{"id":1663,"date":"2024-07-12T18:00:27","date_gmt":"2024-07-12T18:00:27","guid":{"rendered":"https:\/\/myrealestatedojo.com\/subto\/?p=1663"},"modified":"2024-07-15T17:44:28","modified_gmt":"2024-07-15T17:44:28","slug":"first-investment-property","status":"publish","type":"post","link":"https:\/\/myrealestatedojo.com\/subto\/first-investment-property\/","title":{"rendered":"Zero Bank Loans: How I Bought My First Investment Property"},"content":{"rendered":"\n\n\n\n\r\n

Zero Bank Loans: How I Bought My First Investment Property<\/span><\/p>\r\n\n\n\n\n\n\n\n

Hey gang, this is Mike with Mr. No Fluff. Today, I’m going to share how I bought my first investment property without using a bank. Back during the last crash in 2006-2007, I secured my first investment property without using my own credit, begging a bank for a loan, or having 20% down. Let\u2019s dive into how you can achieve the same through owner finance, seller finance, and subject-to investing.<\/p>\n


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Breaking the Myths of Real Estate Investing<\/h3>

Many people believe they can\u2019t get into real estate investing because they lack credit or purchasing power. I\u2019m here to dispel these myths and explain how I managed to buy my first investment property without traditional financing. The traditional path involves going to school, getting a job, and then getting a mortgage. But there\u2019s an alternative, untraditional path that can lead to greater success.<\/p>\n


<\/p>

The Untraditional Way: Directly Working with Homeowners<\/h3>

The key to my strategy was focusing on working directly with homeowners, particularly motivated sellers. Motivated sellers are individuals who need to sell their home quickly due to financial or emotional reasons, such as job loss, divorce, or other personal circumstances. By targeting these sellers, I could create win-win situations without involving banks.<\/p>\n


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The Pawnshop of Real Estate<\/h3>

I coined the term \u201cpawnshop of real estate\u201d to describe my approach. Just like a pawnshop provides quick cash to people who need it urgently, I provide quick solutions to homeowners who must sell their property. My strategy involves becoming a problem solver, focusing on the seller\u2019s needs rather than the property\u2019s market value.<\/p>\n


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The Strategy: Subject-To and Owner Financing<\/h3>

Subject-To Investing (Subto)<\/h4>

This method involves taking over the existing mortgage payments of the seller. Here\u2019s how it works:<\/p>