Property Investments With No Money Down

Property Investments With No Money Down

Joe: Hey, it’s Joe Crump. I’m going to teach you how to invest in property with no money down. And I’m going to show you the different types of financing structures that you can use and I’m going to show you where to find these properties and show you how to get paid making that happen. And a way to do it that’s very, very safe. I’m going to show you the different options that you’ve got. Let’s start first of all by looking at the two different ways that you can buy with less money.

Joe: One is risky and the other is not so risky, or not as risky. Everything has risk in this life, but there are some things that are worse than others. I believe the worst way to invest is by borrowing money from your friends and family. You lose that money, now you’ve got to deal with that for the rest of your life with that relationship between you and that person. I’d stay away from that. I was fortunate enough, I guess, when I was younger not to have family that could invest. So, it wasn’t a problem for me.

Joe: But if you’ve got people in you life that can invest in you and you screw it up, or you lose them money, it’s not going to be a good look. And it usually take a while to learn this process. There’s a learning curve. You all know my story and what I went through when everything collapsed for me back in 1991 because of some major mistakes that I made as a newbie. You don’t want to go through that same process.

Joe: Another risky way to invest in real estate is to get loans from a bank. First of all, you need good credit. If you have good credit it’s not that hard to go out there and get a loan on an investment property. So let’s say you find a property that’s $150K. You’ve got $15K for the down payment because it’s going to require down payment, but at least it’s leverage. I mean, you’ve got 10% into it instead of 100% into the deal. So, you’ve got 10% into it, plus maybe another five grand, six grand in closing costs, typically 5% on closing costs when you’re using a loan. That’s just when you’re purchasing. When you’re selling there’s more costs on top of that. So, make sure that if you’re doing a flip type of deal, that you build in enough equity to make those loan fees work. Because that eats up a lot of your income. And you can get me off on a rant about lenders and how lenders work and interest rates and things like that later. I don’t like them. It think that they’re the one’s that are making all the money in these deals when somebody else is doing all the work. But, it gives you the opportunity to go out and buy a property and I have bought properties using bank loans with my credit after my credit came back after it had collapsed back in 1991 and then I had to come back and then I was able to go out and get loans. And I got a bunch of loans.

Joe: But there’s a limit to how many bank loans that you can get. Fannie Mae has anywhere from four to ten depending on whenever you’re checking this out and once you’ve reached that limit they won’t lend you any more money. You’ll have to go find other sources of income to do that. If you don’t make your payments, they will take the property back and they’ll damage your credit.

Joe: Back in 2007 and 2008 when we had that last recession before this one, there was a lot of my friends went through the same thing that I went through back in 1991 where I lost everything. And they lost everything. And they screwed up their credit and now they’re in a position where, you know, after that they weren’t able to go out and buy a property. And it took years before they could get their credit back on track, get over that foreclosure, get through those processes.

Joe: And even I – I had bank loans on properties – it became a little more painful for me as well because it eats into your cash flow when you have vacancies. So, when you have a depression or a recession like that, where we went from a 3% vacancy to a 20% vacancy rate, suddenly it created a lot of cash flow issues. Because we had to make those payments even though there were not tenants in those properties. And we had small bits of cash flow coming in from the other properties that were working, but not enough to cover those because we were so heavily leveraged in that batch of properties.

Joe: And the way I’ve been doing it, and the way I’ve done it for many years, is I’ll split my properties up into multiple LLCs so that LLCs will have to stand or fall on their own and it also creates asset protection and I’ve talked about this in other videos. But there’s ways to structure your business so that you solve those problems as well.

Joe: So, those are risky ways of buying. They’re not terrible, they create cash flow problems a lot for investors who’s income tends to rise and flow with how much work they put in and how good their business is, how well-systematized it is, how automated it is, how much they’ve done with outsourcing. All those things will fluctuate until you get good at this business and you know, it doesn’t take years to make that happen, but it does take some time to make it happen.

Joe: The other type of loans that you can do are hard money loans, or private money loans. You can Google “hard money” and you can find some hard money lenders. But typically they’re rates are very high. You know, 9% to 12% to 18%. They usually charge points, you know, and every point is 1% of the loan amount, so if they charge you three points on $100K loan, that’s $3,000. If they charge you ten points on $100K loan that’s $10,000. So you have to be really careful you don’t get crazy with your loan points because you’ll put all your profit into that.

Joe: And if you’re working on small margins, you know, you’re only buying properties 20% or 30% under market value and you’re trying to flip those properties, it’ll be very difficult for you to turn around and make a profit on that because you have so many loan fees buying and selling when you’re doing that property. So make sure you’re careful about those types of things as well.

Joe: Hard money, sometimes, if you develop a relationship with that hard money lender, you can get money that will typically go to 50% to 55%, 60% I’ve seen it sometimes, of the loan to value of the property after repair value. So, if you find a property, let’s say you find a property that’s worth $100K fixed up. And you’re able to buy it for, you know, $50K. You maybe can go out and get a loan for $50K. And let’s say this particular hard money lender says we’ll go up to 55% of after repair value. So, they’ll give you $55K so they can give you $50K for the property and maybe another $5,000 for the repairs. And the repairs, let’s say the repairs cost you ten grand, fifteen grand, you go in and do those repairs and you buy the property that way.

Joe: So, those are ways that you can do it and then potentially, after you sell that property, you’re going to, you know, pay for a realtor to sell the property, you’re going to pay closing costs, you’re going to have holding costs, the repairs may cost you more than you expected them to cost, especially if you’re not doing them yourself. And then you know, you’re going to turn around and sell that property. So, maybe end up making, you know, some money on the deal and they can end up being decent deals. But make sure you figure in all your costs before you take on this loan. And if you screw that up it’s probably not going to screw up your credit because most hard money lenders don’t subscribe to credit reporting agencies. So they’re not going to screw up your credit if you do that, although they may have a judgment against you if they take the property back and they may get a deficiency judgment if you’re in a deficiency state. And they may be able to take that property back and do it that way. So you have to be careful about that. I don’t like hard money. I think they charge way too much for what they’re doing. And I think it’s better to learn how to do this without using any of your own money – or without borrowing any money from a third party.

Joe: Stay with the buyers and the sellers. That’s your source of real value if you want to buy properties with zero down. They say that you need money to make money. But I say if you can’t make money with no money you probably can’t make money with money. So learn how to do it without money first and then you can always take that money and invest the money that you make by buying with no money down. And make sure that you do it with buyers and sellers – borrow from them, not from lenders.

Joe: So, if you’ve got a seller, do seller financing. If you’ve got a buyer, have the buyer come in with down payment to help finance your purchase. Those are things that we do all the time and those are the main things that I teach in this business. So, let’s take a look at how to buy properties, what type of financing structures to use when you’re buying with seller financing.

Joe: I have what I call the hierarchy of zero down structures. And I call it the hierarchy because it’s a hierarchy of control. It determines where you’re at in the structure, determines how much control you have in the deal. You need to have as much control in a deal as possible. You have to assume that you’re the most ethical person in the room. That means that you have to be in control of the deal if you want the right thing to be done. So, you know you’re going to do the right thing, be in control of the deal so that you can do the right thing.

Joe: If somebody else thinks that there’s another thing that is more right than you, then they’re going to do that other thing instead and that may not be to your advantage. So make sure you use the structure of zero down hierarchies so that you can make sure you’re in the top position in any particular deal that you’re doing. So let’s take a look at them. I’m going to do these real quickly. I’ve covered all these structures in some of my other videos, so you can go to JoeCrumpBlog.com and you can get that information there. And I also give out a lot of free information in my newsletters so it might make sense for you to sign up for that as well – it’s free.

Joe: So, the first one is Subject To. And taking properties subject to the existing loan. That means that the person who has an existing loan on the property, let’s say we’ve got a $150K property, they own $125K, they’ve got 27 years left on their mortgage and they’re payment is $800 a month and it rents for $1,000 a month. So, you take over this property, they deed you the property, and you’ve got a little bit of cash flow in there so you can rent that property out. Or, you can sell it on a lease option. And you can make a chunk of money right there at closing.

Joe: So, let’s say I take that property, I start making the payments a month from now, they deed me the property so I own the property now. The loan is still in their name, I didn’t qualify for that loan, I didn’t talk to the lender. All I did was have them deed me the property in front of a notary. I record that deed. Sometimes I’ll use a title company to do that, depending on where I’m at. Some areas allow it, some don’t. And then I own that property.

Joe: And then I’ll turn around typically and sell it on a lease option. So, I’ll got out and get maybe $10,000, $5,00 in cash $5,000 as a note from a new buyer. And they’ll give me five grand to take over that property plus the first month’s rent. And then they’ll move into that property at $1,000 a month. I’ll be paying $800 a month and I’ll get that $5,000 in my pocket plus maybe another $200 a month for the $5,000 note that I carry for their down payment. And that’s going to be my income on that property over the next three years.

Joe: And then if they decided to exercise the option, I’ll have sold that property probably for $140K, $150K, $160K, a little bit more than market value. So, I’ll have some equity in that property even with the down payment that they make. So, maybe I’ll make $20K if they exercise the option. If they don’t exercise the option, that’s even better and I’ll get to keep that property and it’ll probably go up in value during that time and the rents will probably creep up a little bit. So, I’ll turn around and I’ll maybe rent that property out for $1,050 next time, and I’ll get another $5,000 as a cash down payment, another $5,000 as a promissory note, as a monthly payment plus of course I’ll get my cash flow on that. And I’ll continue to make the payments on that existing loan until I’m ready to sell that property or until somebody exercises the option.

Joe: So that could be, you know, five years from now, it could be twenty years from now, it could be twenty-seven years from now and I still have this property and suddenly I’ve got it paid off and now I can take that property entirely. So, this is a great way to create income, a great way to build wealth over time. Also, the other money that you’re making on that property, by the way, and I guess I’m getting into subject to a lot more than I was planning to, but, the other way that you make money on a subject to or holding any property is you get the buy down on the mortgage every month. So, on a $125K property, on a 27-year note that you’re probably getting about $150 a month which is going toward principal every month. The rest of it is going to taxes and insurance every month.

Joe: So, $125 a month, that adds up to $1,800 a year. You also get depreciation on that property and they’re going to depreciate it based on the improvement value of the property, let’s say that’s $100K at 27.5 years, they depreciate, which is 3.64%, which is about $3,600 a year of depreciation. So I take that $3,600, $4,000 – whatever it is – and depreciate that from my taxable income if I’m an active investor. And then I can, if I’m in a 30% tax bracket, that saves me $1,200 or so. So, I make another $1,200 right there. Plus, I get the cash flow. If I’m making $200 a month on cash flow, there’s $2,400 there. If I’m making $200 on the promissory note, there’s another $2,400 there.

Joe: So, each month there’s multiple ways that I’m making money on this where I’m making $5,000, $10,000, $15,000, $20,000 a year on each property that I own. Of course, if it goes vacant that’s where it becomes a problem. That’s what I was talking about earlier, going through a time when life gets difficult. And I think we’re going to see some of that over these next few months as well. Right now, for those of you who are watching this in the future, I’m at home with, you know, the Corona virus is going, you know, so we’re locked at home, not going anywhere. That’s one of the reasons I’m making these videos. But you can also do this stuff at home and I’m going to talk about some of that in a different video as well.

Joe: I think one of the beauties of having real estate investing is that you can do everything from home. You never have to leave if you don’t want to. And being locked up here at home has not been a hardship for me because I work at home anyway. Anyway, let’s go back to the zero down structures.

Joe: The second level is Multi -Mortgage. It’s the same as Subject To except if you have equity in the property. So, let’s say you have a $200K property and the owner owes $120K on it. And they’re willing to sell it for $160K. But they want that $40K of equity. So what you can do is put a second mortgage on there of $40K. So, they’re deeding you the property, you’re taking over the deed, you’re going to be making payments directly to the bank for your first and then you’re going to have a second mortgage that’s filed on that property for $40K which is the equity and the lender is going to be the seller. So you’re going to be making payments to that lender, to that seller, of whatever you decide on. Make sure you have enough cash flow in the deal to buy that property.

Joe: I don’t use this one very often. I just try to get the best deal that I can when I do Subject To’s. And, the more you’re paying out every month, the less cash flow you have and the more challenging it becomes on Subject To’s, so be careful with your cash flow on Subject To’s. Also, remember on Subject To’s and Multi-Mortgage’s, or any property that you buy, you know, and then turn into a rental property or a lease option property, you’re taxes are going to go up. You’re property taxes are going to go up. Almost every area has that happen.

Joe: In Indiana it goes from 1% to 2% of the assessed value. So, if the taxes right now are $500 a year for a particular property, it’s going to go up to $1,000 year. But the thing is, sometimes they also get tax benefits on homestead exemptions and mortgage exemptions, so each area is a little bit different on how they do that. So, check out what your exemptions are because maybe you’re five-hundred-dollar-a-year is 1%, but they’re only paying $250. So you’re looking at hey, $250 a year for the taxes. That’s not bad at all. But then suddenly it goes up to $1,000 when you take it over. So, make sure you understand that and build it in to your cash flow. Because if you only have $100 a month positive cash flow and your taxes go up $100 a month, suddenly your cash flow goes to zero.

Joe: Doesn’t mean it’s a bad deal or doesn’t mean that you shouldn’t do it, it just means you’ve got to be careful with your cash flow.

Joe: The third type of zero down structure is Land Contracts, or Contract for Deed. It’s a land contract if you’re in a mortgage state and it’s a contract for deed if you’re in a trust deed state. Indiana’s a mortgage state. Illinois, California – trust deed states. But they work the same way. All it is is a document that says on it here’s how much I’m paying for this property. Here’s the interest rate I’m paying, here’s the monthly payment I’m paying, here’s the amortization, here’s when it’s going to be paid off, here’s what happens if there’s a default. You can get land contracts in my PushbuttonAutomarketer.com. You can get land contracts in my mentor program. And you could also go to an attorney and you can get land contracts from them as well.

Joe: And those land contracts are simply a piece of paper that if you’re buying the property you want to record that land contract and secure your position so they can’t go out and sell it to somebody else without going through you first. If you’re selling a property on a land contract then you don’t want to record that paper if you can avoid it. If they want you to, then you record it. But if they don’t ask, then put that paperwork in your file and then pay them and be honorable with your process.

Joe: So, it doesn’t transfer the deed. So you don’t have as much control as you would with Subject To or Multi-Mortgage. But you do have a lot of control and it gives you an ownership position which is pretty solid. So, land contracts are not bad. And my favorite way to do these deals is with buying a property on a land contract that’s either in a rural area or an urban area that’s very low-priced. And if you’re in California and there are no low-priced places around you, you could do this in Tennessee, or Indiana, or Ohio. You can do this anywhere that the values are less expensive.

Joe: So, let’s say you buy a property for $50K on a land contract and you’re buying it directly form the seller and they don’t have a mortgage on that property. When you find properties that are cheap, a lot of people don’t have mortgages on them. They bought them for $30K ten years ago. So, now you’re buying it for $50K from them. And you’re going to figure out your payment, say, okay, I can make $800 a month on this property. It’s going to cost me $200 a month in taxes and insurance, maybe another $100 for property management, and then maybe another a couple of hundred dollars for cash flow.

Joe: So, let’s say I’ve got $500 out of an $800 a month payment. That gives you $300 a month that I can pay on that mortgage. So I can take that $300, I can divide it into $50K and that’ll give me the number of months that I can pay that off. And what you’ll find is if you’re paying zero-interest loans, you’re going to pay them off in about a third of the time. So, a property that would take you thirty years to pay off will pay off in ten years.

Joe: If you’re buying $20K and $30K properties that maybe you put five or ten grand of work into and fix up and sell on a lease option for $50K, $60K, $70K, which is a lot of what I’ve been doing lately, if you do those types of things you could pay those properties off, those land contracts off, in five to seven years.

Joe: And you’re completely free and clear after that and everything is positive cash flow after that. This is my favorite way to buy properties. And it’s not that difficult to find those types of deals. And I learned that method, by the way, from a couple of my students who started doing it. I said, “You’re getting people to allow you to do this with zero interest?” And they said, yeah. And I said I’ve got to try that. Because they were doing lots of them. And so we started doing it. This has been years ago, now. But we started doing a lot of them and now we own properties that we’re paying off very, very quickly because of this. That’s one of the fastest ways to build cash flow. I know these are cheap properties, not very sexy, but the financing is sexy. And owning the properties is sexy.

Joe: You’re probably never going to go to these properties if you’re like me. I’ve got somebody else managing the properties – I never go to them. I never see them. I never talk to the tenants. I never deal with any of that stuff. So, as long as you’re in an area that you can get professional management, and I’m talking about licensed, professional management, somebody who’s competent and can do the work and won’t cheat you, and has transparent business practices that you can look at where the money is coming from. If you can do that, then it doesn’t really matter how sexy the property is. Doesn’t matter if it’s a beach front property or whether it’s in an urban area that it might be a little bit depressed. And maybe, hopefully, on the rise. You want to buy in a down cycle.

Joe: All right, so, that’s Land Contract, Contract for Deed.

Joe: The next one is Lease Option. And a lot of the properties we sell we sell on lease option. I never buy on a lease option as an investor. It don’t think that that’s a good strategy. I don’t like sandwich lease options. I think that puts you at too much risk and doesn’t give you enough control. So you want to have more control by doing a regular lease option. That person moves into the property, they give you a down payment for the property. Let’s take an example.

Joe: $150K – my go to number – $150K property. Let’s say you’re buying it from the seller for $150K. And all you’re doing on these is, you haven’t purchased the property. All you’re doing is flipping this property. So, let’s say you’ve got a property for $150K, and I raise the price to $160K. And I’m going to try to get $10,000 for the down payment. I’m going to try to get $5,000 cash, $5,000 as a promissory note that pays out at $200 a month for two or three years.

Joe: So, I go out and find a buyer. I advertise at $160K, with $10,000 down. I usually advertise it as “down payment required,” not the specific number because I want to negotiate that number with the buyer. And we have very specific ways on how we do that. So, they come in with a down payment of $10,000. Now they owe $150K to the seller that is selling that property. So I’m in and out of the deal, I made $5,000, I’ve got a promissory note now of $200 a month that’s going to pay me $5,000 over the next couple of years. That’s a very simple, easy way to do this. I call this the For Rent Method, and it’s what I teach my mentor students to do when they first get into my program so that they can start making money very quickly. And the don’t have to worry about any risk at all buying these properties with zero down.

Joe: The For Rent Method, I think is the ideal way to learn how to do this business. Now, you’ve got to give yourself time to learn how to do it. I tell my students three to four months before you can expect to make money doing these types of deals, but once you learn how to do it it becomes a lot easier. And once you learn how to do it you can do it regularly over and over and over again by creating systems. And the systems that we use are a program that I created called Pushbutton Automarketer. And you can go to PushbuttonAutomarketer.com and get this system for yourself and you can use this system. It’s a turnkey package that allows you to find properties and allows you to manage those properties and manage the leads and it’s a marketing system to help you build your business and to run your business over time. And to build a team of people who are going to work with you where you outsources that work.

Joe: And it has nearly every function that you need as a real estate investor to help you run the business. So, something that’s worth looking into in addition to perhaps the mentor program where I can help walk you through this process and teach you how to do it personally.

Joe: So, that’s Lease Options. Lease options are a great way to sell properties. Again, don’t buy them this way. But sell them this way because it’s easier to get rid of somebody who buys on a lease option who defaults than it is to get rid of somebody who buys on a land contract. And it’s impossible to get rid of somebody who bought Subject To if you ever sell Subject To, so don’t sell Subject To as well. That’s why you have to do this ethically because I’m giving you, with this information I’m giving you a lot of power over the people that you’re working with in the transaction.

Joe: And if you use this hierarchy properly, you’re going to be the one in control. And because you’re the one in control it makes you responsible ethically to do the right thing and watch out for them and treat them like they’re your family.

Joe: The last way to do zero down structures is Assignable Deals. And this is often called wholesaling. There’s a lot of classes out there that teach wholesaling. Basically, it’s going out and getting a property under contract which is what we do with everything. But, getting a property that you’re going to buy for cash under contract. And let’s say you go out there and you have a $100K after repair value property that you’re able to get for $50K. You turn around and you put it on the market for $55K. You get somebody to give you $5,000 to take over the contract. Very easy, very straightforward. The trick is finding that deal.

Joe: And once you start doing a lot of these, and you start making capital, you’re not going to want to sell them to somebody else on a wholesale. You’re going to want to keep those properties. So I don’t wholesale anymore. I just keep the properties myself. We sometimes do rehab, sometimes we’ll flip them on terms to another investor. But I don’t do straight wholesales personally anymore. But it’s not a bad way to get started. And you can do it with absolutely no money if you come across the deal. The trick is, though, if you look at the difference between doing the For Rent Method and doing wholesaling, there’s ten, twenty, maybe thirty times as many deals that are available to do with for sale by owners with using the For Rent Method and lease options than there are deals that you can do wholesaling deals.

Joe: And also, the wholesaling deals require somebody with cash, somebody with substantial amounts of cash, where the lease options don’t require as much cash. So there’s a much bigger pool of buyers as well as sellers. We also find a lot of our For Rent Method deals through the for sale by owner classifieds on craigslist and Zillow, and that’s what the Automarketer uses. The Automarketer goes in and scrapes those databases, gets the phone numbers and then sends text messages in sequences over time to those sellers saying, “Hey, would you consider selling your home rent to buy?”

Joe: And then we get responses, yes or no, and then we continue to drip on those people over a three-month period and we have websites that market to them that explain how the process works, that give them an opportunity to fill out a form and say yes, I’m interested. And we’ve got three different seller websites, ones that are talking to people doing the For Rent Methods, ones that are talking to people just doing straight wholesaling deals, or regular deals, I guess, conventional deals. And then of course we’ve got the Subject To website as well that explains the Subject To and how that works. And that’s all part of the Automarketer and it comes with that monthly expense, your infrastructure expense.

Joe: So, those are the different types of zero down structure hierarchy, financing structures that you can use. And that will encompass everything that’s out there. There aren’t any other structures. There’s some other things that are called different things, wrap around, things like that. But they’re just different variations of what I just gave you.

Joe: So, let’s spend a minute talking about how to find these properties. The Automarketer is, I believe, the best way to find these properties. You’re going to get, there’s so many people to go after, because everybody who’s selling their property themselves is not going to succeed. 85% to 95%, according to the National Association of Relators, for sale by owners, do not succeed. They either take the property off the market or they list it with a real estate agent.

Joe: This is why for sale by owners have been such a good marketing source for real estate agents because that’s how they get listings because they can develop a relationship with those for sale by owners, they can list their properties when they fail as for sale by owners.

Joe: The very fact that people are selling for sale by owner shows us that they don’t really have a clue about what they’re doing. They might get lucky, you know, and again, 5% to 15% do get lucky and they get their property sold and that’s great when that happens because it does save them money as long as they don’t screw up the transaction, which most lawsuits in real estate are with for sale by owners and their clients – not with real estate agents. Real estate agents screw it up a whole lot less than for sale by owners.

Joe: So, anyway, if they do get it sold, great. But if they don’t, they’re going to need some help. And so the Automarketer goes in and scrapes those leads and then it asks those people, “Will you consider selling your home rent to buy?” It also asks them questions like, “Would you consider selling your home under market value? I buy properties under market value. I’m an investor.” And we have that.

Joe: We also send them text messages during this drip campaign that says, “Go look at my website. This explains how I work and how the For Rent Method works.” Or, go to my website, another website, and this one explains how we can buy properties in any condition. It doesn’t matter if they don’t have any equity, it doesn’t matter if they’re in bad condition or good condition, or beautiful houses. Doesn’t matter. We can buy these properties. There’s another site for that.

Joe: And the other site is we can buy your property Subject To. And there’s another text that goes out that sends them that link so that they can go to that site as well. And then we keep track of how many times people click on these and then we follow up with these people. And you always want to follow up with these people by phone. Either you’re going to do it or you’re going to have an assistant that does. At the beginning, you’re going to be doing all the work because you have to get good at it.

Joe: And it is hard to outsource it to somebody else and train them unless you can do it yourself. So make sure you learn how to do it first and then get that out to them as well. So that’s one way to find the properties. I believe is the fastest, easiest, cheapest way to do it. Typically, those leads are going to cost you $1.00 to $2.00 per lead and if you’ve ever done any marketing for motivated sellers, you know that that’s dirt cheap.

Joe: Typically if you’re going to be using snail mail or other types of advertising, Facebook advertising, if you’re paying for that type of stuff, you’re going to be typically paying $20 to $40 per lead for those deals. And with snail mail sometimes it’s going up even higher than that. We have a snail mail campaign system in the Automarketer that allows you to send out postcards with just a click of the button and it’s still the cheapest way around to do it because you can send bulk and you can, you know, have somebody else do all the work and all you have to do is click the button and click the template that you want and it’ll automatically fill in the forms with their names, the sellers’ names and your information and the property address and all that stuff will all be taken care of for you.

Joe: It’s sent to a house that does all the mailing, she does all the physical mailings for us. And you can do that it doesn’t cost very much to do it. It’s one of the cheapest services on the market right now. But still, when you do that, you’re going to be looking at $20 per lead or more. I’ve seen leads come in as cheap as $10 a lead. But you better be good at converting those leads before you do that.

Joe: One of the things that we do is upload absentee owner leads, or expired listing leads. And sometimes we can’t get their phone numbers so we’ll send out snail mail to those leads and even at $10 or $20 or $30 per lead, if you’re good at converting leads, you can make thousands and thousands of dollars. So, even if it costs you $500 to get a deal together because you had to pay for enough leads to make that happen, or $1,000 to put deals together, if you know you can make $10,000 or $20,000 on a transaction, then it’s not going to be a big stretch to spend $1,000 to make that happen.

Joe: It’s just difficult if you’re getting started and you don’t have much money and you don’t really know what you’re doing and you’re saying I’m going to risk this $1,000 of marketing fees and I don’t know whether or not I can actually succeed at it. So, why not do it the cheaper way using the Automarketer, using the techniques that I give that’s going to give you a lot more leads for a lot cheaper. And then you just have to kind of wade through those leads.

Joe: So, anyway, finding the leads is not the difficult part. The difficult part is how to talk to those leads, and how to explain what you’re doing and how to work with them and how to help them see what makes the most sense for them, how to help them structure the deal in a way that’s most beneficial to them.

Joe: When you’re going about this business, if you’ll go about it in a way that is trying to serve instead of trying to take, and you’re going to work as a counselor rather than somebody who’s trying to twist somebody’s arm and try to screw some old lady out of her equity. You know, go in there and help them make the best deal that they can make and say here are your options. You can work with an agent. You can do this for sale by owner. You can do sell this dramatically under market value. You can sell this on terms. And here are the different ways I can do it on terms.

Joe: And what I find is that most of the time what we’re suggesting for us doing it for them is going to make them the most money in the shortest amount of time overall, and doing the lease options with the For Rent Method is one of the best ways to make the most money in a deal. You don’t have to squeeze anybody to make that happen. You can give them full price for their property. You don’t have to go in there and ask them for 50% under market value to make that happen.

Joe: So, getting all these leads – not difficult – if you have automation that can help you do that. The Automarketer can help you get to that place. You can also hire people, outsource this work, and have them do that marketing for you without the Automarketer. It’s cheaper to use the Automarketer, but we used to do it before the Automarketer. We used to do it by outsourcing to other people. And before that, we did it manually. So you can do this manually, too, without spending a dime. Just go onto craigslist and start calling those people and ask them if they want to do rent to buy.

Joe: And eventually you’re going to find somebody who does. Even if you don’t know what the heck you’re doing, eventually you’re going to get there. But if you know what you’re doing, it makes it a little bit easier. So, use the training that I’m giving you here to make that a little bit easier for yourself.

Joe: All right, so you see now that you can buy properties with no money and it doesn’t have to come out of your pocket, you don’t have to go begging to a bank, you don’t have to go begging to your family. You can make this happen and you can build your business over time and it can be a phenomenal business. I’ve had so many students that have done this.

Joe: If you’d like to learn how to do this personally from me, you can get into my mentor program. Go to ZeroDownInvesting.com. It’ll explain how my mentor program works. If you want to use the automation that I’ve been talking about go to PushbuttonAutomarketer.com and it’ll give you all those details. If you’re on YouTube remember to subscribe to this channel and hit the little bell and it’ll send you a notification every time I send out a new video, which I’ve been doing a lot lately.

Joe: Take care of yourselves, and good luck with your business.