Hey, gang, this is Mike with My Real Estate DOJO and today’s lesson is about how to fund your real estate deals without borrowing money from a hard money lender, without borrowing money from a traditional bank, without having to go through a private lender or even using your own credit cards,guys. So let’s go ahead and dive in, gang. I’m going to explain step by step how to fund your deals without using your credit card or a hard money lender. The strategy I am going to teach you today is basically one idea, but it’s like an animal.
There is a species, but there are different categories in this species. The idea is owner financing. Before you think, oh okay, this is an old idea let me explain this. You could buy properties owner financing even if the seller has a loan on his property. Again, you could buy properties, owner financing even if the seller has a mortgage, if they have a mortgage on their home, guys. A lot of us think that with owner financing the owner has to own his home clean and clear. That’s a no-no- no. That’s what I used to think too. You can buy properties owner finance, even if the seller has high equity, medium equity, marginal equity, zero equity or even negative equity. You can make money out of all those five things I just told and that’s the great thing about creative financing.
The secret is that the secret sauce or recipe to buy property without using your credit, without using hard money lending is to do ‘subject tos’. What I mean by ‘subject tos’ is that you market to motivated seller, when you find a motivated seller, you buy their home subject to existing mortgage. Let me explain that. What you basically do is you step into the seller’s shoes and start making the monthly payments. So you don’t go to a bank to get a loan, you don’t go to your credit card company- you don’t go to a hard money lender. All you do is use the motivated seller's existing loan and you just step into their shoes and when you go to closing, the next day or the next payment month you are going to send your check in instead of the sellers check. Now you are thinking: “Mike, is this really possible, is this really legal, can this really happen?” Guys, go ask my Youtube channel.
If you couldn’t do it then it wouldn’t be on the hud, hud one. So if you go look at a hud one you can see that one there it says buying property ‘subject to’. Now, why haven’t you heard about that? I don’t know if the realtors want to let you know about that or the banks want you to know about it or the media wants you to know about it, but what most people want to do is heard you where you put your name on the line, your social security on the line. You actually hang yourself with the lenders and get a loan on the property. If you default then they are going to come get you and you have to do bankruptcy. With the strategy that I showed you, we market to motivated sellers, we buy the property ‘subject to’, but here’s the catch. We buy it ‘subject to’ to a non-recourse loan.
What that means is that I let the seller know: “Hey, Mr. Seller, I want to buy your property and I am willing to create a wrap and create a note for you. When I put you in a safe position like the Bank of America, where you are a note-holder and I am then willing to sign a deed of trust for me to pledge the property as a collateral to you in case I fall. If I don’t make your monthly payments, sir, you could take the property back. However, in that note that I am going to sign to you, it’s going to be a non-recourse. If I happen to default, which I am not, if I happen to default you could take the property back without a problem foreclose on me and take the property back. However, you’re not going to come after me personally, you are not going to come after my social security personally, you’re going to only come back after the property, which is called a non-recourse loan.
What happens is in a traditional buy, whether you are a retail buyer or investor, you go to the Bank of America or to any bank or a lender, what they want you to do is not only put up the collateral, which is the home through the deed of trust, but they will also want you to sign a personal note that says: ”Hey, if I default, you can not only take the collateral, but, Mr. Bank, you can come after me personally. You can ruin my social credit, you can come and sue me etc”. In the situation where I just mentioned the way I negotiate with motivated sellers is two main things: 1). I am buying your house ‘subject to’ which means I am an not going to pay cash for it, I am not going to get money to pay off on the loan, I am not going to borrow new money from a lender. I am just going to use your existing loan, Mr. Seller aka subject to existing note. 2). Mr. Seller, this is going to be a non-recourse loan, which means that and it says it all in my contract. If you don’t have my ‘subject to’ contract, hey go ahead and download it. It will only cost you a couple of pennies. You will get all the disclosures in there.
Anyways, the number 2 point is, I tell the seller this is a non-recourse loan, I’m going to pledge the property and the house’s collateral in case I default, but if I do default, you are only going to take the collateral, you are not going to sue me. If the seller does not agree to that, then I don’t do the deal. If the seller agrees to it, then we go ahead and do the deal. I am already losing if I default the property: I’ve put the money up, I made the monthly payments, I made improvements on the property, see what I am saying? I don’t think it’s not fair for me not to only lose my collateral, but also to loose my personal credit off this transaction. This is why you guys should join the DOJO, because there are so many ways to structure these deals that you are able to protect yourself where a common investor or a common retail buyer does not understand these concepts.
This is why I love buying property ‘subject to’. Now I will explain one great way for you guys to fund for your properties without going to a bank, without going to a hard money lender, without getting a credit card, without even using your own cash. You use a strategy called subject to. You buy the property subject to the seller’s existing loan or existing mortgage. I want you to make sure you take two points out of this idea, besides that you are buying a ‘subject to’, besides that you are getting a non-recourse loan. You could use your creative mind to buy properties using other people’s money without you hanging yourself to their banks, to your social security, to your credit. That’s point number 1. Let me add one thing to point number 1: you could buy property if the property is not fleer and clear, for example if the seller still has a loan on it, he can still owner finance it to you. Point number 2 is that you can find sellers that own their property fleer and clear, that way you don’t have to use your cash, you don’t have to use your credit, you don’t have to use a hard money lender- you have the seller to owner finance the property to you.
So gang, simply put: America is the greatest country to live in, don’t take ‘no’ for an answer, don’t listen to the ‘nay-sayers’, don’t listen to people that are telling you, you can’t do something, go fucking out there and do it if the idea came to your fucking mind. This is your fucking dream if you have been thinking about it, if it’s been calling you, it’s because the universe wants you to do that. Now what I want you to do is stop watching me and the other guy and the other guy. What I really want you to do is watch me and then go take fucking action. One of the problems is the more we learn, the more confused we get, the more fear sinks in. That’s what the problem is. When I got into the real estate business, I didn’t know left from right, I didn’t know shit, but the difference between me and the other cats is that I read a book and I took tremendous action, then I came back and took a seminar and I took tremendous action. Then I went and bought some books and I took fucking action. I didn’t just fucking watch this guy, watch this guy, watch this guy…before I knew I am confused, I don’t know where to go. I have fears and I have questions, then I have more questions.
That’s what the problem is. Gang, join the DOJO Smart- Coaching program, which is performance based, where I’ll hold your fucking hand and you and me will go and do deals. The great things about Mr. Investor and me and the coaching program is that it’s performance based. If you don’t make money-I don’t make money. There are no huge up front fees, like all the other coaches out there. Those guys that want your money and at the end of the day, they hope that you go fucking do deals. With me, I have a vested interest in you to do deals. Now there is a small fee to join the DOJO smart program and the reason for that is to eliminate the chimps from the champs. I only want to work with the champs. The reason is I don’t want to be investing my time with the chimps. It’s not going to work-you don’t have the right mindset, you think America is not a great country, you think my strategies do not work, you are so fucking negative. Trust me, I’ve been there too, but I made a decision after to college, when I was living in my fucking car that I am not going to be like that anymore. I am going to take life in my own fucking hands.
My parents immigrated to America, they had to go through all this hardship as refugees: living on food stamps, they couldn’t speak English, they couldn’t even fucking read. Fuck that! I am not going to live like that, so you got to make the same fucking decision. You got to go from being a chimp to being a champ. The Smart Coaching program is only for champs, for people have made their fucking mind up, They don’t want to live their lifestyle and they want to go here. One of the major differences between the smart coaching and the other great coaches out there is that we don’t preach about borrowing money, we don’t preach about getting in debt from hard money lenders. We talk about sweat equity, about imagination, about house money. We talk about how to turn a hundred bucks into a million bucks. I am not talking about borrowing a million, so that you could be a millionaire. I am taking about being a fucking refugee, to have nothing and turn it into something. You can only get that from smart coaching, because I live that fucking life. I wasn’t born here, I didn’t have the connections. All these fucking books and shit I read is because it allows me to download this shit into your mind. So that’s another reason why smart coaching is so different. Not only am I performance-based, not only am I driven for you to have success, I don’t believe in fucking debt and I don’t want you to get into debt to have so-called success.
The other reason why you should join this Smart Coaching and why I am so different than the other guys is because I live this life every fucking day, I hustle and grind seven days a week. There’s not one person out here that’s seen me eat in the … area and I don’t have my laptop in front of me while I am eating. The reason is not because I want money, no guys, because I love what the fuck I do. I can’t stop doing, just like the fucking gym. I love hitting the fucking gym wherever the fuck I am on. On a Friday night when everyone is out getting fucking blasted, I am sitting at the gym. That’s who the fuck I am. My passion to coach you does not come from money, I love helping people out. There have been situations in my life, where I’ve helped people out and I just want to do the same thing. I want to be an impact, I want to be significant in your life. 20 years from now, when I think about you and I think about me, we put a smile on our face and you know I helped you and you made an impact in my life.
That’s all what life’s about. The only reason why I have money to get it, because I’ve spent so much of my fucking time helping people for free and what I notice is that the people I help for the, the probability of them being successful is about 10%, whereas the people who pay me, their probability of success is about 90%, because they are taking massive action, they are already away from being a chimp into a champ. End of story gang, if you like my fucking videos, if you feel like I am adding value to you, please like, please share. If you really thinks that I can help you get to your next level, join the Smart Coaching and I am confident I can help you do multiple deals in 30 days or less. This is Mike with My Real Estate DOJO gang, don’t take ‘no’ for an answer and 2016 is your year. Have a great day!