Knowing how to start a real estate business with no money opens up a world of investment
opportunities for you.
You don't have to have money to make money.
You can start investing in real estate right now even if you look at your bank account
there's no capital there.
Let's find out how.
In this video, I'm gonna walk you through the five things you need to know if you wanna
invest in real estate and you don't have a lot of capital to do so.
A lot of people are in this boat.
They see the real estate game.
They see how much action is worth.
They really want to take advantage of that but they really don't have the capital to
do and the sad thing is a lot of people close the book at the truth.
I don't have money.
I wanna get into real estate so I just can't do it.
I've got to move on.
Real estate must be for a quote and quote rich people.
The truth of the matter is that is a limiting belief and should be toss in the trash.
Real estate is accessible for everybody.
You just have to know what exists in order to help people get into real estate even if
they don't have capital.
The very first thing you can do to begin real estate even if you don't have capital is you
do something called house hacking.
House hacking is where you live in one of the units in which you own.
So, you buy a duplex or a three-unit or four-unit building.
You live in some of those units and let people pay their bills.
My wife and I have done this 3 different times throughout our lives.
Where we live in one of our units and just rented the rest out and essentially live for
free.
It's a powerful way to remove the mortgage from your life so you can really simply live
rent-free in a place you actually own and it's accruing appreciation and continue to
grow in value.
But the powerful thing about house hacking is because you're gonna live in it.
You can leverage a federal housing administration or an FHA loan.
An FHA loan you can get into for 3 and a half percent down.
You know a $100 property for 35 bucks.
A lot of times the deposit in the first month's rent is that much to move into a rental property.
So you can leverage the FHA loan because you're gonna live in the property.
This is one of the best loans to leverage for your very first real estate property because
of the low interest.
But you do have to live in it.
So, house hacking opens you up to this specific idea.
Now, just a quick note on FHA loans.
FHA loans do have limits on how much you can spend depending on the area.
If you're in the midwest it's gonna be a certain number.
If you move to New Your City cost of living is pretty high then the numbers gonna raise.
If you're buying a single-family, a duplex, a three-unit, or a four-unit building the
numbers change.
But an FHA does have a ceiling on how much they loan.
So make sure you check wherever you're gonna buy that property.
Check the ceiling for an FHA loan which your banker can tell you and that's your budget
for that property in order to use an FHA loan.
But if you're gonna house hack it opens up a world of opportunity.
But the thing with house hacking is you can do it over and over again.
So, you can get an FHA loan.
Now, you can only have one FHA loan at a time.
After you get your FHA loan and you hold that property for 2 years.
Guess what?
After 2 years the bank will recognize your rental income on your tax statement.
So, they would actually count that as income after you own it for 2 years and you can leverage
that to get another property and if you wanna upgrade maybe the new property is nicer.
You move into that property and put a tenant on the property you live in and you continue
to do this and grow your wealth without having a lot of money to get this done.
The second way to invest in real estate without getting any money is something called seller
financing.
Seller financing is one of the most powerful things in real estate.
It's where the seller acts as the bank.
So instead of you having to go get a loan you just make payments to the seller and you
can get into real estate.
Now, you might say, "Mike, how you get into real estate with no money.
Coz some people in seller financing would require a downpayment.
Well, you can do a couple of things.
Number one, you can partner with somebody on that project.
Maybe they have capital.
You're gonna live in the property and maybe even manage that property and you're gonna
take the piece of the equity and get most of the equity of the person to put the money
in to get you into a real estate deal.
So, you can do as many seller financing deals as you want.
You just continue to search for owners that are going to sell your property on seller
financing and guess what?
It never counted as actual debt because it doesn't show up anywhere.
Simple a contract between you and the seller.
You can get a seller financing deal.
You can go and get a seller financing deal and keep going and guess what?
You don't need a lot of capital for this method.
You might be able to take higher interest and a lower down payment as long as the numbers
work for you.
Seller financing is a really powerful way to get into real estate with no money.
In fact, it's how my wife and I busted into real estate years ago in 2012.
We started with our FHA house hack that we just talk about and then our next few deals
were seller financing deals.
Because it's a way you can grow that portfolio but not have a lot of capital on your wallet.
The third way you can get into real estate without having any money is by raising private
money.
If you've been on my channel in the amount of time we probably talk about private money
is one of the powerful ways to skyrocket your real estate career even if you don't have
capital.
But you can leverage others capital put it into the deal.
You can keep a piece of the equity and guess what?
You can do it over and over again.
Last year we acquire over 300 units over 15 million dollars and all that property was
acquired by using other people's money.
None of our money went into those deals.
None of your money has to go with that wither and especially if you're looking at your back
you don't have any.
This is a great model to bust into real estate without having any capital.
Before I go into the last few tips make sure you subscribe to the channel and join our
family people.
They're investing in real estate, building wealth, and creating financial freedom.
Let's get back to the content.
The fourth thing you can do to bust into real estate if you don't have any money is by leveraging
a HELOC or a home equity line of credit.
Now, this is specific to people that own a home or no people that do own a home.
Because what's gonna happen with the HELOC is it's gonna partner with the private money
and I'll explain how that works in just a minute.
But HELOC is something where you have a property and you can take the equity out of that property
and use it for real estate and so if you have a property and you have equity on your home.
By leveraging that equity you can get into real estate without having any capital on
the bank.
Because equity cant be spend.
You can't spend your equity.
You can't invest your equity unless you HELOC it or take a line of credit against it and
then invest in real estate.
But the HELOC is you have access to that equity as long as it's a bank account and you can
leverage that into real estate and continue buying more deals.
But what if you're like, "I don't own a home", maybe you know somebody who does own a home.
They can take the equity out of their home invest in one of your deals.
You cant take the piece of the equity, give them a piece of the equity, and then guess
what?
You're in real estate with none of your own money.
A lot of people that invest in our deals invest through home equity line credit.
If they take equity out of their home.
They invest with one of our deals.
They may pay 3% of that money.
We're gonna give them 6-7 percent the first year.
That means they're making 3-4 percent on that equity every single year and by the way, that's
the least amount of money they're ever gonna make on that deal.
So, help[ing people see how they can leverage equity can really help you scale your portfolio
without having your own capital.
The fifth thing you can do is find the deal and partner with the rest.
So, let say you don't have any capital but you found a really good deal.
Then you find somebody who can get the loan and bring the capital and you brought the
deal.
You can take a piece of the equity for the deal.
Give them pieces of equity for bringing the other pieces of value and you can get real
estate without having any money.
You see, there's really four pieces of value in the deal.
The person who finds the deals.
The person who brings the money.
The person who can get the loan and the person who operates the property or manages the property
manager and all those four things.
If you can bring the deal and manage the manager you bringing 50% of the value equation and
you start doing deals over and over again and let somebody else bring the value of having
money and being able to get the loan.
Again, getting into real estate with none of your own capital.
Doing deals in real estate is way more about creativity and strategy than it is having
money.
Most people get into real estate with no money.
That's just how it works.
If you want to get into real estate you don't have any money.
Great, you're in great company that's where all of us started.
So thinking like, "Yeah, but you guys have money", we didn't start this way.
Do you think I started with capital?
I had no money.
My first house was a house hack which I live in half.
But here's what I want you to do.
When this video is over I want you to make a list of people you could call that could
be potential partners on your next deal.
They can bring the money you can bring the deal.
Let's get this thing going and stop wondering how to do it and start putting some staff
in the action.
When this video is over make a list of people you can call a partner with and start calling
brokers to get deals.
If you don't know how to find more deals.
Make sure after this video this over you watch our video on how to locate more deals.
But it's time to take action.
It's time to start wondering how to get into real estate with no money and just get into
real estate with no money.
If you follow these tips and I just gave you a bunch of stuff you can do in order to get
into real estate with no money and the sad thing about education is it removes excuses.
So now you no longer have the excuse, "I can't get into real estate if I don't have any money",
it's gone.
It's time to go in real estate and don't matter if how much money you have.