No Money Down – Strategy 1: Move Into Equity
Hey, Kris Krohn here with REITV. Thanks for joining us today. Today, I’m thrilled because we’re gonna be talking about one of my favorite no-money-down strategies because hey, if you’re gonna be a real estate investor, if you don’t need money and you don’t need credit, you can do a lot more today! One of the many ways to buy real estate with either no money down or super super little money down, right?… is this idea of actually moving into equity. And when I say moving, what I actually mean literally is YOU moving in with the EQUITY. You see, if you find a house, I would encourage you to find a house that also serves as a home.
One that will serve your family, but if it has a really good equity position in it, let’s say, we’re out there treasure hunting with under 30, 40…. $50,000 of equity, then we also have with that a really great margin of profitability to make it a really great investment house. Now the reason why this is one of the strategies is because many banks will allow you to move into a home with either a 3% down payment, a 5% down payment, or sometimes a no percent down payment. And think of this for just a minute because this was MY personal strategy and while the strategy doesn’t work for everybody, when you do your first move or like my very first move, I found a $110,000 house worth a hundred and fifty.
That $40,000 equity position… I moved into that house! Had a basement apartment! The basement covered more or less my mortgage, but I walked into $40,000 in equity, and yet 3% down payment on a 110,000 was $3,500. Now just think about that for a little bit. Trading $3500 for 40,000. Could you come up with $3500 from a credit card? Borrow it from someone? Somebody else’s money? Mom and Dad? To walk into making a trade for 40,000? See, by the time I saw that house, I don’t even wanna tell you what my ROI was. You can imagine. My ROI on the cash flow, when I moved out, the cash flow I made on it, when I finally sold it, the profitability… I made so much money on that house! The ROI is so big that there’s small ROIs, there’s medium ROIs, there’s big ROIs, and then there are ROIs that are so big that you call them a miracle. And this strategy has such an insanely high ROI if you buy the house with a lot of equity, that shoot! Beat the banks at their own game! They may want 20% down on investment property, but on your own home, you can get by coming in with a very small amount whether it’s your money or not.
Is this strategy for everybody? Nope! Not necessarily. But it could be the right strategy for YOU. And keep on watching because we got more videos sharing more strategies for no-money-down real estate. Be sure to Subscribe so that we can keep sending you more of these videos..
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