Let's talk about another way to buy properties with no money, and that is by getting private money.

Now private money is simply just friends and family who have money,

and you're figuring out how to structure a deal with them

so that they give you the money.

So there's a lot of ways to do this.

Now, let's just say back to the wholesale example,

you go find a deal for $300,000.

And you know you're gonna flip it and it's gonna sell for over $300,000 and you know you're going to flip it and it's going to sell for over

400,000. Okay? Well if you don't have $300,000 cash plus the rehab plus the closing costs, then what do you do?

Well, you got to go raise private money. Now there's a few ways to raise

private money. All right? First way is to do just interest only. Okay? So I might go to a

lender who has $300,000 and I'll say, hey, you know, I'll pay you 12% interest on your money.

Okay, 12% interest for however long your money is out. Now what I always do is I try to get all the money

so I don't have to put any out of my own pocket

and I try to get the interest deferred,

meaning I pay the interest once we sell the property.

So in this case, 12% interest

would essentially break down to,

you know, if you're doing it over 12 months,

it equals 1% per month.

And so if I'm borrowing $300,000 from somebody,

okay?

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