Hey, Mike Wolf is here from mikewolfmastery, coming to you from Rostock, Germany. Henrietta, one of my people that watches a lot of my YouTube videos, always comment and leaves great comments. She has been asking me to give a “No Money” or “Low Money Down” tutorial. The first thing you need is to change your mindset if you want to do things and get things done. You can’t just say “Oh, I can’t do this because I have got no money.”
Don’t let money stop you. I’m going to give you some examples when you can do real estate business with very little or more often than not no money of your own.
Firstly, imagine that you found this smoking deal and you said, “It’s a hundred thousand underpriced, but I can’t do it. I think I’ll just walk away from it.” That’d be crazy. Imagine you called me and said, “Mike, I have this deal and it’s way underpriced and I know you’ve got some access to funds. I’ll sell you this deal.” Doing that is called wholesaling. You find a deal, you sell it to somebody else and let them do it, and they pay you for it. If you found something that was 100,000 under value and you ask me for 20,000 to make 100,000, I have to be pretty stupid to say no to that.
Most people that don’t have a lot of money, quite often, they tend to have a lot of time, so take advantage of the resource that you have which is time. Get out there and start finding deals, because if you want to be a real estate investor and you want to be one of those hands-on kind of real estate investors where you’re actually doing the work, well, start doing the work. Don’t worry about the money. If you find a deal, the money is going to follow. That’s number one. Number two, there’s something called a VTB or vendor take-back. That means that the homeowner is going to give you a mortgage. Imagine a home as $100,000; you don’t have $100,000.
You go to the vendor and say, “Listen, if you lend me that 100,000, well, I don’t have to pay it right now. I’ll pay you in installments, or I’ll pay you in a year, or I’ll pay you in six months or two years after I flip the home.” Whatever it is, there’s a lot of vendors, believe it or not, that will do that. The reason they will, one, you’ve got to learn to be an educator. You need to tell them what’s in it for them. If you’re an investor and you flip a property in a lot of places, you’re going to pay capital gains tax on it. Now, if you don’t take the profit up front, you take it in installments, you could drastically reduce the amount of taxes that you’re going to pay. There are ways to make that a plus for both parties involved.
Also, maybe you’re going to say, “Hey, you know what, I know you’re asking 100,000 for your property. I’m going to give you 110,000 for your property. I’m going to pay you a premium, but I need you to carry for me until I get this deal from A to B, so I’ve got the money to pay you.” There are ways to be creative and get the owner of the home to help you. That’s number two. Number three, you can get a mortgage like I did for my first deals 28 years ago but ensure that you do it correctly because it could be mortgage fraud if you do it the wrong way. Those are the ways to do it with no money. Alternatively, there’s also what we called joint ventures.
Let’s take that first example as an illustration, where you find a home, 100,000 under market value. Well, under the first example, you wholesale that. You gave it to me, and you let me do the deal, I finished it, you made a paycheck for finding the deal. But imagine you say, “Hey, well, I’m not willing to just let the deal go. I’m not going to sell it to you. Let’s do this joint venture. You put up the cash, I’m going to do the work, and we’ll each make $50,000.” Now, you make more money. Some investors might not want to do that with you if you don’t have the experience yet, you don’t have a track record of doing a deal from start to finish in making money.
Another great way to do it with low money and not no money is to learn how to do tax liens and deeds. I occasionally do courses on how to do this, so check my website to see. These are homes wherein people haven’t paid their property taxes for some years, the county has taken the property in a lot of cases, and they sell it starting for the amount owing on those unpaid taxes. Sometimes these properties go ridiculously cheap.
Be creative and don’t close your mind and say, “I’ve got no money, I can’t do real estate.” Henrietta, I hope you enjoyed this video and everybody else that watched it. Please sign up and “Have a Passive Income Masterclass”. It is absolutely free, so come and check it out. All the best Mike
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