Build your next investment property for free using THIS strategy 

Just closed on a lot in GA. Working on long term rental.

I’m a licensed lender, typically after 12 months of ownership we can use the current market value otherwise we do use the actual cost of the land to give you credit

@@Lavonwoods Thank you for this!

Exactly, you need money to do this. Once you get the train rolling then it'll be really lucrative. Also this depends on your locality. There's nowhere in WI (for example) where you can build a house of that size for 200k, nor could you have lots that small in that orientation. Houston is known for it's lack of building codes and zoning which probably helps this work out for him.

@@christobar In GA you can, and another big factor are the trades/pricing and small arch details. Placing interior or exterior trim around the window, the amount of windows or door, type of material, etc, etc. can influence your pricing. Also, subs that only do new construction vs the ones that do stuff for homeowners have different pricing. Subs usually give significantly better pricing to builders vs one time customers/homeowners due to the potential of future consistent work.

This is a fair comment. However, it’s usually pretty clear when the store will charge you 3% to use a credit card. In those instances, I don’t use my credit card.

@@Robuilt absolutely. and its always good to just ask. When it does work....man you can rack up points quick. Got my family of 4 free tickets from coast-to-coast using this method on my last new build.

Lots of perks with the platinum that make that cost go away if you use it. Free global entry, $15 a month free Uber credits, Marriott upgrades, Amex travel lounges.

Not sure what percentage of the loan you can refi if at all possible..great question

This is sick. I gotta look into it

What on earth did I just learn. Googling.

The 6500 is an IRS limit and if you're audited this will cause you a huge issue

The dude is just a fake guru.

I wanted to get my hopes up!

I hear you... See, it's called (BRRRRJ) - build the relationship, research, read, repeat, and Jesus. Build the relationship first. Assume 20% down and work the numbers: Banks have a lot of money; if the deal is excellent, they will trust you and take ownership. It's your loss, not theirs (bank). He could go to private lending, but he decided to use the same bank (relationship). Location, location, and location (research) all banks, towns, and run the comps. Last but not least, favor (in Jesus)! Read and learn the BRRRR method asap! There are millions of young adults doing this right now. They struggled during and after college. They are home-hacking as we speak to make ends meet. I heard the young man in the video say collateral several times, and no need for a downpayment. ONCE he said that I knew he was not playing. I purchased land and went to my bank to see if I could get a construction loan. Do you know what they said to me first? 'It would be best if you had a 20% downpayment'. Once I said I owned the land, I walked out with a construction loan of $238,000. Blueprints, comps, docs, and my CPA were there (yes, no downpayment). So you can have more than a 20% downpayment if you want, but you don't need it.

@@joelwillis2043 But you are hear learning everything! LOL!!!

@@taylorsessions4143 You can! Just believe and keep doing your research. I didn't think it was true five years ago. After COVID, everyone needs a way to survive and thrive. House hacking is happening all over the world and in NYC. Everyone is getting into real estate to learn more and earn more.

Hey. It’s renting

Not all opportunity zones are in “the hood” Smh plus you sound ignorant as hell… please don’t get into the real estate space with that stupidity

Funny you say that! I rented a vrbo on the outskirts of the hood in Nashville and it was all good other than the car that was shooting at another car middle of the day! lol I wasn't sure I heard what I did till I went outside and picked up a few bullet shells. But hey, it rents because people from out of town don't know...

Opportunity zone means your there before the rest of the "white picket fence" buyers which means MAD PROFITS and tax deductions..FYI My Duplex and triplex in MIAMI FL. (Opportunity Zone) makes between 14k to 17k a month hope this helps 🙏

@@Miami305Nights Ahh! That's how you stacked up the 1.2 mill for Tn .. do you invest any other ways in realestate?

Depends on your LOCAL saturation. Some areas have much more opportunities than others. It’s not he same on every state or zip code

@jameskarrie298 Gotcha, thanks.

This happened to me in Houston actually.. let's just say alot of comment or reviews saying the neighborhood was not the best.

It depends on the term. Some loans start as a net-90 and then become mortgages. Check out or call your local credit union. I would have some cash on hand. I know what you mean, so double-check with your bank. I would now build that relationship with credit unions or your bank.

There are 12 hospitals in the Columbia SC area. I would look into mid-term rentals - travel nurses, IT professionals, etc. They will usually need a place to stay for an average 13 week contract and will pay a premium for a nice, furnished property. They tend to use furnishedfinder to book a place.

@@mikem8481 Thank you, I listed with Evolve, do you think they reach out to the furnished finder market? Also with me having it listed with them can I still market it myself on furnished finder if they don't?

4 300k haha

Find a person with money who trusts you enough to lend you 200k .

Which loan company?

People’s exchange bank

It is free in that you end up getting the fully built house and land without any net money out of your pocket. Yes, you have a monthly mortgage payment, but that is paid for entirely by your tenants/guests, plus extra money left over each month.

Comps are other similar properties in the area that have sold that you use to gauge how much your property will be worth when it's finished.

"comparable" properties in the surrounding area.

You build a home, you get a bank to give you a loan for the value they give this home, you then get that money on the form of “debt” that has a monthly payment. You find a tenant to then pay rent every month which will cover this mortgage + profit for you. The house was built using your initial capital and you get it taken care of by a tenant so you don’t have to. The profits stay in your pocket and it’s money for “free” because not only did you get your money back, you are now having extra on top of that. Boom you got a house for “free” and get paid for it

It’s free if someone else is paying the bills plus extra goes to your bank account

It is if you finance holding costs and they’re repaid on the refi😋

It is if...!

As a developer myself. All of these things are worked out prior to purchase. If the numbers don't work, the bank won't finance.

Yea, thats the catch with debt.

RU-vid finance bros do it for the views. Real financial advice is slow and boring but real.

It's better stated as free cash flow, but after 20/30 yrs it will be a paid off meaning it's a free home. The numbers are done very cautiously to make sure there's always a renter at lowest price possible. The crash happens on the equity value on the property not on rental side, it's just fluctuates higher or less, but minimum is easily achieved with pros.

@@phinsup402 Big facts. But honestly as I get older all that technical financial stuff means nothing. You can take the most complicated thing and dumb it down to the most basic thing.

​@@emmanuelgutierrez8616 If no one leases that house, the owner is paying the mortgage IF he has the money.

yeah, just finishing a duplex closing on the refi in a couple days. Not Infinite return however, getting a 30% cash on cash return.

@@christobar Sweet! What state is your Duplex in?

A renter is paying the mortgage. So “free” meaning that he is not spending his own money on that mortgage. In fact, the renters are paying the mortgage plus some.

@@rinakat5783 exactly. The money doesn’t come from your pocket

Different issue.

This comment shows you have no knowledge whatsoever on how the 2008 crisis occurred.

@@langar5249 I think what he is saying... After the pandemic, prices went up on rent. However, the price of land went down. In 2008, homes went down (crashed) and everyone grabbed and hold them.

Doesn't seem like overextending. He is just shuffling his debt.

He also offers short and long-term leases. When it's time to sell, he will and could. Smell victory!

Banks only care if you're not paying.

8.6m supply in Houston. Who appraised it for 200k+?