So this is part TWO of a three part series on…

“30 Ways to Buy and Sell Real Estate Zero Down – with no money, no loans, no banks, no credit checks.”

In part one you and I talked a lot about the myth of “motivated sellers” so in this part and in part three we are going to go deep into the actual ways to buy and sell properties creatively.

There is some real badass stuff here and you don’t need anything to get started, you can go through these classes – as with ANY of my classes – and you’ll know more than enough to get started immediately. So you don’t have to wait, you can get started once you’re done with this class. 

Here’s just a taste of what you’re about to get:

===> Broker realtor goes from “hopeless” to 8 grand a week… but that’s not the crazy part.

The most surprising part is actually something that you probably don’t want to watch or learn about because it will destroy whatever excuses you may (or ever will) come up with when you try to justify why you’re not changing lives with this stuff.

Okay, there’s a whole bunch of cool stuff here…

—> Secret Word = 30k/month

Most guys and gals in RE are broke or out of bidness until their (lucky) next deal, but if you want to have a steady in-come then the difference between doing that and being just another statistic will come down to understanding THIS one word.

(find out what the word is 7:19)

—> Get Rich People Loving You.

If you want to learn *exactly* how to talk to people that will leave them hanging on your every word, begging you to work with them and listening to, respecting and loving everything you do with them then this is for you.

(you can learn the hypnotic dialog at 11:57.

—> 17 Year Old Raises 4M

I was in a room of about 300 real estate guys, some of them were seasoned veterans YET they were all outdone by a girl who wasn’t even old enough to vote – she raised over 4M in private mo-ney.

(find out how a teenage girl schooled 300 pros at 14:38)

—> Cell a House and Get It Donated Right Back to You?

This is CRAZY badass – seriously. Imagine sel-ling a house to somebody and then having them turn around and donate that house back to you five minutes later. Yeah. 

 (if this doesn’t blow your mind… you have no soul –  find out if you have a soul at 19:19)

—> Over 60k a monf?

We have a student who does ONE deal every 18 months  and was pulling in 60k+ every month all year long, how is this possible and how’s he doing it without leaving the house?

(find out how that’s possible – in his underwear – at 41:57)

And there’s a WHOLE bunch more – I’d love to hear how it helps.

You can watch it all right now: 

BELOW

Like I said I really appreciate all the great feedback and how much you guys are making happen and how you’re changing lives with this stuff – it’s inspiring.

So make sure you let me know how you guys are using this to change lives:

I LOVE the feedback coming in, a lot of you guys are going through the classes again and again and making shizzle happen in your local hoods. You are inspiring, and soon I’m going to start sharing those stories with everybody, if you want me to brag about you let me know what you’re doing with our stuff and how you’re changing lives.

Watch it below: 

Hope that guys. 

Enjoy.

Hope that helps.

Thanks so much everybody! = ) 

A

 

30 Ways to Buy and Sell Real Estate Zero Down…
… with no money, no loans, no banks, no credit checks and without risking a penny of your own money.

This is part TWO of a three part series.

You’ll want to watch the video above/below as well because there are extra bonus things that I go over in there.  The first part was more about motivated sellers and then this part and Part Three will finish off the 30 ways to buy real estate zero down and with no loans, no credit checks and no banks.

This is pretty simple to do once you understand the basics.

So you should go through this page and watch this class multiple times.

Again and again and again…

… and again.

Add these tools to your arsenal.

It’ll make you a better investor and business builder and it will also make you better citizen of humanity.  This is because you’ll have more tools to help the people in your communities solve their financial struggles.

You can be the HERO.

So let’s get started we left off on number two:

2.)  Private Money for the Balance.

Let’s say the same house the same deal from the last example and for whatever reason you are okay with paying full price and paying it in cash.  Now need the 20% down instead of going through the seller you can also get the money from a private lender

Remember this can be an investor or anybody who has money that is under performing for them and they want to lend it to you for an interest rate that you will pay them.  On a deal like this since you are close to 100% of the LTV you don’t normally want to do this unless you know what you’re doing.

This is AN option, but usually not the best option.

It is important to realize something…

Although we aren’t talking much about exit strategies right now that is something that is much more important than how you get into a deal.  You need to know how you and everybody else is going to make it out and be better off when this is done. 

This is why I said earlier that it’s all about the skill and not the tools.

It is always about the archer not the arrow.

Almost nobody in real estate understands this and it’s why they’re all looking for “motivated sellers” which is one of the biggest lies in real estate (as I’ve covered before) and this is a great example of that.  See if we do the numbers on this deal it might not seem that attractive to do it this way.  How many of these deals would you have to do to make our goal of $10-30k/month…

You want to make $10-30k/month with a BUSINESS.

So here’s how to understand how to make the real money.

Let’s look at a house like this that is worth $100k and you buy it for $100k, and you are doing it for cash.  In almost every case that you are buying an investment property for full market value and paying cash instead of doing terms, the only reason you are doing that is because of the long term goal.

This almost NEVER makes sense, BUT…

In this case one option you have is to lease option the property.

So let’s say that you lease option the property to a buyer who pays $5,000 down and the agreement is for them to refinance or buy the property in one to three years for $110,000.  Remember you can always raise the price whenever you are selling and agree to terms.  Just like how you can always pay more if you are getting terms when buying.

In this case you are giving terms to the buyer so they can pay more.

You get $5,000 from the down payment and a raised monthly payment because they are owning NOT just renting.  So there should be at least a little cash flow between what you are paying on your two loans, remember that is 80% from the bank and then the second payment is on the $20k in private money. 

So after these two payments there should be a little cash flow left but I don’t usually count on that, I also don’t count on appreciation normally either.  Looking at this deal, you can do it yourself or you can do something that’s part of our “For Rent Model” where you can move this to an investor.

So let’s say a longer term investor comes into this deal and wants in…

So let’s say a longer term investor comes into this deal and wants in…

… think about what they get…

They can walk into this deal that already has the financing in place, and it already has the buyer in place with their profit and small cash flow built in.  So even if the investor just pays $5,000 they get to walk into an otherwise zero down deal with no credit with immediate cash flow and money coming on the back when the buyer refinances.

If the buyer doesn’t refinance they can get another $5,000 from another lease option tenant if they want.  So it can make sense for the investor, obviously would be more ideal if you weren’t at 100% but think about this…

You are buying a property for 100% of the market value yet STILL…

You are making $5,000 from the lease option buyer and $5,000 from the investor.

Each of them get what they want too.

A win/win/win.

When you do deals like this where you provide financing and options and make it easier for everybody involved.  This is how you start to build a real business

Just think about this for a second…

… a lot of times people who spend a lot of time learning how to make money on a $100,000 house, will only learn/how to make money on that house if they buy it at an enormous (almost unrealistic usually) discount. 

They have to buy at 90% or something crazy.

If they buy the $100k house for $10k for example, do you really need a formula to figure out how to make that work?  Of course not, and that’s only a SLIGHT exaggeration because that’s what SOOO many real estate clowns are out there teaching…

It is why so many people in real estate are lost.

Think of it this way, look back to the example that we went over let’s look at each piece…

First we have an investor who is able to own a house for zero down, well almost zero down except what he pays you.  Still he is walking into house that is already sold and that is already cash flowing and that already has a spread for him built right in.  You are letting him walk into that and he doesn’t have to be an “investor” because a lot of regular folks with good jobs and some money want to do this too.

They just want to add a second stream of income.

So this piece, the “investor”, can come from anywhere.

Investors and buyers like this are easy to find, they come a dime a dozen because of what you are doing for them by letting them walk into a deal like this.

Now let’s look at the private money lender, although it might not be ideal that they are the second (inferior) lien on a 100% LTV house, there are a lot of ways to deal with that.  We won’t get into all that right now but here’s just one thing keep in mind with your private money,  and really anybody that you ever work with…

… You don’t want them buying FROM you, you want them buying INTO you.

These private sources also know that you are able to get buyers so they see what kind of numbers are being supported.  They know and see what that you can make good and turn any asset into income.  You always want to match the investor up with a suitable asset that gives them what they want.

When you do this right and the more you do it, it becomes easier.

Private investors and people with money who want to put it into real estate, are VERY easy to find.

This is especially true in America.

Remember, it is like Bruckheimer said:

There’s always more money than brains.

Be the brains and the money comes.

Most people try and get the money but not you’re getting the BRAINS. 

Now the seller is also happy because they got 100% of what they wanted.

Now look at you after we look at your buyer.  In this case, that’s the third part, first there is the investor who is buying then the private investor who is lending and these are both readily available and accessible no matter where you are in the world.

Now for the last piece of the puzzle…

The lease option buyer.

Is it hard to find people who have bad credit and still want to buy a house?

So you see what’s happening right?

Each of these pieces are not difficult to find, and that’s very important.

And the seller at 100% is easy enough as well.

So those factors, the three main ingredients, are VERY commonplace.

They are everywhere.

That is super important because the big secret to building a REAL business, especially if you’re wanting to get in the $30,000 a month range (and remember we don’t take our eye off the ball)…

… but the secret to running that kind of business and turning into an empire…

The big secret is real simple; regularity.

More specifically:

Regularity with Transactions.

More specifically:

Regularity with Transactions.

Remember a business is just a series of transactions.  The better that you control the regularity of those transactions, the more power you have.  It makes you a better business builder.  This is what so many people in real estate miss and it is why over 90% of them never get very far.

If you want to make sure that you aren’t one of those “I’m out of business until my next deal” investors then the bridge to getting there requires regularity.

This is ALL about regularity…

When you really understand this, things will change for you.  As you go through more of our stuff you’ll really understand how money works a lot better and how the circular velocity works.  THAT is what you want to control,  you never want money, just the transactions.

Instead of going where money is you want to tell it where to go.

You should be familiar with the concepts that I’m referring to if not you can go through some of the Money Class and review it.  When you start mastering how money moves, it’ll change everything.  Let’s take our private money guys for example, I often hear people tell me that they have problems with these people.

Even with the “experienced” people who are considered pros I hear this problem all the time.  I’ll ask them why is your investor acting like and doing this?  And the answers that I get, and I’m blown away with how silly they are…

They are always so uneducated to the REAL problem.

This thing with regularity that I just mentioned, regularity with transactions and regularity with income go hand in hand.  It doesn’t just apply to you but it applies with everybody that you ever work with.

Whenever you have anybody with money you want to sit down and figure out exactly what they want and then put together a PLAN for them. 

We call this the Income and Asset Blueprint.

This is the exact plan on how you can help get them “there” with their current money and resources.

With all money or dividends there basically three types of money that you need to know…

Money now.

Money over time.

Money later.

You want to know exactly what your investor wants and which group is best for him and how much money he has to make to force that goal into reality.  This is how immediately create regularity not just for yourself but for them as well. 

You want to keep your investors and your money sources forever, so never focus on just one deal but a series of deals and a relationship that will last for decades or even generations.  I know this is slightly outside of what our focus is about today but I get so many questions about this that I thought I would answer this here too.

You should always use Emotional Assignment.

If you don’t remember this then you want to go back and watch that class on that for more.  Basically whenever you talk to an investor, or really anybody, but especially money sources you want to find out WHY they want their desired income.

You want to know what they plan on doing with the money and then you want to give that goal a nickname based on a memory or something of personal significance to your target.  Maybe they want to pay for a child’s education for example.

You want to know the child’s name.

Let’s her name is Danielle and she wants to be a heart surgeon.  You want to curiously ask WHY and what made her think about that area of study.  Maybe it is because the grandmother has heart problems or something like that…

THAT is the emotion behind it, follow? 

That’s the emotion that is already invested into this goal now you assign that emotion to the work that you are doing with them.  You do that first by giving it a unique name, so now you’re doing this whenever you do a deal or anything like that you’re doing this for…

“Danielle the Heart Surgeon”

… or… 

“Danielle the Grandma Saver”…

Or something cheesy like…

“Danielle may break a few heart when she grows up, but she’ll make up for it by how many she fixes.”

You get what I’m saying?

So you want to make sure that every month they get something from you that moves them closer to that goal.  You want to use/have some piece of emotionally assigned and emotionally charged goals.  Maybe it is a stuffed animal with a custom message, or a fridge magnet, or articles about internships or new developments in heart surgery, etc.

This is how you make your dialog compliance unmatched, and your words magnetic.

If you do an article by the way do NOT send a link…

… instead print it out and send it to them.

Don’t be an LC.

So eventually you want somebody on your team who sits down once a month and finds something like this for ALL of your top people.  This is how you get people who at first maybe only have $50,000 to invest and all of a sudden now they have $100,000 to invest. 

When people trust you completely they ALWAYS have more money and friends to send your way than when they don’t.  You’ll find more money and more people calling you out of nowhere to invest.  People will call you out of nowhere and tell you…

“A friend of mine invests money with you and I’d like to do the same thing… and I’ve got $200,000… is that enough?”

This is why you want to LOVE your people and obsess over them.  This is how you build a serious business, an empire.  This example of “Danielle the Miracle Heart Worker“, this is a real life example.  A few years ago a student of mine sent his 17 year old daughter to get trained with my stuff.

About 90 days later I was in a room in front of about 300 real estate investors and I asked them how much private money each of them had to place.  Some people had a hundred thousand dollars, a few guys had a few hundred thousand dollars and one guy had almost a million dollars of private money to invest and place.  Then I asked the teenager:

She was shy and VERY nervous as she said…

“FOUR MILLION DOLLARS.”

Yeah…

… $4,000,000.

She was shy and VERY nervous as she said…

“FOUR MILLION DOLLARS.”

Yeah…

… $4,000,000.

Then I asked how she was working with these people and that’s when she told us about Danielle and the way she was going crazy deep with each of her people.  She was going DEEP and building serious relationships.  She did the other basic stuff too, bu t that wasn’t what made the difference.

For years and years she never got anywhere in her business.  It just shows you how important is to go crazy because you can have decades worth of progress in days.  Remember one of our soundbytes that I use during interviews and stuff…

Every single day every single thing in business is getting easier and easier.

The barrier to entry keeps getting lower and lower.  Remember, never before have so many people stood up, and never before have so few people stood out, and it’s not that hard to stand out.  This is why extracting brilliance helps, it helps you do things that are SOOO next level.

Only during a miraculous time like now could you go from zero and make $500 a day making infographics in a program like PowerPoint.  

How does a 17 year old raise over $4,000,000 when the self called “pros” are getting 10% of that…?

By standing out.

Okay I didn’t mean to go into that so much and we have to keep moving because I think we’re only on number two HAHA.  The point is that by getting just a little better skilled, by getting just slightly better trained just a little better…

Suddenly you start seeing opportunities everywhere.

When you understand the power of relationships and how to LOVE on your people and build a Fanbase with long term relationships…

You can do anything.

That’s the first step, to start seeing opportunities everywhere.

I know so many investors or people who are trying to get into real estate and they learn all sorts of ways to make money on deals but they never see opportunities to apply that knowledge.  It isn’t just about the knowledge but finding the appliance for that knowledge, that’s the path to greatness

Look at $100,000 house selling for $100,000.

That’s easy to find right?

So this should broaden the scope of opportunity that you see.  As we go through more of these methods and in all my other stuff, as you go through it you should feel yourself open your mind more.  Now that we have that out of the way, it’ll be easier for us to go through some of the other ones.

In fact let’s pick up right there…

Let’s say you got $4,000,000.

How do you place it with a fast turnaround?

Well I don’t recommend going into full market deals where you are at 100% LTV…

… so let’s use another example…

3.)  Reverse Close.

There are a few different ways to do this.

This is something Sunny helped to invent.  Let’s keep talking about placing money and moving it fast.  We’ll say that you have some high income folks and they are looking for tax write offs.  Say they buy a house from for you for $5,000.

Obviously this is NOT going to be a mansion.

Next they turn around and they donate that house and give it away.  When they donate that house they get to write off not just the $5,000 that they paid for it but a lot more.  This is because of the way that you are doing to set this up, you’re going to do this so that they can write off the tax assessed value of that house.

That is going to be around $20,000 – $30,000 write-off.

So they are basically paying $5,000 in cash for a tax write off that is much more than that.

Now how they are able to a buy house from you for $5,000? 

Because you just sold it to him silly.

So where do you get the house for $5,000?

It gets cooler, imagine if you bought the house for only $1,000.

So you bought the house for $1,000 and then you turned around and immediately sold it for $5,000…

YET…

… it gets even cooler…

What if you didn’t spend the $1,000 until you got the $5,000 from them?  How cool would that be?  You bought the house out of the money that you sold it for, BEFORE you bought it.  It is sold FIRST and then you use a portion of that money that it sold for, and you u se that to buy the house…

The house that has already been sold, get it?

There are a lot of ways to do this but in the interest of time here’s just one way…

How do you buy houses so cheap?

One way is to buy them in bulk, to buy packages and groups of home.

The main reason people don’t do this is because (aside from then not knowing about it) they just don’t have the money to do it.  Think about the way that I’m describing it though, because when you get money to do it up front it makes a big difference.

Bulk purchases are done everyday and you can do them too.  You can do this much easier when you already have the money lined up.  So that’s one way to buy zero down and actually it’s much better than that because you are buying zero down and actually getting a big payday, right then and there.

You can do this right at closing in literally just a few minutes go from zero to the top 1%.

You can change everything and go from zero to Hero in just a few minutes at that closing table.

So that was number three let’s go to number four…

4.)  Get Houses Donated to You.

Let’s just keep going with this example and follow this along.  When you sell these houses what are the buyers doing once they get them from you? 

Remember it starts with a “D”…

No, not that D-word, this is a good one…

DONATE.

They are going to donate the house.

Which is a real problem for you right?  If you only you knew somebody that wanted to have houses donated to them…

Oh what to do, what to do…

Well that’s number FOUR is all about…

Getting houses donated.

There’s a lot of different ways to do this but we’ll just talk about one way right now…

(… and this is also part of what you do when you qualify tenants and buyers like a badass…)

Getting those houses that you just sold donated back…

… that process is awesome.

You can set up a volunteer group or use an existing group that you’re working with and now they can get a houses donated to them.  You can use an NPO, a charity or some other group that you are working with and helping.

I want to stop for a second and make sure you’re following this…

It is interesting because a lot of times when people hear the feedback from students and people that I work with, when you hear the things that people say about me and our team…

It is kind of weird because people are like over the top

“Azam and his friends are geniuses they are amazing OMG!”

And on and on like that…

It is kind of weird to be honest, or at least it used to be at first…

So I can see what it is like for people who don’t know us as well, they come around and they’re like…

“What do you guys do these people?”

“Why are they so in love with you guys?”

“How do you convince people that you’re SUCH a genius?”

Well…

First I’ll say it is because I’m in love with them, I love our people with all my heart and they all know that.  Any emotion breeds itself, (evil breeds evil) love breeds love.  So that’s the core answer.

On top of that though, the answer to how and why people feel like that, is because my friends and the people that I’m lucky enough to work with and be around are some brilliant mother grabbers. 

Just consider what we just went over right, BRILLIANT.

You buy a house for $1,000 but before you did that you sold it for $5,000 – $10,000.  We’ll say $5,000 and you sold it before you bought which means that you didn’t come have to come up with any money.  You got the $1,000 to buy the house from the $5,000 that you got before you went to buy it.

That’s pretty badass.

Then we add another of layer of badassery…

This is when you do this multiple times at once and you do this with a package of homes at once.  That is nuts and brilliant, but it doesn’t stop there.  You can do the math yourself real quick, I usually recommend around 30-50 houses at once.  Maybe less if you’re just starting.

You want to be able to provide people with the dream of home ownership.

So doing 30-50 houses at once makes you more powerful and better able to help others.

Pretty soon that should be your minimum, or more.

Now think about the day of closing, how good of a day is that going to be?

Buying a group of houses out of money that they were sold with, creating a payday for yourself out of thin air

THEN… 

We add another of layer badassery when we turn around and get the houses BACK.

You see how this works and what I’m saying?

Brilliant.

Okay so this was number four DONATIONS.

You can get a house donated, even if it’s one that you just sold five minutes ago…

And that you bought five minutes before THAT…

BRILLIANT, I love it.

Okay moving on to number five…

5.)  Providing Private Money Loans and Rehab Money.

Think about a group that you care about.

Maybe is a group that helps the disabled, a cancer group, a center for missing or handicapped limbs, etc.  Think about a group of people that are making the change in the world that you want to see.

This is important because any of my students will tell you that all of my stuff is about helping people and changing the world.  My stuff is about training people to make a real difference in the world and one of the best ways to do that is to connect with people that are already doing it on some level and…

You strap a backpack full of rockets on them.

Help them explode their results.  You want to help them reach to the stratosphere.

Help them reach WAY outside their astral plane.

So think about a group that you really care about and that you really want to help.  Now if they got some houses donated to them what would they do with them?  Chances are that they would need help.  This is especially likely if those houses needed work and repairs.  Remember, You should be able to estimate repair costs in under 30 seconds

That’s where you come in you can help them get the money that they need.

You can use the same private money sources that we’ve already talked about earlier.  You can provide the money that is needed to fix up the houses.  Then those houses can be sold or rented or lease optioned, etc. 

Here’s another secret to this…

You can do Section 8 with these properties as well. 

This program is in the U.S. although there are similar programs to section 8 elsewhere as well.  The way it works is that the government guarantees a monthly rent payment to the owner.  So let’s say they are paying you $600-$800 a month then every month you get that from the government

Guaranteed money.

Remember your group got the home and it’s free and clear so even if you help them get $20,000 to fix it up, that $20,000 is in the first position on the mortgage.  This is the only debt on the house so even if the payments on the private money are $200/month and you are able to get $600-$800 a month on it…

You see how this works?

By providing the funding you are not necessarily owning the property but you have a lien and you can get payments or a portion of the payments that they are making on the money.  This is money that you helped them get.  You can also partner with them and split the rent with the group as well.

Or you can give it all to them, that’s not as important as just making it happen.  The main point is that you have the CHOICE, you made money up front and you can choose to get money regularly over time as well.  You can also partner on a sale of the home or put a second mortgage on the property to get paid on the back end as well.

Realize that all of this is free money to your group.

They wouldn’t be getting any of this without you and think about what they have to do for it?

Nothing.

You’re getting the property, you’re getting the financing, you’re even helping them with the exit strategy

… you are GIVING to them.

You are basically donating a piece of your business.

The only REAL way that they (or any group) will ever get serious money or serious revenue is not by getting money/donations but by creating income.  Really that is the only way that ANY of us will achieve Income Ascension and Social Mobility

As the HERO, you are able to make that happen for them.

Does that all make sense?

Okay so this was number five providing private money.

That was an example that isn’t as traditional so let’s look at this same concept but in a more ordinary application.  Instead of lending money to a group you could lend it to an investor or a regular homeowner. 

Or anybody who wants to fix up the house and sell it but they don’t know how to get the money to do it.

You can help them get that money and…

You can get paid not just on the monthly payments but also a share of the proceeds as well. 

Remember Rockefeller said…

“Ownership is nothing, control is everything.” 

– Azam Meo (and John Rockefeller)

Providing rehab money is a great way to get that control.

Also before we move on…

You may have noticed that if you are doing bulk deals like this and you are providing the money you can do several houses at a time.  So if you buy and sell them and then get a bulk of houses donated, you don’t have to fix each of them up.  Instead, you can use your money and work on just one at a time.

Or a few at a time and if you are selling them and splitting the profits from the sale with your group. 

Let’s say you are getting $15,000 – $20,000 when they sell…

In the meantime you are putting a second lien on the houses.

That means that you would have this group of homes out there with the $15,000 – $20,000 of profit on each one.  Then you add that to the cash flow and the up front money and you are making money on all three phases…

(Remember these are the three types of money)

Money now.

Money over time.

Money later.

You can sell or rent out the houses depending on what you need at the time.  If you want some extra money you can liquidate or you have other options that we’re going to talk about later.  I had a student who only did a few of these deals a year, sometimes only one a year.

I think even just one every 18 months.

Then he would gradually rent or liquidate (or whatever he wanted at the time) the inventory and just by doing these kinds of deals and doing them THIS way and focusing on the BUSINESS side of things…

… he was only doing a deal like this every year and…

Got his real estate business to over $60,000 a month.

Doing things this way makes you much more than an investor or an “I Buy Homes” guy…

INSTEAD you are a “Community Revitalizer” a “Community Rebuilding Ambassador“.

There are many different titles that my students use and when you do this right suddenly you are getting free business sent to you from the government, from economic commerce committees, from the local authorities, HOA groups and other property owner organizations, banks, schools, NPOs, etc.

You are positioned as a real estate LIFESAVER.

Instead of just pecking around and hunting for “motivated sellers”.

You can get them coming to you by the hundreds.

And it is a much better place to be.

The typical “motivated seller” talk will take you down a path of broken dreams and you’ll be chasing your tail.  This is because most real estate folks never focus on building their SKILL and they blame everything on the “motivated seller” availability.

Be better than that.

You’re starting all this right and you are being trained to know and realize that opportunity is everywhere when you know where and how to look.  Those myopic investors, which is nearly all of them, their business is on a faulty foundation. 

They’re building a house of cards on a crooked table, blindfolded.

Then they wonder why it falls apart at the first sign of trouble.

The standard “motivated seller” talk is their mantra.

Not you, not anymore, lucky for you right?

Right.

You know the LC thinking…

They’re as wrong as necrophilia, because opportunity is everywhere.

Also for more on the SMART way to find and work with motivated sellers make sure you check out our EPIC page on 100 FREE ways to find motivated sellers.

Okay let’s move on to number six.

6.)  Traditional Assignments

Okay let’s go back to that $100,000 house example and let’s say that you have the right to buy it $60,000 with an option.  You have somebody who wants to buy it from you for $70,000.  Well instead of going through a double closing you can basically assign that contract your investor/buyer for $10,000.

You’d make a quick and easy $10,000.

Now the buyer will step into your place and THEY will close with the seller in your place.  They will pay you $10,000 and then they will pay the seller the $60,000.  In this case you are not actually owning the property but instead you are controlling it and then assigning that control to somebody else.

This is so that they can exercise the option to purchase that you just had.

Now here’s another way to do the same thing…

Let’s say instead of just a $10,000 assignment fee you are getting $15,000 – $20,000 or more as your assignment fee.  In cases like that you can still agree to take the $10,000 up front and then you can finance the rest, meaning that you agree to the $10,000 now and then  for the rest you can take payments on it.

In the meantime to protect the loan that you just gave the buyer you can put a lien on the property.  You may be in a second position and not a first but your payments are more protected this way.  This way you do have a form on control and risk management. 

I’ll come back to this issue if using placing a mortgage a little later…

For now just know that this is one way to get started zero down and a smart way to do it with assignments.  You are NOT representing anybody you are acting as a principle so keep that mind when it comes to licensing issues.

7.)  Traditional Simultaneous Close

Now let’s say we are looking at that example earlier with a $100,000 house.  Remember the prices do NOT matter so don’t get caught up on that if a TINY house in your area goes for $500,000.  The numbers don’t matter and we have success stories in every market at every price level.

So we’ll just SAY this is a $100,000 house and let’s say that you can buy it for $60,000 and like before you have somebody wants to pay you $70,000 for it.

There are a few ways to do this…

Let’s also say that you don’t do a traditional assignment but instead you use the $70,000 to buy the property for $60,000 and you get the difference, in this case $10,000.

Picture it this way:

The buyer walks into your title company and puts his $70,000 into an escrow account, which is basically a holding checking account that the title company and your attorney controls.  So the $70,000 is put there and the buyer signs all his side of the paperwork.

Then, later, the seller comes in and signs the other half of the paperwork and they get their $60,000 out of the holding account.

Then everybody is happy and then the title company takes the $10,000 that is left and they write you a check.

Let me address an issue that comes up sometimes…

People in real estate will sometimes say to me:

“Azam my investor doesn’t want to use my title company.”

Or…

“Their attorney says we can’t close at my title company.”

Or, my favorite…

“I can’t tell them what title company to close at, that doesn’t work in my area.”

Let me tell you that NONE of those issues has anything to do with your title company.

The real issue is MUCH simpler…

They just don’t trust you.

They may like you and want to work with you but ultimately they don’t trust you and you have not built the relationship correctly.  Nobody cares about the title company or the escrow account agent as long as they KNOW will get what they want.

All your target cares about…

Is getting Danielle into medical school…

… and watching her become the world’s best heart surgeon.

You follow that? 

This is why all the groundwork and relationship building from earlier is so vital.

You want to know what REALLY makes them tick.  That’s the kind of relationship that you want to have with them.  You want to have a deeper understanding of them.  This is where you are working together to help them advance towards what they want.

You are on the SAME team.

So again you want to make sure you take the relationship seriously.  Whatever you do, give your people the gift of actually caring and helping them get where they want to go. 

So that was seven.  It is usually easier if everybody comes to your title company and closes through your attorney for this.  First the buyer comes in and then out of those funds the seller is paid afterwards and then you get the difference.

That’s how you get paid.

8.)  Individual dual closings

Let’s use the exact same example but let’s say that for whatever reason you are NOT going to use the same funds.  Sometimes people do this because they think that the banks or the title companies won’t do simultaneous closings, but the real problem is the way that they are positioning themselves but I won’t get into all that right now.

Just know that YOU can and should choose how you and where you want to close.

At least you can choose when you do this correctly.

In an example like this you are NOT going to use the same funds as the buyer brings to the closing.  So if you are buying a $100,000 house for $60,000 and selling it for $70,000, in this case you are going to get $60,000 and put that into your title company’s account.

Then you are going to pay your seller.  So that first closing happens BEFORE and separately from when the buyer comes in and puts their $70,000 in and buys it from you.  So there are two separate transactions and you are coming in with the $60,000 outside of the $70,000. 

In this case sometimes people use what’s called day funding or “Transaction Funding”.

This will cost money, usually they pay a few points.

A “point” is one percent of the loan.  So two points on a $100,000 loan is $2,000.

You almost never want to USE transaction funding, instead just use some of your private money if you MUST.  This way you can can do this for a lot cheaper because you’ll have a relationship with them and also with these deals the money never leaves the bank so it is as safe as it gets.

The only reason people use transaction funding is because they think there is a shortage of money…

… this brings us to another great idea…

9.)  Provide Transaction Funding.

This is kind of like the providing private money method where you may not necessarily actually buy the property.  Even though you may never own it, you can still make good money on the real estate and it is all zero down.

Remember your goals of buying real estate or “doing deals” are only a sub-goal compared to the main goal of creating income ascension and social mobility.  If you create income without owning real estate but by using the real estate then the same end is met.

It is a WIN.

Let’s say you talk to some of your private money sources and you agree to split the profit with them on these deals.  If you lend your money out for a day or allow an investor to use your funds to do the first closing, you can make at least a few points on  the $100,000.  That is at a couple of thousand dollars for less than an hour of time.

What is even better is when they got the deal from you because you are bringing them both the deal AND the money.  Even if they didn’t get the house from you it doesn’t matter because you can still make money with the deal. 

Replace a six figure income?

I’ve had students who have replaced six figure incomes just by doing this, just by providing one day funds with a one time interest rate so that one part of a transaction could take place.  If you just did one deal a month on $200,000 you could structure it as $500 plus 2.5%.

That would be an extra $5,500 a month.

And the money never leaves the bank.

If you wanted to make more you have three choices:

1.) Do more deals.

2.) Raise the price.

3.) Place more money.

If you did just two deals a month for example you would immediately…

Make over $10,000 (exactly $11,000) a month.

That doesn’t include what you made on the actual deal either.

So this is a cool weapon to have in your arsenal.

Let’s keep moving…

10.)  Standard Lease Option

This is a normal rent to own deal but you are going to sublet or sub lease the house out to a lease option tenant buyer.  For example with the $100,000 house you can lease option it for let’s say $100,000 and your payments are around $800/month.

Then you turn around and rent it out or you can lease option it out and get $5,000 down with a lease option price of $110,000 and payments of $1,100 a month for example.  I’ll get more into different types of lease options later.

For now here’s the ELEVENTH way to buy real estate zero down…

11.)  Land Contract or Contract for Deed

This is a lot like a lease option in many ways except a contract is more powerful.  So this is an official contract that is signed and then recorded with the county.  If you buy a house on contract like this then you can sell it as a lease option OR even as a land contract.  You can also just assign your land contract.

So you could do the same as with the lease option mentioned in number 10 a moment ago.  You can buy the property on a land contract for $100,000 and $800/month for five years for instance.  Then once that contract is recorded then your position is more secure because the seller pretty much has to foreclose on you instead of just evicting like the would do if you did a master lease or a lease option.

BUT…

On the other hand…

If you do sell it on a land contract then the same applies to you and YOU would have to foreclose instead of just evicting the tenant buyers.  That’s why IF you sell on a contract you want to make sure at the very least that they are paying you more for it. 

Remember that the way you want to sell or make money with a piece of property will determine how you buy it.   

So many investors make the mistake of doing the opposite…

They learn a way of doing something then try to find an application for it.  Often this leads to them trying to fit a round peg in a square hole.  They try or learn something and then figure out how it’s going to make them money and how it will help people.

For most of them, their exit depends on their plan…

But the SMART way to do it is…

To make sure your plan depends on your exit.

12.)  Subject To also called “Sub2”.

This is where you but a house based on the current financing that is in place.  You are going to buy the house “subject to the existing loan”.  This means that you (usually) get the deed an start making payments on the loan as if you got the loan yourself.  We’ve covered deeds elsewhere. 

However, you do NOT get a new loan.

With deals like this you want to make sure that you do NOT close until you have a buyer ready to go.  You do NOT make promises to the seller (or anybody else) that you don’t keep.  That is what gets people in trouble more than anything else, it is what they SAID to the seller that causes problems.

What they promised.

Only make promises that you can KEEP.

When doing a deal “subject to” there there are some issues that come up with this like the due on sale clause and insurance issues, so I made a totally separate class on each one.  You can watch them for all the info on that.

If you buy on “Subject To”, how can you sell?

You can sell the property on a lease option, you can sell it on land contract or you can sell it on “subject to”.  Yes that’s right you can even SELL a house on “subject to”.  You can assign the deal and never close the deal yourself.  Or you can take the deed and sell it on “Sub2” later on.

You almost NEVER want to sell on “subject to”…

You don’t want to sell like this for several reasons, a big one is because of the control you are giving the buyer.  You don’t want them to abuse their power and create a situation where you have to fight with them to get the property back. 

You want to protect your seller.

This can cause problems with your seller.

In some rare cases you can work with a buyer and if they are high quality (and put a bunch of money down) then MAYbe you can sell it on “subject to”.  There are not many reasons that you never want to do this.  For nearly every situation you want to just sell on a lease option or something like that.

So on that $100,000 property let’s say the seller owes $100,000 on the mortgage and the payment is $900.  You can get the deed and start making that payment but you wouldn’t EVER do that until it was rented or you had a lease option tenant in place.

Don’t do bad stuff…

You don’t want to do shady stuff like having the seller make three payments before they leave, only to have them find out that you don’t know what you’re doing and you didn’t find a buyer.  Then they find out they have to keep making payments on that house AND their new house.

That’s the kind of stuff that gets people in trouble… and (rightfully) in jail.

Also, if you are starting out do NOT go out catch up on loans or pay to bring a mortgage current.  This is not something that I recommend anybody who is starting out should ever do.  Also if a house is in pre-foreclosure or foreclosure you need to be careful there too. 

If the seller is behind on payments, whether the bank has filed the lawsuit yet (lis pendens and REOs) or not, there is almost no case where you want that deed in your name.  Especially if you’re new to the business.  If you are planning on negotiating with the bank and you know what you’re doing with the legality and contracts…

Maybe you DO want to fight the bank, but that is almost NEVER a good idea.

I’ll come back to this in a bit.  Even in the rare cases where you want to engage, even then getting that deed in your name is still not something that you want to do.  People do silly stuff sometimes because they are so excited to put something that they learned into practice.

That is why it is important to keep your eye on the ball and make sure everything that you do is done with a purpose and not done first and then you try to find a purpose.

Think about those last three options for a second…

If you look at the standard lease option, land contract and “Subject to”…

They are in their order of power.

Tn eviction is required for a lease option, a foreclosure for a contract and with a “Subject to” they pretty much have to file a lawsuit and sue you as if they are trying to get something from you that YOU own.

The more that is required to get the property back tells you how powerful that form ownership is or is not.  Strength is measured by resistance to damage, as Ali taught us.  Remember, the way you buy determines how you can sell.  Your option to sell depend on how you bought.

How you BUY determines how you can SELL.

You can sell a “Subject to” in all three of those ways, a contract you can only sell on a contract or a lease option and a lease option leaves only the choice of selling through a lease option.

Let’s keep moving…

13.)  Bulk Lease Option.

This is where you agree to do a lease option with more than one house.  This is great for deals through a property management company for example or a retiring investor.  You can pick up several houses at once and then move them usually through a rental or a lease option of your own.

Then you can collect down payments on each one which brings us to…

14.)  Sandwich Bulk Lease Option or Contract.

This is where you set up a lease option and then you sub lease it out just like we talked about, but there is a twist…. 

You are going to lease several houses.

This is it’s own way because we’ve made some pretty big advancements in this area.  We have a few models around this and one of them is the “Corporate Housing Model“.  Part of that means that you are going to work with companies and help them find a number of houses for their employees or visiting associates.

You go get several houses together at once and lease them for a certain price, usually from one or a few owners.  Then you sell that entire agreement just like you would an option OR you actually exercise the lease and you make payments out of the higher payments that you get.

So you rent 10 houses for $10,000 a month and rent them OUT for $20,000 a month.

That could be one example.  You can rent 10 houses for X but rent them out for X + 30%.

That would be renting 10 hours for $10,000 and renting them out for $13,000.

Whatever the arrangement you would only do this if the numbers make sense and you want your tenant in place BEFORE you do anything.  You are going to get the agreement to rent those houses at a special price and then you’ll turn around and assign the option for a fee.

That fee can be up front or up front plus every month.

15.)  Contingent, Non-Exclusive Contract.

This can also be exclusive but if you are just starting then I don’t recommend that.  The difference between “exclusive” or non-exclusive is that the seller is allowed to try and sell the property without you.  If you are just starting then you should almost always give sellers the option to work without you.

You don’t want them relying on you to solve their problem when you don’t really know what you’re doing.  This is something makes many “wholesalers” go nuts but that’s because they aren’t thinking about what is in the sellers’ best interest.  This was a big secret that one our other students used to catapult her business from zero.

ALWAYS do what’s in THEIR best interest…

You shouldn’t be scared of non-exclusive contracts because nobody else should pay for you to learn or suffer because of you don’t know what you’re doing or aren’t experienced.  These deals essentially mean that you have the right to buy a lease option or to buy a house on contract but it is contingent upon you finding a suitable buyer or renter first.

This protects both you and the seller and you can add a condition that says the seller has to sign off on the new occupant and/or tenant buyer.  Why would you add a condition that requires another layer of approval for you to get or creates a hoop for you to jump through?

It is better for EVERYBODY.

If you are new to real estate investing then it is often faster to do it this way just so that you can get started.  It is also a helpful way to practice your dialog and get a relationship with an owner moving faster. 

It also protects you from being stuck with a house that you don’t know how to sell.

16.)  “Subject To” With a Second Mortgage.

Let’s go back and look at the “subject to” deal because there are a few other ways to do this a lot of people think that the seller has to be in foreclosure or something.  That’s not the case.  Like I said if they are in foreclosure then you don’t want to be messing with the deed. 

So another way to the do the Sub2 if the seller has equity…

You can get the deed and then create a second for the seller’s equity to protect it.  Usually you’ll want, and be able, to do no interest and no payments in these types of situations.  That brings us to…

17.)  “Subject To” Assigned to Third Party

In this example you can do with or without a second for the seller’s equity.  Either way you can assign this to an investor or to a buyer.  This example is with an investor, but since you are usually going to be done with the deal once you assign to an investor you need to remember something important…

You want to make sure that you know the investor VERY well and that they will take care of your seller.  You will also charge them a much larger down payment and/or assignment fee because of the level of control you providing.

You are GIVING OWNERSHIP of the property.

The bigger payment for you is because you are pretty much giving ownership of the house to the investor without them having to qualify.  You can also structure this so that you keep getting paid over time and/or on the back end as well.

I’ll get more into that in a second because it’s one of my favorite ways and it is almost always better than any other type of ownership. 

First here’s something else that I said you and I would come back to…

18.)  Smart Refinance.

The rules with refinancing are totally different than with a new purchase.  So if you get that $100,000 and you owe $70,000 then you can refinance it at 70% of that $100,000 value.  You can use the equity as collateral.  This means that you don’t come up with any cash and you pay off the $70,000 completely with the loan.

Now you have a lower payment than you would with “hard” money.

If you deals this way then you do NOT want to use your credit, remember that.  I’ve covered that in different areas but if you’re still unclear just let me or one of us know.  When you refinance a property you are doing this for one of two reasons…

You want to pay off the current financing and get a better payment.

Or…

You want to pull cash out while still owning the property.

Either way you want to make sure that somebody is in place.  This would include a tenant buyer that would be making that payment for you.  Earlier when I talked about our student who is making over $60,000 a month with the bulk purchases, THIS is part of what he was doing.

Remember that those houses might have $20,000 in private money.  It may be rented out for maybe $600 a month or so.  So if your refinance brought the payment on that $20,000 down it could be $150/month or even less. 

So what does that do to your cash flow?

It goes through the roof.

Now what if he also pulls out $10,000 – $15,000 from the refinance on TOP of that. 

The refinance may raise the monthly payment but you have a lot of room because you also have $600 a month coming in as cash flow.  So even if you make just $300/month NET on the house, and you got $15,000 out of it…

Think about what happens when you are doing 10-15 houses at a time…

Think about what happens when you are doing 10-15 houses at a time…

This is also makes it easier to use hard money, which we’ll talk about more in Part Two.

Okay so that was the end of PART ONE, for the rest of the 30 Ways to Buy Real Estate Zero Down and With No Credit Checks make sure check out Part Two…

Thanks so much everybody!  = )

~ Indy Anna and Azam

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

The post is HERE.  There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.

Go to BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(317)969-5619 (please text me first because that’s my Direct Line and and yes I actually answer lol)

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100 FREE ways to find motivated sellers.