Real estate investing with no money - How I bought 3 rentals for only $250!

"this was one of the largest dealers in the entirety of southern Ohio or at least what I've been told he used to live here and I bought this place off of the last owner and like I said we'll break this deal down I remember what I was like what's 8 8 years old my brother and I would watch Batman and x-men on fox on fox kids and then after that there would always be a carlton sheets tell infomercial where he would tell people about how to get free real estate so when i got into real estate one of the things that i asked all these agents was how do you get free real estate like carlton sheets and what was so odd was no one in real estate knew what i was talking about or had never researched ganda seminar anything like they just said that's a scam brand it doesn't exist and when i got really deep into investing i was like oh yeah there's free real estate everywhere but it's kind of weird and tricky and this is one of those places like i said i got for $250 i don't know if you guys can see it"

"I'm going to give you $250 to do something called a lease option we'll put that at the bottom of the screen and that's one of those things that you pay a lot of money to go seminar and they give you this work pack and it tells you how to do a lease option you should be able to get on like bigger pockets a Rocket Lawyer or something like that and find the forms for probably free"

"lease options are really useful for high cost of living areas because it does give you control over a real somebody else's real estate now a lease option is exactly what it sounds like it's a lease with an option or master lease with an option"

"I remember what I was like 8 8 years old my brother and I would watch Batman and x-men on fox on fox kids and then after that there would always be a carlton sheets tell infomercial where he would tell people about how to get free real estate"

"what an option is it gives you the ability to pay a fixed price or a variable price for a piece of real estate in the future the lease is exactly what it is most states will allow you to sign a contract called a master lease some states say it's like a commercial lease that gives you unlimited ability to control a property you can almost burn the place down if it's allowed for in the contract but it also requires that you pay the mortgage it makes you pay the taxes insurance and everything like that so what I did on this property was I got the owner to sign a master lease with an option I gave him two 150 dollars down as a option fee"

"so when i got into real estate one of the things that i asked all these agents was how do you get free real estate like carlton sheets and what was so odd was no one in real estate knew what i was talking about or had never researched ganda seminar anything like they just said that's a scam brand it doesn't exist"

"I went to the bank I didn't have to pay the mortgage up-to-date I could have kicked the can down the road a little bit but I paid them the thousand dollars they needed the unit over here the 3 to 5000 unit we had some carpets in a warehouse I put carpet in I fixed that unit up for 500 bucks that block house over there I fixed it up for $500 now I've got two rentals that are operating while I kick the guy that lives here and those are bringing in $850 a month"

"and when i got really deep into investing i was like oh yeah there's free real estate everywhere but it's kind of weird and tricky and this is one of those places like i said i got for $250"

"this one in here went for about $500 a month"

"I'm all-in a thousand dollars to cash mortgage out an $8,000 to fix this unit up another thousand dollars for the house in the back and the apartment over there so I'm at ten thousand dollars to fix the place up not to get the lease option but to fix the place up so I'm at ten thousand dollars out of pocket but only 250 dollars actually to acquire the property"

"I think the property is worth about eighty thousand dollars and with a forty three thousand dollar mortgage payoff that means I have thirty seven thousand dollars in equity ten thousand on my pocket I've got twenty seven thousand dollars in equity"

"the house came with this duplex so it's three rentals that I got for $250"

"I can tell people you can get free real estate you get free houses but you have to ask yourself are you willing to do what it takes"

"the house in the back was empty the other side was empty no one wanted to live - one of the biggest sellers in central southern Ohio so no one want to live here other than the guy he's paying 350 a month and there were 13 people that lived in here or so and they were mostly his clients"

"I had to go through an eviction he tried to bring 13 witnesses against me in court saying that I do not properly maintained my rentals the judge threw it out immediately because I had done the no-fault eviction"

"I went him and I said I'm gonna give you $250 to do something called a lease option"

"you should be able to get on like bigger pockets a Rocket Lawyer or something like that and find the forms for probably free"

"lease options are really useful for high cost of living areas because it does give you control over a real somebody else's real estate"

"what an option is it gives you the ability to pay a fixed price or a variable price for a piece of real estate in the future"

"I got the owner to sign a master lease with an option I gave him two 150 dollars down as a option fee"

"so now I've got this property it's a dump and I have to catch up the mortgage payments and the taxes"

"I went to them and said can I make there's like $300 a month payments for the next year to catch up on taxes"

"I fixed that unit up for 500 bucks that block house over there I fixed it up for $500 now I've got two rentals that are operating while I kick the guy out that lives here and those are bringing in $850 a month"

"I spent $8,000 fixing this unit up we had to put new flooring in the whole thing I had to redo the bathroom I had to redo plumbing in here we put washer dryer hookups they were leaking into the basement it was a really bad deal"

"so I'm all-in a thousand dollars to cash mortgage out an $8,000 to fix this unit up another thousand dollars for the house in the back and the apartment over there so I'm at ten thousand dollars to fix the place up"

"so I'm at ten thousand dollars out of pocket but only 250 dollars actually to acquire the property"

"I would disagree I would say I spent two hundred fifty dollars and then I had to pay some other things that were options I didn't have to fix this place up as nice as I did I could have just put boarded the windows up had two rentals for a thousand dollars and called it a day"

"so as it is now once they get this rerun it out it'll be making for probably two weeks I just took it back today and I'm posting the video tomorrow once it gets edited and this one will be right in pretty quickly"

"1350 a month though I pay 450 ish on the mortgage to the bank I have a lease option or a I have a master lease with an option that lets me have unlimited control of the property I can do whatever I want as long as I pay the mortgage and taxes and things like that that's how we negotiated it"

"I pay the option space sorry the masterly speed to the owner's bank so I'm constantly paying down this mortgage the mortgage last time I checked was down to $43,000"

"so I took the mortgage payment over although it's still in his name if it defaults it's not in my name it's like what her microphone heard that poor guy's credit"

"and then the option is actually whatever the mortgage payoff is which is kind of cool so I get all the benefits of paying down the principal on a mortgage without any of my own credit it's some other person's credit"

"so that's the story of how I did - a $250 master lease with an option on this specific property making one thousand three hundred fifty dollars a month"

"like I said four 50s in the mortgage which takes us down to $900 taxes and insurance is another 150 a month which would take us down to what 750 a month cash flow issue on this property"

"I have $10,000 to my ROI on it very good if you use the baseline $10,000 between the mortgage catch up things like that"

"I think the property is worth about eighty thousand dollars and with a forty three thousand dollar mortgage payoff that means I have thirty seven thousand dollars in equity"