Orlando Miner: buy rental property with no money or job: real estate investing secrets

Hello everyone, my name is Orlando and today we are answering questions from our viewers and I have a question from Fam. He says, what advice can you give someone with little to no cash, under $1,000, no job and not the best credit who wants to get into real estate investing? My end goal is to one day have a portfolio of multifamily slash apartments. Can MLO deals work? Okay, so MLO deals, I don't know what you mean by that. Maybe I'm thinking you meaning MLS deals. Let's break this question down to answer this question. So it says, what advice can you give someone with little to no cash, under $1,000, no job and not the best credit? Okay, so let's take that portion first. Okay, so if you have, if you're trying to get into real estate and you don't have any money, there are still a lot of programs, loan programs that will do 100% financing. Okay, that is the truth. You can still get into deals with little to no money if you find the right loan program. First time home buyer programs will allow you to get into multifamily deals at 100%. Now where you're going to run into an issue at is if you don't have a job. Okay, so if you don't have a job, then that eliminates you from getting a loan, period. Because if you don't have income, the bank is going to look at you and go, Hmm, I don't know if something goes wrong in this deal. And you are forced to make those payments, right? At any given point in time, you don't have a job. So they're not going to approve you for a loan. That is just hands down what's going to happen. So in that portion, you really can't do much when it comes to getting a loan. Now let's talk about credit. Let's move on to credit. So credit is one of those things that if your credit isn't too bad, you can still get into a lot of these programs. You can do an FHA loan, you can do a conventional loan. And a lot of times if you can explain your situation, let it be medical bills, let it be why this is in collections, you can still get by with explanation letters to a bank. So you know, banks will come to you and say, Hey, why do you have three 30 day late? And you're going to say, Hey, um, the reason why is because I was going through a hardship, blah, blah, blah, blah, blah, right? And the bank will go, Okay, great. But here is the thing on your collections. Most of the time, they will try to make you pay for those collections. So if you do not have the money, and like we were just talking about the thousand dollars, he said no more than $1,000, then you're going to run into an issue there. So if we take all of three of these things, and we say, Yep, this is your situation, not good credit, only have $1,000 and no job, right? The only thing you can do to get into real estate is you can jump into programs like diversity fund or Fundrise, where you kind of just put money up to $500. It starts at $500, where you put money into this, and you're kind of like collectively in a group of people investing in real estate. I do have a link in my description if anyone's interested in that. But if you are looking to actually hold real estate in your portfolio, you want to own the actual building 100% in yourself, then the only thing you can do from this point is getting into wholesaling. Wholesaling is basically assignment of contracts. So what you would do is you would go out, you would find a property that brings value to someone that you want to sell the contract to, which would be an investor like myself. And you would say, Hey, Orlando, I found this duplex for $110,000. And once you buy it from me, it will be worth, you know, $180,000. But you're buying it from the actual owner for $90,000. So you're selling it to me. You're selling me the contract for a $20,000 fee, right, basically. And then I then turn around and get a property that is now worth $180,000. So to me, when I see that, I say, okay, I have $70,000 worth of equity in this property. So that sounds like a deal to me, right? And it's a deal for you because you don't have to come up with the money, you sell it to me. And that is wholesaling. It is basically pushing paper for a fee. That's the simplest way that I can put it. It doesn't require you to have any money. It doesn't require you to have a job and your credit doesn't matter in that. You just have to work really, really, really hard to go find those deals. Now I know what you're thinking. Well, Orlando, if that is the way to do it, how come everybody isn't doing that? Well, let me tell you this, wholesaling is really, really, really hard. You have to hustle. And I'm not saying that, fam, that you don't want to hustle, right? I'm not saying that at all. I'm just saying you have to look at all of the advantages and disadvantages. I just named all of the advantages because that helps you in the situation that you're asking this question for. But, but here are the disadvantages of wholesaling. Number one, wholesaling is somewhat being pushed out. In Illinois, it's illegal. In some other states, it's illegal also. Cities are banning wholesaling. And the reason why is there are some bad actors in wholesaling that are kind of, you know, going to grandma and going to seniors, basically deceiving them on the value of their property so that they can make a profit by selling it to someone else. And you can just imagine if someone that you loved sold a property to a wholesaler that was, I don't know, let's just say your grandma's house was worth $400,000, but she sold it to a wholesaler for $100,000. And then you see how much profit there is in between there, between the wholesaler and the investor get to eat up all of that money in between, but grandma didn't make any money at all. So that is what the fight is happening all throughout the country when it comes to wholesaling. And there are a lot of restrictions. Realtors dislike wholesalers a lot. And the reason why they dislike wholesalers is because a lot of wholesalers are green. They don't really know the market. They really don't know how much it's going to cost in rehab or ARV and all that other stuff. They're extremely green, you know, and not only top of that, we have to really understand this too. You're taking business away from realtors, right? Realtors would love to go ahead and, you know, sell grandma's property to an investor and knock you out of it, right? But the thing is, is a realtor is going to say, we won't sell it to grandma's house for $100,000 to an investor. We're going to sell it for $400,000 to the investor because realtors make their money. The higher the value that they sell the property for, the more commission that they make. So real estate agents just believe that wholesalers get in the way of actual doing real estate transactions. So you have that. You have that portion. And then we have, when it comes to wholesaling, the looking for properties. I'm pretty sure you've seen them, those banded signs that says, we will buy your houses. Those normally are wholesalers looking for deals. They are looking for those deals that they can sell to investors. But here is the thing, guys, I'm an investor and yes, would I like someone to bring me deals that are really juicy that I can purchase? Of course. But I am out there looking for deals just like wholesalers are. So we are kind of like competing against each other. So you as a wholesaler will also have to compete with investors like myself that are literally sending mailers and flyers out to owners to say, hey, can I buy your property? So you're fighting against that. You're against realtors. And I'm not saying I'm not once again, fam, I'm not saying that you should not do this. I think wholesaling for answering this question for people in that position is a great tool to get ahead because that $10,000 to $20,000 profit that you're going to make from selling the contract to an investor, you can use that to kind of jumpstart your real estate journey. That money portion can eliminate a lot of things. You can use that $20,000. You go get a hard money loan that doesn't care about job, that doesn't care about your credit. All they care about is the asset and how much it's worth. And if you're putting down that 35% down with a hard money lender, you will be able to get into that property. So I'm not saying that you shouldn't do it. I'm saying that you should know the advantages and the disadvantages. And a lot of times when you go on to YouTube and you listen to a lot of people online talking about wholesaling, they make it sound so easy. Wholesaling, I think, in my opinion, is one of the hardest sides of real estate because it has so many components. There's so many regulations and legalities to it that it just makes it hard to kind of move in that realm, right? So you have to be careful. You have to know exactly what you're doing. You have to really get up on all of your information and knowledge of what it all takes to sell the property, what are the rules in your local area. So just stay up on those things. So as far as the MLS question, can you get deals on MLS? Yeah, you can. There are great deals on the MLS, but you're competing with a lot of people, man, when you find deals on the MLS. Let me just tell you. I'll just tell you my story. My story is that I rarely, I think I've only bought one deal from the MLS as an investor. And those deals are just so rare. Like I felt like I found that on accident and nobody else was looking at it but me. Every other deal, I've gotten speaking directly to the owner and reaching out to individuals and saying, hey, I would love to buy your property. That's the way that I have always done it. Getting those pocket listings from other sources like realtors and whatnot. Those are the ways that most investors get their deals. MLS is just flooded. It has a lot of eyes on it. And most of the time, if it gets to the MLS, it's probably already been picked over and passed over by multiple investors. So don't get me wrong. Like I said, deals can work on MLS. You just have to do the research. You have to break down the deal and see if it works for you. So don't get discouraged by MLS deals. Do not get disencouraged by that. So fam, I hope I answered your question, man. I really, really appreciate that question. And guys, look, share this video. If fam had this question, I know a bunch of people watching right now had this question also. Share it, guys. Share this info. I'm trying to reach as many people as possible to get them into real estate. There are so many ways to get into real estate, guys, and I want to help you get into your first rental property and more and more. So share this with friends, family, and hit that like button for me. It really helps, guys. But I'm going to need you to watch this next video here, guys. It will continue to help you and give you the information you need to get into your first rental property. I also talk about what's going on in this crazy housing market, and I will catch you guys in the next one. Thanks.