Grant Cardone gives you the 5 best practices for investing in real estate with no money down.

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There is really no such thing as ‘no money down’ because no matter how you cut it, this is going to take time—and time is money. And Grant wishes he had spent more time raising money from others to invest, so that he could control properties with other people’s money. He gets a lender to give 70-75% of the purchase price and then writes a check for the remainder.

Here are the 5 basic ways to do deals with no money down:
1. Owner Financing
2. Borrow From A Private Lender For Down Payment
3. Signature Loan
4. Subject To
5. Equity Share Investor

No matter how you cut it this takes contacting buyers, looking in your market, prospecting and sales skills and lots of motivation.

You have to find the right product—then you need to sell someone on doing this with you.

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37 comments
Melissa_ATL
Melissa_ATL

Grant you are awesome! I work in the Atlanta market and have been wholesaling for 2 years now. My plans are to get started on a 30-50 units by the end of this year with my own money and some financing. This video helped a lot. Thank you for all this content! 

NickTesta
NickTesta

Grant, I'm 19 years old, I want to do this. would you advise me to become a realtor before i do this or should i just use someone else as a realtor?

loretta feeney
loretta feeney

Grant Cardone and Bigger Pockets together is like chocolate and peanut butter.

arthur robinson jr
arthur robinson jr

Hi. Grant Cardone this is your friend Arthur Robinson Jr.


Grant you are a True Blessing to the World. It was a bad connection with My Cell phone when I was talking to you on your powerful show.

It was hard hereing you.


I want to be your Bird dog and I want to build a powerful Relationship with you Grant and to help you Expand your Real estate Empire.

I know you like income property.

It is a Multi- Family Property 128 units in  Harleysville Pa, the Commercial Broker told me the Whisper price is $17 million 


which is almost $ 133,000 price per unit the property is 95% Occupied 


1. I have seen some of Sellers information on the Offering Memorandums.


2. The Building Size is 101,760 SF 


3. Property Type Multi-Family


4. Property Sub-Type Garden Low Rise.


5. Property use Type ( investment)


6. Cap rate 6%


7. Status  Active .

8. 1 bedroom and 2 bedrooms .

9. Robust Demographics 2014 Average Household income within 3- Mile Radius is $ 106,189 

10. Significant value - add opportunity 

11. The Rents can be increased compare to the other apartments in the Area .

12. The Seller is Motivated to sell.

13. The Net operating income is $854,484.92 

14. Total Expense Recoveries $ 119,474.03 

15. The Rent Roll one bedroom is $875 a month and 2 bedroom is  around $1200 a month 


16. The Total property Taxes $ 142,035.90 


The Property is in a Phenomenal Location.


I know when you increase the Net Operating income you will increase the value to this income property.



Grant this income Property is Generating Cash Flow.


17. The Mortgage is a Commercial loan the information on the life of the loan is TBD .


Grant Cardone I'm looking forward Building a powerful Relationship with you By adding value to you and  Cardone Acquisitions as being your Bird dog


Helping you find Cash flow Real estate.


Lets connect.


May god bless you Grant Cardone and your family and your team.


Talk to you soon.


Arthur Robinson Jr.






JD Monroe
JD Monroe

@GrantCardone I got to hear you on the BP podcast since then I have been watching all your stuff here. You are great!!! Real Estate is all about the numbers. So people forget to focus on selling themselves to banks, investors, partners, etc. I just bought he 10x rule and sell or be sold. it is truly going to take my business to the next level.

jilly
jilly

I'm in the UK and need a glossary as you clearly have different names for things than we do! Can you do show again some time but explain what each of these terms/words mean?

NicosMind
NicosMind

Grant what is better a degree in real estate or a degree in finance?

jagteam1
jagteam1

@NicosMind He would tell you neither, Grant doesn't believe that you need college

Dennybee10
Dennybee10

Glass half full great way to look at things

Blake Woodham
Blake Woodham

Im here, lol. I was going to be using a VA loan so that would allow me to acquire the 4-plex for Zero money down; and produce a positive cash flow each month. 

GrantCardone
GrantCardone

@Blake Woodham great idea...wish i could do that

Newportfin
Newportfin

4 units for 150K

500/mo each unit

RyanBillingsley
RyanBillingsley

BP turned me on to you!  Read your book 10x rule.  Great stuff, very motivating!


Newportfin
Newportfin

Hey Grant!

Heard you on BP and have been devouring your stuff. Looking at apartments today!! Awesome content!

Andy Nissen 615-456-5391

Roger Noble
Roger Noble

Hi Grant from Surfers Paradise, Gold Coast, Australia...... "Australia's Miami"..... My question: I develop manufactured home estates for over 50's..... Great annuity every year through rents (0% vacancy rate) plus development upside from house sales....would you be keen to look at deals like this in the new world of Australia? 10x'ing everything down here......love your work!

EdmundoRamirezM
EdmundoRamirezM

I hope you can get the 5 points written down somewhere.

GrantCardone
GrantCardone

@EdmundoRamirezM

5 Ways to Buy Apartments with No money down

First let me say that there is really no such thing as no money down because no matter how you cut it this is going to take time and time is money.  So whether you take time and work and save money to invest the way I have and then use that money saved for a down payment on an apartment deal or whether you go to a seller and get them to finance your deal or get friends and family to be investors someone is coming up with the money to buy your deal.

Saying that I wish I would have spent more time raising money from others to invest so that I could control properties with Other People’s Money.   The way I have bought properties is I get a lender to give me 70-75% of the purchase price and then write a check for the remainder.  

The way others would do this is they would get a similar primary loan and then raise the money for the equity  (cash down).  Then they tell people they did a deal with no money down.  I truth they didn't’ they borrowed the money or took in investors.

Either way its going to take TIME and time is money…..

Here are the five basic ways I see to do deals with no money down. 

  • 1. Owner Financing. The most common way to buy a property with no money down is to use owner financing. This occurs when the current owner agrees to finance either all or some part of the purchase price, instead of getting the cash now. You’ll be surprised how many people own their properties free and clear, and are willing to finance the entire amount or a good portion of the mortgage.

Usually, though, you will be getting secondary financing from the owner. That means you will get the majority of the money (the first mortgage) from another source, like a bank, and the seller will give you the rest in the form of a second mortgage.

There are 3 types of owner financing to that you could ask for:

Type 1: Ask for the principal to be paid at a certain later date.

If you notice, I didn’t mention monthly payments for interest; only that the principal be paid at a later date. Why pay monthly payments or interest if you don’t have to? Who would go for this? Most sellers won’t…but some will.

Type 2: Principal divided into monthly payments. Again no interest; you’re paying off 100% principal. That’s a great deal for you

  • Type 3: Ask for interest-only payments, with the principal to be paid off with a “balloon” (also called “bullet”) mortgage in 5 years.
  •  In this example, we offer 8% interest on $100,000 of owner financing. Multiply $100,000 by .08 and get $8,000. Divide the $8,000 by 12 and get a monthly payment of $667 per month. You then must pay off the entire principal balance at the end of the fifth year.
  • You would typically do this by either selling the property or refinancing it.

2. Borrow From A Private Lender For Down Payment. If you’ve got a great deal, but don’t have the money for a down payment, find a private lender.

This is any individual that has extra money set aside that you can use for your purchase. This person can be a family member, friend, dentist, doctor, dry cleaner, a member of your real estate investment club, etc or Hard Money lender

Millions of private investors out there that have money.

After you get one or two lined up and you start to use them successfully, watch what happens:

3. Signature Loan. Take out a signature loan at your local bank for the down payment. Don’t use the same bank that you used for your first mortgage on the property.

4) Subject To --- Take over multi-family properties subject to the existing mortgages. This means that the mortgage stays in the current owner’s name, but the deed is transferred to your name. This is a great way to take over a property with no money down. This situation usually arises when the property is not performing and the owner is in trouble with the bank.

5. Equity Share Investor.

This means you will share what equity is created in the property with an investor who will give you the money for a down payment.

For example, an investor gives you 20% of the purchase price to put down on a property. In return for this down payment, the investor will get 20% of the monthly cash flow, and 20% of the profits upon the sale of the property. Additionally, the 20% that is put down will be treated like private money. Private money is a second mortgage on the property.

No matter how you cut it this takes contacting buyers, looking in your market, prospecting and sales skills and lots of motivation…

You have to find the right product – then you need to sell someone on doing this with you.

Blake Woodham
Blake Woodham

Hey Grant, first time listener here. Sent you over a 4-pex that I am considering. Let me know your thoughts if you have time...


Warren Cassell Jr
Warren Cassell Jr

Grant, I really appreciate you taking the time to do this. You need to do a webinar on multifamily. 

andybeigel
andybeigel

I've learned so much from this show over a short period of time, and I can't wait to hear more today. Thanks, Grant. Applying your concepts and mentality is going to change my life!