublease it or Airbnb it
to people for more than you're renting it for. Creating a delta or an income or profit from
that difference. Meaning, you're renting it for a thousand you Airbnb it for two thousand. You create
a thousand dollars of profit and you get to keep that thousand dollars and earn revenue. That's the
power of this specific strategy. Yet again, another strategy to bust into the real estate game bust
into the rental property game without having any capital. But I thought you need to have money to
make money. It's time to throw that out. The third thing you can do is something called house hacking.
You can get a property where you live in one of the units and rent the other unit out and
you can live there for free. The power of this as long as you have the credit score to get the loan
you can get a very low interest loan house hack that property and guess what you're in the rental
game without having a lot of capital. You can get a loan as low as three and a half percent down
and you can get into a property rent the other side out and completely wipe out your mortgage
or your rent payment. Guess what? That leaves extra money every single month where you can
save up and start investing in real estate or you can start locking down rental properties
and start Airbnb them like we just talked about. So, house hacking is a great way to bust into the
real estate game without having any capital in your bank. There's a lot of ways to do this
start picking one and doing it today. My wife and I house hacked many times throughout our
life because it's such a great way to save on expenses and also be investing at the same time.
It's one of the few times where you can save and invest in the same transaction and that's why it's
so powerful. Before we go on to the next two tips make sure you subscribe to our channel so you get
all the content we put out about rental property, investing, building your wealth, and continuing
to grow your financial future. Let's get back to the content. The next way to bust into the rental
game with no money is through seller financing. Now, seller financing it's one of my favorites because
it allows you to get properties and not leverage banks. Because a lot of times when you don't have a
lot of capital getting a loan is tough to do. Well, you can get zero down seller financing deals all
the time. Now, when I say all the time it doesn't mean that everybody's willing to do this with you
but there are people out there right now that would do a seller financing deal with you
if you just simply knew how to find them. How to negotiate it and really how to get the deal done.
There's a couple things you want to look for in a seller financing deal. Most of the time people
that have owned the property more than 30 years or are in their mid-60s are prime seller financing
candidates. Because if they're in their mid-60s they're probably done managing the property they
don't really want it anymore. They're interested in a seller financing deal because they can get cash
flow for life and they're not going to get hit by taxes and the reason owning the property nearly
30 years is another metric is because when you own the property that long you've usually experienced
all the depreciation. Meaning, you're going to pay an even higher tax bracket. Somebody sells
a property they're going to be in the 30 to 42% range when they pay taxes on that property and
the longer they own that property the higher up in that tax bracket they go. So they're gonna pay
more taxes the more and longer they own it. So when you come to somebody who's in their mid
60s have owned the property for a long time. It really would be a great benefit to them to sell
it to you seller financing charge you six or seven percent interest and not pay all that tax upfront.
Because often the interest they charge you can pay for their taxes. That's the power of this deal for
them and that's the main benefit and motive for them to actually do this deal. The other thing
you want to think about when you're doing seller financing is make sure you understand the terms
that are to be negotiated. When you're thinking about the terms you're thinking about number one
you're thinking about the down payment. How much are they going to require down in order to get
this deal done? The other thing you're thinking about is interest rate. What type of interest are
they going to require in order to make this deal worth it to them? The third is the amortization.
How long if you made every payment would it take to pay the payment off? Most of the time
it's in the 15 to 30 year range depending on the person and how fast they want that payment done.
The fourth is the actual sale price. How much are you actually buying the property for
and then the fifth is a balloon option. Meaning, if they amortize the property at 30 years
but they want it paid off in five it's considered a five-year balloon. Meaning at five years
needs to be paid off. The reason a lot of owners do that is it gives you a low enough payment to
make the property worth it and then you can force appreciate that property it's worth more money and
then you can get a traditional loan in five years. But again, a balloon payment means you're going to
pay as long as it's amortized. It's amortized for 30 years you're going to make payments as though
you're going to pay it off in 30 years. But when five years hit you need to pay off the remainder
of the loan. The fifth way you can bust into the rental property market without having any capital
is through what's called subject-to properties. Subject to properties is where you take over somebody's
mortgage and then you rent the property out for more than their mortgage payment. So a subject to
is let's say somebody gets in a lot of trouble and they're in a foreclosure situation. Meaning,
they're not making their payments and they're headed towards foreclosure with the bank. You can
negotiate where you take over their mortgage they move out of their house you make their mortgage
payments you bring in a tenant and rent it out for more than their mortgage payment
and you've created profit and you don't have any money into the deal. Let me tell you right now when
I'm filming this we're on the heels of the Covid19 pandemic and the foreclosure moratorium will
soon lift and this is going to be a huge strategy for investors to understand. Because understanding
this strategy will allow you to help hundreds of homeowners not go into foreclosure and get their
credit obliterated by coming in taking over those loans and being able to keep them afloat. It's a
great value add to the person in that situation and it's a great value add to you. But also want to
give you a free training today make sure you click the link below and you're going to be taken to our
free 60-minute multifamily master class. It's a master class where I teach how to bust into the
multi-family market and actually create revenue. I give you the five things you need to start buying
multi-family real estate today. So click that link go to the training and I'll see you there.