Hey, Samuel Leeds here and on this video I'm gonna explain to you exactly how you can buy
a house without any down payment.
This may sound too good to be true to you, and if you think it's too good to be true
and it can't be done then normally you're probably right. However, I've done this countless,
countless, countless times. I'm buying houses all the time, even today without using a down
payment. So as many of my success students, and you can see that on when it was on a Wednesday,
the success students are so successful that they're making newspapers. So this really
is real. This really is true. In fact, there's not just one way how to buy properties without
a down payment. There's actually lots and lots of ways. For example, you can buy a house
now, but pay for it later. Like you can do this with a lot of stuff. You can buy cars
this way. You can buy products this way, but you can actually buy houses on a buy now,
pay later basis.
But the great thing about buying houses that way is you get the rent and you benefit from
the capital appreciation without even actually having paid for it. Another way is you can
borrow money so you can do by properties without using any of your money, without putting a
down payment down yourself, but you can borrow other people's money or money from banks and
different places. Again, this is an incredible strategy to buy properties without using any
of your own money. We call it leverage. You can also join venture so you can find the
house, you can do the work, you can bring the expertise to the table and then you can
find a joint venture partner who also wants to buy a property. He wants to buy a house
as an investment. He's got the money, but that's all he's got. He hasn't got any knowledge.
He doesn't have any credentials or street savviness around what's going on. Whereas
if you bring that to the table, you don't have to bring the money to the table. You
can also buy a property and you can put money in, but then add value to the property and
then pull that money out I.e. leaving no down payment in the property. So you really, really
can do this and there's many, many, many ways to do it. I'm doing it all the time. However,
on this video I wanted to specifically talk about joint ventures because I think this
is one of the most exciting, simple ways to buy properties without using any of your own
money. It also means that you haven't got to pay for it later. You haven't got to pay
anybody back it. You've literally got a property using none of your own money and you've done
that with a joint venture partner.
So how does this work exactly? Well, firstly, in order to do this, you've got to be a good
deal sourcer. You've got to be an expert at finding good property deals because there's
no way that anyone's going to want to put him all the money and give you 50% of the
profits unless you've earned the right as a good property sourcer. So that's the first
thing. Second thing is if you're doing joint ventures, make sure that you've got firstly
clarity with the joint venture partner I.e. what's going to happen? What are the expectations?
What are the exit strategies? So you've got clarification, but also get a solicitor to
draw up a contract. It is one of the most stupid things is to do business with somebody,
especially when you're talking tens, hundreds of thousands of pounds on the table without
any solicitor involved. Because when there's a lot of money on the table and properties
always go up in value.
You just want to be clear. You want, I've got a solicitor involved, even if you're dealing
with family. So let me give you a couple of examples. I'm going to give you an example.
Worn with me being the person that was the expert that found the deal that didn't put
any money in. And you might say what idiot would put all the money in and give someone
50% like 50% for funding the deal? What an idiot. But then I'm going to give you another
example of when I put all the money in and only took 50% because you see joint ventures,
although it can result in you buying property without any down payment, it doesn't mean
that someone is getting screwed over. Properties investing has a lot of money in it. It's a
big pie and you can afford to cut different pieces of the pie where there's lots of people
that win.
So we're not dealing with something where there's only a few pounds to be made and one
person takes it all and the loser gets nothing. In property, there's always winners and winners,
not winners and losers because there's so much money to we made. So one example is about
four years ago, I'd just been on a buying spree. I bought a lot of properties. I've
just got married. So I've spent a lot of money getting harried and going on honeymoon and
stuff like that. And I came across this absolute gem of a property. It was a five bed HMO and
this was in Wolverhampton . And the owner contacted me and said that they owned it in
a partnership. The partnership had split up and they needed to get rid of this HMO real
fast. They were selling it 27% below market value. The cash flow was incredible.
And they said, "Samuel, we don't want to mess around. We just want a quick sale. We've got
some personal things going on. Will you buy it?" So I negotiated the price 27% below market
value. The problem was I didn't have enough money to buy the property because that was
literally cashless. I'd got money tied up in property, but I didn't have the money in
my pocket or in my bank to go ahead and buy this property. So I said, look, if I was to
give you x, would you accept it? They said yes. And I'm now thinking I haven't got the
money. Now I could have just passed it on to somebody else and said, I can't buy this
house. It's a great house. It's a great investment. I'll pass it onto somebody and I'll charge
a finder's fee. Maybe I'll make 3000 pounds. But the problem was I was too greedy to do
that because I couldn't let this property's slip from my fingertips, but at the same time
I didn't have any money.
So what do you do when you've got no money but you don't want to let good property deals
slip from your finger tips and you just get paid a few thousand pounds as a finder's fee.
What I did was I contacted somebody that I knew this person had money, they had no idea
about property investing, but they did want to invest. They were frustrated with their
money, sat in the bank earning no return. They trusted me, they knew me, they knew my
reputation and experience as a property investor, so I said, I've done this property. If you
put the money in, which is about 39,000 pounds possibly fab, you're talking about 50,000
pounds. If you put the money in, what we'll do is we can have a joint venture whereby
we'll get 50% of any of the future capital appreciation on the property and 50/50 profit
on the rent.
You put the money in, the money that you put in is yours but only profits down the line
on that property is 50/50. What do you think? They were up for it because 50% of this deal
was more than 100% of a deal that they could find. So what am I bringing to the table?
I'm bringing to the table expertise, great property deals, bargain prices, high return.
What are they bringing to the table? What they bring into the table all of the money,
for me, no down payment. That property now has been making 1000 pounds a month. 500 for
me, 500 for them. Caps appreciations got up really well. I think it's got up by almost
100,000 pounds. 50,000 for me. 50,000 for them. How much did I put down? Nothing. No
down payment. So that's one way joint venture. The other end of the table because some people
might say, Samuel, that's mean you shouldn't have taken him 50% just for finding the deal.
No, it's not. I have been on the other end of the table. I had one of my students come
to me and say, Samuel, I found a deal. The deal was a fantastic deal. It needed very
little money in about 16,000 pounds. That's all the to put in. They said to me, Samuel,
can you lend me the 16,000 pounds? And they offered to give me 10%. I said, I don't want
10% I don't want to give you 16,000 to get 10%. 10% is very, very weak. The property
was getting a lot more than 20% so I said, look, how about this? You found the property,
it's a great property. It's in your area. You know the area you are planning on managing
the property and everything. How about this? I'll put the 16,000 in, I'll put all your
money in. You just manage it and do what you need to do with it.
You found it, you take complete responsibility of it and we'll get 50/50 on the profits.
They were delighted. Sometimes I put all the money in. Other times I might put no money
in. The bottom line is you do not need money to buy property. You need knowledge, you need
experience, you need the ability to act and implement what you're learning as well. So
that's joint ventures. Again, if you do this, make sure you do it properly. Make sure you
have a solicited, draw up the contracts. There's ways you can do this whereby you can set up
a company where you own the company together. Some of you have 100% A shares, some of you
have 100% B shares, so depending on who put the money in, it depends on who gets what
shares. It's very simple when you do need to know what you're doing.
So what I would say is if you're ready to take action, if you're ready to buy properties,
but you haven't got a lot of money, get the knowledge, read the books, watch all the videos
on this YouTube. Come in it, joins me at a property investors crash course, but whatever
you do, don't take yourself out of the game because you can do this regardless of where
you are right now.
Hey guys, hope you enjoyed that video. There's a lot of ways to buy property without using
any money, so do check out some of the other videos that we have in our play list, and
also don't forget to subscribe, what that notification button so you never miss a video.
Thank you so much.