From $3K to $100K: My No Money, No Credit Real Estate Success Story
From $3K to $100K: My No Money, No Credit Real Estate Success Story
Hey gang, this is Mike with My Real Estate Dojo. Yesterday, I closed a deal where I turned a $3,000 investment into nearly $100,000. I've received a lot of questions about how I did it, so I’m pulling back the curtain to share my real estate success story with you.
The Power of Creative Real Estate Investing
I used a combination of creative financing strategies like owner finance, subject-to investing (subto), and seller finance to achieve this success. Let me break down the process step by step.
Finding the Motivated Seller
The first step was to find a motivated seller. I used bandit signs, which I placed all over Grand Prairie, Texas (area code 75052). These signs simply stated that I buy houses and included my contact information. This low-cost marketing method generated calls from motivated sellers.
The Seller Questionnaire Form
When a motivated seller called, I used my seller questionnaire form, also known as the phone seller script. This script contains specific questions to determine the seller's motivation and the property's details. If you don’t have a seller questionnaire form, you can download mine for less than $50. This form is crucial for gathering the necessary information to assess the deal.
Structuring the Deal: Subject-To Investing
Once I identified a motivated seller, I structured the deal using subject-to investing. Here’s how it worked:
1. **Bandit Signs**: I invested in bandit signs and placed them strategically around town.
2. **Seller Contact**: The motivated seller called me in response to the signs.
3. **Seller Questionnaire**: I used the seller questionnaire to gather information and confirm the seller's motivation.
4. **Property Contract**: I put the property under contract.
5. **Initial Investment**: I invested $3,273 to cover the seller’s back payments, HOA fees, and closing costs.
6. **Rental Income**: I rented out the property for five years, earning approximately $400 per month.
The Financial Breakdown
Here’s the detailed financial breakdown of the deal:
- **Initial Investment**: $3,273 (covering the seller’s back payments, HOA fees, and closing costs)
- **Monthly Rental Income**: $400 x 60 months = $24,000
- **Gross Sale Proceeds**: $77,492
- **Closing Costs**: Approximately $10,000
- **Net Proceeds from Sale**: $67,492
- **Total Earnings**: $24,000 (rental income) + $67,492 (net proceeds) = $91,492
Key Takeaways for Real Estate Investors
1. **Use Creative Financing**: Strategies like subject-to investing and owner financing allow you to acquire properties without using traditional bank loans or your own credit.
2. **Low-Cost Marketing**: Simple marketing techniques, like bandit signs, can effectively attract motivated sellers.
3. **Take Action**: The most crucial step is to take action. Even if you don’t have all the answers, starting is better than waiting for the perfect moment.
Final Thoughts
This real estate success story shows that with the right strategies and determination, you can achieve significant financial gains without using traditional bank financing or your own credit. If I, a refugee to America with no initial connections or resources, can do it, so can you.
Remember, the key to success in real estate investing is to take action. Don’t wait for everything to be perfect. Start with what you have and learn as you go.
If you found this story inspiring or helpful, please like, share, and comment on my videos. Stay tuned for more insights and detailed explanations of my real estate deals.
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This is Mike with My Real Estate Dojo. Have a great day, gang, and keep hustling!
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