Hey friend, Kris Krohn. And I'm back with another no-money-down real estate
strategy. I'm actually joined today by my good friend Jerry. And what Jerry Norton
is going to do is he's going to be sharing with you his favorite strategy for
flipping real estate without needing a single penny.
So seriously, Jerry. Like flipping property without even a penny? I mean.. -No
money. No... -This whole No-money-down? Like... Let's... Listen, I just want to squash it
for a moment because there's so many people that are like, "Well, it's no-money-down
real estate." And then you get the house under contract. And then guess what every
seller wants? They want to know that you're serious. So, they don't just want a
piece of paper that says, "Oh, you have me under contract." What they really want is
just a little bit of skin in the game. And they call it "Earnest money." Which
means, your earnest and serious about doing this. And you've deposited some
money not with the seller. But they put it in escrow, right? There's a you know,
the brokerage is holding it saying, "Well, when the house goes through, you'll get
it." But guess what? That money is tied up and... - Tied up. -...over a period of time, it could
even go hard which means it's gone and you can't ever retrieve it. So, it means
that you're pretty serious. Often on a real estate deal earnest, when it can be
$500, it can be $1000, it can be $5,000. Aren't they going to have to at
least come out of the pocket with the earnest money? -That's the big concern. And
sometimes these sellers, to get that really good deal, like you said, they may
want a couple gram 2500. Sometimes $5,000. And if you're not willing to
say, "Yeah, I'll put down that earnest money." Then they're not real interested
in your contracting. -Yeah, they'll say, "I'll get a contract with someone else
that's willing to put a little bit of money down." Friends, we're not
even talking about a down payment. We're just talking about a part of the down
payment. But for those of you that are watching us in saying, "Kris, dude. I'm
still in high school....- I don't even have $1500." -Yeah. I don't know... -Yeah, yeah. I
don't have any earnest money. Is there really a way to flip real estate without
even needing earnest money? I mean, I'm talking about a very real zero money out
of pocket. -So, we want a ninja strategy for us? -Dude, we want a ninja strategy prior to this. Guys, I'm
going to tell you right now. I actually... Jerry just shared with me moments before
what it is. And I'm still really like, "Oh my gosh, I wish I did know that years ago. because I
would be freaking use that every single time." So, dude. Break it down for us. -So, one
of the things on your contract that is very standard, very common is to have
what we call "Due diligence." Now, what... It's important to know what that means. It
means that there's a small window, usually a couple days. Could be 3
days, 5 days, 7 days 10 days. But it says window of time where you can make
sure that everything is working out on your deal before your your contract goes
hard, right? Before your earnest money becomes hard or non-refundable. So,
here's what I do. I say on my... Right on my contract, I put "Buyer will provide
earnest money at end of due diligence." So, let's just say that I've done a 5-day
due diligence. My... And let's say it's a $2,500 earnest money fee that I've
agreed to pay. I don't actually have to provide that to the escrow company
that's going to hold it. Cash it and hold it until after my
5-day window. Now, this is huge. Think about this. -This is actually really big
because when you learn more about real estate, there's usually 3 or 4
specific deadlines between the time you get it under contract to the time you
purchase it. And there's a deadline for having time to do an inspection. And it
might be 14 days and then you get to come back and say, "Hey, I paid, I did an
inspection. And we found that this was wrong, this is wrong. And we want you to
correct them or lower the price or do something." So, there's there's one for
inspections, there's one for due diligence. And there's one for your
lending pre-qualification, right. Financing. So, the standard 30 or 45 day
contract is kind of built in with these outs. And due diligence is the first one
and it's one of the most important. And Jerry, let me ask you. How long in a
contract can you actually extend due diligence? How much time could you give
yourself? -Great question. You want to be careful because if you're asking for
this huge window then the sellers going to be a little suspicious. They're going to be
"Man, why would I... You've got all this time to back out." So typically, you're
looking at around 5 to 10 days is a reasonable... Because you're saying, "Look, I
need a few days to you know, make sure everything's checking out. I need to get
back into the property and..." So, it's a very common. Especially with distressed
real estate where there's all kinds of issues.
It's very common. -So check this out. So, let's say that you use Jerry's free
software for example. You can click the link and learn more about that. You use
this free software and you find a spectacular deal. The deal has great
equity and you go and you submit an offer and you say, "I'm willing to buy it
at your asking price." Because it's a great deal. There's a lot of... -Meets the
number. -Meets the numbers. And what you do is you just put this little
fine print in there that they can see which says, "My due diligence period shall
be 8 days from now." You've done that as you've basically said, "Hey, this guy
wants $500 for earnest money or a $1,000 or
$2,500. But I bought myself eight days. And what's cool about it is
you're not saying No to earnest money. If you were to say, "You know what? I don't
want to pay any earnest money", The seller is going to be like... -That's suspicious,
that's weird. -Why would I do that? You don't have any money. -Yeah. -You're saying, "Yeah, I'll pay your
$2,500. No problem." At the end of my due diligence. So, they don't even really... I
mean sometimes, they might say, "Yeah, I don't really like that." But a lot of
times... -They won't even care. -They won't. Because you're just saying you'll pay it.
-It's too small of a thing. And take it from their perspective. They're sitting
there thinking, "Great. There is earnest money. It's coming a little later. But I
don't even get it anyway until they actually buy the house. So, whatever." -You
know... You know what I'll do even better? You're like a ninja, Ninja? -Okay, I want
the ninja, Ninja. -If the seller says, "I'd like a $500 earnest money."
I'll say, "You know what? I'll make it $1,000." Then I'll put in there,
"At the end of inspection." Now, they're like, "Dude, this guy's willing to put even
more money down on his earnest money." -Now, here's the deal. So, I got to ask
you. So now, we're using the ninja trick. I use your free software. I found a killer
deal and I bought myself a week. 7 days, 10 days, 5 days. And now, I'm
thinking, "Awesome. -Now what? -I have a sick deal but the clock is ticking and the fuse is
short. I've got a week." Like, what do I do, right? -Yeah. We're not saying go deliver
pizzas to get your earnest money. -That's a really... -You're right. You know, the
earnest money is still due. It's now due in 7 days or whatever. -So, what are you
going to do in the meantime? -Well, here's what's cool. If your wholesaling and you
now have that 7 days. I found that if I can't find a buyer for my deal
in a couple days, I probably don't have a deal. -Yeah. Yeah. -You know? I mean like,
you're going to put your deal out there and people are going to say, "Yeah, I want it or I
don't want it, right?" Like it doesn't take that much time. So, what I do then is
let's say it is $1,000 earnest money at the end of my due diligence. When I find
my cash buyer guess when I'm asking him to pay right now today to get the
contract? He's got to pay your earnest money. -$1,000 earnest money. Yeah. So, I
take his money. Fund my earnest money. So, you don't even have to give it to them.
As long as you have a signed contract and you get paid the earnest money, you
just pass it right on? -That's right. Wow. -Yeah. In fact, you should never
wholesale a deal to a cash buyer unless you're getting earnest money from them,
right? Just like the seller wants from you. You get that from your cash buyer. It
commits them to the deal. And so, you want it to at least be the amount that you
agreed upon on your contract with the seller. So,
friends, check it out. You have learned today
an authentic real no-money-down strategy. And I also want to tell you that you
might be thinking, "Well dude, this is great. You say there's this software you
can get me a deal. But then you know, how do I actually do the deal?" We also
already shot another video already for you guys. Wait for it. Might already be
out. Might be linked to this video that's already going to tell you how do you
actually go and find buyers? There are some ninja strategies on the cash buyers
and how you find them. So friends, it's all part of a system. And the system
works anytime I go into a new area that is unfamiliar to me. I don't read books
and watch videos and then launch. I find a mentor. And the reason why I got Jerry
here is because I think he's going to be the perfect mentor for you just like he's
been for me in the flipping arena. All you really got to do if you're really
ready to start making money in real estate and you're interested in flipping
paper and doing this model and not needing money, click the link in the
description. There's a web training you need to sign up for it. It's free. The
software that Jerry gives you, it's free. And it'll show with you exactly how a
system works. From there, you get to actually get started, get going in the
game of making money in real estate.