Use “Free HOUSE MONEY” to start in real estate without borrowing from Lenders/Family/Credit-Cards

Hi, gang, this is Mike with My Real Estate Dojo and today’s lesson is about working with “house money” and using “house money”, what I call “free money” to invest in real estate and produce passive income. Let’s go ahead and rewind back to what I mean by “house money”.

 At the DOJO we preach about not getting in debt. I know other mentors might have different approaches, but what I like for all my students to do is start investing in real estate using ‘sweat equity’ and what I mean by ‘sweat equity’ is where you spend your time and energy to generate leads and get one or two deals. Once you get those one or two deals and you profit from it, you harvest from it. You take that harvest and you invest it back into the business of the marketing machine. Now this time, the second phase of investment is going to be with the money you have already made with your first investment. Because for the first investment you are going to spend your ‘sweat equity’ and then you are going to take the profits and invest into marketing again, but this time you are going to have a different ration.

The first level of what I teach at the camp is to have a 100% if not 90% of ‘sweat equity’ marketing plan. The second level what I like to do is once my students make money I like them to reinvest it with marketing plans that actually cost money instead of just ‘sweat equity’.The first ratio would be the 100-90% ‘sweat equity’ – 10% money per say into the marketing machine, whatever it is to whether it is door knocking or me house, whatever your marketing plan is. The second wave of investment into the market is going to be a higher ratio where you do 30-40% using your ‘house money’. Now I love using the ‘house money’ because it is totally free, you are able to invest in the business without any of your own money: no credit cards, you don’t have to get a loan, you don’t have to borrow money from friends and family – nothing. And what you are going to do is you are going to market to motivate the sellers, use my ’42 ways of marketing’ plan that I showed you to find motivated sellers for free or almost for free and then fill out the seller form script and then give them the offers that I show you on my YouTube videos and finally put the deal on the contract.

Then turnaround to the same thing to find a motivated seller whether it is an investor or a retail buyer and then whenever you close on that the deal, the profit/theharvest you get you have to put that in the second wave of marketing which is, when you are going to put some money into ‘cost marketing’ and the rest is going to be ‘sweat equity’. All right, gang, if you feel like the value I am giving you is great, then please like my videos, share my videos and give a comment. If you really think the videos I provide you on my Youtube channel will help you make money or you’ve already made money, then why not support me, join the DOJO membership. It’s $500 for the whole year, you get the level 1 paperwork, but more importantly you get 3 hours of one-on- one with me. I normally charge $750 an hour, but I am throwing in the 3 hours totally for free and the reason I do that is because I want to help you to do one if not more deals in 30 days or less. So if you are very hungry and passionate, then come join my camp. I am not selling you a magic pill or a get fast-rich scheme. What I am teaching you is hard work.


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