4 Steps to Buy Your First Rental (With NO Money)
The video provides a step-by-step guide on how to buy your first rental property without using your own funds. The first step is to start an LLC, which offers legal protection for your personal assets and allows you to write off expenses, reducing personal taxes. It also helps create a professional business mindset. The video recommends getting a free consultation with Prime to assist with setting up an LLC. The second step is to find other people's money (OPM) to finance your property purchase. Private lenders, such as insurance agents, real estate agents, and entrepreneurs, may have extra money to invest in real estate. Hard money lenders, who borrow money from sources like Wall Street and banks, provide funds at a higher rate but require more thorough underwriting. Small local banks that specialize in lending to real estate investors are also a potential funding source. Once you have set up your LLC and secured potential funding sources, the next step is to find discounted properties. Connecting with local wholesalers who specialize in distressed properties is recommended. Wholesalers negotiate deals and assess rehab costs, buying properties at a deeper discount and selling them to investors. After setting up the LLC, securing funding, and finding deals, the video suggests implementing the BRRRR method. This method involves buying a property, rehabilitating it, renting it out, refinancing to pull out invested capital, and repeating the process to scale your real estate portfolio. The video provides additional resources and links in the description for more detailed information on the BRRRR method and access to free training.