hey if you're anything like me you want to know how to buy real estate with no money I've been doing this since I was 30 years old my first deal I put 3500 down hey look I count that is no money almost no money I literally put $3,500 down on a $78,000 asset they cash flowed from day one no money doesn't mean no money it means either a little bit of money or somebody else's money I'll make more sense of that just stick with me here okay second house I bought I bought with no money zero it was $92,000 ,500 okay I would end up selling this property for $125,000 I made 30 grand with no money invested third deal that I bought and you've heard me talk about this before I bought for $1. 9 million the owner the guy before me had paid $5. 1 million to build it I paid 1.
9 I put $350,000 down you're like I thought you said this was about no money down I borrowed all this money I borrowed some of it from my retirement account by the way I literally withdrew money from my retirement account for a short period of time would put it back in later when I rehabed this property and got a loan on it I'll explain that to you I borrowed some from my mom I put some money on my credit card I took some money out of my business and borrowed the rest of the money from other family members that was no money down now I did owe people money so that deal worked like this it was 1 . 9 million remember the guy before me had spent 5. 1 this was doing a major correction late 1990s 600 Banks had gone out of business in America some of you are too young to remember this happening but it's happening again right now there could be 600 bank failures and you need Banks going down I don't wish for this but you need Banks going down and having problems to have a real estate correction we're in the greatest real estate correction since 20 maybe since 1996 and there's going to be a great opportunity for you to steal real estate that somebody paid it looked like too much that property by the way is worth 20 million today even though I paid 1.
9 million so watch I went and put together 350,000 the most important number in real estate is the number of units but the most important step in real estate is the deal itself once you find a deal you will always find What's called the down payment the equity or the money you guys call it cash you're like I need some money I don't have any money you don't need your own money you need somebody's money by the way this 1. 65 is debt that's other people's money by the way the bank gave me this loan based on the property's value and income not based on my ability to repay the loan this is the beauty of buying multif family multif family allows you to borrow money from a bank anny May or Freddy Mack or a commercial lender or Regional lender allows you to borrow money that has nothing to do with your credit score so this is other people's money too this is the best debt you will ever get in your life because the property it was called Cedar Woods LLC okay it's still available today and I think it's for sale right now 25 30 years later that sold for $1. 9 million I put $350,000 Down video says completely no money down look that's the money down I'm I'm having to put the money down somewhere but watch what what happened to this okay this is how I raised this money I took the 1.
95 put $350,000 down I owed friends and relatives my IRA uh my credit card my brother my mama okay I borred this money put it together some of it was from my company I borrowed money from a company called Cardone Enterprises at the time I need to borrow $75,000 from that and I used this as a down payment okay I financed $1. 6 million that cash flow you need cash flow to get this loan the bank's not going to give you a loan without the cash flow the cash flow was 12% on the $350,000 which was about $42,000 a year in cash flow how did I pay back my retirement account how did I pay back my brother and my mother I paid them back on the cash flow from the real estate I paid back my company on the cash flow and I did that for 37 months until which time somebody paid me $5. 1 million I paid off my $1.
9 million loan I paid off the $350,000 that I ow to my retirement account my brother my mom my sister okay and I had uh this is 1. 6 I had $3. 2 million $3.
