What's going on, everybody?
So, in today's video, I'm going to be going over six different ways to purchase real estate
with no money down.
And I've actually done just about all of these strategies.
So, you hear a lot of people say, "Oh, that's just for TV.
You can't actually purchase real estate with no money down."
Well, they are completely wrong.
A lot of times people give advice on things they have no idea what they're talking about.
Most people are not real estate investors.
So, in this video, I'm going to tell you exactly how to purchase real estate with no money
down, the exact strategies I've used to buy plenty of properties with no money down.
So, that being said, let's jump into it.
The first strategy, probably one of the most common strategies that you might have heard
of, is wholesaling.
And that's basically where you find an off-market deal at a discount.
And then you assign the rights of that property to an end buyer.
So, you, as the wholesaler, don't technically purchase the property and take title to it,
but you do get paid what's called an assignment fee at closing.
So, the assignment fee could be 5,000, 10,000.
I've heard of some people making even up to 100,000, just on an assignment fee.
And the way that wholesaling works is, let's say I'm in a market and I'm looking for off-market
deals.
I'm doing direct mail.
Maybe I'm putting banner signs, door knocking, cold calling, whatever my marketing strategy
is.
And I come across a property, let's say for 100,000.
And in this one particular neighborhood, 100,000 is an amazing deal.
Probably in any neighborhood in America, 100,000 is a great deal.
But let's say we know that investors are purchasing that same exact type of property for 110,000.
So, if I put it under contract for 100,000, I could close on it.
I could probably use hard money to do the rehab.
It takes a little bit more risk, but you could potentially make some more money.
Or I could just sell the rights of that contract to a rehabber who maybe doesn't want to do
all the work of trying to find these off-market deals for 10,000, for 5,000, really, whatever
you negotiate between the rehabber and yourself.
So, that's the first strategy for no money down real estate.
And I've done a decent amount of wholesaling.
And one thing I forgot to mention is that every state is going to have different laws
when it comes to wholesaling.
So, always be aware of those laws.
Do some research before you start wholesaling.
But if you're good at the marketing, if you're good at finding the deals, there's always
going to be buyers out there.
You'd be shocked at how much cash is out there, how many people want to get into real estate
investing, but may not want to do the dirty work or even know how to find some of these
deals.
So, the second way to do a no money down deal is by using private lenders.
And I'll give you an example of a deal that I just recently did.
So, I was doing some marketing and came across an amazing off-market property, got it under
contract.
And it was a deal that I could wholesale and I probably could have made 10 or 20,000, but
I prefer to hold onto it.
I'm actually going to refinance it into more of a rental property for a long-term buy and
hold.
And because it was such a good deal, my private lender was willing to fund the entire amount.
So, I did have to come out of pocket just a few thousand bucks for a couple of closing
costs.
But for the most part, it was like 99%, no money down.
So my private lender basically just funded the whole thing.
And the way you find private lenders, the way I found my best top private money lenders,
is by asking traditional mortgage brokers if anybody in their company does private money
lending, because mortgage brokers understand the lending business.
They understand what an asset's worth and what you can lend on it and still be safe.
And a lot of times at these local mortgage companies, they'll have guys in there that
have been doing the mortgage business for 10, 20, 30 years.
They've accumulated a lot of cash, they're looking to deploy it into something they understand,
and hard money lending can be a great side hustle for them.
And really it's more private money lending, but sometimes those terms are interchangeable,
because usually when you go directly to a mortgage broker, who may just do this on the
side, you're going to get much better rates than if you were to go to like a commercial
type of hard money lender.
The third way to do a no money down deal.
And this is probably the least recommended way to do this.
I'd probably exhaust all these other options before you do this one.
And I've done this a couple of times, but it is going to be the most expensive, and
that's with a joint venture.
So, if you're good at finding properties or maybe you're good at doing the contracting
work, you can often find somebody who's willing to not only pay for the entire purchase price
of the property, but also pay for the cost of repairs.
And then in exchange, you would either just find them the property or you would manage
the work or do the work yourself or some type of arrangement.
So it's mostly done with more like newer investors.
If you're not comfortable doing the repairs yourself and you really want to do a rehab,
maybe you can do this strategy, but it is a way to do no money down.
I've done this several times and it's worked out pretty well.
But one thing that I did learn from doing those types of joint venture deals is that
you're going to make significantly more if you just get a private money loan or some
type of hard money loan, rather than splitting it 50-50 with another person.
Next up, we have a home equity line of credit or a HELOC.
And this is best if you have a personal, like your principal residence, and you have a lot
of equity in it.
You should try to get a home equity line of credit so that... just as a safety net, number
one.
So, if anything were to happen, you could have access to all that cash, or you could
also use it in the form of a down payment.
If you came across a really good property, or maybe you just need money for repairs,
you could access that line of credit.
And the great thing about home equity line of credit, for the most part, it's only going
to charge you for the amount that you're using, but you do have to pay some type of yearly
fee.
But it's pretty minimal in exchange for what you get, which is access to potentially hundreds
of thousands of dollars in the equity line that you could use for really whatever you
want.
The next no money down strategy is using a hard money lender.
So it's pretty similar to private money lenders.
However hard money lenders are typically more of like a business, whereas a private money
lender might just be like an accountant that has 500,000 sitting around.
So, if you find a good enough deal, hard money lenders can be flexible.
You will have to reach out to maybe five or 10 different ones and see what options that
they have, because hard money lenders are always looking for people to bring them deals.
And sometimes they may not say you can do no money down, but some of them can be flexible
and maybe tack on some more interests on the backend, or maybe they just only require a
minimum amount down.
And then maybe you have a personal line of credit or a home equity line of credit or
something like that, where you can use for the down payment and then they'll fund the
rest of the deal.
And the one thing I would say about hard money lenders is talk to several of them.
There's a lot of great hard money lenders out there.
There's a lot of bad ones.
Talk to several of them.
If you've never used hard money before, I'd probably try to keep it with like a local
hard money lender.
Sometimes, there's national hard money lenders, and they can offer you good rates, but if
you're just getting started, probably try to just keep it with a local hard money lender.
You can find them in real estate investing Facebook Groups, referral groups.
Talk to different investors.
They should have no issue whatsoever recommending a few good hard money lenders to you.
Next up, we have subject to financing.
And that's basically where an investor just takes over the existing financing that a homeowner
has.
And again, that's a little bit more of an advanced strategy.
So, you should always do your research and make sure there's something in it for you.
Sometimes, people might just offer to do subject to, but the property, obviously, might not
have any equity, or maybe if you take over that existing mortgage, there might not be
any cashflow if you were to do some type of rental property.
So, make sure there's obviously an advantage in it for you, as opposed to just taking it
over.
And also do your research.
Maybe talk with a title attorney, just to make sure everything is done correctly with
that type of transaction.
Now, if you're looking for additional advice on how to become a real estate investor, I've
created a couple of beginner guys for real estate investing, which I've put in the description
below.
I've also included the resource list that I use as a real estate investor.
So, there's about 10 different resources on there that I'd highly recommend that you take
a look at.
And then, if you're looking for a real estate mentor, if you want me to mentor you, one-on-one,
to learn how to become a real estate investor, I've put a link down there, as well, to see
if it makes sense to work together.
So, check all of those out.
And as always, if you have any questions, drop them in the comment section below, and
I'll see you in the next video.
Bye.