In this video, I discuss four (4) strategic strategies you can purchase rental properties using $0.00!
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***Liquidate Credit Cards
Yow yow yow! Tyler ‘2 chains’ Bossetti back at you here to provide you guys some more value in this video I’m going to go over four strategic ways that you guys can 100 finance your next real estate deal and if you guys are anything like me and you want to avoid using your own cash to make investments specifically in the real estate.
This video is for you and trust me I know what it’s like to be in your seat and really just you are potentially confused how you’re going to finance that deal you found an incredible deal and you’re like wait how in the world am I going to get the money, how am I going to scale my portfolio, trust me I’ve been there and that is why I made this video is to give you guys creative solutions to 100 finance your next deal.
So again if you have no experience or no money I think this video is going to bring a lot of value so you know how to get from a to z finding a deal funding the deal being able to facilitate it and ultimately the end goal of either selling or keeping that property in your portfolio so the second piece here is going to be funding the deal right.
How do we creatively not use our own cash and use other people’s money in order to do so okay so the first point that we’re going to go over is credit and with zero percent what we’ve been able to do is get very creative on how to use personal and business credit to 100 finance real estate deals right so when you’re purchasing a property specifically an investment property a lot of times the banks whether it’s a residential lender or it’s a commercial or even a hard money lender.
They’re going to want to see hypothetically 20 to 25 down depending on the number of units that you’re purchasing okay so what you can do is you can leverage your credit or potentially somebody else’s credit to go get personal and or business zero percent credit cards or even lines of credit that may have a very low interest rate to cover the acquisition cost plus to be able to cover even the renovation cost.
So what I’ve been able to do and what hundreds of our consulting clients have been able to do is again let’s say they get five ten thousand dollar limit zero percent business credit cards from chase US bank bank of America the list goes on to where they may have got that zero percent business credit card they can liquidate the credits from that credit card going through plastique and or emilio.com and actually wire the money directly to the title company to cover their down payment and their closing cost.
And then get a hard money lender to cover the rest of the purchase and or they may get a second piece here getting a private money lender to finance the rest of the the purchase and potentially even finance the rest of the renovation of that project okay.
So number one you can use credit right you can go get credit cards you can go get lines of credit and that’s exactly what we teach in our consulting programs and if you guys want to learn more of how we’ve helped again hundreds of our clients start and scale a real estate portfolio there’s a link below this video.
You guys can schedule a call with us see if you qualify see if you’re a good fit but you can also use credit against your other investment accounts you guys can get what’s called a securities line of credit against maybe a brokerage account that you have let’s say I like to use Charles Schwab and I dollar cost average into what’s called the sp500 the 500 largest companies every single month.
I deploy money enter the scp-500 which historically typically performs at about a seven to nine percent return but as that account continues to grow I can go get a security line of credit against that cash value sometimes up to like 90 percent at a very low interest rate and use that loan to cover the purchase of a property right and then again I can go get private money or I can go use different accounts to cover the rest of that renovation all right.
So the first thing that you guys can consider doing is using credit and the second way is retirement accounts so if you guys invest into let’s say a traditional 401k or ideally you want to get your accounts set up into self-directed accounts so you can get a self-directed IRA a self-directed even a solo 401k so getting your accounts moved over to self-directed allows you to borrow a loan against the cash value and or the the vested amount and or balance typically you can borrow up to 50 of the vested and or the balance.
So let’s say you have a hundred thousand dollars in a self-directed account you’re able to go and borrow up to fifty thousand dollars and put that into specifically real estate okay so you wanna make sure before you do that before you start getting loans and liquidating your retirement accounts you actually call the custodian and you make sure that you can actually go and borrow against it.
So understanding the rules is most important but secondly I think you should consider getting your accounts set up as self-directed accounts okay that allows you again to potentially avoid getting taxed on the front end it also allows you to potentially avoid all these different fees that are involved in a lot of traditional retirement accounts all right.
And the third way that you can creatively finance real estate deals is again through private money lenders so what is a private money lender go check out another video where I break it down way more specific on that process but essentially it’s a person that acts as a bank they’re lending you money on a specific deal or on multiple deals and you’re paying them out equity on the deal or you’re paying them out a specific interest rate of return.
Let’s say Johnny boy gives you a hundred thousand dollars and you pay them a hundred and ten thousand dollars based on the profit from the property you can do a nice little mix of everything you can use your business credit you can pull money from a retirement account let’s say and you can even pull money from a brokerage account where you get a security line of credit and then the private money lender comes in and you sign a mortgage note with them a promissory note and you make sure that everyone in the process is protected and they’re covering they’re covering just the renovation cost of that project.
So that’s the third way that you can creatively finance a real estate deal is through private money lenders and I also did a workshop finding private money lenders and how to facilitate that process a super super valuable workshop I spent two hours breaking down everything that you need to know to utilize private money lenders to start and scale your real estate portfolio check the link below this video.
I think you guys will get a ton of value from you know joining that workshop I think you guys would would really take your portfolio to the next level the final way that you guys can creatively finance real estate deals is through insurance and what I mean by that is outside of using all the creative ways you can get a whole life and or what is called an IUL account set up to get tax advantages of putting weekly or monthly distributions into those insurance accounts and similar to a retirement account you can borrow a loan against the vested and or the balance that you have accrued over a specific period of time.
So again let’s say that you’ve put two hundred thousand dollars in your insurance account not only are you going to likely get tax benefits from doing that and if something happens to you your family and or your beneficiaries will get paid out a large lump sum of money depending on your specific plan but most importantly you can borrow against it to go acquire more assets.
For me I do not like to put time energy effort and especially my money into things that are not leverageable so why do I like credit I like credit because I can leverage it why do I like these other areas is because I can leverage retirement accounts I can leverage private money lenders and I can leverage insurance not to say my family’s protected my portfolio is going to make sure they’re protected and make sure that I have my legacy and my generational wealth passed on but I like the insurance because I have tax advantages but most importantly I can borrow against it.
Strategically to do what to go buy more assets so again these are four ways that you can utilize creative financing strategies to start and scale your real estate portfolio if you guys are interested on more information again there are link below this video and drop any questions and connect on Instagram with me on anything that you guys would like to see in my channel let’s go build some wealth and go buy yourselves two chains.