hey this is Joe Crump and I'm gonna show
you how to flip houses with no money in
fact I'm gonna show you how to make
money at closing flipping houses with no
money they say you need money to make
money
but I say if you can't make money with
no money you sure aren't going to be
able to make money with money so learn
how to do it with zero down techniques
and you'll never have to worry about
that ever again
conventional wisdom says that you need
to use banks private lenders hard money
loans partners and all those things can
be good things but what if you didn't
have to go begging to someone else to be
able to put a deal together what if you
could structure a deal in a way that
made it possible for you never have to
go begging again do you really need good
credit well if you're going to go out
and get a loan you absolutely do they're
gonna check your credit they're going to
check your income and there's no way
that they're going to give you a loan if
you don't have those things in place one
of the things I've found is that
beginning investors screw things up it's
normal it's it's it's what's supposed to
happen when you're a beginner you're
supposed to make mistakes but if you
screw things up with your credit and
your cash you lose your credit and you
lose your cash and you don't want to do
that when I first got started back in
night and back in the 1980s
I've built a seventeen million dollar
business in just a few years and in 1991
everything crashed on the market and
everything crashed in my business I lost
everything and the reason I lost
everything is because I was heavily
leveraged using loans and mortgages and
banks and lenders all those things that
fell down together and it wiped me out
and I had to start over from scratch and
this time when I started over from
scratch I had to do it with no money and
no credit and no no job income so I had
to do all those things in order to get
my business back on its feet again and
the things that I'm going to teach you
are the things that I learned to make it
possible for me to come roaring back and
do better than I ever had
before should you have cash on hand to
to be a real estate investor do you need
resources to be able to do that
no you need knowledge and skill you need
the ability to do it if you have cash on
hand great and eventually as you start
doing these types of zero down deals
these no money down deals that I'm
talking about where you're flipping
properties and making money and and
moving on to the next one and flip and
more you're going to want to start
keeping some properties and you're also
going to start making some excess cash
more money than you need to live on and
so you take that money and you start
investing it in your other businesses
and your other real estate assets you're
gonna build a portfolio but let's get
started talking about flipping
properties with no money down the
different ways that you can do it and
how you can accomplish it let's first
talk about those conventional ways the
ways where you do have to go back into
somebody else because I think they're
valuable and I think that eventually you
may want to work this way but it's
unlikely that you're going to find
anybody to work with you until you're
competent and you're not going to be
competent if you don't do this a few
times and if you don't have any money to
do these things a few times you're
probably not going to be able to use
these particular techniques unless
you've got a dad or a brother or you
know a best friend that has some money
that the trust you and likes you and
thinks that if I lost this money it's
not going to be the end of the world I
can still work with them so that's not
the ideal situation to be in be in the
situation where you're in control where
it's your deal where you put it together
where you don't go asking somebody else
for help alright let's get started the
investment partners there are some good
things about having investment partners
the the positive thing is you can bring
in capital if you've got somebody who
trusts you and has money to invest
that's great but you're going to give
away a part of your income it may be 25
percent it may be 50 percent it may be
75 percent of the profits that you make
always the investor is going to get
their money back first before you get
your money so you have to make sure that
it's going to be a profitable deal for
them and if it's not profitable and they
lose money they're never going to invest
with
you again so make sure that you know
what you're doing before you start
working with partners also make sure
that you you handle their money properly
you don't want to get put in jail
because you intermingled funds with your
investment people with your own funds so
have separate escrow accounts set up to
keep the funds and make sure that you
use an attorney to write up the
documents even if it's with a family
member I would suggest that you use an
attorney to make sure everybody is clear
on how this works I've seen a lot of
friendships dissolve over partnerships
and misunderstandings and it's not
because anybody was a bad person and the
deal it was because there was a
misunderstanding about how the deal was
going to play out or the deal fell apart
for whatever reason or money was lost or
money was made but the right amount of
money wasn't divided amongst the group
so Investment Partners can be
problematic as well so make sure that
you do your due diligence you get legal
advice and you put it together properly
if you're gonna use Investment Partners
I believe that finding investment
partner is something that you do down
the line as you get better as an
investor and one of the things you may
find like I did is that I don't need
investment partners because the money
that I'm making from the deals is enough
to bring me in the cash that I need to
be able to do the cash deals so that I
want to do so keep that in mind as you
go and build your business organically
build it from a bootstrap pull yourself
up by your own bootstraps and do it that
way the other type of money you could
come from hard lenders hard lenders
aren't a bad way to go they can bring
you in cash they'll typically give you
money based on fifty five percent loan
to value so if you find a property that
you're able to buy for fifty or
fifty-five percent of its market value
they'll typically give you enough money
to cover that cost but they also have
high interest rates anywhere from eight
percent to twenty percent plus points
often which can make that percentage go
up even more there's also some
restrictions on how long you can have
that money and it depends on the hard
money lender but it could be six months
it could be a year it could be three
years so make sure that you understand
the terms and make sure you give
yourself enough time to complete your
deal if you take out a loan and you go
out and fix up some money or fix up a
property and then you put some of your
own money into that property on top of
that and you've you've worked on it for
three months six months and six months
comes along and that loan comes due and
the hard money lender is saying I need
my money and you're saying I don't have
it yet I need to sell this property it's
a slower market than I thought it was
going to be we haven't sold it yet or is
priced it and and we didn't get it sold
or I thought it was going to be worth
more than it was and I don't have enough
money to be able to get it sold that
lender could then take that property
from you and take all your equity and
all your work and hard effort away from
you if they choose to do so now a lot of
hard money lenders will work with you so
find a good legitimate hard money lender
because there are some good ones out
there if you're gonna do hard money but
if you can do this again I keep
repeating this if you can do it with no
money
you're better off the other type is you
know private money lenders and that's
typically family and there's things that
you can do with a Roth IRA you know you
probably have fat family members that
have that have retirement accounts
either IRAs and Roth IRAs or other types
of pension funds and they can probably
put some of that money into
self-directed IRAs
I love self-directed Roth IRAs and if
you can get your family member to put
some of their pension fund into that
fund then they can fund an LLC that you
can work with and you can work with them
directly now this is typically only
going to happen with somebody who loves
you and someone who cares about you and
your best interest and trusts you
implicitly but if that's the case and
they're trying to help you get moved
forward with your business it's a great
way to do it and private money could be
a really good way to do it going out and
finding private money from other sources
of for people that don't know you and
you have no track record that's going to
be very difficult but that's possible
too if you're good at marketing and
you're good at sales and being able to
talk to people but if you're good at
those things again learn how to do the
zero down techniques because you'll be
able to do it without that and you'll be
able to not have to pay a
percentage of the profit that you make I
think that's one of the biggest problems
with use in any of these techniques they
are expensive and they'll eat into your
profits so if you ever buy a property
and you don't have as big a profit
margin as you thought you should have
and that happens every once in a while
you know you get into a property and you
need to do it some rehab on it and find
out oh no we need some new floor joists
and you're just gonna spend another ten
thousand dollars or we wear that roof
wasn't as good as we thought it was when
we came here or we turn on the water
after it's been winterized and we find
out that all the pipes had burst before
they were not winterized because it's
been sitting vacant for a year in the
freezing cold these things happen to us
all the time and we find problems that
we didn't expect and we build in to our
deals the knowledge that there's
probably going to cost more than we
think it's going to cost and if we do
that on every deal we do on average that
that that will be the case sometimes
it'll be much bigger than we thought
sometimes it won't be nearly as
expensive as we thought before this
videos over I'm going to to tell you the
zero down structure that I use and teach
my mentor students that I believe and I
see as being the fastest way to cash in
your pocket right now so hang on through
the video and I'll reveal that
particular secret to you before the end
of the video so those are the
conventional ways to buy properties and
to get investors to help you buy
properties where you don't need a dime
of your own money to make it work I'd
like to propose a new paradigm I have
named this technique the Joe Crump
hierarchy of zero down structures and
named after myself I'm going to show you
what those different structures are and
why you need to use those structures in
order to buy without any money at all
the first structure is subject to some
of these structures you may have heard
of before this is where you take the
deed subject to the existing loan so
essentially the seller needs you the
property and you take over the payments
on the property you don't give them any
money you ask them to pay
next month payment and then you take
that property and you have control of
that property and you could turn around
and sell that property and you can sell
it on a lease option you sold on a land
contract you could sell it for cash
there's a lot of ways that you can sell
that property subject-to is one of the
easiest and fastest ways to build a big
portfolio quickly this is how you build
a million-dollar portfolio in less than
a year using these techniques seduced by
$100,000 property a month for a year
you've got over a million dollars in
real estate within that period of time
so it doesn't take long to make that
happen
the trick is making sure that you have
positive cash flow on the properties
that you're buying because most of the
ones that you're going to get subject to
are going to have mortgages that are
pretty close to the full value of the
property it's rare to find a subject to
deal that has a lot of equity in it it's
great when it happens sometimes it does
but most of the time it won't so you
have to make sure that the income on
that property is going to support the
property that means that if you're
buying subject two you're typically
going to buy properties that are under
two hundred and fifty thousand dollars
if you're in a high-end market this
probably isn't the best technique for
you but anything under two hundred fifty
thousand dollars is is probably going to
work for you because you can be able to
you can get enough income on that
property from market rent or from lease
optioning the property to pay your
mortgage and still have a positive cash
flow so that's the top of the hierarchy
that's the one that gives you the most
control because it gives you the deed to
the property and you can do anything
with that property once you have the
deed you still have to pay the loan and
if you don't pay the loan the mortgage
company takes the property back and you
damage the credit of the person who
originally took that loan out and that's
something you absolutely do not want to
do you get a lot of power
in this structure and with great power
as they say comes great responsibility
or at least that's what spider-man's
uncle said to him so make sure that you
protect everybody in the transaction
make sure that you do these and use
these techniques ethically and honorably
and make sure that you're not stepping
on anybody's toes or destroying
anybody's credit or stealing anybody's
money I think that's too calm
in the real estate investing industry
there's too many investors out there
that are just looking out to see what
they can do when in fact if you will go
out there and try to solve the problems
for buyers and sellers and other
investors you will make a lot more money
and it'll be a long-term sustainable
people will start to trust you and
you'll be able to build your name in the
in the area that you're working or the
areas that you're working so subject to
top of the hierarchy the most powerful
way to buy properties with zero down
that gives you the most control in that
deal one of the things that I always
tell my mentor students the people that
I coach personally for six months one
thing that I tell them is that you have
to assume that you're the most ethical
person in the room you know that you'll
do the right thing and in order to do
the right thing you have to be in
control of the deal so you always want
to structure these deals so that you're
in control so that the right thing can
be done so that's why I'm teaching you
how to make sure that you can be in
control the second layer of the
hierarchy is what I call multi mortgage
multi mortgage is a subject to deal with
equity so let's say you've got a
property that has it's a $50,000
mortgage on it and it has $50,000 of
equity and you're willing to pay a
hundred thousand but you don't have
$50,000 to come up with what you can do
is have them deed you the property
subject to the existing loan you start
making payments on that and then you
could have a second mortgage for $50,000
and you're the borrower and the seller
is the lender and you create a new
mortgage or trust deed that gets
recorded on that property and you make
payments to that seller so their
position is protected you make the
payments to them you own the property
and you're able to make it work you just
have to make sure that the combination
of the first mortgage and the second
mortgage payments are still less than
the income that you can get when you
sell that property and typically when I
talk about selling a property like this
we're talking about selling it on a
lease option or perhaps a land contract
those are farther down the hierarchy of
control
and that means that when you sell it
you're giving less control when you buy
it you want more control all right the
next structure in the hierarchy is land
contract or contract for deed it's a
land contract if you're in a mortgage
state it's a contract for deed if you're
in a trust deed state essentially all
that is is a piece of paper that says
I'm gonna buy this property at this
price on these terms over this amount of
period of time with these payments and
then you're going to make those payments
until that property is paid off and then
when it's paid off that's when the
seller transfers the deed to you and
that's when you take that property so
that's called land contract or contract
for deed and it's one of my favorite
ways both to buy and to sell it's right
in the middle of the structural
hierarchy of the zero down structure
hierarchy and you can go either way both
buy or sell subject-to multi-mortgage
you never sell subject-to or mortgage
you buy subject to or multi mortgage
when you get land contracts or contract
for deeds you could either sell or buy
with those structures and there are some
ways that we we protect ourselves with
those as well which I don't have time to
get into here today but there's some
other things that you can do to protect
yourself if you're buying on a land
contract or our contract for deed
that'll make it safer for you and safer
if you sell it on a land contract as
well the next in the structures is the
lease option a lease option is simply a
lease with an option to buy so someone
who's going to come in lease the
property and they have an option to buy
for a certain period of time for a
certain specific price point so let's
say I've got a property that's $150,000
and I list it or I I take that property
I sell it for $150,000 I asked for a
$10,000 down payment on that property
from the buyer they give me $10,000 and
now they owe me one hundred and forty
thousand dollars plus they make monthly
payments to me if they exercise the
option they pay a hundred forty thousand
if they don't exercise the option and
three years passes it goes back to
month-to-month and I can ask them to
leave or I can ask them to pay another
Lease Option fee
or I can sell it to somebody else after
they move out so those are the things
that I can do once I have that property
the likelihood that a lease option buyer
is going to exercise their option is
probably less than thirty percent but
they tend to make really good tenants
because they see the property as their
own you know the old saying you know you
don't wash your rental car you take care
of the things that are yours and a lease
option buyer typically takes better care
of the property than a renter would so
now we've got subject-to multi-mortgage
land contract kind of a contract for
deed lease option and then at the bottom
is assignable cash deals a lot of you
may know this already as wholesaling a
lot of people do wholesaling where
they'll get a property under contract at
a specific price raise that price and
turn around and sell it in order to do
wholesaling you typically have to get a
really good price remember there's two
ways that you make money as a real
estate investor one is you buy
properties substantially below market
value and then turn around and either
flip it to someone else for a chunk of
money for assignment fee or you buy it
yourself and you make money that way but
you have to use your own cash to do that
the second way is you buy it at or below
market value but you buy it on terms any
of these zero down structure terms that
I'm talking about if you buy it on terms
you want any cash into it but you can
still make money by flipping that
property even if you pay full market
value for that property so so
wholesaling is where you're buying the
properties substantially under market
value and what I'm talking substantial
I'm not talking ten percent or 20
percent I'm talking 40 50 60 percent
under market value depending on the
price point of the property the higher
the price of the pot property the more
leeway you've got on something like that
and then it makes a big difference on
how you go about buying that property
and how you're going to finance it and
how are you going to rehab it and what
are you going to do is your exit
strategy one of the things to remember
well wholesaling there's a whole lot
fewer wholesale deals out there than
there are other types of terms deals I
can do Lisa
at a 20 to 1 ratio with wholesale deals
because there's just so many more people
out there that are willing to sell their
property for full price on a lease
option than there would be people that
are willing to sell cash for half its
market value or somewhere in that
neighborhood so if you're looking for a
lot of leads and you're looking for
being able to do a lot of deals then
doing deals on terms like this where
you're doing Lease Option flipping lease
options is going to be a lot more
profitable a lot more sustainable and
it's something that you can you can
systematize you can have a ready list of
people that you're constantly going
after to make that happen one of the
things that one of the tools that I use
is a tool that I created I call it the
push button automarketer and you can go
to push button automarketer calm and and
look at this this this system but what
it does is it'll go to Zillow it'll go
to Craigslist and it'll find for sale by
owners and it'll scrape that data it'll
scrape the phone number it'll scrape all
the data about the property and it will
bring it into the automarketer and then
it'll send out a text message to those
sellers saying something along the lines
of would you consider selling your home
rent to buy rather than selling it
outright or would you consider selling
your home rent to buy rather than
renting it if that's if it's a if it's a
for rent property and then those people
will respond back to us typically we'll
get a a response rate of anywhere from
five percent to eighty percent and
probably runs around 20 to 25 percent
which is phenomenal if you send out
postcards if you get a half of one
percent response rate you're doing good
your cost per lead when you send out
postcards it's going to be anywhere from
twenty to fifty dollars per lead when
you send out a text blast your your
leads are going to cost you between one
and four dollars a piece so they're
going to be much much cheaper and you're
gonna have a lot more people to work
with in order to do this the leads that
come in through the automarketer
80% of them 90% of them are going to be
people to say no thanks I'm not
interested in doing least ohm 10 to 20%
of them are going to people to say yes
I'd be interested the reason that these
leads are so good is because for sale by
owners are people that we know are
trying to sell their property right now
they're they're actively in the process
trying to sell it
absentee owner leads can be great
expired leads can be great but for sell
by owners they're active they're excited
they want to sell it
they've got confidence in themselves
think they can sell it and the
big-ticket here or the big important
point here 85 to 95 percent for sale by
owners do not succeed they end up taking
the property off the market or having a
a realtor sell it for them so the the
the very fact that they are on Zillow or
Craigslist for Sale By Owner proves to
us that they don't know what the heck
they're doing and they need our help and
we can come in there and we can buy that
property on a lease option get them full
price for their property and what what I
do is we is a what I call a lease option
memo and this Lease Option memo is a
one-page document that says it's I can
buy a property on a lease option and I
have the right to assign that purchase
to another buyer that gives me a
principal position it makes me a
principal in the transaction and makes
it possible for me if I don't have a
license to be able to turn around and
sell that property because I'll be a
principal it's illegal to sell your own
property it's not legal to sell somebody
else's property so you have to be a
principal in order to make it legal and
a document like this will make you a
principal in the transaction and make it
possible for you to turn around and flip
that property so let's say I find
somebody who's a for sale by owner he's
got a property for $200,000
that he wants to sell and he's for sale
by owner he's not have any luck with it
and I say would you let me buy it on a
lease option and he says yes I'll let
you do that I'll then take that property
get a lease option memo make myself a
principal in transaction and I'm a
licensed I'm licensed I've had a
broker's license for 30 years but you
don't have to have one to do this I'll
take that property I have to
of it and I'll turn around and I'll put
it on the market for 220 I've raised the
price by $20,000 and I'm gonna try to
make $20,000 as a down payment and I'll
put it up there as a lease with an
option to buy a three-year lease option
and then I'll put it in at the monthly
payment will be at market rent so let's
say market rent on that is $1,700 a
month I'll post that as 1700 if I go
over market rent on a deal like that I
won't sell it so I got to make sure I'm
at market rent or below the purchase
price isn't as important if it's only
worth 200 I'm sell for 220 I can still
do that on a lease option so I'm gonna
ask them for a down payment and I'm
gonna try to get as much that much of
the cash as I can out of it but maybe
only at 10,000 in cash and maybe I'll
get to another $10,000 as a promissory
note which will be just between me and
and this is the buyer and they'll make
payments to me over time now so I can
make $20,000 for that I'm gonna get a
buyer that still owes $200,000 to that
that seller plus $1,700 is the first
month's rent as what I'm gonna give to
that seller and the deal is done I'm in
I'm out of the deal I had no money into
it all I used is my skill my ability
talking to sellers and my ability to go
out there and find buyers it was a very
simple process it from beginning to end
I spent about 10 hours doing it now when
you get started it's not going to take
you 10 hours you're gonna have to talk
to probably a hundred people before you
get good at this and it's going to take
you time to learn this process so you
have to be patient with it some of the
common mistakes that house flippers make
is not impatient with themselves not
giving them time themselves time to
learn the process you have to have
skilled you have to have knowledge to be
able to do this you have to know how to
talk to people in my six month Mentor
Program I would say that we spend the
most time talking about how to talk to
sellers we do role plays we look at
scripts we talk about what do we do if
they say this and what do I do if they
say that we talk about objection
handling we talk about why it's a
benefit to the to the seller to work
with you we talk about wives
benefit to the buyer to buy these
properties we talk about why it's a
benefit to you and how you can control
the conversation and how you can keep
things moving forward using the Socratic
method of sales if you can learn those
techniques if you can learn those
negotiating techniques you'll be far
ahead everyone else in the in the game
and you'll be able to go out there and
make this work you know if you go and
people ask me is there competition for
flipping houses this way and absolutely
there is but if you became a real estate
agent there's far more competition I'm
in Indianapolis and if you just look at
the real estate agents in Indianapolis
there's 10,000 of them here and only
about 10,000 houses sell every year so
that means that each agent on average
sells one property which isn't enough
money to live on that'll make them a few
thousand dollars so that means that
there's some agents that are selling a
lot of properties and the biggest
majority of agents aren't doing anything
at all and that's what's going to that's
how it's going to be with investors as
well you're not gonna have nearly as
many investors using these types of
techniques out there because they just
don't know about them they're not
conventional techniques but there are
going to be other investors out there
and if they're better than you and
they're talking to the same people those
people will work with them so the only
way that you put the deals together on a
regular basis is you get good at this
and it doesn't take that long to have to
happen I tell my mentor students give
yourself three or four months before you
can expect to make money after you sign
up for my program give yourself the time
to do it and I also make them commit to
putting in eight to ten hours a week on
the phone talking to sellers making
offers not something that anybody is too
excited about doing the me included I
don't enjoy being on the phone and I
know most of them don't enjoy it either
but if you learn how to do this that 8
to 10 hours will turn into a half hour a
week or an hour a week you'll you'll be
able to put deals together instead of
talking to a hundred sellers to put a
deal together you'll talk to five
sellers you'll talk to three sellers
you'll talk to ten sellers you'll make
it a lot easier because you'll have the
skill it just takes time to develop that
skill and the biggest mistake I see most
new investors make is giving up before
the
actually learn how to do it they decide
ah this isn't going to work when in fact
it's just their skill level that's the
problem the other problem that is cited
as the as the biggest problem for
flipping houses is lack of money and
hopefully this video has helped you see
that lack of money is not a problem at
all in fact using money sometimes
becomes a bigger problem and it
sometimes becomes more difficult when
you use money because you have so many
other risks and so many other people
involved if you're borrowing that money
from someone else so learn how to do
these zero down structures and money
will never be a problem for you again
you'll never have to go beg and again to
anyone to buy a property to flip a
property to make money on real estate
investing alright let's talk about a few
tips that will help you get going some
tips for flippers as they say so know
your market it doesn't matter where you
work you can do this in any market I've
I've done these strategies and my
students have done these strategies for
years it's been an evergreen strategy
all these techniques have been evergreen
I've never had a problem or a time in
the market that I haven't seen these
things work and I've been doing this
since the 80s so these are evergreen
techniques that will work anywhere you
go you can do them in high-end markets
you can do them in low-end markets you
can do them in appreciating markets you
can do them in appreciated appreciating
markets you can do them in suburban
markets rural markets or urban markets
and we've had great luck in all three
but you might want to do things a little
bit differently in a different market if
I'm working in Los Angeles for example I
am going to be in a market that is above
you know $400,000 so I'm going to be
working in 400 to a million dollars on
average with the highest property we've
done lease options on has been five
million dollars the cheapest when we've
done a lease option on is $5,000 so you
can you can you spread the gamut on this
and you can do this with any type of
property and we can buy properties for
less than five thousand occasionally to
and that'll be for a different video but
so knowing your market is important and
knowing what the capability of your
market is and what the what the what
type of structure you should use in the
market that you're doing I find the
structure that works in every market and
the structure that I use to teach my
students is lease with an option flippin
lease options
I've been asked in the past what would
you do if you know everything was taken
away from you and you had nothing and
you were out on the street living in a
box under a bridge with nothing if
you're homeless you know how are you
gonna how would you get started again
and honestly it probably wouldn't take
me very long to start making money again
I'd try to get my hands on a cell phone
so if I had to maybe I would go stand on
a highway exit and bang until I made 40
bucks go down to go down to Walmart get
a telephone and I'd start making phone
calls I could go to the library and get
on Craigslist on their computer at the
library and I started making calls to
sellers and putting together Lease
Option deals that I'm going to flip so
essentially what I'm going to do is I'm
going to call ask them if they'll sell
their home rent to buy then I'll take
their property if they do I'll get a
control of it I'll turn around raise the
price sell it in a Lease Option fee for
myself and get the buyer for the seller
and past that seller on to them and
that's how I'm gonna make that money
immediately so many people say that you
need a budget in order to start
investing but honestly you don't you
could get started immediately even if
you're living in a box under a bridge
you could get going immediately by
simply going down to the library
logging in going to Craigslist and then
start making offers to people online
either through the phone or directly
through the computer by sending emails
to them and basically the the message
you'd be sending them would you consider
selling your home rent to buy just like
I explained with this zero down
technique so you don't need a lot of
money to make that happen but as you
start doing deals and you start making
chunks of money you're going to find
that you replace
your your personal income very quickly
you quit your job and I would suggest
don't quit your job until you've made
enough money to live on three months in
a row if you've made money three months
in a row the likelihood is that you'll
be able to do that for the rest of your
life because that shows consistency so
you've made money in three months in a
row quit your job now you have cash
coming in you're got enough money to
live on you got extra money now what are
you going to do with that extra money
you're going to want to invest it so
make sure that when you start buying
properties now with the cash that you've
got that you buy good deals but one of
the things that you're going to learn by
going through this process of learning
how to do it with zero down you're going
to learn what a good deal is and that
way when you do invest your money you're
gonna be much more profitable and your
your investment is going to be much much
safer than it would be if you start when
you don't know what you're doing I've
seen too many people lose money on flip
deals because they didn't purchase their
property right or something unforeseen
happened that they didn't expect or
didn't know about that they should have
known about if they had had more
experience when you start flipping
properties that you're actually doing
rehabs on then the the next big problem
that you're gonna have is dealing with
contractors now you may be a contractor
yourself and say oh I can do that work
and matter of fact I'd like to do that
work I enjoy doing that work I enjoy
drat and hanging drywall and you know
going into a property that's all wrecked
and fixing it up and look and having it
look nice when you're done it's a great
feeling when you do that but you know I
find that I get that same great feeling
when somebody else does the work for me
and I'm not the one swinging the hammer
so find somebody else to do that work
but you need to find somebody who's
gonna do a good job at it you're gonna
make much much more money by flipping
properties by doing deals then you're
going to get by swinging a hammer you
know you may want to say okay I want to
back off with this flipping deals and
stuff and I want to go do the work that
somebody is gonna then I could pay
somebody $20 an hour for to do this work
for me and instead you know you should
be flipping properties and where you're
making a hundred five hundred a thousand
dollars an hour for the time that you
put in if you learn how to systematize
your business if you learn how to
mate if you learn how to outsource the
work in your business you're gonna make
far more money you're going to be able
to extract yourself from that business
and you're going to be able to still
make much much more money doing it so
instead of putting in 20 hours a week or
40 hours a week you can put in one hour
a week and you can make more money the
less work you do the more money you make
if the work you do is smart so make sure
that you structure your business in a
way that makes that happen now in order
to systematize your business you have to
create policies for everything that you
do because when you start flipping
properties you're going to find that you
do things over and over and over again
so and for most of us as entrepreneurs
doing the same thing every day is just
boring it's not fun we're all work
creators we want to design new things we
want to want we want to be at the Helms
you know strategizing and and making the
thing go forward not doing the same job
every day so what we do is we get
automation to do as much of it as we can
and then we get outsourced to people to
do the rest of the work I've got a
program called the push button
automarketer which i designed to
systematize and automate my business it
will do 90% of the work for us then I
have nine percent of the work that I
have outsourced to other people and then
one percent is the part that I do I
still sign documents I still signed
checks I still look at the things and I
still do the strategy but most of the
dot most of the day or most of the time
that I'm actually doing the business is
me answering questions for people that
work for me that make them the business
move forward and if you could put
yourself into that position your hourly
income will skyrocket and your business
will go up like crazy now
one of the things I haven't talked about
as well this also starts allowing you
all these things that I'm talking about
here will allow you to start creating a
portfolio if you create a portfolio of
properties that's what will make you
wealthy flipping properties will make
you chunks of cash it'll make you income
it's great but you won't
we become wealthy until you build a
portfolio until you start holding your
assets for the long term that's what
makes you a millionaire
that's what makes you a multimillionaire
and those are the things that I teach in
these videos here and to my mentor
students as I work with them one on one
the last tip I want to leave you with is
finding buyers there's lots of ways to
find buyers but if you're looking for
cash buyers for a property the best way
to sell a property is using a real
estate agent when I want to sell a
property for cash and I want to get my
money out of it I'll use a real estate
agent I know that for sale by owners
don't work 85 to 95 percent and that
statistic is from the National
Association of Realtors 85 to 95 percent
of for sale by owners don't succeed they
either take it off the market or they
list it with a real estate agent when I
flip a property that we've rehabbed I'll
usually just go to a real estate agent
friend of mine and since I'm an agent
myself I could list it myself
I rather not do that so I hire somebody
else to do it for me
but if you have a license and you might
want to get one if you're doing a lot of
this eventually if you have a license
you can you can list it yourself and you
can save some money on commissions but I
prefer to have somebody else do that
work for me I hire a real estate agent
they put it on the market we get it sold
I make my cash and then I'll go and buy
another property with that same cash and
we'll reinvest the money over and over
and over again and that's how you're
able to do this so find in a buyer if
you're selling it for cash you hire a
real estate agent if you're selling it
on terms anybody can do that you can
accomplish that let's say the most
common way that we're going to sell it
is with a lease option so we're going to
sell that property of a lease with an
option to buy well they're going to pay
us a Lease Option fee as a down payment
probably collect a promissory note for
the amount that they can't come up with
so we try to get as much down payment as
we can because it increases our income
if we get a chunk of money let's say we
get $10,000 as a lease option fee on a
property 5,000 of it in cash $5,200 a
month over a period of time until that
$200 until that $5,000 is paid off
over that three years
so it increases our monthly income on
that property by $200 a month if it's a
property that's in my portfolio if it's
not my portfolio and I'm just flipping
this property using the the for rent
method which is what I talked to you
about with the lease options that I
teach my mentor students then it's just
a matter of it gives you extra income
buyers are not that hard to find buyers
are the easy part
building a buyer's list may be one of
the most important things that you do a
sign in the yard is probably going to
bring you in 20% of your buyers signs
are really valuable make sure you have a
sign in the yard the second most
valuable thing is your list of buyers as
you start advertising your properties
for sale you're going to start building
a list it doesn't take long before you
have four or five hundred people a
thousand people that are interested in
buying rent to buy on your list and when
you have a list of 500 1000 people that
you can send them a broadcast email or
text or a voice blast out to the
likelihood is about 10 to 20 percent of
those people attend there 10 to 20
percent of your properties will sell to
that list directly typically on the
first day or the first week that you
have it on the market so having a big
list like that really makes a big
difference and building that list is not
difficult especially if you use a tool
like the automarketer but allows you to
do broadcast messages to those people it
also allows you to send out drip
messages by email there's a whole series
of email messages that go out through
the automarketer that educate the lease
option buyers and tell them what lease
option is all about how it works what
they can expect you know and it also
helps them build trust in you the more
educated your buyers and sellers are the
better the relationships going to be
between you and them and they're easier
they're going to be to work with you
want them to know as much as possible
about the transaction and and try to
help them through that process so that
they're easier to work with and then
they're going to trust you and believe
in you and you'll have less roadblocks
when people stopped trusting in you
that's when deals start to fall apart so
you have to build that trust
the automarketer will allow you to do
that with a sequence of emails or a
sequence of text messages you can also
send text messages to them or you can
send them voice messages that go
directly to their voicemail and leave
them a message so let's say I get a new
property that I have signed a lease
option memo on I can go to those people
and I can I can send a text blast to
them with a link to my clone site my
listing site which is also part of the
automarketer that has a list of all your
properties on it and they can look at
the property they can see the pictures
they can get the information they need
there's a forum on there that allows
them to fill it out and tell you whether
or not they want to buy at least I own
that puts them on your list again so
there's a lot of different tools that
you can use inside the automarketer I'm
just scratching the surface here go to
push button automarketer com2 get all
the details because it's a phenomenal
tool that has made our job so much
easier
but it it also can help you find buyers
by using the scraper it'll go into
Craigslist and find people that are
looking for how properties to buy it'll
pull their names out and say I got a
property that that for sale for a lease
option would you be interested and put
those people on your list so there's a
lot of ways to find buyers and automated
ways that are going to make your job so
much easier so that's my beginning
primer in flipping houses with no money
I hope you enjoyed it I hope you'll tune
in to other videos that we've got if you
subscribe to that button or there's a
little round button that you can
subscribe to there check that out also
check out my other videos in the series
I think it'll help you move forward you
might also take a look at my mentor
program I can go to
zerodowninvesting.com and spell out 0
you can also go to the automarketer by
going to push button automarketer com if
you like this video please make comments
below I'd love to talk to you I'll be
happy to answer your questions look
forward to talking to you soon bye bye