How To Get Started In Real Estate With No Money | How I Bought My First Property For Free

Want to know how to get into real estate with no money? Here's how to buy a house for free using BRRRR method. I provide a real life example of how I bought my first rental property for free and what you should look for so you can do the same. It's absolutely possible to get started in real estate with no money using BRRRR strategy

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My real estate investment strategy is to "buy and hold". I prefer not to flip or wholesale, I like to purchase properties and keep them for the long term. In this particular example I show my strategy for buying real estate for $0 using the BRRRR method
Buy, Rehab, Rent, Refinance, Repeat

Infinite return is simply a measure of ROI which stands for Return on Investment. The way in which you calculate ROI is simply how much money you profit by the total investment. For example if you invest $100k and you get $10k in profit each you are receiving a 10% ROI (10k/100k = 0.1 = 10%)

To get an infinite return you must be in a situation where you have 0 dollars invested into the property and still be able to collect profit. So how do you do that?
STEP ONE. Assess Market
You must start learning the market you are looking at purchasing property in. The key to getting the highest ROI and even having a chance at achieving an infinite return on investment is knowing your market and knowing when you are getting a great deal. Make sure you know what the typical price per square foot is so when you do find a good deal you can jump on in.

STEP TWO. Determine ARV
Before you purchase your property you must know what the ARV is going to be (After Repair Value). You want to make sure you get the property for as cheap as possible and put in repairs that will give you the highest return on your money. Not all renovations are equal. I added a bedroom and a bathroom which really helped me get a higher ARV.
STEP THREE. Determine All Cost In Based on 70% Refinance
Once you have an idea of what the ARV will be, take 70% of that to see what your total cost should come out to, to guarantee an infinite return. Typically cash out refinances are only let you cash out 70-80% of the property value (depending on lender and situation).

REHAB
STEP FOUR. Find Property That Fits The Criteria
Once you have an idea of how much the typically ARV goes for you want to secure the property that allows you to purchase the house and do renovations while still being under 70% of the ARV.

RENT
STEP FIVE. Rent Out Property
Once you've renovated be sure to find a tenant for your new home. Make sure they are highly qualified an make at least 3x the rent to give yourself a better chance of not having to evict the tenant. Also be sure to do a good screening with previous landlord to know that they will take care of the place.

MY EXAMPLE:
I was able to purchase a REO (real estate owned) property from the bank in Ohio for 19k. It was a foreclosed property with 2bds and 1ba. Instead of using my own money I was able to secure a bank loan of 25k at about 5.5% interest over 5 years. This allowed me to purchase the property and put some money towards renovations.

After adding an extra bedroom and bathroom to the property, extra cosmetic repairs, holding costs, and some learning curves since I did this out of state and have never seen the property, I spent about an extra $20k of my money renovating the place. My property then had a ARV of $65k (ARV = After Repair Value)
Once I refinanced I was able to get the loan paid off, I made some money on the profit and still able to collect a few hundred dollars a month in profit. This is great considering that I haven no money invested and am able to collect a profit each month.
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$0 House
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Видео How To Get Started In Real Estate With No Money | How I Bought My First Property For Free канала Shaun Surgener