How To Buy Real Estate If You Don’t Have Money


I get asked just about every single day, “How to buy real estate with no money?” And today, I’m going to show you exactly what to do. Real estate is very expensive. This house costs $150,000. Because real estate is so expensive, it’s also the best tool I know to become wealthy really fast. If you found a house like this on sale for $120,000 and could turn around and sell it for $150,000, you could make $30,000. This is real. Could you imagine making $30,000 from just one deal? I’ve done it hundreds of times. I’ve helped my clients do it thousands of times. And often, it’s for way more than $30,000. But how do you buy a house like this if you don’t have $150,000? I’m going to show you. Now, if you want to buy a house but you don’t have that much money, you can always go to a bank and a bank will loan you the money. They call that loan a mortgage. Now, in order for a bank to give you a mortgage, so that you can buy the house. The bank will ask you for 3 things. Let me show you exactly what those things are. Alright. So, check it out. The first of the three things that you’re going to need is a job. Now, I don’t care how young or how old you are. You got to land a job and you should land the best job that you possibly can, right? I mean, get a job that’ll pay you as much as possible. That’ll help. I mean my first job didn’t pay me a whole lot. But I’ll tell you that the whole point here is you got to have a job and you got to be in the same industry for at least 2 years. So, technically you could move from one job to the next but if you do, you don’t want to move from like dentistry to accounting, right? You want to stay in the same line of work for 2 years. That’s really important to banks. Now, the other thing I want to share with you is that actually I’m right outside the building of the first job I ever had. And the first job I ever had was actually in sales. I’m just going to tell you right now, just a little little bonus tip is that if you get a job in sales, there’s a lot of useful things you’re going to learn that’re going to help you in real estate. Because real estate, even though, it looks about looks like it’s about buildings, and brick and mortar. It’s actually just about people. And it’s about how you communicate and how you work with people. And like most things pay really well in life, sales is a really important thing. So, they’re going to train you. Okay, so the first thing the bank needs from you to qualify for mortgage is a 2-year work history at the same job or in the same industry. The second thing they’re going to need for you to have is good credit. This shows them that they can trust you. It also shows them that you’re responsible and that you can handle having a mortgage. So, how do you get good credit? Well, you need 3 credit cards. You need to be careful here. If you use the credit cards the wrong way, it can backfire on you and it can make it harder for you to get the house. So, here’s the right way to use the credit cards. First, you need to get 3 of them. Go to banks like this or you can go online and you can apply for very basic credit cards. We’re not looking for anything fancy. And it’s okay to tell them that you’re using them to develop good credit. Now, this part is really important. Do not use them to buy stuff you don’t have the money for. Only use them to pay for things that you already have the money to buy anyway. And here’s the secret. Let’s say you have a $100 and you’re going to buy some new clothes, use the credit card and buy the clothes and immediately make $100 to the credit card, so that you have it paid off. Every time you use a credit card to buy something, you need to quickly turn around and keep it paid off. If you do this with these 3 credit cards, you’ll develop a good credit score in time. Okay, are you ready for the third thing that the bank needs to give you a mortgage? Now, you remember that sales job that we talked about? This sales job, at first even though was hard and it was challenging, it actually allowed me to earn some commission’s on the side which is one of the reasons why I recommend it. In fact, if you can put yourself in a position where one way or the other, you can save an extra $500 a month. That’s going to help you with the next thing that the bank is going to ask for which is a down payment. Now, how much of a down payment are you going to need? Do you remember that $150,000 house? For just a moment, let’s just say that it is worth a $150,000 but that you can get it for $120,000. So you’re getting it out of discount a $30,00 equity position that you get to have if you ever sell that house. So, banks will often require a 3% down payment. 3% on $120,000 is roughly $4,000. So, $4,000 plus maybe a little extra savings is what the bank’s going to ask for you to have when it comes time to actually buy that house. So, just imagine for a moment that you are delaying gratification on some of the nicer things you’d like to have and you’re saving $500 a month. Well, if you did that for 2 years, you’d actually save $12,000. More than what you actually need to make this whole deal go down. Okay, so now you know what to do to qualify for the mortgage. Now what? Well, you need to look at a hundred different houses for sale. And pick the very best one. Not the house that’s the best but the house that has the best numbers. First of all, you’ve got to look in the right neighborhoods. If you look in San Francisco or New York City, those houses are going to be way too expensive. You’re going to have to look a little ways away from home to find houses in the right price range. And what if you don’t want to live in a house like this? And check it out. This is where I live right now. I designed and built this house just 4 years after buying that very first house. Using the exact same strategy that I’m teaching you right now. This is the very first house that I bought. Now, check it out. It’s not a dream home. But I bought this house for a $110,000. I later sold it for $165,000 while making incredible cash flow along the way, down payments doing my lease option system. Now, what I want you to understand here is that on your first house, you can do it right or you can do it wrong. And what I mean by that is, you got to buy the right house. Don’t buy the wrong house. The difference is that you got to fall in love with the deal. You got to fall in love with the numbers not the house itself. Biggest mistake that people make is they think that their first home should be their nicest home that they can possibly afford at this time in their life and right now that is not the case. This house is about spawning several more because I when I bought this house, 4 and a half years later this was my house. And my real estate was paying me $12,000 every single month. I was able to quit my job. That’s what I call retirement. Now, this all happens since the age of 26. Now, I’m 38 and I only work because I want to. My real estate today is making me a lot more than $12,000 per month and I only put in a handful of hours. So, I get to play a lot and I get to focus on only doing the things that are important to me. But before I lived here, I lived here. Now, this wasn’t my dream house. This isn’t where I wanted to live but I made some sacrifices and in a moment you’ll see why. And before I lived here, I worked here. I had a 2-year work history. I saved up my $4,000 down payment plus had a few thousand extra in the bank for an emergency fund. And I used my 3 credit cards responsibly to develop a good credit score. This was not my dream job. In fact, I often really didn’t like work in this job. But I had a goal which was to buy real estate. So, I kept working here. And I saved as much as I could every single month. Okay, earlier I instructed you to look at a hundred houses and buy the one that had the best numbers. Now, there’s a couple more things about this house that I want to show you. Meow. Okay, check this out. You’ll notice that there’s a couple of doors on this house. Right here, there’s one right on the front, right? I lived upstairs. That was my three-bedroom one-bath. But down this little behind the car on the side, that’s a doorway into the basement. So, what made house works so well for me is that the basement actually brought in some rent. And by the time I bought this house and refinanced it, I basically was bringing in $550 from the basement and my mortgage was around $550. So, guess what that really meant. That meant that I was living for free. Now, by the way, this was better than the hole in the ground that I was living in the 400 square feet but I was living there, not my dream apartment, because I was saving money. Same thing on this guy’s. Not my dream house but this house what was dreamy was the numbers on it. Now, some of you going to look at this and say, “Kris, I can’t do that. That’s way too hard.” Remember how I talked about looking at a hundred homes to make this worth it? And to tell you right now, you might have to look at a hundred deals. But when you find the right one, it makes all the difference in the world. Look, this is the best way that I know how to get started in real estate. Your first house may not have a basement, apartment like this one did. But I’m going to tell you right now. It took sacrifice, it took hard work. And it was totally worth it because I followed my rules and I did it the right way and now you know how to do it, too. If you’re new to this channel, I’ll teach you about real estate, Bitcoin, money entrepreneurship and wealth. Really the goal of this video was to paint a clearer picture of what’s possible with real estate. And how to get started when right now, you don’t have any money. Now you know. But I’m sure you still have a lot of questions. Tell you what, subscribe to this channel and then put your questions in the comments below. I create new episodes every single day. I’ll answer them for you and I’ll give you the answers to the information that you’re looking for. If you also want to take a more aggressive start, then what I want you to do is actually click the link in the description below and you can actually talk to my team. We’ll give you a private consultation and show you how I can become your mentor and help you get started as quickly as you can.

100 thoughts on “How To Buy Real Estate If You Don’t Have Money

  1. Didn't know you bought your first home in utah
    I lived in utah all my life
    What sales job would you recommend ??

  2. Can you please help me in about 7 years? Or mentor me to get me down with the knowledge to get into retirement at 26

  3. Excellent video appreciate your truthfulness! I am sorry for sharing this web-site here EasyLaptopLife .Com however it has helped me a lot and if it can benefit a minimum of one more person I would say it's worth it.

  4. When you're talking about "the numbers" what are the numbers? How do you determine the future profit on a property? I am so inspired and moved by your videos, your enthusiasm and your simplicity.

  5. Did you go to school like college because how can you manage to pay 💰 mortgage and school and going to job ?

  6. 3%?! What bank will give you a loan at 3% down? Please let me know because I'm buying a house tomorrow if this is true. As I understand it, they expect anywhere from 15-30% on most applicants.

  7. I am Nigerian and it seems that this investment tips is not for me, yet I am positive as regards real estate.
    truth is I am still a regular student. I wish to retire young, I need your advice…

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  9. I love you I am 14 year old boy and it helps to achieve something great thanks for your advice you are the best and you can even motivate people

  10. Hi Kris. Huge fan of you. You are amazing. How can I talk to you. Or one of your team members. I have a couple questions. I'm ready to start. But I have a couple questions.

  11. ey kris this video will probobly help me in the future when i got 18 right now im 13 and thanks to you i now have a clear goal

  12. Great video Kris and your stories makes me more interested in real estate everytime but the problem is everytime I try to apply to any job I never get it because they always need at least one year experience and that's with any job so how am I going to get the experience if I never get hired??

  13. Awesome information. I do want to ask you how do you determine what the actual value of a home is? I know you mentioned you bought your first home for 110k but how did you know it was worth about 160k?

  14. Sir, mortgage loan is give by keeping any assets in it . How bank will give mortgage loan by considering the house what we are about to buy by taking same mortgage loan ? Please explain Sir

  15. I know you said the highest paying job will help with saving for a down payment, but will it be possible with one or two minimum wage jobs?

  16. why the f#*k do I need a job? I can just go to a seller and he will get a morgage and sell me the house, and the morgage will fall on my back???

  17. When you buy a real estate, do you buy it on your name or buy it thru opening a business? Does LLC would be better?

  18. I have a question. When applying for a home if you don’t have the 20% or so to put down for the investment property should you say its for yourself to only have to put down a smaller amount as well as to get the interest breaks ?

  19. Could you just do seller financing and someone(seller) carry the loan instead of you and not wait 2 years. Pay payments monthly. And capitalize on appreciation with no credit.

  20. So once you buy that cheap first house, how long do you live there while renting it out? Do you eventually move out and fill in a second tenant? Or do you sell the house? How does that work?

  21. So, for example, I bought my first property after loans and stuff. now I got $30k from equity and I can't afford my second house.what's the plan??

  22. Did you have a job in college? How did you manage the work load of college and investing in real estate? I'm 18 and want to get invested in real estate.

  23. The market where I live in is so expensive. For an average three bedroom two bath house with no yard no pool or anything is about 800,000 to 1.3million. I was thinking of starting my real estate investing journey in a cheaper area.

  24. Real estate is my bet for my future and would like to learn more about investing. Hopefully I pick the right choices. Zumbly is the website I use lately

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