How to Buy a Property with No Money Down w/ Owner Finance | MLS Search & Analysis 337 – 1502 Ferman

There are a lot of real estate gurus who say they will teach you how to buy a property with no money down. The truth is, no money down real estate investing is a very difficult real estate investing strategy to pull off as many sellers would prefer a cash or traditionally financed offer for their properties. In the 337th episode of The MLS Search & Analysis Show James Wise is teaching real estate investors the truth about buying rental property with 0 down using seller financing. Seller financing real estate with no money down is possible if you understand how owner financing real estate works and what would motive a seller to sell their rental property via owner financed terms to a real estate investor who is looking for an owner financed no money down rental property loan.

I am gonna show you how to buy an actual property for no money down zero down no bs let’s dive in this is your show this is the show where i work for you directly taking your needs i’m going through the mls and i’m trying to find the best possible deal for you guys put down 25 that’s the perfect way to buy this that’s why real estate investing is the greatest

Industry in the world hey guys welcome to another episode of the mls search analysis show i’m james wise you’re watching holton wines tv and i want to talk about no money down buying real estate with no money out of pocket now a lot of people talk about this right i get it it sells training it sells courses it sells education okay but you can actually do it for

Real is it easy no and i’m gonna i want to give you that disclaimer right up front let me explain that to you it is not easy to buy no money down deals can it be done yes but you know what uh what else can be done hitting uh freaking 70 home runs in a year can be done it’s been done but that doesn’t mean a lot of people can do it so i want to give you guys that

Caveat because what i’m going to do is walk you through a real life deal where i believe we can not only buy the property for no money down we’re going to get the seller to finance the entire thing and i’m doing this for a guy named jay jay i just got done filming a couple other videos for you about seller financing and this one is slightly different because this

Is a distressed property that requires a lot of repairs the other two were active rentals so i think it would have been better for us to offer a decent down payment this one i think we stand a chance to try to actually get this for no money down and real quick folks if you like what i’m doing for jay or what i do for other real estate investors and you want me to

Do the same thing for you send my team an email sales include your phone number we’ll call you talk to you about your wants your needs your goals what you’re trying to accomplish we’ll explain to you our whole process and see if it’s a good fit by the way if you want all that information without a phone call click the show notes below it’s all right

There but for you jay this one i think we could probably try to take this one down with no money down all right 1502 furman avenue cleveland four for 109. it’s been on the market a little over a month 46 days listed at 99.99 that’s the stupidest price ever this property is not worth a hundred thousand dollars like the seller’s got no like no it’s just it’s not

Okay it’s not a horrible property but it’s just not worth a hundred thousand dollars like there’s like no scenario where this particular property will ever sell and a regular arms like transaction for a hundred thousand dollars unless the seller offers owner financing which is what he’s doing as you can see it’s it’s just a dated colonial home right it’s going

To need cosmetic work to put a tenant in there right it’s a solid home but it’s dated right it looks like a little lady home this bathroom this kitchen you know they’re both super dated right you got all the paint you know come off the wall right here so it is definitely not a hundred thousand dollar house but the bones appear to be good there’s like not even a


Surround in the shower right we need to do a surround things of that nature i mean we got to do the whole thing top to bottom cosmetically right so what i think we can do is just put a ballpark estimate on it of 25k for 25 000 my team we could go and refinish the hardwoods repaint the entire thing because obviously it needs paint go with an agreeable gray paint

Get that trim white put in a new modern kitchen in a modern bathroom right doing all of that we will have a rental property that is attractive to section eight tenants this is a 4-2 so we’ll be able to get section 8 tenants in there at 1100 a month 13 200 a year right if you run the normal metrics the normal performance estimates that i always do on these shows

That means you’re going to make an noi of approximately 6 924 you can you can uh safely assume that under reasonable circumstances that will be your return right but then of course there’s price and how do you get this whole thing this hundred thousand dollar house that ain’t worth a hundred thousand dollars how do you get it for no money down that’s where the

Seller financing comes in this seller has said that he will offer seller financing guys seller financing is awesome for those of you that don’t know what seller financing is it’s the greatest freaking gig in the world right i buy probably two or three million dollars a year of seller finance properties what it is is the seller acts as the bank right in a normal

Circumstance let’s say you’re buying a normal property as a non-owner-occupied investor buyer let’s say it’s a hundred thousand dollar property for easy math you as the buyer need to come up with your down payment which is typically going to be 25 so you come down with 25 000 the bank loans you 75 000 then the seller gets all that they walk away clean with their

100k minus commissions and closing costs of course right in a seller finance scenario seller wants to sell the property for a hundred k you put down your down payment easy math let’s just say it’s still twenty five thousand dollars and then instead of a bank giving you that 75k the seller lets you pay him off monthly as a regular mortgage he puts a mortgage on

It so if you don’t pay he’ll be able to foreclose on you the same way your bank would okay so that’s seller finance deal right so you get sellers that are willing to offer seller financing every once in a while because a they want to sell their property for a price that is just not going to happen on the regular market which is what we have here right ain’t nobody

Buying this for a hundred thousand dollars uh in a regular cash or finance transaction it’s not going to happen right number two you get people that want to sell their property seller finance because uh they’re distressed they need some repairs this property needs about 25 000 worth of repairs to make it uh you know appealing to our tenant base so that falls

Under this as well so a third option a third reason by the way is also uh sellers want to avoid paying all their capital gains taxes at once right that’s another option right so those are the reasons sellers want to do seller financing buyers love seller financing because you can get properties for no money down there’s no rules with seller financing right with

Lenders it’s always going to be 25 down no matter how cool of a salesman you are how slick you think you are how good of a talker you are or how good your relationships and your networking skills are don’t matter the bank don’t care they’re just checking off boxes right all the mortgages they got to come under the same general underwriting guidelines they’re all

Being sold on the secondary market to fannie and freddie right so we all gotta play under the same rules when you go seller financing though guys it’s all about your ability to negotiate with the seller what type of win-win arrangement can you work out and by the way guys if you want to do seller finance deals they are in hot demand obviously every buyer in the

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World wants to try to buy properties with no money down we have access to those seller finance deals for you guys so if you go to click the property search for sale tab scroll down past our investment properties for sales show in this show and click here for your direct mls access guys and uh you can get direct real-time mls feeds to seller finance

Deals i broke them up into three categories for you guys single-family homes multi-family homes and then the big dogs the commercial buildings five unit apartment buildings and up you’re going to see more of these types of investments being offered with seller financing than you will with the duplexes and the singles because once you get up to that stage you know

Pretty much everybody’s an investor and everybody’s you know trying to make money and everybody’s open to more creative ways of doing things and the financing uh the commercial financing space is much different than the residential financing space right those are always going to be loans based upon the buyer’s ability to pay back the loan with no rental income

Where these are going to be based upon the building’s ability to generate revenue in addition uh terms are going to vary widely between lender down payments necessary can vary between lender between building amortization schedules can vary uh interest rates it’s all very so it’s like the wild wild west so you can really get creative in the commercial space right

So if you guys want access to all that stuff for a very cheap price go ahead and order yourself the mls real time feeds you get the direct broker access from me the moment a seller finance deal goes on the market listed by any of the 5000 agents in my mls you get access right so we’re talking weeks or months before these properties pop up on zillow not

To mention you can’t just search out the seller finance deals on zillow or so i made it as easy as possible for you guys to get access to that and once you get that access guys it’s lifetime access and uh you can go directly to those sellers and negotiate or you can come here and i will give you my opinion and then i will represent you as your real

Estate broker in the sale right so that’s what my man jay is doing and jay let’s talk about my specific plan for how to get you this property no money down right this dude wants 100k well that’s freaking nuts jay because the property is worth 55. it’s worth 55 000 in its current state right so 55k is what it’s worth that’s what i want you to buy it for with no

Money down then i want to put in 25k meaning we’re going to have an 80 000 investment so how do we convince the seller to take 55k which is what the property is worth and finance the whole freaking investment when this clown thinks he’s going to get 100k that’s where we use the financing to create a win-win jay go back to guys go to the tools and

Resources tab you click on the mortgage calculator right 55 000 okay we want to get a 30-year loan and let’s go ahead and offer mr seller a 5 interest sounds much better than like 3 or 4 right so we go ahead and offer him fifty five thousand dollars mr seller mr seller wants ninety nine nine nine nine but the house is only fifty five thousand so what we’re going

To do we’re gonna negotiate it and we’re gonna package it beautifully we’re going to give them this beautiful amortization calculator we’re going to say hey mr seller screw it you want 99 999 we are going to offer you 106 290 and 68 cents over 360 months we’re going to give you 360 payments of 295.25 are you a lender if so holton wise is looking to partner with

You if you are licensed in all 50 states go to click the digital media tab to advertise on houltonwise tv today that is a win-win situation that’s how you create these win-win deals guys because the seller already asking double what the property is really worth we’re going to come in and offer him like six seven grand even higher than that maybe

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That makes him healthy it ha maybe that makes him happy it should make you happy jay because if we’re all into this thing for 80 we get that section 8 tenant in there it’s an 8.7 cap it should result in a 13.5 percent cash on cash return because yes we did get the property no money down but don’t forget dog you still gotta put that 25k into it to actually fix it

Up right so i took the net cash flow after the mortgage which is 3384 and divided that by your repair budget which would be 25 000. but that is a great way to create a win-win situation you win because you get a fully renovated rental property kicking off a 13 and a half percent return on your investment and you didn’t put a single penny down on the property to

Take it down mr seller wins because mr seller just secured himself a hundred six thousand dollars out of a fifty five thousand dollar property right that’s how you create a win-win guys now again back to the original caveat doesn’t happen all the time this mr seller you know he listed his property which is worth 55 for a hundred so i don’t know the guy might be

Freaking crazy he might see this win-win and be like no i don’t want to do that i want you to put seventy thousand dollars down and then i’ll loan you the other thirty thousand obviously that deal would be terrible you wouldn’t do that deal makes no goddamn sense right that’s the thing with seller finance deals there are no rules so you have the ability to try

To negotiate win wins try to get sellers to see your way of thinking how they can accomplish their goals you can accomplish their goals but sellers also have no role so they have the ability to be idiots right there’s nothing stopping him from being an unreasonable idiot and you have to in this business work with idiots right of all the properties i’ve bought

In my lifetime i deal with idiots all day every day idiot buyers idiot sellers idiot tenants right it’s part of the game this is a numbers game guys that’s why when you guys order the mls search and analysis products from us we always push you guys towards the bigger packages and we discount them for you because this is a long-term game right it’s not about just

Analyzing one property right like if i tell you guys yo seller finding it’s awesome i could work out a seller finance deal for you you could buy a property no money down yeah you could probably do that but it doesn’t mean you just look at one property and then boom you just do that you might have to look at analyze do due diligence and negotiate with 10 20 30

Sellers before you actually get the deal to work right that is what the other gurus and all that stuff that’s what they don’t like to tell you they tell you what’s possible and they make you feel like if you just buy their training of their education it’s just gonna happen boom boom boom boom boom that’s not real life expectation that’s not a probable expectation

In real life in real life yes it can happen but it’s a numbers game you’re gonna have to swing and miss a whole lot of times before you actually work out one that could work so jay if you’d like to make the offer on this property using the strategy i have outlined for you just reply to the private email and my team will write that up and if the seller doesn’t

Take it well guess what buddy we’ll be moving on to the next one and the next one in the next one because this is the numbers game thanks for watching subscribe to holtonwiz tv for more financial information education and entertainment

Transcribed from video
How to Buy a Property with No Money Down w/ Owner Finance | MLS Search & Analysis 337 – 1502 Ferman By HoltonWiseTV