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The speaker in this YouTube video shares his experience of purchasing a 12-unit apartment complex without using any of his own money. He found the deal through a real estate agent by looking a little further out from the city where there is less competition. The property was listed for $825,000, and they negotiated it down to $785,000. They put 20% down using a private money lender and got the rest from a bank note. To pay back the private money lender without using their own money, they paid them 7% annualized, which was $915 a month, taken from the property's cash flow. The property was already in great shape and fully rented, so they didn't need to do much to improve it.
The speaker explains how they were able to increase the value of their 12-unit apartment complex without using any of their own money. They improved the property by raising rents to market value, making repairs, and increasing efficiencies. As multi-family properties are valued based on their income, these improvements increased the value of the building. Two years later, the building appraised for $990,000, and they were able to get a new loan for $792,000, paying off their private money lender with the difference. They now have no other debt besides the bank note and a lot of equity.
The speaker emphasizes that this strategy takes time and finding private money lenders can be challenging, but it is possible to do without using any of your own money. The key is to find a good deal, negotiate well, and make improvements that increase the property's value. Overall, the speaker's experience shows that it is possible to invest in real estate without using any of your own money, but it requires careful planning and execution.
The speaker in this YouTube video shares his experience of purchasing a 12-unit apartment complex wi