Wholesaling Real Estate | Is “No Money Down” Real Estate REAL?

Wholesaling Real Estate | Is “No Money Down” Real Estate REAL?

Have you always wanted to invest in real estate and flip houses like you see on TV, But maybe you don’t have a ton of money or you don’t have the best credit? Well, keep watching as I show you exactly how I invest in real estate And how you, too, can flip houses with no money and no credit. This is the no money down, no credit strategy to investing in real estate. Hey guys, Dara here: real estate investor and entrepreneur out of Atlanta, Georgia. I’m going to be talking about how money or the lack thereof is Not an excuse when it comes to investing in real estate or being able to invest in real estate. I am a walking, living, breathing example of how this is so. So I wanna jump right into it and tell you guys a story as well as share some advice on how you, too, Can invest in real estate if you truly truly want to if you truly want to put in the work, um You can invest in real estate with no money. You can invest in real estate with bad credit. And a lot of other different ways to investment real estate besides just having to knock on the bank’s door and say hey Can I get a loan? Hey, can I get a mortgage? Blah blah blah. So getting right into it So I acquired a property With a creative method known as subject to. So what that means is I Acquired the property Subject-to is existing mortgage. And that’s one of the many tools that I have in my tool kit in my brain box about how to acquire real estate. So in this particular situation there was house that I found from driving around the neighborhood Also known as driving for dollars. Driving around and to be honest to this day I have no idea why this house stood out to me I have no idea why I wrote down address or reached out to the homeowner or anything because When I look at the old pictures of the house, there were no signs of what we– what investors call, you know, Telltale signs of a vacant property or a distressed property. The grass wasn’t high, the windows and doors weren’t boarded up. Aside from there being no cars or no light on in the daytime It looked like it could be lived in. But I thank God That this property fell into my lap somehow that I found the owner and was able to meet with him We built really good rapport He was actually in the middle of renovating the property when I found him As far as when we went to go and actually see the property. And So he’s in the middle of renovating the property. So that’s a plus, hey, you’re almost done, we met you halfway Great, you’re you’re doing the work for us. But the way we are in our business we kind of just let him off easy We wanted it to be a true win-win situation. So we said, “You know what? Mr. Seller, don’t even worry about it We’ll take it from here.” And looking back, mmm, That could have been something that were like, hey you started to finish it But again, we just wanted to alleviate some of his his pain. You have to know your seller’s pain points and just you are the one to help them. So we came in and we helped him. Now the reason that we Suggested the subject to option Is because he had a mortgage; he had recently refinanced the property, and he had a mortgage that was way Over what we were gonna offer him cash to buy the house outright. So in this situation he was upside down: so he owed more than what the property was worth Or more than what we as investors were willing to pay for it. And again because it wasn’t Retail ready, nobody would really pay what he owed on it. So he was upside down. So instead of walking away and saying hey, you know what? This is your problem figure it out fix it. Again, This is– having that subject to strategy in our toolbox was very helpful in this situation. And so we proposed it to him said, “Hey, Mr. Seller, we know you really want to get out of this situation. This house has been a headache for you. You’ve had tenants who weren’t paying you for months, You have damages you have to worry about. How about this: how about you deed us over the title of your property, Keep the mortgage in your name, and we take over your monthly payments. And at first it was a little confusing to him and, you know, the way I was explaining it to him sounded so good He literally came out his mouth and said, “Well, what do you get out of it? What’s in it for you?” Because it just sounded so sweet. It sounded like a win…and then what? He didn’t think it was a win-win. He was like a win for him. And what do you get out of it? And, here’s where I’m gonna be honest. I was pretty new in Real estate, and as a wholesaler, all I knew was here’s my cash. Here’s my cash offer. Take it I’ma lowball you you blah-blah-blah-blah-blah. So this was literally my first time offering somebody a creative financing Way to get– acquire their property. So I’m almost I’m, I’m like fumbling through my spiel I’m like half explaining things because I’m really like I don’t want to say something wrong and he’s like what’s in it for you, and I’m like Little do you know. But So I was able to explain it to him enough for him to On that spot right there sign on the dotted line. Yes, I would do this So one, he liked me. We built a rapport enough for him to want to do business with me. So he liked me. He trusted me. Like I said, I I personally felt like I was fumbling through this explanation of what subject to – “Hey I’m gonna take over your property, keep the mortgage in your name. I’m gonna pay it. Trust me to make those payments And you walk away. We’ll fix it up, you know, don’t worry about it anymore. This is now my property.” So he trusted that I would actually do what I said I would do. I would not– cause it’s still on– gonna be on his credit whether we pay it or not. If he goes into Default, that’ll be on him and not necessarily us on paper. But ethically, you know, it’d be On us. But so he liked me, he trusted me, And, from there he was willing to sign on the dotted line and So that’s how I cried his property subject to the existing Mortgage. And again, so we acquired it, we Renovated it and got it rented out. I want to backtrack a little bit as well and this is where negotiating Comes into play because there’s no cut and dry way to do real estate. There’s no cut and dry way to even do what I’m telling you subject to Because the icing on the cake for this deal is that he owed I think at the time that we met him His payoff was maybe about 120,000 or so We were gonna offer him 80,000 and there’s no way he could have done that deal Straight out cash, which is why we did the subject to option. Now, I think his monthly payments at that time were somewhere between 800 and 900 dollars a month. And so, we were able to negotiate some awesome terms for ourselves, yes, but it was still a win-win because He went for it. He wanted it. We didn’t pull his arm, twist his arm and force him to do this strategy. He was just that motivated that he went with what we negotiated. And what we negotiated was out of his Let’s say 900 for round numbers. Out of his $900 a month Mortgage payment, we agreed that my company would pay $600 of that $900. So he’s still in there; he still has some skin in the game. He still has to cover the difference and over the the term that we’ve been under contract with him Thus far the mortgage monthly payments have gone up but we’re still locked in at our 600 So has had to come up just a little bit on his portion So it’s probably like roughly two-thirds one-third split of The monthly payments. So again,
That was a negotiation strategy, and I want to shout out one of my investor friends because it was him who actually did the Negotiation on that part: Stephen Watson Thank you so much brother for that. So he’s the one who negotiated with the homeowner for us to say, “Hey, they’re only gonna pay $600 a month You know, you got to come up with the rest.” But again We have so many different terms and negotiations in our contract that, again, it did turn out to be a win-win. We have it under contract for a very long time and that’s what you want to do You want to buy yourself time when it comes to creative financing, owner financing. Depending on the deal, because, again, nothing’s cut and dry, Nothing’s black and white, and it all depends on your strategy, your goals. For this particular property, We did acquire it subject to and our exit strategy Was to rent it out. We rented it out for a year and then turned it into short-term rentals. So we had a lot of different– we wanted to do rent to own with that, we wanted to do Whatever, so it turned out to be a pretty sweet deal on our end. Seller’s happy, we’re happy and it was a win-win situation. So again just to reiterate, for this particular video Um, I specified how you can acquire property with No money, not having to borrow from the bank, because in this situation there was already a bank involved, yes. There was already a mortgage in place, yes, but I didn’t have to ask the bank to borrow any money to acquire this property. I didn’t have to get my credit looked at or anything. So there is a bank involved technically But that’s how the seller acquired the property, that’s not how I acquired the property. So subject to is a creative financing way to acquire property Again, it’s not cut and dry. In our particular situation, how we negotiated it, at the closing table The only thing we paid was the attorney closing costs: the fees for the attorney to hey This is the title from you to you. We didn’t pay the seller anything at the clothing table cuz he didn’t want anything We gave him exactly what he wanted. It was a win-win situation. So I hope you got something out of this video. If you did, please like, comment below, and share. Thank you. Bye

10 thoughts on “Wholesaling Real Estate | Is “No Money Down” Real Estate REAL?

  1. 🔥🔥🔥🔥 content.

  2. I definitely look to get a house for self using subject to. It was meant to happen indeed in your case.

  3. 🔥great content this channel is going to be big watch! I just bought a sub 2 coarse, everything you said is exactly what I’m learning In The coarse

  4. Great content Dara💯Thank you so much👍

  5. When you took over Sub-to did you get your own insurance policy on the property?

  6. After u sell the house do u pay him

  7. Hey Dara…. so you’re literally paying for this or are you finding an investor to pay it monthly

  8. Thank you for this video !!!

  9. How were you able to do the repairs without any money out of pocket? I think I’m missing that part. HELOC?

  10. Do you still JV with people?

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