Buy House No Deposit — Scam or Real Deal? - video Dailymotion

Can you really buy a house in the UK with zero deposit? Or is it a risky scam?  Get the facts before you commit.  Learn what banks and brokers might not tell you about no deposit home ownership in the UK.  Is buying a house with no deposit really possible, or is it just another scam? Discover the truth behind $0 down home buying in the U.S. and what lenders don’t want you to know. Don’t miss out if you’re looking to own your dream home without a big upfront payment!  #BuyHouseNoDeposit  #ZeroDownHomeUSA  #NoDepositMortgage  #HomeBuyingTips  #RealEstateScam  #FirstTimeHomeBuyer #BuyHouseNoDepositUK  #NoDepositHome  #UKMortgageTips  #RealEstateUK  #HomeBuyingScam  #FirstTimeBuyerUK #BuyHouseNoDepositCA  #ZeroDownHomeCanada  #MortgageScam  #CanadianRealEstate  #FirstHomeBuyerCA  #HomeBuyingTips #BuyHouseNoDepositAU  #ZeroDepositHomeAU  #MortgageTipsAustralia  #AussieHomeBuyer  #RealEstateScamAU  #HomeLoansAustralia  Watch now and find out if buying a house with no deposit is the real deal or just a scam! Like & share if you want more insider home buying tips!

Transcript

00:00How much did you buy this house for?

00:02Wait, what? Why?

00:03So it turns out we found the secret to buying a home for $0 down.

00:07Is it a scam? Is it real?

00:08It felt a little fake.

00:10That's what we're going to go find out.

00:11People are like, you're crazy, you're crazy, you're crazy, you're crazy.

00:14I was told I was crazy for four years.

00:15And then last week, one of my good friends that called me crazy for four years

00:18was like, how do I do what you're doing?

00:20How can you buy a house with somebody else

00:23without the bank getting involved, without getting into trouble?

00:25What about deed, titles?

00:27Who actually holds the mortgage?

00:28What happens if you pay for the mortgage

00:30and the guy wants to take the house back?

00:32We're going to break this down for you.

00:35Imagine this.

00:36You want to buy a house, but you don't have the 20% to put down.

00:39I mean, the average house in the U.S. costs a couple hundred K.

00:41That means you'd have to have 20 K to put down.

00:44What if you could buy a house without a down payment?

00:47And the other scenario is, let's say that you are in a house,

00:49but you're underwater.

00:51You can't sell it.

00:52You need to get out of that thing, but nobody's buying.

00:54Apparently, this guy has the answer.

00:56Let's go check this out, huh?

00:58This is Pace.

01:00He basically pioneered this thing called creative financing,

01:02or what he calls sub-two deals,

01:05and flipped a bunch of houses,

01:06and became so famous that HGTV called and wanted him to do a show called Triple Digit Flip.

01:12What does he do?

01:13His secret is called creative financing.

01:15And we're going to find out exactly what that means today.

01:18And is it even legal?

01:20Do you want to learn about sub-two in the fastest way humanly possible?

01:24How fast do you think we can do this, Pace?

01:25A minute, probably.

01:26Okay, 60 seconds to figure out how to buy a house with $0 down.

01:30Let's see if you can do it.

01:30Okay, cool.

01:31So I've got a house.

01:33Seller lives in this house.

01:34Seller has two things.

01:35They have a mortgage, separate document, and they also have a deed.

01:39A deed is a receipt of ownership.

01:41Two completely separate documents.

01:43I, Pace, or maybe you watching this in the video,

01:46where I would go to find a deal like this is I would call sellers that are on expired listings.

01:51People who have already tried to sell their house, but real estate agents failed to do so.

01:55We call this seller and we say,

01:57Hey, looks like you tried to sell your house unsuccessfully.

02:01I'd love to just give you an offer of taking over the mortgage payments.

02:04Are you open to that?

02:05And I'd say 80% of the time, the answer is yes.

02:08Oh my gosh, I would love to do that.

02:10I do a lot of these stories on my YouTube channel.

02:12And the seller says, how does that work?

02:13I go, well, the mortgage stays in your name.

02:15You move out of the house and the deed gets transferred to my name through a title company.

02:20And the title company issues insurance to make sure that all the paperwork was done

02:24and everything was done legally.

02:26I now have official ownership.

02:28Owner of that property is now gone.

02:30They are no longer the owner.

02:31I am, and I can go find a tenant to go move in this house and make those payments on my behalf.

02:36That's subject to.

02:37The best part about this though, is I literally have never had my credit checked on any house

02:41I've ever bought.

02:42Even my personal house, $3 million home, commercial buildings we buy, all free to finance.

02:46No credit has ever been pulled.

02:47Don't have to have credentials, right?

02:48When you go and you get a mortgage at a company, what do they ask for a bank?

02:51They go, what's your W-2?

02:52What's your tax returns?

02:54What?

02:54They blah, blah, blah, blah, blah, blah, blah, blah, blah.

02:55Never have given any of that away.

02:57And then I also very frequently don't use any cash or any of my own cash, depending on

03:02it.

03:03I'd probably say 20% of the deals I do, no cash and 80% of the deals I do require cash,

03:07but I use somebody else's.

03:09This is where real estate deals get done.

03:11So this entire team from here, about eight tables deep is both acquisition and disposition.

03:16Primarily what they're doing is they're doing outreach to real estate agents and saying,

03:19Hey, what do you have?

03:20Getting those under contract.

03:21And then the disposition team, which is over here is finding buyers for those.

03:24So we're either wholesaling them, we're fixing and flipping them, which I'm not a big fan

03:28of fix and flip anymore, but we still do it for the TV show.

03:30And then buying and holding them.

03:32You do not have real estate licenses.

03:34Hell no.

03:34I would never waste my time with a real estate license.

03:36But this is rare.

03:37So rare, in fact, that it turns out a whole subset of people hate Pace for this exact idea.

03:43Yeah.

03:43And your brokers hate you for this.

03:45Yeah.

03:45And I hate them just as much.

03:46I hate you.

03:48We buy so many deals.

03:49We'll buy 300 to 500 single family homes this year and put those into the portfolio.

03:53Every single one of those is done with zero down, either seller finance or subject to

03:57taking over the existing mortgage.

03:58And there's in seller finance, it's different than subject to like subject to is for you.

04:02Subject to would be like an SBA loan.

04:04So I'm buying that business subject to the SBA loan.

04:06Yeah.

04:07They're just like in pain.

04:08But then on the seller finance side, sometimes I don't see the sellers not in pain.

04:12They just want gain.

04:13Why are people clapping?

04:13Because the deal just got done.

04:15Oh, nice.

04:16Good job.

04:17Yes.

04:17I want to get into the details of this.

04:21Specifically, I want to talk about the underlying risks.

04:24Of course.

04:24Yeah.

04:24And break them down.

04:25Every type of deal you do is going to have risks.

04:28There were a bunch of risks that I was concerned about.

04:30Like what happens if I actually do this deal and then they don't agree to subject to or what

04:35happens if I do this deal on subject to and then I can't sell it.

04:38But Pace remedied some of those.

04:40The devil is in the details here.

04:41There's a lot of ways that I see that you could mess this up.

04:44So pay super close attention throughout this video, making sure you don't go longer than

04:48the 10 day period in order to lose your down payment is a huge micro detail that can have

04:53macro level results.

04:55Yeah.

04:56And what's great is that you'll have the contract with the seller.

04:58You have 10 day inspection period.

05:00So I have an out for 10 days.

05:02Yeah.

05:02And I have 10 days to find my buyer.

05:03Oh God, that's interesting.

05:05I have zero risk.

05:05Yes.

05:06But what happens if I go past the 10 days?

05:07My buyer has now put in earnest money before my 10 days is up.

05:12Yeah.

05:12So if we breach contract, the seller gets that earnest money, I walk away.

05:16Still no risk.

05:16What if you don't have a buyer yet?

05:18No, I would go into contract without a buyer, but I wouldn't go past my inspection period

05:21without a buyer.

05:22Copy.

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06:20You're welcome.

06:23Hi, Cody.

06:24Peace later.

06:24What's going on, man?

06:25Nice to meet you.

06:26So I was just telling Cody that you are one of our franchisees, but you started out becoming,

06:30you were my friend on the TV show.

06:32Never did any real estate in my life before this.

06:34Okay.

06:34I want to rapid fire some questions.

06:35Go ahead.

06:36Ready?

06:36Let's do it.

06:37All right.

06:37How many phone calls did it take for you to get your first deal or how many doors knocked

06:42did it go?

06:43Did it take for you to get your first deal?

06:44Not as many as you think.

06:45If I'm going to put in a number, I would say 50 to 100 calls landed me my first deal.

06:50So we go from 50 to 100 calls to your first deal.

06:53Yep.

06:53And now he's doing three to five deals a day.

06:56He's seeing three to five opportunities a day and one of them turns into an actual contract.

07:01And that's mostly getting done, not by picking up the phone anymore, by sending a text message

07:05to a list of people you get from where?

07:07Facebook, a list of people you get from Astro and Sub2 students.

07:10I mean, half of our deals are with Astro and Sub2 students.

07:13So on acquisition side.

07:14So the acquisition is you're looking for an opportunity in this role, in their franchise

07:18model.

07:19They're looking for contracts that are already contracted.

07:22Yep.

07:22So his brother, who has more of a rambunctious personality than Slater, is typically going

07:28to have the guy's somebody in acquisition.

07:30For me, you know, he, this, this, the guy that got his degree in finance, he's favorite

07:34movie's Wolf of Wall Street and wanted to be in Sydney.

07:36I could tell, bro.

07:37Yeah.

07:37I could tell.

07:38And so coming over here, it was, it was a breeze having, you know, honest and open conversations

07:41with agents and Astro students.

07:43You know, one thing that he's really done well and, and something that I didn't do so well

07:46when I was on the outside is his repeat agents.

07:49Why are you good with repeat agents?

07:50Besides the fact that slight red flag, your favorite movie is Wolf on Wall Street.

07:54We're going to like asterisk that major concern.

07:56I think with like in the business world, if you work with a business broker that finds

08:03a deal for you and then you close on that deal, that business broker is like, that's

08:07a performer.

08:07Okay.

08:07I just got a $80,000 paycheck.

08:09We're selling that dude a business.

08:11I'm going to go find that business again.

08:12So now what happens is this team shows them through performance.

08:15Now the agent goes back to their Rolodex and goes, where else can I find a deal to sell

08:18them?

08:19And if you're listening and wondering what kind of agent is this, it's not a secret agent.

08:22We're talking about real estate agents.

08:23Basically what you're seeing happen here is these two guys have made it so easy for a

08:28real estate agent to move one of their problems into solutions that the guy's going to keep

08:32calling him again and again for him to move more problems into solutions.

08:36The house that he had previously, nobody would buy, but the seller of the house wants somebody

08:41to buy it.

08:41These guys now have a solution where those kind of hard to sell houses can become sold

08:47houses again and again and again.

08:49How much did you buy this house for?

08:51I actually don't know.

08:52Wait, what?

08:52Why?

08:53Because I didn't buy the house.

08:54I bought the mortgage rate.

08:55What do you mean by that?

08:56Exactly.

08:57I found a seller that didn't want the house anymore.

08:59And I said, let me just take over your payments.

09:01Seller says, no problem.

09:02I've got a 2.9% rate.

09:04Here you go.

09:05So how much do you pay for this house on a monthly basis?

09:07And how much can you rent it for?

09:08I'm paying the mortgage is $1,400 and I can rent it out for $2,100.

09:12How long did it take you to do that?

09:14One day.

09:16One day?

09:17Like what?

09:18How does that happen?

09:19Somebody notices that the previous homeowner tried to sell the house with an agent.

09:23Agent got fired.

09:24That becomes an expired listing.

09:25You call the seller the same day it becomes expired.

09:27You tell the seller, we'll take over your payments.

09:30Seller says, yes.

09:31You get a contract on it and you close escrow the next day.

09:33So literally in 24 hours, this deal was, we found the deal, communicated with the seller,

09:37went to the title company, all within 24 hours, closed escrow.

09:40And then in two weeks, you take over the house.

09:41Well, in two weeks, the tenant who's in here right now will move out of the house.

09:45And then I take full control of the house.

09:47Makes sense.

09:47And kicker, the broker, or here the agent, gets a fee.

09:51So they get to take a commission based off these two gents buying the house.

09:56And this is beautiful because theoretically, you don't even have to be real estate licensed

10:00in order to do this, according to Pace and his team.

10:03Jake buys the deal.

10:04The agent is getting paid their 3%.

10:06Standard real estate, except you guys are not licensed and you're doing the wholesale.

10:11That's the difference.

10:11You don't have to be licensed to do real estate.

10:13In fact, it's preferred.

10:14I'm not licensed.

10:15You can just be the wholesaler in the middle of a seller who needs to sell

10:19and a buyer who wants to buy on subject to loans.

10:23When you're learning how to invest in anything, I like to do three steps.

10:26First, I want somebody to explain it to me theoretically.

10:29We had Pace do that.

10:30Then I want them to show it to me visually to make sure that I'm fully tracking.

10:34And then finally, I want to get my hands dirty on the deal.

10:37I want to go to the site.

10:38I want to talk to the owners.

10:39I want to touch the house.

10:41So we're going to go with Pace and we're going to check out a live deal

10:43with real numbers to show you, can you really do this?

10:47And thus, can you?

10:49And I.

10:50Let's talk about some of the costs to maybe refurb the place a little bit or clean it up

10:55or costs for actually doing the transaction.

10:58How do you cover those or how much do those costs?

11:00When I first started in the business, people would say on the radio,

11:03you can do real estate with no money out of your pocket and no credit and no credentials.

11:06I was like, oh, you're so full of.

11:08And then when I actually learned this, it's true.

11:11I am taking over somebody else's payments.

11:13I'm not using my credit.

11:14I'm not using credentials.

11:15And when I say I'm not using my own cash, it doesn't mean that this property doesn't need cash.

11:19It just means I'm going to use maybe I can call them private money lenders,

11:23but they're like nurses, doctors, people that have extra cash that don't know what to do with it.

11:27I will borrow for closing costs and furniture to get that property furnished with like a

11:32midterm rental or potentially just regular rental.

11:34I'll be all in $15,000, but I don't want to use my $15,000.

11:38So I'll go to somebody that says I've got $15,000 in a retirement account.

11:42That's not making me.

11:42I mean, how many people are making money in their retirement accounts?

11:44Nobody.

11:45Right.

11:45But if I paid you 10% interest only on 15,000 bucks and it goes back into your 401k or your

11:51self-directed, now you're making that return tax-free and it's actually making me a return.

11:55I think people all the time also think if you have money,

11:57you have to use money.

11:58So it's not just that people doing these deals are people who don't have any cash.

12:01Right.

12:01It actually could just be you and I think are both really cheap with our capital.

12:04We know that every dollar that we spend needs to make five, 10, 15, $50.

12:10And one of the best ways to do that is use other people's money, even when you got it.

12:12Right.

12:13And you and I are in the business.

12:14So our expectation of a return, I'm not okay with a 10% return.

12:17I'm in the business.

12:18I want a 200% return, a 400% return.

12:20So for example, if I go sell a house like this in 10 years and I have a $100,000 profit

12:25when I sell the house, I'm not even going to use that a hundred grand to put back into

12:29real estate.

12:29I'm going to go buy a title company or I'll go buy a laundromat or I'll do something that

12:33you're doing because my upside is so much larger than putting it into my own deals.

12:37So I go to people that have an expectation of a lower return when I'm buying real estate.

12:41The other part that I like too is I like to buy, like you said, cash flowing businesses

12:44that generate a lot of cash.

12:46But what comes with that, we talked about this yesterday, is taxation.

12:49Then I got to pay the tax man in the IRS.

12:52And you know, I'm only comfortable with doing so much of that.

12:54And so I think real estate offsets that.

12:55Also, not that there's not any risk in real estate.

12:58There is, just like there is in business buying.

13:00But you have an asset that has a lot less variance than you do in businesses.

13:04Businesses can go up and down quite a lot.

13:06You know, real estate, it would be pretty crazy if you had a 75% loss on your real estate

13:11in a year.

13:11That would be hard to have.

13:12So it's kind of nice to offset the cash flowing businesses with little pieces of real estate.

13:16So you've got the house, you did your cool creative financing deal.

13:20You've used this private lender, so you don't have a bunch of cash out of pocket.

13:22Now you need to rent the place.

13:23How do you do that?

13:24What are the first couple steps?

13:25Well, you make a decision on your exit strategy before you buy the property, right?

13:29Because you have to go, okay, I'm taking over some of these payments at $1,380.

13:32What is the likelihood of me bringing in more money than it costs me?

13:36And I have 11 exit strategies that I choose based on neighborhoods.

13:39It's a nicer neighborhood like this.

13:40I might do a midterm rental.

13:41I will not do a short-term rental here.

13:43I don't really love short-term rental anyway.

13:44Or I'll do a regular rental.

13:46In other markets, I'll do like a pad split or other things.

13:48But my exit strategy here will either be a midterm rental with like traveling nurses

13:52or a regular rental with regular tenants.

13:54How do I find those tenants?

13:55When I first started, I did it myself, stupidly.

13:58But you have to start somewhere.

13:59I now have a nationwide property management company.

14:02I use a company called Mind Property Management, M-Y-N-D.

14:05They're nationwide.

14:06And so they're systematized in all my markets.

14:09And we go, we got a new house.

14:11We're closing escrow in a week.

14:12And they start marketing for a tenant before I even own the property.

14:15I think I'm convinced that you can buy a house for $0 down.

14:18In fact, I'm so convinced I'm going to buy an office in Austin.

14:21I'm going to try to do it subject to $0 down.

14:24Why don't you guys comment below if you want me to look at some of the deals you're analyzing.

14:28I'll tell you the things that I noticed.

14:30Oh, and also if you like this video, make sure to subscribe.

14:33When I watch Pace, you know what I see?

14:34I see a guy who got a whole universe of humans who told him, you can't do it that way.

14:40And he said, fuck it.

14:41Watch me.

Buy House No Deposit — Scam or Real Deal?

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