All Forum Posts by: Matt H

You don't need one single dime of your own money to buy a property. All you need is for the total of both the first mortgage and the second mortgage to total 100% of the purchase price. How you do that is like I said you go out and talk to a mortgage broker. Tell them someone told you that some lenders lend based on what's known as "stated income". For example some lenders will lend to people as long as they sign a statement claiming that they've been self employed for 3 years and earn $60k per year. You sign on the dotted line and they hand you the money. They don't check nothing! But if you don't pay they'll foreclose on your home. That's they're guarantee your home. Most lenders could care less how much money you make anyway. What does it matter? Because you could have the best job in the world right, but say you get fired. Then what? The bank can't go after your pay check. No. They just foreclose on the house. That's why their's lenders that will lend just based on "stated income", because they don't care. Your home is the collateral. Then when you do up the purchase contract you ask for the seller to carry a second mortgage. Many won't. But if you make 100 offers I guarantee you'll find some that will. And the larger the second mortgage the better. Because say your buying a house for $100,000. Say you got a first mortgage for 75%. And say the seller is retiring and doesn't need cash. And is willing to carry a second for $35,000. That means you'll get the house and you'll walk away from the closing with $10,000 cash. Many investors do this all the time. However, this is just one strategy. There are many. I would spend some time getting educated, you'll never become a serious realestate investor without education. Just go to ebay and buy a copy of Carlton Sheets course and of Dolf Deroos's course.

Anyway I got to go and find some more no money down deals!!!

I was just in a kidding around mood last night. ......Listen here's what you do.....look for a lender that does loans based on what's known as "Stated Income". So you'll call up a mortgage broker. Tell them your situation, and tell them that if you can't qualify for a regular fully disclosed mortgage that you'll need to use a lender that lends based on stated income. Then just be sure that your total income will cover whatever you plan to buy, and you'll be guaranteed to get the mortgage.

You should also try to figure out what exactly you're trying to accomplish. You don't want to just "wing it". You should have a plan writen out with deadlines and objectives.

When you're just starting out one way to make big money is by flipping homes. You look for a decrepid home the best neighborhood that you can afford. One that needs work. Do cheap renos, like I'm talking walmart supplies. And do all the work yourself. Then relist with a realtor and sell it. I've never made less than $25k net net on a flip. My last flip I made $140 net. And I just stubbled upon a house just last weekend that I might be able to flip for about $500k net, if you can believe it. So there are incredible deals out there if you keep scanning the mls listings.

The reason you want to raise capital in the early phases of your realestate investing career is to build up some cash so that you can buy your first apartment building. And you definitely do not need a lot of money. But you need enough to do the deal and to show the lender that you have some degree of net worth in order for them to accept you as a guarantor if need be. There are ways around all of this though. Like you could find a lender that does "stated income" loans on multifamily. And then just find sellers that are willing to carry second mortgages in large enough amounts to cover the balance. ie: 85% first and 15% or more second (vendor take back). However, it's easier said that done. Usually you need some money to do a deal. That's were starting with at least one flip can put you in the black.

Also if you do honestly plan on getting into realestate investing here's what you do. Do not start by doing any deals. You start by gaining education. You cannot afford $100,000+ learning mistakes on real world deals. What you do is go and buy "Carlton Sheets" no money down course. And buy "Dolf Deroos" Realestate Investors College" course. Listen and or read those courses over and over again. They come with CD's so you can listen to them during your drive time. That's the best time to get your studying in. And join a local realestate investors group in your area, so you can meet other professionals. I learned everything I know from those two courses and from one guy who's a friend of mine who owns many buildings. You can too.

Good luck.

You pull title, what else

In order to buy a $100k house you need $100k. However not one dime of it has to be your own money. Go to a bank get a 85% first for example. And go to the seller and ask them to carry a 15% second. There's your $100k to buy it. Or better yet ask the seller to carry 25%. That way you get the house and you get cash at the time of closing. It can be done.

don't ever buy raw land.

They're con artists.

Listen, I love dealing the drug OPM, opium! Other peoples money! You should high on other peoples money asap. .....lol ....but seriously here's what I'd do if I were you.

1) Find a lender that loans based on whats known as "Stated Income". So you call around to some mortgage brokers. Tell them you have no money, but that you're trying to find a lender that offers mortgages based on stated income. Or do a search on the net to find one of these lenders. Typically these lenders are out there to aid small business owners to get mortgages. However, they will lend to just about anyone. And there's tons of these lenders out there. Typically they ask you to be able to put down 15% on a purchase.

2) Next you ask them if the 15% can be in the form of a VTB or second mortgage. If they don't care, then you start making offers. The offer would look like this:

85% First mortgage
15% VTB (second mortgage)

3) Make 100 offers. Out of those you're bound to buy at least 1 house with no money down. Even try to get the lender to carry more than 15% if possible. So perhaps carry like 25%. That way you'll get the house and walk away from the deal with cash in your pocket. My friend has done this.

4) Try to find a house that you could convert each room into a mini bachelor suite. So what you'd do is convert each room into a miniture suite with a mini fridge, and just the basics. And then have them share the main kitchen, and share the bathroom. Turn it into sort of a dorm room or boarding house so to speak. Like really pack them in there!!!

that's one way to get started.

I would avoid the situation alltogether. Just forget about it. Find your own deal to do. You get a partner in and he'll screw you, and he'll screw your wife behind your back. Especially when you're all living in the same house. Don't do it.

Hello, my question is how long will the average person rent an apartment for? I suppose a lot of that has to do with age, profession, and amount of tenants in one unit, and other factors? But generally speaking is there a certain amount of time?

Say 3 years on average?

The reason I ask is that I've been looking at an apartment building. The law in the province it's in dictates that you can only do a 2% rental increase per year. However, the rents are a little low right now. You can re-rent them at market rate after someone leaves or gets evicted. So my though is that if the average rental time someone rents for is say 3 years before moving on, then within 3 years I could re-rent at least most of the units at a higher rate without having to evict anyone or break leases.

Any advice on how to proceed in a situation like this where the law dictates that you can't raise rent over 2% per year? You could raise them to market rates but you'd have to do it in a way that keeps the building cashflowing in the mean time? I suppose just gradually re-renting as people move at the market rate would be the way to go?

Anyway it appears as though the loan is interest payments only. I'm still trying to find out if this is for real. But it appears to be. So the building is going to have a cash flow of over 12k per month just to start. That's net spendable cash after expenses and debt servicing. This is incredible because my main business alone doesn't even do much more. Talk about a nice increase. This is my first really big deal. Anyway cheers!