How to buy a house without a bank loan: First-Time Home Buyers!
How to buy a house without a bank loan: First-Time Home Buyers!
Hey gang, this is mike with MyRealEstateDOJO and I’m going to show you today how the average person just like yourself can buy a home without going and you getting that loan from bank without using your own credit.
Now I know that’s shocking, trust me when I found out I was exactly shocked too. But let me explain this to make sure you understand it I’m going to show you right now, how you could buy a house without using your own credit and buy your own home that you want to live in, not investment property but a property you want to live in, without even, if you have poor credit okay, and by using other people’s money, in a nutshell taking over somebody’s loan payments.
Now when I found out about this I was very shocked I’ve been in a real estate business for quite a while now and I love buying properties called subject to. Now in this video I’m going to break it up into multiple sections going to talk about what is this subject to then I’m going to talk about the benefits of using this technique to buy your own home that you’re going to live in yourself without going to the traditional way which is basically getting a loan, hiring a realtor and paying all the fees that associated with all the junk fees like getting a loan, or put in sweat, you have to deal with getting on and all the risk of getting loan like putting your name up and your credit up and etc.
I’m going to talk about the cons of using this creative financing, what we call subject to and then I’m going to talk about is this legal and give you in-depth information and I’m also going to talk about how to find these deals because these are the diamonds there not just laying out there and I’m going to show you exactly what you needed to go out there and target and market individual sellers so you get the deal if it’s for your own personal home if it’s for yourself or for an investment property or it could be for example if your grandparents or you have kids that are older to go on to college, you use this technique instead of paying rent for them on dorms by income-producing assets, put your kid in there and then rent out the other rooms and then I have your kid live for free and then you also build equity.
So its a great way to get into real estate without using your own credit without getting a loan from the bank so I’m going to talk about a lot of different things okay for example is it legal? How to find the deals? The cons work you know what are the two options to get into this if you want to go this route so let me go ahead and pull the curtains in because it’s going to be kind of detailed video so let’s dive in.
What is the subject to? How can an average homeowner or somebody living in the apartment or a rental property how can they use this strategy to buy a property for themselves? So let me define what subject to is , subject to is a is creative financing where a seller will sell you his home let you take over the house payments without you going to get loan from a bank yeah you heard me right seller has already qualified for loan they may live in the home for couple of years 10 to 20 years, it doesn’t matter and at some point in their life they become what we call motivated seller and they want to sell their home and they for some reason, they don’t want to sell traditionally with a realtor for whatever reason and the woman do create a financing which is in this case of subject to where you step into the seller’s shoes and you just start making monthly payments on the property.
So again let me define subject to, subject to is a situation where you buy a property without coming up with the cash, without getting a loan, all you do is use these sellers underlying existing mortgage or underlying loan and all you do is to start making payments and you own the property a hundred percent. So it’s just like a traditional transaction that happens whenever you are living in an apartment you want to buy a home and you know you go to a mortgage broker or to a bank and you get loan and then you hire a realtor and then that realtor finds you a home.
Everything’s exactly the same sized besides one thing, detecting that one thing is that you’re not using your social security you’re not using your credit so it doesn’t matter if you have a good credit bad credit doesn’t matter you’re not using that information and your able to ascertain a real estate property and it could be an income-producing real estate property and which it creates you wealth and cash flow and I’m going to talk to you about some of the benefits right now.
So now that you know what is subject to is, now what are the benefits? Why should you as a homeowner why should you pass over the traditional path and go against the grain? Because you’re going to benefit so much, let me run down through a list of benefits okay.
Number-one when you buy this property subject to, is existing mortgage it’s just like traditional transaction you get to own the property a hundred percent guys, you own it after closing day there’s no buzz, that’s about it. In the name of the law, in the name of the worldwide, everybody knows you property because you get the deed in your name you guys okay. Number two you don’t have to use your social security so if normally you want to go get a loan from let’s say a bank and you want to buy your property you have to get pre-approved have to jump through all these hoops you have to pay all these fucking fees you know closing fees all this junk fees okay you don’t have to do all because some other seller had already paid all that junk fees and jump through all these hoops and all you’re doing is just taking over to their their payments, okay.
I know some of you guys are thinking well why would I seller sell me this property like that and I’ll get into it after the benefits okay that’s a very very good question. I like the smart ones or ask questions like that okay. So coming back to the story of the benefits of buying property subject you for your own home to live in, we talked about how you don’t have to use your own credit, you own the property one hundred present.
Now the next point I want to talk about is very very important I want you to pay attention if you especially if your first time home buyer, and that is, that when you buy a home from a bank the bank does what’s called amortization and what that means is for the first few years ten years and before first three four seven eight nine ten, all the payments, the majority of the payments that you pay are going to go towards the interest not the principal reduction and so what that means is for example let’s say if you have a thousand dollars coming in then you got a thousand dollars, this much is going to go for interest, this much is going to go for principal, okay let that sink in and that’s why you know when you get a loan to buy a home for hundred thousand dollars it takes 30 years to pay for because if you do the math without amortization, you should be paid off very quick.
An average home that you are for a 100,000 depends on of course but if you just advertise it you’re paying three or four times than, if not five times, that brings up a loan and a hundred-thousand-dollar home by the time you pay amortization, you’re paying like 4 or 485 or something okay depends what the interest rate is but that’s a very important rule the to remember, that when you buy a home subject to, you benefit from the amortization. Because that original seller had bought the property let’s say you lived in the property for five years or left they lived in the property or 15 years so if they live in the property 15 years for all the first 15 years, they’ve been paying the interest. Now after that 15 years, now the majority of the payments that you’re going to take over because that’s how you bought it. You’re going to make the payment is going to go majority the principal reduction and this much is your interest because that other seller had paid this much interest and this much principal reduction. Now it’s going to be an inverse and you get to ride the benefit of that.
It’s so crucial because not everyone that you or your renter or whatever you structure deal whatever you need it for because i buy these properties in my investment you could buy for your own personal whole but however you structure every month of the renter is paying for your paying for it you’re getting more of the principal reduction which means more equity for you where that seller originally poor guy man he was paid mostly interest okay. So that point number three was very very crucial, okay.
Now I want to talk about qualifying for a loan because you know being it in the business was such a long time just very crazy because when you go get a loan and say with a bank the guy says going to give you five percent interest rate and then I see this all the time you know I want to roast a brokerage called plugin realty guys if you need broker shout out if so and I own an investment business so I see that all the time somebody goes gets that loan, they said going to get five percent interest by the time the 30 days of 40 days before the closing happens, the interest rate increases, for some reason the lender wants another point or another whatever.
It’s never ever, it’s the same its like such a shady business business in my mind forever whatever reason the interest is always always always goes up, you know what I’m saying, and when you go get a loan, those fucking banks make it seem like there doing you a favour but they darn well know that people don’t borrow this whole Fiat system that we have for economy which is not backed by gold, it’s not going to work there not going to make any money so they’re not doing you a favour for lending you money they need you to borrow money for them to make money because if people not borrowing from the base they don’t make any fucking money, so I’m not trying to go into that subject, but coming back to this when you go borrow money from bank hey they make you feel like shit. They make you feel like they’re doing you a favour okay.
And then three which is very important whatever they tell you you’re always going to lie because at the end of it they have you go into this roller coaster your very very excited at that very before you sign it we did another point were just going to cost you thousands of dollars and your already like told your friends and family your so excited your body your furniture so what are you going to say yes your willing to pay that where they suck you for another thousands of hundreds of dollars throughout that 30-year amortization period guys.
So this point number four which you want to deal with the banks bullshit is so crucial and if you want to get a house you don’t have to fucking qualify, you don’t have to dance to the tune they are saying guys. Now I want to put this warning out there guys I don’t want you to go out there and if you have no business buying properties if you have no money to make the monthly payments I don’t want you to go out there buying properties like this. This is for people that don’t want to fucking go traditionally like the herd, these are people that have to money like if you have 20 grand, you want to put twenty percent down on a property why not just spent the technique I’ve shown you, three grand and get the property which I have not reinforce loan which I’ll explain a little bit later you didn’t have to get your credit you close very quickly all that stuff ok and save your remaining money instead of paying all these java fees for title companies and you know surveys because that seller has already done it.
Which brings me to some other points guys is that when you get this loan you don’t have to lay all this junk fees that for example you don’t have to pay a survey you don’t have to buy a title company if you want you can but you have the option not to do you have freedom. I personally don’t okay when I buy a house I’ll pay you know the title company 150 bucks to run title search and dude I think i buy that cookie cutter house in the neighbourhood he’s the second owner it was praying you home he’s the second owner I looked at theatres clean why am I going to pay the title company by title the title policy and spend two or three grand you know one two-hundred-thousand-dollar home 150,000, it doesn’t make any sense.
This other guy just bought it, I could look in there and know that there’s no income pendants or any clouds or any judgments or anything like that so I know hey why should I pay again for the company to make money dude its already in place okay so it gives you a lot of options in how much money you want to spend what auctions you want to do how fast you want to close, where if you go with the traditional bank you’re not going tube able to do that because you have to go through their customary qualifying for a loan let me fuck you in your ass type of shit, excuse my language, but as you know I’m not really fond of banks so why don’t we help sellers is what I’m trying to teach you this help sellers there motivated sellers take over their payments save them they’ve already done up and dancing for the banks to qualify and you don’t pay the closing all of closing fees, policy if you choose not to survey all the fucking notary fee you know prepping up this documents all these things they come up with.
And at the same time you don’t have to pay all the fees that you due to the loan originator if it was like Bank of America or you know mortgage broker all that bullshit they’re fucking charging you, you know what I’m saying is, you get to control and you had the choice instead of the other way where you’re like hey whatever you want I’ll do it but if I want to get a house got to do exactly just say your hands is up this what you have choices dude okay which is so powerful okay.
Now, so we talked about not paying all this junk fees we talked about how you have to qualify for a loan we talked about how things down on your social so it doesn’t matter it get good credit bad credit guys we talked about how you go on the property guys. I want to make sure I don’t miss anything okay
Here’s a very important topic, a non-recourse loan. When you buy these properties I teach you to negotiate a non-recourse loan and what that means is that when you go to borrow money from a bank let’s say bank of America for a home you have to sign what’s called personal promissory note which basically says that you’re going to pay this house with this much and this interest rates with this terms and the monthly payments etc. but more importantly says that hey if you fuck up if you default we’re going to come not only take the property but also hurt your credit and the way they enforce them, taking your property they do to this paperwork called deed of trust okay what I call vote which basically you sign your rights to the bank in case if you default, they can take your property.
So when you go to a traditional closing you go to let’s say mortgage broker bank of America they give you a loan once the loan is ready I closing what happens is you three things in a nutshell is and you notice create news is that promissory note you’re going to sign a deed of trust which basically is a collateral instruments that you pledge to the bank that if you default if you don’t make the payments the bank and take the property away from you okay and then the banks’ going to give you the deed which is the ownership so those three things happen at closing on traditional way.
Now this way the same exact thing happens the only thing is that you don’t have to go to the bank the seller has already gone to the bank done all that stuff you’re going to have new closing for you for you to be the right owner of the property and all the responsibility liabilities ownership of a property but you don’t have to qualify for that loan but more importantly the non-recourse happens at the second closing with the seller because the way I teaches when you negotiate with the seller instead of that deed of trust, the note with the seller what we’re going to does were going to create a new note that’s a non-recourse which basically says hey Mar. seller I’m going to buy your property if I default I’m going to give you the property bag you take it through foreclosure because you’re going to sign the deed of trust to him but however the seller you’re not going to come after me personally you’re not going to come back to my credit you’re only going to thank the collateral.
If you go with the bank of America or the traditional way if you default if you don’t make the payments to the bank what they’re going to do is they going to take the property there going to come and ruin your credit or sue you and all that good stuff. When here you already negotiated, how to negotiate where you tell the seller hey if I default you think of property it’s just like Bank of America does however you’re not going to ruin my credit now if you come after me, you could only take the collateral and that’s it and that’s a very powerful benefit I believe in my mind that buying property subject to provides for homeowners or first-time homeowners or anybody that wants to buy another home besides going to the traditional way guys and it is so powerful.
I just want to make sure I hit bowl of milk you know it’s a Saturday night it’s pretty late you know I’ve been working all day and now doing these videos and I just quickly jot it down because this is going to be a pretty intense lot of information video so one second guys. So we talked about the amortization we talked about the non-recourse and you know it’s really fast there’s no extra junk fees you don’t have to qualify I think I hit all of it all this stuff.
Now the some of the disadvantages ok but before I do that earlier one some of you guys had a question what I’m saying well Mike why would this seller sell you the house like this that’s a really really good question guys now I want to be honest with you not everybody’s going to sell their home like this guy’s okay maybe about seven and ten percent okay ninety percent ninety-seven percent of all home sellers in America they sold with a realtor the remain okay the people that try to sell the realtor that couldn’t those are the people or people there are motivated caring situations and I have video that explains where you have to go to fish for those kind of people guys.
So I’ll tell you a little bit now let me answer this question for you this is very crucial question who out of the right mind was selling it at home without letting you take over their payments guys and the answer to that question is what we call motivated sellers and motivated seller is somebody that must must sell their home. Motivated seller let me give you some examples it could be somebody that’s going to divorce and they don’t want to deal with the property or they have somebody that has a death in the family for example a husband and wife the husband dies the way I can’t pay met pay me some more I job relocation like for example they live in Texas you know the fucking GM of you know general manager of home depot home people transfer them here a couple of years ago another transfer to a different place see things of that nature there’s so many variation of what’s called motivated sellers guys.
Now there’s two types of motivation ok there’s what we call what I call financial motivation and emotional motivation financial motivation could be hey I’m behind on payments for years for me for months I’m going through a lot, I lost my job Ingot it or I got a pay check cut and I can’t make the payments, that’s financial motivation. Emotional motivation can be that hey I got a lot of money to bank you know I’m really busy I don’t want to deal with this crap in there. Or financial emotional the most remote motivation ,can be like, hey I’m in the bank I just had you know lost a family member I don’t want to deal with this property, I want to go inside the home do all that crap I was ready to sell it and you guys take the jump whatever you want to do. Emotional motivation could be somebody go into a break up or did the stint in the family or you know were some traumatic thing happened to them and then won’t be able to shoulder the responsibilities and that’s what we call emotional motivation. Now they could be a hybrid okay what I call a hybrid and the hybrid is, it could be financially motivated and or it could be one financially only, when it can be emotionally only they have a lot of money, okay. There are people I meant that have a lot of money because they want to deal with them, whatever reason.
So to answer you guys question, were not just dealing with anybody when I try to convince people okay there’s the strategy to apply to finding these people and what we what we do is I have specific ideas for you guys on my YouTube channel if you’re not already subscribed with get on there I have 42 ways to find motivated sellers for free. You could do that, I had paperwork to do; you have strategies you guys can follow.
But in a nutshell, why do sellers sell their properties with these creative financing? They’re just motivated sellers and I’m going to show you how to talk to them over the phone everything guys for my YouTube channel. I actually got a script called SLUR phone script; you guys don’t have that you need that. okay its 50 bucks really cheap, if you can’t afford 50 bucks guys you’re not going to be able to go out there and do these deals because you need this shit because it helps you negotiate owner financing it helps you determine the sellers motivation it has all the information every to be able to make a fucking offer. I mean everything; you definitely need that, so make sure you get those guys. So don’t screw yourself out of 50 bucks, I only put I only go the extra mile guys and you know for my videos okay. So now that I talked about why would the seller sell like this and who are these sellers are they willing to sell through creative financing where you don’t have to get a loan from the bank you don’t have to put all the money from the bank, you don’t have to bake the bank you know if you like shit then what the bank you told whatever you want who you have the freedom to have options so we do what you want to do instead of somebody telling you holding your fucking hand okay man.
There’s a lot of stuff, one second guys, now let’s talk about some of the cons okay now in my mind, life there’s always risk guys there’s nothing you could do even if we live in a concrete city concrete bubble there’s still risks that’s because mother nature has risk you can’t eliminate nature on our race. That said I think this idea has so little risk and so much of benefits okay I’m a refuge of the American and I think that you know the risk is this much and the benefit is this much guys. So it’s very very benefit but let me explain some of the rest of you guys, one of the number one risk is what we call do want sell clause and the do want sell clause is basically a clause they put on the deed of trust what we talked about earlier where you sign to the bank your house as collateral so if you default that seller, well in that paperwork deed of trust the banks put this clause in there that says that if the home seller which is whoever home to home seller is if they ever sold their property or if they convey their property to someone else okay like anybody and they don’t cash out the other line note or the online mortgage or the own line loan all the same things, then the bank has the option to accelerate the note and foreclose on the property and basically what that means is that if the bank decides to foreclose on you because they have the right, because the seller have sold their property that’s all that means but how often does that happen with me. It hasn’t happened thank God and on a lot of rental properties but the risk is there so let me repeat this because I don’t think I explained it really good.
Alright there is a Deed of Trust sale clause that says that if the borrower/seller sells his home or conveys his home to somebody else that the bank has their right, doesn’t mean they’re going to, they have the right to accelerate the borrowers note and give them 30 days and sell the property, you know the risk of this is so so small, in my mind ,ok you need amount of turning, I’m just doing in my business and but it’s so small that it outweighs it because banks are business of collecting payments that I want to own properties and if for example if the seller is behind their payments three months and they owe the bank five grand and I’ll tell you say hey Mr bank here’s five grand behind and I’m ready to make the monthly payments a thousand dollars a month you start making their payments every month on time why did the bank care, okay.
The bank is so fucking big for example, the people you call them, let’s say Bank of America, they’re service providers are not even the guys that own the knows somebody else owns that they’re just they’re just like the middle man, just providing support or taking the checks and deposit in the bank account so they don’t give a fuck you know banks want to just performing notes. And so in my opinion and that’s why I put my money in my risk in here because I think it’s very very slim I have so much higher chance of getting in my car and getting in a way than the bank calling them out guys okay. So but I want to let you guys know that that risk is out there okay.
There’s different techniques that you guys can use to shield yourself from the bank finding out and you know I had YouTube videos or you just join the dojo and have it, I’ll be happy to help you guys out how to structure one of these transaction guys okay. Now besides that, I’m thinking about if there’s any other negative God having one hiccup that I had it okay was that you know I bought a house with a motivated seller you know I rented it out for like six seven years longer and the seller situation changed and they call me on the problem “please sell the house, please sell the house” etc. So that can happen, so you know, but one of the great things with buying property “subject to” is that even if you have bad credit you have the deed in your name let’s say 12 months 24 months, I’d like to say 18 to 24 months.
It is so easy for you to go refinance and put the loan on your name I don’t recommend that. I recommend that let the whole seller carry the note that’s what I do. But let’s say you live in this home, you love this home, let’s say the seller came to you, you have already lived in there for six, seven years already build a lot of fucking equity it’s so easy to refinance and put it in your name guys okay. So there’s no big deal there’s different things you could do if the bank called note. I have videos on my YouTube channel so I just want to let you know if the risk is there but it’s so fucking small like the risk of getting a loan from a bank signing your name on board you know if you default they’re going to hurt your credit they’re going to take the property dude that’s more of a risk than you know with this where you know if something happens they just take your fucking house but not your credit but if they decide to take your house you have so many exit strategies like I mentioned.
One of them, refinance to get out of that situation guys ok so this is so small but I want to take the time to put it out there now this strategy of buying houses subject to, if you go to an average attorney go to an average realtor they’re not going to know about this. This is why I was shocked, this is why what time i take this tiny corner what is the Friday or Saturday i lost track I’ve been working all day to make this video for you because you know before I got into the real estate business and I got a video on how I got into the real estate business where you know I had a lot of money and I was right at the crash nobody wanted to lend me some money to buy a house that’s why I got to this. I didn’t think this should happen, where you could buy a house using somebody’s payment you know. I’ve never heard about it, you know the Realtors never told me nobody told me none of my family never even my cousins, everybody like that, so I was like whatever man I couldn’t believe it but you know I start researching it i paid for bucks paper, seminars and and i was like wow but I don’t know if this works I took action you know I found my first deal my first kill that i bought was a house for me and i moved in it.
And so thanks for one of my mentor students he hit me up and says hey Mike and I’ll buy this can i buy houses myself to live in and that’s why i even thought about “wow I haven’t made any general videos to explain to people how to even buy a house like this for them also so thanks Alex up for hitting me up for and help me make a video for the whole community so if you want to buy a house I think the risk factor is so much less than buying a house subject to, and paying all the fucking feeds and let them jump in through your jumping through hoops and thanking them for money and then they could ruin your social security to ruin your credit they could take their property okay. Now now we talked about what is the subject to we talked about the benefits of buying house is subject to you we talked about what is a motivated seller we talked about the cons of a subject to.
Now let’s talk about is this legal because a lot of people ask me “hey mike is this legal?” is this legal so, I basically made a video on YouTube that talks exactly if this is legal and I have a piece of paperwork I don’t have it in front of me right now this is called a HUD-1 and basically a HUD-1 is basically a piece of paper work where all realtors all closing companies all use which is mandatory basically by the government, in this sense, there’s a different Department than the government but they control all that and a HUD-1, I don’t have it, funny, but if you go to my YouTube channel it shows on there I don’t remember the line right now top of my head but as I think 138 or 213 or one of these things and it says buying property subject to and you know on that paperwork so that’s the evidence. The other evidence is I bought properties like this and I sold them I closed them at the time of company then the buyer got a loan from the Bank of America, they all pay me. Everything went on smoothly so I mean if it wasn’t legal they wouldn’t allow when I went to my title company to close one deal my license was expired and they wouldn’t allow to be able to close. I’m going to renew my license. So what I’m saying is these title companies they’re fucking jerks, they’re going to chrome through everything make sure its 100 percentage legit, they don’t want to do a deal if it’s not. So if it wasn’t legal these guys wouldn’t do it, I’m talking my license was expired and they were fucking cold steel. I’m all happy I’m all dressed up, grades and I had a go I was not playing around and fucking license plate. Get this it before i came in close the deal dude you know everybody was waiting on me because my license expired guys.
So title companies are not no jokes are not going to just like do something illegal and so if buying houses was subject to was illegal, they wouldn’t close the old title companies guys, you could not only close it when you sell to retail buyer if you’re an investor or if you’re pissed yourself you go there you want to close don’t close those bills for you because they’re not legal they’re going to do a bunch of paperwork this is look here’s some the disclaimer do one sell we talked about etc. Okay alright, so if you want more information at this legal, go into my YouTube channel MyRealEstateDOJO at YouTube or my website at MyRealEstateDOJO.com I have a video specifically talks about that.
Now I want to let you guys know, again, I’ve said that before I’m not an investor you know i mean I’m not an attorney I just use the strategies for myself like my first house I bought as a subject to that’s what the whole idea like imp like let me do this because this is a great way in the market in the crash of 2007 fourth quarter and so just, I got into the game and now I’m passing out information to you do your own due diligence and see if this works for you. I bought my first house subject to I’m never going to buy a house be alone on this many of my dream home it’s a little cabin or something like that but again I don’t like more money and this is a great way okay.
Other thing is that i forgot to mention is in the benefits is for example when you buy a house subject to when you run your credit that debt is not linked to you that, that is debt is not associated to you. So what that means is that the income ratio is still looking really good you don’t have any debt associated that the original seller does. This is very very very very powerful guys and that’s why i like it plus a non-recourse loan okay all right. One second guys, excuse me i don’t ever do these really really long videos like the seminar guys but i know this was such an important video i wanted to make sure I kind of included everything.
Now how how do you find these motivated sellers? How do you find these deals guys? Because they’re fucking okay now you get on my you tube channel I have two videos okay what is called 42ways to find free or almost free motivated sellers. And in this video I tell you forty two ways to do nothing that means any money or very small amount of money, just resources you have, like craigslist like your phone like text messaging, so Facebook so many different ways to finding something solely for free okay. And for you guys that want to do it faster you don’t want to do all that stuff then I have another video called 38 ways to find motivated sellers and this way you have cold call system where you spend money and the leads start coming in. Okay, so go to my YouTube channel watch one of these two videos but more likely if you don’t have any money or you don’t want to spend a lot of money use the 42 ways but remember if you don’t put money in you need a good sweat equity you and your time dude okay.
Now, I’m going to explain what you could do if you want to buy a deal like this without spending the time but if you want to spend the time they’ll save you a lot of money okay now now that talked about how to find motivated sellers you know my you can watch those videos okay I wan to talk to you about ok so you don’t you due diligence you decided hey you know this is something that I want to do is hey I have good credit I want to buy a house I can go traditionally or I want to try this new idea Mike talks about. Or you’re a type of person that says look I want to buy a house and I’ll have a good credit but I still want to own a home I’m making monthly payments on my rent you know I’m making $1,500 for a three-bedroom apartment I know I could get a house at the same exact payments but I don’t have the credit okay. So if any of these people, and anything in between, you could do a subject to.
And there’s basically two ways to do this to go out there and find a deal, take the next step basically okay step one is you going to have to learn some new skills okay you’re going to have to learn too little sells little negotiation little marketing or a lot of marketing generate leads you’re going to have to go out there and generate leads talk to motivate the sellers and put the deal on contract negotiate a subject to. Now the benefit of that is that you don’t pay all that junk fees like we talked about you know I’ll fill in the real truth for you, I’ve spent all that time is that going to be in your credit I need so much benefits there’s a non-recourse loan but on the other hand you’re going to have to put a lot of fucking working okay you have to put some work and learn some new skills and so you can have it and you know like to say in America, you can have the pioneer like you can’t have to do things so you got to decide that hey I’m going to put the work in to give me a little bit of seller but if you had twenty thousand dollars we had 20 percentage put down instead of putting 20 grand to buy it traditionally. You may only spend two grand 3 grand and then to buy this house, the same two-hundred-thousand-dollar house okay. Guys as you can see you save a lot of money but if you save money now you got to put in work.
The other way is that if you’re really busy you don’t want to do all this you’ll want to learn new stuff you don’t talk to sellers you can buy deals from most called whole sellers and whole sellers are individuals that are out there advertising, finding deals, put it on a contract and they want to sell it to an investor and in return that investor is going to pay this whole seller some finder’s fee okay and they usually pay you know anywhere for my 2 or 3 grand, 5 grand depends on the day okay so your option is do all the work yourself or pay 2, 3, 5, whatever it is based on your house if you buy the five hundred thousand dollar homes and you’re going to pay more than that If you buy100,000 alarms just by doing a very tight three grand okay and pay a wholesaler to go out there and find you the deals and let him negotiate and put everything in a contract then you just pay the three grand, you take the three grand contract whatever he’s negotiated as a non-recourse home, take that to the title company they do everything for you then they pay the whole seller, they do everything, you sign the documents you become the rightful owner of it okay.
So that’s number two way where you don’t have to do any work plus they have a full time job of a family you don’t want to know this stuff, fuck it, so they’re getting a loan and dressing up going to the bank banking that motherfucker getting the car dealing with the realtor just let this guy do all the work and you just pay me such a small fee and then he does all the negotiating all the marketing etc. Your going to have to pay a couple of grand but again you’re saving so much money you’re getting into the amortization ahead instead of that guy that old seller paid all the junk fees pay all the interest because of the hammered position this is all fucking credit so this is such an amazing way, I can’t emphasize it I’m just tired out on the energy to express it like I know, excuse me kind of losing my voice.
So if you’re a homeowner and you want to buy a house there’s two ways to do it you can learn the skills or you could pay a whole seller guys now first, girls are guys that don’t have good credit and the addition to the third way, the third way is when you go on for exam on craigslist those people that says no owner financing 20 grand down thousand dollars a month of 10grand down thousand dollars more and what these people are is basically investors that had bought the deals wholesalers so let’s say that whole still age sold the property to this investor for three thousand dollars a signup fee or finder’s fee to make It simple and then this whole seller sold this investor for three thousand dollar sign me fee or finder’s fee to make it simple and then this investor puts it on craigslist and he says ten thousand dollars down a thousand dollars a month so what happens is option three is you get off craigslist you find this investor and then you pay the semester ten grand for this investor only paid three grand and thousand dollars a month and usually this investor what he does is he does was called the rat decreasing you know and his payments to this whole seller that originally negotiated to the seller was a thousand bucks now this investor is saying hey on craigslist 10 grand down four hundred dollars a month.
So what happens is your option three is if you don’t want to do your due diligence and go buy your deal number two if you don’t want to pay you a whole seller and you can just do easy it on craigslist find that investor he’s done all the stuff and then you just buy from this investor and you get 10 grand and 1200 and so he makes 10 grand instantly he is two hundred dollars a month every month for the remaining 30 years where they loan it is okay because what he’s going to do is if the underlying note that he got from the whole selling that the whole seller got from the seller was 5%, he’s going to turn around and do a ramp and give it to you at 8% or 9% okay.
So simply put if you ready to do something like that you have three ways, i don’t recommend number three because you’re just a retail buyer now, you’re like the herd but even worse okay. Number two buy it from a whole seller, it’s a great idea. If you guys are looking for wholesale properties please leave a comment I have a lot of students they go do deals and they sell it to whole sellers or get all my whole selling list okay. If you type in Google Mr investor whole selling list or whole selling, I’m sure it’s going to come up or just look below guys okay or just leave a comment and I’ll send you the link so no big deal you get on my list where you get on my students list and their whole selling deals are learning about the business and somewhere pros but whatever it is go do all the work and you just pay them you use some other whole seller out there guys. This doesn’t matter to me; i just want to give you some free information alright so one second.
Now let me just summarize everything up for you because i know it’s a lot of information it just feels like for me because I’m doing a whole lot of fucking talking alright so if you’re a home seller i mean if you’re a home buyer you’re a first time homebuyer your experience home buyer there’s other ways to buy property besides getting you a loan. There’s other ways besides hanging yourself with the Bakers, there’s other ways besides using your own social security if you could use what’s called subject to. Another way you put it is was called using other people’s money another way to put it is what’s called creative financing, they’re all the same thing guys and one strategy there’s like seven different types of the owner financing strategies that I know that I’ve teach on my YouTube but one strategy I’m teaching right now is called subject to guys if you want to learn that and other strategies, get on my YouTube channel.
But this strategy is called subject to and then this strategy what you do is you know you just simply step into the seller’s shoes and you take over the seller’s monthly payments you don’t have to get a loan you don’t have to pay off each other fees all the closing fees you definitely don’t have to put that much money down that you normally do when you buy traditionally and the good news is that bid is done under your social security so it doesn’t hurt your debt-to-income ratio your credit. It’s a great way to buy rental properties, personal properties, investment properties, fix them, flips so many different ways guys doesn’t matter if it’s for your kids future whatever you want to do okay and so using is technique called subject to you could do that okay.
For your own personal home or whatever and we talked about where to go find these people on my YouTube channel 242 ways and I told you exactly what to do how to advertise totally for free we talked about the benefits of this buying property subject to, we talked about couple of cons and we talked about what should be your next step if you want to buy a property like this hey you going to learn all the skills required which is not that bad guys they may take you a couple of months if you come from a background of sales and it’s very quick you just have to learn the terminology of real estate if you never done sales and you’re like a geek or your back in work urban it might be a little challenging but I have faith in you I believe in you you can usually why not when I started dude guys I didn’t know shit man I’m a refugee in America, I had no help, with no money, can’t even speak the language, we didn’t know anybody, didn’t have no credit so if a guy like me that can’t spell, can’t write, you know shit dude if I can do it dude, God you guys can do it. I’m sure you have more connection I’m sure you got friends and family that may have properties like this that you don’t even worry about because you’re not looking for but now that you watch my video you go out there and do it guys okay so we talked about all the business of buying subject to even for your own personal gain.
alright now its normal to have your guards up, normal to say hey its sick unreal, you be the judge of it, just do your own due diligence guys there’s a lot of information out there okay I’ll give you raw information totally free this is exactly what i use in my business. I’m not telling you should do this. I’m not telling you shouldn’t do this but I’m saying hey I found this gold on they’ll eat this place that nobody looks at and I want to bring it to you guys saying hey if you’re added a thinker you don’t want to travel the normal path you may want to look into this you might want to do your own due diligence because I was the same way I did and now imp very happy imp doing deals on buying houses by using my own credit making money off these deals when i sell them so it works. And if you’re just looking to buy your own personal home i highly recommend it fucking bank. Somebody else already went for that trap you just takeover their payments and if you’re looking for an investment property they probably dude and there’s only one thing i just talked about which is subject to there’s seven other techniques upon or financing you just have to get on my YouTube channel guys if you have any questions hey leave a comment guys I’m always on YouTube I’m always on Facebook imp here to help you guys reach your goals whatever they are guys.
Guys if you really enjoy this video please do me a favour, tell your friends and family about me guys please like please share please comment. It really really motivates me and I do this for free i do this on the love and just pumps me up which allows me to make these videos even when I’m really really tired after i had a long day on a Saturday memorial weekend when everybody’s having fun. I don’t think you’re grinding it out because this is my passion. I really want to do this with you guys. Now go out there and hustle and bustle. Fucking naysayer dude, not everybody’s going to believe you dude, your mom may not believe you, your cousin may not believe in you, your husband, your wife, your brother, your sister, it doesn’t matter guys if the idea came into your mind guys or if you’re watching this is because its fake now it’s your job to take that and take that opportunity and seize with you don’t just think about and if you think this is something you’re interested in start researching and dude don’t just wait around and watch next video. Go out there research and see it both might same is true and if it is then take action go out there and get you a home guys. Go out there and hustle and bustle. Don’t take no for answer, this is mike with MyRealEstateDOJO, see you later gang