How to Invest In Real Estate with No Money


Today on REITV, we are gonna be addressing probably one of the most commonly asked questions in all of real estate which is, “Can you
actually invest in real estate with no money?”. What do you think – Buying real estate with no money? I think it’s stupid. A lot of people claim you can. There’s a lot of seminars
and there’s a lot of programs. And today, I’m gonna get to the bottom of it and
I’m gonna share with you that yes, it can be done. But I’ll even more share with
you exactly how I did it. So let’s talk about how to get started in real estate with no money. There are obviously many ways of doing it. For this video, I’m gonna hone
in on one. And what better way than actually the very first property that I did, which
is that property right there. Many many years ago, this was the very first property that
ended up leading to my hundreds of homes that I now own nationally around the country. And the reality is most of the real estate I buy, I don’t use any money. In fact, I don’t
even use any credit. Eric, what about you? You think it’s possible? I think it’s possible. I think you can have like a bank can help you something like that I guess or a friend, I don’t know. But I think it’s possible. On this very first home I’m gonna actually
share with you a strategy though where I actually use $3,000 that took me 14 months to save up. Now, why would I refer to that as a no money strategy? Well typically in real estate, if you’re gonna put 20% down that can be $30, $40 maybe even up to $50,000 that you need for buying a single family home below the median, $3000 compared to $40,000 – I’m practically gonna call that no money. You could use a credit card, you could use mom and dad, a friend, you could borrow it, get a loan on it; it’s a very small sum of money compared to the big game of real estate. Well tell you what, my very first mentor
told me that there’s some things that I needed for me to make this strategy work. He said I needed a 2-year work history, a basic credit score, and that I need enough
time on the job. So what I ended up doing was waiting 14 months, saving up $5000 in the bank, $3000 of which for down payment and I have to tell you that was me eeking
by because I was making less than $25,000 a year. But 14 months later, I’d established my three trade lines of credit, meaning, three credit cards that I was responsibly using
and I found this house with the help of my mentor. Now, what makes this house unique? If you take a look at it, it’s got a basement apartment AND this house was worth at the time about $150,000 and I bought it for $110,000. That’s a $40,000 equity position. So the
day I bought this house, I was able to rent the basement, have the basement actually cover my entire mortgage, AND I walked in to $40,000 of equity. Now, this house was bought with just the traditional FHA loan which even less than average credit scores can qualify for.
And so I bought this first house this way. I lived in it for 12 months and even though
it was my home, I considered it an investment because I bought it with that equity. 12 months later, I was able to harvest the equity in it that I could use it to buy this next house
that I’m about to show you. This is the second house that I bought. One of the things that’s great about this house like my first house is it also has a mother-in-law
basement apartment, which essentially means that I was able to rent out my basement and have it pay for 80% of my mortgage. Now, how did I buy this house? Well I got a home equity line of credit from the bank because of that huge equity position on my first house and basically that’s what did my down payment to buy this house. Now my first house turned into one of my first official investment properties paying me over $500 a month of residual income meanwhile living in this house, and you can see it’s a significantly nicer house. Well
the equity in both of these properties were leveraged to buy my third house, my fourth house. And now let me introduce a second strategy today for how to buy real estate with no money. I use the equity in these homes to buy these four houses but I had developed a new type of asset. It was a relationship asset. It was a capital asset where I was able to go to my relationships and say “Hey, look at what I have done here in real estate!” and
they’ve chosen to partner with me. My first partner was my father-in-law. In fact, when I started buying my homes, I was so young, he thought I was crazy because I was a college kid. Four homes later though, he looked deeper into it and he said “You know what Kris,
you’re outperforming my 401K! What if I use some of my money and we partner up?” You use your money, you use your credit, and I just keep doing the deals? Hey, that’s
a win-win. Well, I got up to that 10 properties as a senior in college and I started thinking to myself “You know what I really need? I need more father-in-laws.” I went and found more father-in-laws, so to speak. I went and found a doctor in the community that had been tracking my results, an executive for a company, a couple of other individuals, and had a chance to take them out to lunch, show them my track record. And you know what, they all said “Sure, we’ll put up the money, we’ll partner with you because you got a track record.”. Ultimately, that’s what led to hundreds of homes. So those are my two favourite strategies for
doing real estate with no money. This is the third house that I’ve ever lived in. Those
first two houses built that entire portfolio and made this possible. Eight years ago, my wife and I custom-built this 10,000 square-foot house and our real estate has taken care of us to this day, basically getting into real estate with practically no money and it all
came down to having a game plan. Now this is just one way that I know of to do this
and some of you watching this, I hope you steal it, I hope you copy it, I hope you use
it, but there are many other ways of doing that. The whole point is yes you can do it
and have a very concrete game plan and then act out that game plan, stick to that game
plan because in the world of real estate, this isn’t something that happens overnight.
This is something that you chip away at; it’s something that you work at for years to ultimately get to that place where you have enough residual income coming in, that you’re retired, and it’s covering all of your needs. Thank you for watching REITV. For more weekly videos, be sure to Subscribe.

Paul Whisler

100 Comments

  1. What bank do you use! I have tried to get ahold of banks and a lot of them don’t want to give. Is it because u keep them?

  2. Thanks a lot,,,magnificent..i should follow your videos…i was fascinating about real estate business.

  3. You bought the first house at 110K whose market value was 150K, with a down payment of 3K, and the rent was covering your entire mortgage. I didn't understand one thing – How did you buy the second house keeping the first one? The 40K equity position you talk about, what does that mean? Please reply.

  4. Love to see all of your success, my very first home was a small bungalow similar to your first purchase. Practically cost me no money

  5. You're awesome for sharing this. Thanks and keep up the great work. We just bought an office building with no money down and all 9 offices are rented out. I'm looking into other things like residential and I hope to do a fraction of what you have done.

  6. Cheers for this, been searching for "first time investor in real estate" for a while now, and I think this has helped. Have you ever come across – Ponasson Estate Earthman – (should be on google have a look ) ? Ive heard some unbelievable things about it and my brother in law got great success with it.

  7. Thank you for sharing your knowledge and explaining the template for acquiring income through real estate. Time to save and grow towards financial freedom! You deserve more subs!

  8. In Real Estate Investing there is Always 'Money Down'! It just doesn't have to be your Money! So 'No Money Down' is more of a play on words in my opinion and as we all learn how to structure deals, the 'No Money Down' option can be presented in your offer. .

  9. Kris, cool video! This was just 4 years ago? You look like the young Harrison Ford; )

  10. how to stay in touch with you? I wanna learn some more…

  11. You’re the man. Real hustle at work people. Keep it pushing, your dreams will come true if you don’t stop working for it.

  12. I thought in order to rent a room you needed to do a conventional loan and not fha ?

  13. thank you for this video I'm gonna be sharing this with friends and fans lol I mean family hahaha

  14. Could you still legally do this if the home is a single family home with a basement apartment? Im looking to use this strategy in 6 months in a development with single family homes set up like this.

  15. Great video! Golden opportunity came but the mortgage broker took his sweet time. I lost out on the property, credit became bad and now its even worse.. Back to sq1

  16. Can't do that in California…. no basement and 500k plus….

  17. . My only problem or question is, wouldn't this lead to a large amount of debt. Say you follow this strategy and have 10 properties, you then have 10 home loans and about the same in equity loans. I get you try to have tennant's pay the loans and then a little more for your residual income, but this seems pretty risky

  18. How would I go about finding a mentor? I have 1 rental currently and one house that we reside in, but I need to figure out how to grow.

  19. There is always a possibility that you default on the loan and then you're really fucked with 3 credit cards on a $105,000 loan that is charging you interest every year. I mean this is the same thing as gambling, objectively, not a smart strategy at all. Guys dont borrow money to invest, only use cash

  20. That's if your renters don't bail on you. Then you need to fork out cash for your mortgage.

  21. This guys took the EXACT script from the guy that is on this channel too or that guy stole this guys speech. Lmao. It's scary how similar this video is…

  22. But how did u get the house cheaper ?? Why would anybody sell the house less then it’s worth ?

  23. Please someone will explain me how to buy real estate without money i didn't understant. Please

  24. Dude you without a beard is so weird you don’t look the same at all

  25. This idea and the whole concept of the video was copied from exactly another same YouTube video who says "my first partner was my father-in-law, and i need more father-in-laws"

  26. I just watch 2 other vids like this by other channels and almost word for word it was the same exact video… where are you guys buying these scripts from?

  27. This is the exact same story as the one released a month ago

  28. This is the exact same story from the video "how to invest your money in your 20s"…. same first house, same down payment same everything…

  29. This is interesting. I thought you were going to talk about wholesaling. I'm doing that while building business credit to use the strategy you stated

  30. I'm halfway through your book, to be Frank, your the most straightforward person I've seen with a sales pitch. The further I progress through the book the more motivation I receive to get started. I have practiced the law of attraction for over 10 years and i have seen the positive and negatives, so I understand your thinking. And I firmly believe that my thoughts have manifested into your presentation of real estate investments and I hope to be working with you eventually.

  31. This was a great video! I’m still in high school but this helped me get plan for what I want to do when I get a little older. Thanks!

  32. Could u say or mention any tools u used as a beginner to find deals and how do u know the market value of a home.

  33. Isn't it a huge hasstle and ton of work just to manage and maintain all of the homes, and all the numbers you are responsible for like taxes, etc? Or do you end up just selling the homes in which the responsibility is transferred to the buyers?

  34. Alright so I understand how you invested but how did that small investment of you renting those basements and getting the equity make you a millionaire?hows there any way you can rent a basement from the same price or even higher than the mortgage?? I feel like that’s impossible or the renter is just dumb

  35. Thanks kris. I have seen this video a thousand times but what i do not understand is how you used the bank to get money even after owing them 110k. Did you buy the second house after paying off your debt or what? Im still very confused. Also, I have never heard of home owner equity leverage. Is it only available in america??

  36. So to cover your mortgage you locked the tenets into a lease living in the basement or no lease was required??? PLEASE ANSWER

  37. How do banks know the amount of equity u have when using it to grab another house? Are they aware of the value of the prior house and what you paid for it?

  38. No money means no money wtf buddy! 😂 Nice video Khris, thanks!

  39. Thank you for actually saying something and not selling a book or seminar!

  40. Wait I saw a video about a guy on how he started investing in real estate and that was the exact same house. He also said the same thing. Wait what??

  41. This guy explained it so simple I like people like this short to the point and not complicated this guy also sounds like he never forgot where he came from very humble character and willing to share his knowledge you have to give credit and thank people like this..

  42. He has hundreds of properties but he is probably in tens of millions of dollars of debt

  43. I’m confused on some of the statements from your video. You said you used an FHA loan. And for a $110k home purchase, you’d need to put 3% down—that’s $3,300. And that doesn’t include fees from escrow. So you needed more than $3k. Additionally, you stated that you got $40k instant equity. That’s assuming that the house was valued at $150k by an appraiser. Lastly, FHA loans do NOT have equity lines. The only way you can get an equity line is through a HELOC program. If you have decent FICO, I’d suggest a Fannie Mae loan. You’re only required to put 3.5%-5% down. And you don’t have to worry about the added MIP fee from an FHA loan.

  44. I’m using this method to purchase a 2nd home. At what point did you sell the beginning homes you were renting. Do sell at peak market ?

  45. Great info Kris, thanks man! When you said about having a 2 year work history….would that be ANY sustained, taxable income that you could show? Would a lower income, like you referenced, with a great credit score be a great start? Or would you suggest a 2 year work history with a much higher income?? Thanks so much man

  46. Just curious – when you said you brought your father in law into future investments with yourself – how did you guys sort that out? If cashflow is $500 at end of month, you each get $250? I don't particularly see an older man interested in equity that is shared if a house isn't to be sold. I really do appreciate any insight.

  47. WOW! you look very different. You really turned into a man in the last few years.

  48. Hey Kris I'm 12 and have been looking into real estate for a few months and I was wonder ing if you could go more in depth in this topic ?!😐

  49. Thanks man I'm living on the low Vegas strip in a $25,000,000 mansion thanks to you! Your a legend!

  50. I wish I had the free guidance and mentoring that many realtors like yourself have. I’m out here scared to invest what I have because I am looking for the knowledge like it’s gold.

  51. can someone explain to me how did he bought that first house for 110k$ if he only had saved 5k$

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