How in the world can you invest in a multi-million dollar apartment building without bringing
any money to the table? All that and more coming up.
Hey there, my name is Mike Fritz. I'm the founder of Titanium Capital Investments in the
multi-family CEO system. My greatest passion is
helping real estate investors just like you create financial freedom with multi-family real estate.
And in this video, I'm going to show you how to get that real estate with no money out of your own
pocket. And the last tip is the tip that's made my business triple in size in one single year. Let's
get this show on the road. The very first way you can start investing in apartment buildings without
any of your own money is with your own money. And I know you're thinking, "Mike, I thought you just said
'without any of my own money'"? Well, here's what I've realized, when people think of money, they look
at their bank account. And the money I'm telling you to invest in, you're not going to find there .
As I've worked with students just like you for years on investing in real estate, I've found
I have to help them find money even in their own profile. What that means is some people have an IRA,
and what they don't know is they could transfer that over to an SD-IRA or a self-directed IRA and
invest in real estate out of that and the money goes right back into the IRA tax-free. So, you don't
have to invest in real estate with money in your bank account. You can invest in real estate with
money that's just sitting there not making near as good of return as it could if you could invest
it into real estate. It's not coming out of your pocket, the money's not working for you currently
and my goal, if you have this scenario, is to get that money working for you a whole lot harder.
What a lot of people don't understand, if you had a 401k with the company you were working for and you
changed jobs, that 401k with that previous company sometimes is transferred over to an SD-IRA
or some other form of retirement. You can take that money and transfer it over to an SD-IRA if it's not
that and you can invest in real estate. There's 9 trillion dollars in retirement accounts
sitting there right now that could be being invested in real estate and you may actually have
some of those funds. I have a lot of clients that are now leveraging their IRA's and leveraging their
401ks and leveraging their retirement accounts in order to invest in real estate because it's a very
safe and reliable investment. Another way you can invest in real estate without any money of your
own pocket is by investing the equity that's in your home. Some of you may own a home that's worth
400 thousand dollars and you maybe even have it paid off or you only owe 200
thousand on it and you have 200 thousand dollars of equity there. You can partner with a
bank to refinance that or do a home equity line of credit or a HELOC, and you can invest
those funds into real estate. Because interest rates are so low right now, I often will say
that equity is the most expensive thing in the world right now. And what I mean by that is when
you have equity in your home, it's not really doing you any good. Might give you a pillow to lay your
head on at night but it's really not helping you build wealth. If you leverage that equity and
invest it into real estate, now that equity might cost you 2 or 3 percent to borrow from a
bank, you invest it in real estate and you're gonna make 6 or 7. You're gonna make twice as much
money as it's costing you to borrow. Borrowing at 3 percent, you're earning 6 percent, you're
making 3 percent on your equity and you're not doing anything for it. A lot of people have
money in their own world that they don't even know about for a retirement account or equity in their
home . Right now, this is a bad time to have equity. The lower interest rates go, the more powerful
equity is to invest in real estate. The 2nd way you can invest in real estate without any
of your own money is by leveraging as much bank money as possible. I actually believe that the
best investment this year is investing in debt. Debt right now, because interest rates are so
cheap and inflation is coming due to how much money the government is pumping into the economy,
inflation and devaluation of the dollar is coming. The best hedge of protection against
that inflation and devaluation is debt because debt was borrowed against a stronger dollar
at a lower interest rate and later on interest rates may come up and the dollar's value may go
down. You've essentially locked down a time where money was more valuable and you've invested into
real estate and you maintain that even if the economy goes awry. Debt is one of the most powerful
investment strategies in the world. You will not find somebody investing in the apartment game that
isn't leveraging debt to some level. It's a truly powerful way to fuel your career forward. So, not
only should you partner with banks on every single multi-family deal you do, you should be negotiating
with your bank to give you as much as possible. Some banks will want to give you only 70 percent,
loan to value or LTV, meaning they're only going to give you 70 percent of the sale price or they may give you
75 percent or even 80 percent some banks. But, the truth is they're going to give you in that 70 to 80 percent range.
The goal is to get that as close to 80 as possible because of how cheap money is right now. Interest
rates are so low, it's time we leverage these as much as possible. Now, you still have to bring money
to the table when you leverage a bank. You have to bring money for the down payment, the closing cost,
the appraisal cost, the title fees and all the fees it takes to close a property. But when the
bank covers 75 percent of it, it significantly lowers the amount of money you need to bring to the table. In
fact, professional investors use as much bank money as possible in order to fuel their real estate
career forward. If you know somebody who'd like to invest in apartment buildings with none of their
own money, make sure you share this video with them. Do them a favor, do yourself a favor, get this video
in their hands so they can start investing in real estate without any of their money as well. But that
leads me to my 3rd and the most powerful point the thing that's helped triple our business in the
last few years. And that is raising private money. Now, I just mentioned leveraging as much bank money
as possible is the most powerful way to go. But, that's not gonna give you all the money. You're
still gonna have to bring money to the table, but it doesn't have to be your money you bring
to the table. Private money allows you to partner with private equity partners that invest in your
deals for a percentage of the equity in order that they would get a good return on their money.
By partnering with those investors, it means you don't have to bring any money to the table. When
you first start off raising private money, a lot of investors may ask you, "How much money are you
putting into the deal?" The way you navigate that is by saying this, "You know, if I put my own money in
the deal, it takes up space where our investors can't get access to that deal. So, if I invest
my own money, it means I have to raise less money and our investors can't get access to it. So, I want
to leave as much room open to serve our investors." What that tells your investor is not only are you
wanting to serve them, but it also lets him know you have other investors that you're reaching out
to in order to invest in this deal. Raising money will lift the ceiling on your career forever. It'll
allow you to invest in deals you never thought you could invest in. Private money is so, so powerful.
I remember raising money for our very first real estate deal. It was a 6-unit apartment building,
I put an offer in on the property and I had never raised private capital before. I had no idea how to
do it, nobody in the world knew that I was gonna come ask them for money. I was starting from
scratch. So, let me tell you, if I can do it, believe me, you can do it. So, what I did is I put an offer
on this property and then I started calling people and I wrote 3 names down that I was sure were
gonna say yes. Guess what? Every single one said no. They all said no and I had to go on to a whole
new group of people. But by raising money, I worked hard. There were a few nights where I didn't sleep
as well really hoping I could raise this money. But what happened was it forced me to become
innovative and really think about my network in people that would really be interested in
investing in real estate. What happened was I ended up raising that money, we closed on that property
and by raising that money, it opened the door to tons of investors who wanted invest in our deals.
We now have more money than we have deals to invest in because I just jumped in and started
even when I didn't feel like I was ready. I have purchased millions and millions of dollars in real
estate without using any of my own money and I want you to be able to do it too. I actually
have a free gift for you. I'd love for you to join our multi-family master class. If you go down into
the description, you can click that link. It'll take you to the multi-family master class where I walk
through how to get in to apartment buildings and multi-family real estate. If you're ready
to really start earning income in real estate, replace your income and create financial freedom,
then this is the place you want to go. Make sure you click that link and I'll see you in the video.