I get asked just about every single day,
"How to buy real estate with no money?" And
today, I'm going to show you exactly what to
do. Real estate is very expensive. This
house costs $150,000.
Because real estate is
so expensive, it's also the best tool I
know to become wealthy really fast. If
you found a house like this on sale for
$120,000
and could turn around and sell it for
$150,000,
you could make $30,000.
This is real.
Could you imagine making $30,000
from just one deal? I've done it
hundreds of times.
I've helped my clients do it thousands
of times. And often, it's for way more
than $30,000. But how do
you buy a house like this if you don't
have $150,000?
I'm going to show you. Now, if you
want to buy a house but you don't have
that much money, you can always go to a
bank and a bank will loan you the money.
They call that loan a mortgage. Now, in
order for a bank to give you a mortgage,
so that you can buy the house. The bank
will ask you for 3 things. Let me
show you exactly what those things are.
Alright. So, check it out. The first of the
three things that you're going to need
is a job. Now, I don't care how young or
how old you are. You got to land a job
and you should land the best job that
you possibly can, right? I mean, get a job
that'll pay you as much as possible.
That'll help. I mean my first job didn't
pay me a whole lot. But I'll tell you
that the whole point here is you got to
have a job and you got to be in the same
industry for at least 2 years. So,
technically you could move from one job
to the next but if you do, you don't want
to move from like dentistry to
accounting, right? You want to stay in the
same line of work for 2 years. That's
really important to banks. Now, the other
thing I want to share with you is that
actually I'm right outside the building
of the first job I ever had. And the
first job I ever had was actually in
sales. I'm just going to tell you right now,
just a little little bonus tip is that
if you get a job in sales, there's a lot
of useful things you're going to learn
that're going to help you in real estate.
Because real estate, even though, it looks
about looks like it's about buildings,
and brick and mortar. It's actually just
about people. And it's about how you
communicate and how you work with people.
And like most things
pay really well in life, sales is a
really important thing. So, they're going to
train you. Okay, so the first thing the
bank needs from you to qualify for
mortgage is a 2-year work history at
the same job or in the same industry.
The second thing they're going to need for
you to have is good credit. This shows
them that they can trust you. It also
shows them that you're responsible and
that you can handle having a mortgage. So,
how do you get good credit? Well, you need
3 credit cards. You need to be
careful here. If you use the credit cards
the wrong way, it can backfire on you and
it can make it harder for you to get the
house. So, here's the right way to use the
credit cards. First, you need to get 3
of them. Go to banks like this or you can
go online and you can apply for very
basic credit cards. We're not looking for
anything fancy. And it's okay to tell
them that you're using them to develop
good credit. Now, this part is really
important. Do not use them to buy stuff
you don't have the money for. Only use
them to pay for things that you already
have the money to buy anyway. And here's
the secret. Let's say you have a $100
and you're going to buy some new
clothes, use the credit card and buy the
clothes and immediately make $100
to the credit card, so
that you have it paid off. Every time you
use a credit card to buy something, you
need to quickly turn around and keep it
paid off. If you do this with these 3
credit cards, you'll develop a good
credit score in time. Okay, are you ready
for the third thing that the bank needs
to give you a mortgage? Now, you remember
that sales job that we talked about? This
sales job, at first even though was hard
and it was challenging, it actually
allowed me to earn some commission's on
the side which is one of the reasons why
I recommend it. In fact, if you can put
yourself in a position where one way or
the other, you can save an extra $500
a month. That's going to
help you with the next thing that the
bank is going to ask for which is a down
payment. Now, how much of a down payment
are you going to need? Do you remember that
$150,000 house?
For just a moment, let's just say that it
is worth a $150,000
but that you can get it for $120,000.
So you're
getting it out of discount a $30,00
equity position that you
get to have if you ever sell that house.
So, banks will often require a 3%
down payment. 3% on
$120,000 is
roughly $4,000. So, $4,000
plus maybe a little extra
savings is what the bank's going to ask for
you to have when it comes time to
actually buy that house. So, just imagine
for a moment that you are delaying
gratification on some of the nicer
things you'd like to have and you're
saving $500 a month. Well,
if you did that for 2 years, you'd
actually save $12,000.
More than what you actually need to make
this whole deal go down. Okay, so now you
know what to do to qualify for the
mortgage. Now what? Well, you need to look
at a hundred different houses for sale.
And pick the very best one. Not the house
that's the best but the house that has
the best numbers. First of all, you've got
to look in the right neighborhoods. If
you look in San Francisco or New York
City, those houses are going to be way too
expensive. You're going to have to look a
little ways away from home to find
houses in the right price range. And what
if you don't want to live in a house
like this? And check it out. This is where
I live right now. I designed and built
this house just 4 years after buying
that very first house. Using the exact
same strategy that I'm teaching you
right now.
This is the very first house that I
bought. Now, check it out. It's not a dream
home. But I bought this house for a
$110,000. I later
sold it for $165,000
while making incredible
cash flow along the way, down payments
doing my lease option system. Now, what I
want you to understand here is that on
your first house, you can do it right or
you can do it wrong. And what I mean by
that is, you got to buy the right house.
Don't buy the wrong house. The difference
is that you got to fall in love with the
deal. You got to fall in love with the
numbers not the house itself. Biggest
mistake that people make is they think
that their first home should be their
nicest home that they can possibly
afford at this time in their life and
right now that is not the case. This
house is about spawning several more
because I when I bought this house, 4
and a half years later this was my house.
And my real estate was paying me $12,000
every single month. I was
able to quit my job. That's what I call
retirement. Now, this all happens since
the age of 26. Now, I'm 38 and I only work
because I want to. My real estate today
is making me a lot more than $12,000
per month and I only
put in a handful of hours. So, I get to
play a lot and I get to focus on only
doing the things that are important to
me. But before I lived here, I lived here.
Now, this wasn't my dream house. This
isn't where I wanted to live but I made
some sacrifices and in a moment you'll
see why. And before I lived here, I worked
here. I had a 2-year work history. I
saved up my $4,000 down payment plus had
a few thousand extra in the bank for an
emergency fund. And I used my 3
credit cards responsibly to develop a
good credit score. This was not my dream
job. In fact, I often really didn't like
work in this job. But I had a goal which
was to buy real estate. So, I kept working
here. And I saved as much as I could
every single month. Okay, earlier I
instructed you to look at a hundred
houses and buy the one that had the best
numbers. Now, there's a couple more things
about this house that I want to show you.
Meow. Okay, check this out.
You'll notice that there's a couple of
doors on this house. Right here, there's
one right on the front, right? I lived
upstairs. That was my three-bedroom
one-bath. But down this little behind the
car on the side, that's a doorway into
the basement. So, what made
house works so well for me is that the
basement actually brought in some rent.
And by the time I bought this house and
refinanced it,
I basically was bringing in $550
from the basement and
my mortgage was around $550.
So, guess what that really
meant. That meant that I was living for
free. Now, by the way, this was better than
the hole in the ground that I was living
in the 400 square feet but I
was living there, not my dream apartment,
because I was saving money. Same thing on
this guy's. Not my dream house but this
house what was dreamy was the numbers on
it. Now, some of you going to look at this
and say, "Kris, I can't do that. That's way
too hard." Remember how I talked about
looking at a hundred homes to make this
worth it? And to tell you right now, you
might have to look at a hundred deals.
But when you find the right one, it makes
all the difference in the world.
Look, this is the best way that I know
how to get started in real estate. Your
first house may not have a basement,
apartment like this one did. But I'm
going to tell you right now. It took
sacrifice, it took hard work. And it was
totally worth it because I followed my
rules and I did it the right way and now
you know how to do it, too. If you're new
to this channel, I'll teach you about
real estate, Bitcoin, money
entrepreneurship and wealth. Really the
goal of this video was to paint a
clearer picture of what's possible with
real estate. And how to get started when
right now, you don't have any money. Now
you know. But I'm sure you still have a
lot of questions. Tell you what, subscribe
to this channel and then put your
questions in the comments below. I create
new episodes every single day. I'll
answer them for you and I'll give you
the answers to the information that
you're looking for. If you also want to
take a more aggressive start, then what I
want you to do is actually click the
link in the description below and you
can actually talk to my team. We'll give
you a private consultation and show you
how I can become your mentor and help
you get started as quickly as you can.