How to Invest in Real Estate With No Money

this is 100 Grand just because I have money doesn't mean I'm going to use it to buy real estate in fact I built my entire portfolio with less than thirty three hundred dollars you don't need money to make money in the game of Real Estate that's especially true there's five really great methods for acquiring real estate with no money whatsoever and in this economy with where real estate is headed you want to get your hands on as much real estate as possible take it from the guy who started from nothing that has over two billion dollars in real estate today in today's video I'm going to show you how broke people can buy real estate wish I knew that I wanted to own real estate and I was broke I had no money and my very first Mentor said okay Chris you're you've been at this job for a year you're also a college kid keep this job for another year you'll have a two-year work history then you can get a loan with the banks he said on top of that save five thousand dollars in the bank it's not a lot of money but that'll help you with your three percent down payment oh and by the way get a couple more credit cards show that you can you know use credit responsibly and I got this advice and back then it was all I had and the guy who gave it to me had made over 10 million dollars in real estate so I thought this is probably good advice right well it took me 14 months to save up five thousand dollars and to keep that job for another year and sure enough at the end of that period I was able to come in with a very small three percent down payment on my very first property and get my start in real estate but if I had to go back to the beginning would my advice really honestly be why don't you just wait 14 months and do a lot of nothing no in today's video I'm going to show you five different strategies that do not require a year or two or whatever of waiting doesn't require you to set more money aside there's ways of transacting real estate right now that just require a little bit of strategy and a little bit of a formula for Ingenuity and guess what I got all that coming your way right now forty percent of the average Millionaire's wealth is tied up in real estate but how can you invest if you don't have any money to start with here are five ways to make that happen so number one let's talk about seller financing this is one of my favorite strategies it's how I've bought several homes the seller access the lender allowing the buyer to make payments directly to them instead of obtaining traditional financing the house that you're trying to buy someone owns it that means they likely have a loan with the bank that means that they've already gone through the the work of getting the loan set up and as long as they make their regular payments to the bank everyone's happy why don't you come in and basically assume the loan or let the seller that owns the home basically be the bank after all they have a loan with the bank anyway chances are if they got the loan longer than a couple years ago they probably have better interest rates anyway so what does that look like so here's this house isn't it so beautiful it has a value of 250 000 the person owes a hundred and fifty thousand dollars on it and they have a mortgage and the mortgage for this right now let's just say cost them fourteen hundred dollars a month well they want to sell this home they've got some Equity imagine for a moment what happens if you basically say hey why don't you finance the house for me your payments are 1400 a month can I pay you sixteen hundred dollars a month and they're thinking wow I'm going to have a positive cash flow and then probably going to say well what are you going to buy it for you can say well I can buy it for 200 000 and they say no we'd probably sell for 220. so you say great I'll make you payments of sixteen hundred dollars a month and I'll buy it from you in like let's say five years for two hundred and twenty thousand dollars well watch what happens I have a purchase price of 220 000. remember it's worth 250 they're giving it to me for 220 and they're giving it to me in five years what is this probably going to be worth in five years well imagine that it's worth three hundred thousand dollars this is the FV the future value well that's eighty thousand dollars more then it's worth and that's in five years and on top of that let's just say that I can lease this out to somebody for two thousand dollars a month on a lease option something I'll tell you about later well now I'm actually producing 400 leftover dollars a month because I'm paying them 1600 a month I'm collecting two thousand dollars by someone else being in the house I'm positive 400 a month I didn't need a loan I didn't need a bank and when I sell it maybe I clear eighty thousand dollars but I didn't come out of pocket that's just the first strategy okay here's the second strategy it's called wholesaling finding deeply discounted properties and then assigning the contracts to another investor for a fee without actually purchasing the property yourself okay so imagine that there is this home for sale and for whatever reason the person is selling it under value so it's worth two hundred and fifty thousand dollars and they're willing to sell it to you for a hundred and eighty thousand dollars now you might be thinking Chris this is kind of crazy you're telling me that someone would sell their home seventy thousand dollars less than it's worth there's all sorts of reasons why this happens um it could be that the person that lived in the house died or maybe they're getting divorced or maybe they're retiring and they just don't care there's always a story there is always a reason so all of a sudden you write up a contract to buy this home for a hundred and eighty thousand dollars that's worth 250 and you have a choice you could go to the bank come up with a down payment and finance the thing right or you could do something different you could find someone else that says well I'd buy that from you dude that's a great discount I'd like to I'll buy the house for 210 000. it's worth 250. so you assign the paperwork over to them now remember you have it under contract for 180 and they're going to pick it up from actually 210. the difference is 30 grand they're still walking into a pile of equity there's meat on the bone and guess what you're walking away with well I've got ten thousand twenty thousand there's thirty thousand dollars you didn't even buy the home it's literally all done through paperwork did you know that I own a company that just does that all day long this is real and those deals are everywhere and if you want to learn more about them you should definitely click the link below because I'll show you where to find them once in a while you meet someone that's just in a bad way they own a home they've got a mortgage they owe money to the bank but guess what they've fallen behind on their payments and this isn't the first time that it's happened now they barely got caught up but the reality is job changed they're moving somewhere they just don't know what to do this third strategy is called subject two and with this strategy taking over the existing mortgage payments on a property without assuming the loan typically by creating a contract with the seller you're basically saying hey I'm just going to to kind of take over your mortgage right like your payments are one thousand two hundred and forty nine dollars a month I will literally make that exact same payment I'll make it directly to the bank and I'm just gonna walk in and take over this situation and for a lot of people they're gonna walk away and say thank you now they might want an incentive you might give them uh 500 or maybe five thousand dollars and then all of a sudden you walk into the mortgage you walk into the loan you walk into the deal the house is yours these deals are definitely done with no money out of pocket sometimes a little money could Grease the deal but when you're walking into potentially a lot of cash flow or a really deep discount trust me it's worth it the fourth strategy is called private money lenders listen I'm going to tell you right now if you find a really good deal on a house there's always money for it and yes there are strategies where you find a house worth four hundred thousand dollars you can buy it for three hundred thousand dollars and in today's market that's a really really good deal there's only one problem I don't have any money guess what there's people out there like me that say Hey if you cut me in on some of the profits I got money for you and you know what they love they love collateral as in the form of equity so they look at they look at the deal and they say yeah the house is definitely worth four hundred thousand yes I see your contract you're getting it for three hundred thousand yes it looks like for you to do this house you need some type of loan so they lend you some money they're gonna charge you some interest and then let's just say you end up flipping the house and so you flip it and you're going to net fifty thousand dollars you pay back the loan you pay back the interest let's just say thirty thousand dollars is left over well you used OPM other people's money or in this case private money lenders are sometimes called hard money lenders and basically they've got the dough if you've got the equity so bottom line is as long as you can find a house that's a really good deal the money is always available one way or the other now by far my favorite strategy that I teach in acquiring real estate when you're broke is found right here in this book the straight path to real estate wealth and you guessed it there's a link below and today I'm giving you this book for free literally cover the shipping I'm going to give you the full color book and what it's going to do is it's going to walk you through this entire strategy now this fifth strategy is called a lease option contract they may be renting the property but they actually don't want to play landlord they would love to get rid of it they maybe have rented it before and renters were a problem because somehow they inherited or got the house and they don't want us they don't want it and so they think they're supposed to run it but the last thing they want to do is play landlord with these people you contact them and say Hey what if I rented this for the next five or ten years what if I came in and made sure that it was rented every year no matter what well there's people that will say that's a relief you sound kind of like a professional and they may rent you this house for 900 a month when the going market rate is fifteen hundred dollars a month why are they renting it for six hundred dollars less because they're not in the real estate business there's a Sentimental reason why they want to hold on to it for a few more years but they want someone else to manage the whole thing so you come in and say I'll handle that for you well they basically do a contract you take over you negotiate a price then you're going to follow verbatim my strategy find a family that wants to move in and while going rates are 1500 guess what they're going to do they're going to pay 17 or 1800 because they want to buy it you negotiate a purchase price where there's a spread you're going to make money when you're acting in between the two people but more importantly you may be cash flowing six seven eight hundred dollars a month on this now imagine how game changing that looks like renting a property with the option to buy at a predetermined price within a specific time frame with a portion of the rent applied towards the purchase is really what a rental contract looks like with an option for them to buy it down the road so lease with an option to purchase or rent to own is exactly what I'm talking about my first 25 properties that I ended up buying with less than thirty three hundred dollars out of pocket built me a 1.6 million dollar portfolio with the exact strategy laid out in this book and I'm going to give it to you entirely for free it is of the five methods it is hands down my favorite way of transacting real estate with no money down whatsoever and I got students all over the country and you know what they will buy and sell properties this way which means they're not coming out of pocket they're increasing their cash flow they're living the dream and if you want to get a part of that dream as well it's free click the link below get this book let me show you how listen you've heard that you can make millions of dollars in real estate but have you had an expert actually break it down and show you the real numbers of how someone creates wealth often from nothing you're definitely going to want to watch this video right here because I'm going to give you the simple breakdown and I'm going to show you how to become a multi-millionaire in real estate just like exactly

Channel: Kris Krohn

Views: 46,836

Keywords: Kris Krohn, Limitless TV, Real Estate

Id: CXTc29c8TJo

Length: 11min 42sec (702 seconds)

Published: Fri Jul 07 2023