How To Buy A House With No Money Down - YouTube

Welcome back. In this episode, we are going to address how to buy a house with

no money down. Now, let me clarify. That does not mean

you don't have money. It means you don't tie it up in an unnecessary down payment,

making it illiquid. In this episode you're going to be blown away. I have

purchased many homes in my life and constructed them. I bought many

properties. I have never paid a down payment out of my pocket. I've satisfied

down payments but never with my money. There are many ways to do that. I have

shared them in my books. In this episode I'm going to give you an actual example. And

I taught my children, my two sons, my four daughters. I've taught thousands of

people how to do this. You have to think out of the box. So you're ready to take a

little journey with me and see how you could buy a house with no money down?

Let's go.

I'm Doug Andrew. I've been a financial strategist for 4 and a half decades.

I've helped many, many people understand how to optimize their financial assets

and minimize taxes and empower their true or authentic wealth. But this one

concept has liberated literally hundreds of thousands of people. When I showed

them how to buy a house or any piece of real estate with no money down out of

their pocket. So, I mentioned that I've never paid a down payment. I've satisfied

down payments. But I don't ever want to tie up my capital in the property. In my

first book "Missed Fortune." And I titled it that because of the fortunes people

miss out on because they simply don't know what they don't know. Because you

can't be aware of something you're not aware of. In that book I have a 1

chapter dedicated on how to buy a house with no money down.

I think there's 5 examples in there of how I actually did it. As I was

editing that book clear back at the turn of the century.

My son's, Emran and Aaron they're about 19 months apart. And they had been

gone for a couple of years serving humanitarian and religious missions. And

they came back in it was a post 9/11 world 2001. And they were helping me edit

my book "Missed Fortune," which became a best-seller. And it was the first one and

it got the attention of Time Warner and they commissioned me to write several

more. And they said, "Dad, in a recession like this can you still buy a house with

no money down?" And I said, "Let me share one of my favorite quotes from my friend

Richard Rossi, 'When there's anxiety, there's opportunity.'" Did you hear that? I

said, "It's never been easier to buy a house with no money down and no credit

than in a recession." Now, people say, "Huh, how do you do that?"

The secret generally is to create a win-win for the seller, you the buyer,

okay? And so I'm going to simplify these. But you satisfied the downpayment in one

of several different ways. We were in Maui on a family vacation with a purpose.

And I said, "Okay, because I always have my kids with draw wisdom. it's our family

bank and so they're saying, "Dad how do you buy a house with no money down and

no credit? We've been gone for two years. We don't have any credit. we don't..." I said,

"No problem, let me show you." So, I told them to go out because they were

newlyweds. Both of my sons had just been married. And I said, "I want you to go out

the next few weekends in neighborhoods that you think you would like to live in.

And find homes that are for sale by owner. Find the ones where they're no

longer living in the house. They've already moved to a new house." What does

that tell you? Now, most people go, "They're motivated,

they're desperate." No it doesn't. What does it tell you if they have their

house for sale by owner and they've already moved? Most people go, "I don't

know what does it tell you?" That they don't need the equity out of this house

to buy a new one. They've already bought the new one. See? that's a big hurdle most

people think, "Oh, so my house I need the equity to pay a down payment or to lower

the house payment when I buy a new one.

If they're already in their new house they don't need the money out of this

house to buy their next house. That is incredible to know. So, they came back in

a couple of weeks. And my son Amran, he had a list of 30 homes that met that

criteria in different neighborhoods. We didn't even get to the second home on

the list. Before we bought a home with no money down and no credit in less than

five minutes. You want to see a glimpse of how we did it? So, watch how we did

this. We invited this couple selling their house to come into our offices and

they sat down. And basically the conversation went like this. They came to

us, we didn't have to go to them. Because they had their house... this was back

in the year 2000. And it was a nice 3-bedroom house with a

finished basement. And they had their house listed for $160,000,

okay? Now today, that would be double that or more. But it was a really nice home.

And they had two other offers on it at that moment. They had somebody who

offered them I think it was 156 and the other one offered 158. Because it was

a market where people are always making a little bit lower offer. And I told my

son I said, "Offer him 162." "More than their asking price, why?" "To get their attention,

they'll come to us." So, we offered them 162. Sure enough they go, they came in and

I said, "First of all, any questions and they go, "Yeah, how come you offered us

more than our asking price?" I said, "We thought you would ask that. Do you mind

if we ask you a few questions?" "Sure go ahead." And I go, "You are in your

new home, yes? And you don't need the equity out of this house to buy your new

home, do you?" "No." "Would you mind telling us how much you owe on this house?" And

they said, "Yeah, we owe about 120,000." So, they owed 120,000, so what did

they have? 40,000 of equity. But they didn't need that to buy their next

home. I said, "So you owe 120 and you're selling up for 160 what is this 40,000

of equity earmarked for? They said, "Well, we thought we would put that into a

savings account for our... to our son and daughters college education fund." I said,

"Oh, how old are they?" "Oh, one is 10 and one is 12 years old." So, they're going to

need this money in about 7 years, right? Yeah. So, where are you going to

earn some safe interest on that? Probably a bank or credit union. Oh, they're only

paying like 1%. So, I calculated at 1% interest this 40,000 in 7

or 8 years when their son and daughter was going to go to college. If

they were lucky, might only be worth 44,000 or so. Maybe not even

that, maybe 42 or 43,000, do the math. I said, "How would you like to earn... we

said something like 7.2% instead of 1. Instead of 1% how would

you like to earn 7 or 7 and a half percent." "Where

can we do that?" Well, you could actually do it in a safer place than the banker

credit union if you knew what I know where is that?

Well, see banks and credit unions they often loan money for mortgages. You

loaned them your money and they pay you 1% on this college fund. And

what are they going to do with your money? They're going to turn around and loan

it out to somebody on a mortgage at 5, 6 or 7%. We just cut out the

middleman here. See, one of the safest investments is a mortgage contract. So my

son will set up a contract and buy this house and he will make the payments with

an escrow on your $120,000 mortgage. We'll cover that.

And on this other 40,000, he'll pay you monthly interest if you

want. But if you want it to compound and grow,

he'll credit you seven and a half percent interest on this 40,000

right here. And it'll be worth 65... actually was going to be worth about

70,000. What would you rather have for your kids college fund in 7

or 8 years, 70 grand or like 43,000? I would rather have

the 70. It's secured with your house. You're very familiar with the asset. If

he defaults, you get the house back. And you know this house is going to be worth

more money in the next 7 years, don't you?" "Oh yeah, yeah this will go from value."

Done. In 5 minutes they agreed to let my son credit them with 7 and a half

percent interest on the equity. And he simply set up an arrangement to pay the

payments on the $120,000 mortgage. He moved into that home

within a few days. No money down, no credit checks. Guess what happened? This

house increased in value to about 230,000 within 5 years.

My son goes in and now does a cash out refinance at 75%

loan to value. He's able to mortgage the entire amount, the 120 plus the 70.

He's up to 190,000. And he now just starts making a

house payment on that house and they got their money. In fact, they begged, "Don't

pay us off, please. Please don't pay us off. Can't we just keep our college fund

growing with you at 7 and a half? We said, "Well, we have a place where you

could put it and earn 7 and a half tax-free. It's called the

LASER Fund. Let us show you how that works. And so they were able to take the

70,000 that they got when my son refinanced and put it into a LASER Fund.

And they kept earning 7 and a half percent tax-free. Folks, we've done this

many, many times. I have had many situations where I simply asked, "So, what

are you going to do with the equity if I cash you out?" "Oh, I don't know, I don't

know. I've got to figure out where to put..." "Are you going to put it in the bank at 1%?"

Let's bypass the middleman. Your house is a very good asset. Why don't you just

earn the interest that the bank is earning on your money when you give it

to them at 1, They're earning 7. Let's just bypass them and I'll pay you the 7

that I would pay a mortgage company. Done. Now, it's that simple folks. And both my

sons bought homes with no money down and I've helped thousands of people to do

this. It all starts with a conversation. You don't have to borrow money from a

lender every time you simply create a win-win. This was a win for them, it was a

win for my son, everybody's happy. So, I hope you got a little "Aha" with that.

If that made sense, you ought to read a ton of other stories of how we've been

able to buy houses with no money down and no credit. Because you sort of have

to think out of the box. This is one of the best ways to understand how the rich

get richer and the poor get poorer. So, click on this episode and watch it. And

then you'll have the opportunity to obtain a free copy of my latest book "The

LASER Fund" to be able to learn about other examples and stories to empower you.