How I Made Over $100,000 With No Money Down | Real Estate Investing

Speaker 1: That’s why this stuff is some bullshit. This is a story that people that have a loser’s
mindset, people that are broken, and have a bad relationship with money, this is how
they think. And I used to be this way, but then I smartened
up, and I realized that I’m in my own way and the only difference between a loser and
a winner is the real estate between your ears. Speaker 1: What’s good in the hood everybody? It’s your boy Cody Sperber, The Clever Investor
here and today I want to talk to you about one of the biggest self-limiting beliefs that
entrepreneurs or I guess you would call them, inspiring entrepreneurs face. I’m going to shatter one of the biggest self-limiting
beliefs that humans face. Speaker 1: All right, now I’ve got followers
from all over the world. First off, you guys that have been following
me for a long time, you know me. I’m a creative real estate investor. I’ve made tens of millions of dollars investing
in real estate. My brands and my companies have gone off to
sell over 50 million dollars worth of products and services online. One of the largest online marketers out there. One of the biggest real estate educators in
the world. Speaker 1: And today I’m about to talk to
you about some of the biggest self-limiting beliefs people have about money. All right? A lot of people follow me because they want
to get rich. If you’re watching this right now, there’s
a good possibility, that you want to fricking win the money game. But the problem is, we’re not taught how to
do that. So that’s what this conversation is going
to be about. Speaker 1: By the way, real fast, if you get
some value from this, I highly recommend that you go to, and you
get involved in my 30 days to a deal challenge. If you want to learn creative real estate
investing, that’s how you do it for less than $100.00. It’s, and you’ll learn
all about what I’m doing; I’m helping people do creative real estate. Speaker 1: I’m about to shatter one of the
biggest self-limiting beliefs. When I hear people say things like this, and
I’ve had the opportunity to speak on stages all over the world. I’ve spoken in front of tens of thousands
of people. At the end of the event when people come up
and talk to me, and I start talking to them about doing real estate, getting involved
in real estate, they’re always like, oh I would love to do real estate, but I can’t
afford it. I don’t have any money right now. I don’t have any money. It’s too expensive. Oh, I’m totally going to invest in real estate
someday, but right now, I’m broke. Right? I’m just a college kid, I’m just young, I
don’t have any available money. In fact, I’m barely surviving right now. The bills are stacking up, my back’s against
the wall, I’m screwed actually financially. I mean, I would love to do it, but I can’t
afford it. Speaker 1: When I hear people talk like this,
I instantly think, loser. You’re a loser. What do you mean, you can’t afford it? What do you mean you don’t have any money? What do you mean it’s too expensive? What do you mean you’re broke? You’re acting like a loser right now. And I get so pissed off, because I’m like,
I used to think like this. I used to have this money mindset. When I was broke, and I was living with my
parents and I never had any money, I used to say this shit all the time. Speaker 1: Well guess what? Me and my wealthy buddies, we never talk like
this. I don’t know a single rich person that makes
a lot of money that constantly talking negative about money. People that are successful and have a good
positive relationship with money, they don’t talk like this. Speaker 1: Now let me give you an example. Real estate investing. Did you know there’s a way to flip a house
without needing any money in the deal? Like zero dollars right? So imagine being able to go and flip a piece
of real estate, make a profit, and not have to put a single dollar of your own money into
the deal. Not having to to go a bank, not having to
have good credit, not having to have a real estate license. You just can magically, creatively, make it
happen. Speaker 1: Did you know you can even own rental
property with zero dollars of your own money into the deal? I mean think about this. My first rental property that I purchased,
I put zero dollars into the deal. If you buy a house for zero dollars, and that
house produces cash flow, let me ask you something. What is your return on your investment? If you put zero of your own dollars into the
deal and it produces you income, it produces you cash flow, what is your return on your
investment? The answer is, it’s an infinite return. Speaker 1: Now let me tell you a quick story. This is a story of my first rental property. My first rental was worth $280,000 right? But the homeowner was in foreclosure right? He was in foreclosure. And he was behind on his mortgage payments. He was probably 30 something years old and
he said, “Yeah, I’m single, I lost my job and then I just found another job, but I’m
so far behind on my mortgage payments.” He owed $15,000.00 in back payments right? So whenever a house goes into foreclosure,
if you’re in the United States, if they start missing mortgage payments, it just kind of
accrues and then there’s late fees and penalties and attorney’s fees and all this stuff that
go on top of it. Speaker 1: So he had about $15,000.00 in fees
and penalties, right? And I said, “So, what’s the story with your
house?” And he said, “I owe $90,000.00 to the bank.” And the bank he had was B.O.A. I owe $90,000.00 to the bank. My mortgage is, let’s say $1000.00 a month,
PITI. That means principal, interest, taxes and
insurance. So all in, it was about $1000.00 a month. “This is what I owe. I’ve been behind on payments for like 8, 9,
10 months. My house is scheduled for foreclosure in a
few months. What do I do?” Speaker 1: And I said, “Well listen. What do you want to do?” And he said, “I want to move out.” And I said, “Okay. How much money do you want to sell the house
for?” And he said, “I don’t know. I don’t really know what it’s worth. But if I could get-” This is what he wanted. “If I could get $50,000.00 cash, plus you
paid all this stuff off, I would sell the house right now. I just need $50,000.00 cash to go start my
life over.” I said, “Okay. All right.” So I’m going to pay $50,000.00 cash, I’m going
to pay off this bank loan and I’m going to pay back the $15,000.00. So all in all, I need $165,000.00 plus closing
costs and all this stuff. And the house needed some work. But I buy the house that’s worth $280, for
like $170-ish. Speaker 1: You can go out there and raise
the money. It’s called OPM. Other people’s money. And you can go and raise the money needed
to buy this asset. So what if I got creative? What if we left this in place and I just didn’t
touch it. And I only needed to raise this portion right
here, the $15,000.00 and this portion right here. The $50,000.00 the guy needed. Speaker 1: So, I put together a plan and I
went back and I talked to this guy and I said, “Hey, let me ask you a quick question. If I pay off all the back payments on the
mortgage, and I catch up your loan and I make it current, that’s going to be good for your
credit right?” And now the foreclosure will go away, your
credit will start to get a little bit better. You’re not going to have that nasty foreclosure
on your credit. Which by the way, stays on your credit for
at least seven years. And I put $50,000.00 cash in your pocket,
would that be something that would work for you? And we left this loan in place for a year
or two. Speaker 1: And he said, “Yeah. I really don’t care. As long as I get the $50,000.00 and it’s stopping
messing with my credit, sure we can do that.” So I took this deal right? I took this deal and I went and I shopped
it around town to find other people’s money. I needed to borrow $50,000.00 and $15,000.00,
so $65,000.00. I so devised another plan, I said, “You know
what? I don’t have any money, I can’t go to a bank. Nobody’s going to loan this money unless I
have a good asset worth $180.” So I started shopping the deal around town. I went to networking events. I talked to my parents, I talked to my parents
friends, I talked to friends of friends. I talked to friends of friends of friends
parents, I talked to everybody. Speaker 1: And my pitch was simple. Hey. I have a house that I can buy right now for
$280,000.00, where I can buy it for $170, but I only need $50,000.00 and $15,000.00
So I need about $65,000.00 to get into the deal. If you loan me the $65,000.00, I will give
you 100% of the income that this property produces until I give you back your $65,000.00. Speaker 1: So you get all the cash flow. Now it only costs $1000.00 a month, but the
rent was like $1500.00 right? Rent equals $1500.00. So how much positive cash flow does the private
money lender, the guy or girl I’m borrowing the money from, how much do they get? Well if we owe $1000.00, that’s $500.00 a
month in pure cash flow. Now I don’t know about you, but if you have
$65,000.00 sitting in a bank, it is not earning you $500.00 a month. It’s just not. Speaker 1: So guess what I did next? I paid this off. I paid this guy his $50,000.00. I left … I’m sorry. I left this in place. I paid this off, I paid the guy his $50,000.00. We kept this in place, and my private money
lender got $500.00 a month. Everybody’s happy. Then what I did is I put out little signs
right? Buy, like, rent. Sorry, my handwriting is horrible. I put out signs all around the property. Buy, like rent. Foreclosure okay. Speaker 1: What I want is $10,000.00 down
as an option deposit and the rent is $1500.00 a month. And after talking to a couple people, one
lady called me up and said, “Hey, me and my husband, we went through a foreclosure back
in the day, we don’t have the best credit. What does your sign mean?” It’s like well, you give me $10,000.00 and
I’ll give you the ability to buy a house worth $280,000.00 for $265,000.00. So it’s a really good deal. Right? I’ll give you the ability to buy this house
that’s worth $280 for $265 and you’ll have one year to execute the option to buy it for
$265. Until then, you just rent it and you treat
it like it’s your own. Don’t call me if there’s any repairs, I don’t
want to deal with it. Speaker 1: She said, “Okay. I love that deal. Let’s do that deal.” So what did I just put in my pocket? I put in my pocket, $10,000.00, right? I created that money out of thin air. But I still own the house. It’s still in my name. So I get to depreciate it. I get the tax benefits. At the time I got the mortgage interest deduction. I got all the benefits of owning this house. And I got $10,000.00 in my pocket. At the end of one year, she came to me and
said, “Cody, I can’t afford to buy the house. I still haven’t saved enough of a down payment. My credit’s still kind of screwed up. Is there any way I can extend my option to
buy?” And I said, “Sure. No problem. I’m not just trying to take your $10,000.00. I’ll give you a fair shot. I’ll extend your option for an extra year
for an extra $3,000.00.” Speaker 1: So I just added $3,000.00 more
dollars into my pocket. And I said, “I’m going to increase rent by
$150.00.” Guess what I did next? I got to cash this guy out, because this guy
wants his money back. So, what I did next, is I went to bank number
one. I went to bank number one and I said, “I have
this house, it’s worth $280,000.00 and I’ve been renting it for a year for $1,500.00. And I just increased rent to $1650.00. So I have some rental history.” I owe $90,000.00. That’s the original loan that the guy let
me take over making payments to. And I owe $65,000.00 to private money lender. What will you lend me on this house?” Speaker 1: And bank number one says, “Here’s
what I’ll loan you.” We’ll do that deal. Here’s the terms. And I said, “Okay.” Oh by the way, one more piece of information,
that house actually increased in value. It’s no longer worth $280,000.00. When the bank went to appraise it, it was
worth $320,000.00 now. So, over that year period, the house increased
in value. The bank said, “Sure. We’ll lend you 80% of $320,000.00.” What’s 80% of $320,000.00? Because that’s what the bank said they would
lend me, at the time it was like 5 1/2% interest or something like that. Speaker 1: I said, “Okay. Not a bad deal.” And I took that piece of paper. That pre approval letter and I went across
the street to bank number two. And I said, “Bank number one gave me this
pre approval letter. Bank number one gave me a pre approval. What will you do on this house worth $320,
making $1650.00 a month.” So bank number two gave me an even better
deal. They gave me … This might be like a 5.5%
interest rate, bank number two gave me a 5% interest rate. Speaker 1: So I took that deal and I went
down the street to bank number three. And I said, “This bank’s giving me 5.5, this
bank’s giving me 5, what will you do?” And they said, “We’ll give you 4.75 interest
rate.” I said, “Done deal.” Done deal. And I refinanced and I paid this off and I
paid this person off, who by the way came back around as soon as I paid him off and
said, “Hey I got this money back. Go find another house. Let’s do it again.” Speaker 1: I was able to put a bunch of money
in my pocket because they gave me 80% of this number and that one little house that I put
zero of my own dollars in, I’m now making $1650.00 a month. And guess what happened after the second year? She never executed the option. She came around and said, “Cody, my second
year is now up. What do you want to do? I think we want to move out. We don’t to buy the house.” And I said, “Sure. No problem.” She moved out and guess what I did again? I put my little signs back out. Buy, like, rent. Right? Buy, like, rent. I got another $10,000.00 plus $1700.00 a month
in rent. So I increased it by $50 more bucks and I
got another $10,000.00 option deposit. Did another one year option. Speaker 1: That’s creative real estate investment. That’s why this stuff is some bullshit. This is a story that people that have a loser’s
mindset, people that are broken, and have a bad relationship with money, this is how
they think. And I used to be this way. But then I smartened up and I realized that
I’m in my own way and the only difference between a loser and a winner is the real estate
between your ears. Speaker 1: And that’s all I got. Until next time. I’m Cody Sperber, The Clever Investor. Sign off for now. Take care, comb your hair. Sperber out.

30 Replies to “How I Made Over $100,000 With No Money Down | Real Estate Investing

  1. I just made 22k Equity on my refi, got the cash in my account on Tuesday (moved to a high yield savings) for now, while I look for my next deal. I have a list of 13 multi family homes I'm looking at today. Lots of deals out there…. lots of people who overprice their homes too. You don't know if they'll take your offer, till you write an offer 😀

  2. Great info! I really appreciate it. So many people beat around the bush and want you to pay for information like this. I do have one question though. How would you like to lend me the $65k to help get me started like that original private investor did for you?

  3. I used to have these same self limiting beliefs and so many more but once I surrounded myself with the right people (Cody and Clever Investor) I stopped lying to myself, stopped making excuses and start asking much better questions. Instead of statements like “I can’t afford it” I asked “HOW can I afford it?” The latter gets your brain working to come up with a solution while the former shuts the brain down.

  4. Great video Cody. Really appreciate your rawness and realness. We bullshit ourselves everyday with these self limited beliefs.

  5. It really stuck with me when you told me the difference between a winner and a loser is only 6 inches….the 6 inches between your ears, which is the most important real estate you will ever own. It was cool that that was reiterated in this video. Thanks as always Cody!

  6. Cody can you put together a specific virtual deal finding program. Or get someone to walk me through a virtual deal

  7. Seems like we were built and trained to be financial losers from our parents and/or our peers and/or society around us! Imagine a world where we're all being taught the importance and value of money/financial literacy and a different mindset to achieve our goals/dreams. Great content Cody!

  8. This is why Cody is the creative genius he is in real estate. And a gazillionaire. Because he's Cody and he's a creative real estate structuring wizard. My face is melting trying to keep up.

  9. Cody is a friggin creative REI master. Great stuff. Even the 3 losers who gave this a thumbs down are still the losers he refers to.

  10. 1 of the dopest Examples on how to make money in Real-Estate investing with out any money! I have one question, what contracts are created to make this happen from the original owner, to the investor and from the person that is living in the home?

  11. Ok I get it. As long as you know someone you can borrow that type of money from to start. I have enough trouble borrowing 50.00 let alone 65,000 from anyone I know. Do you have any other ideas?

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