How to Buy Real Estate with No Money

Hey, everyone! Today, I want to tell you how to buy real estate with no money!

Click here to see my YouTube video, “Scale your Real Estate Portfolio with a Fund

A lot of you have dreams of owning a large amount of real estate.

But going the traditional route of saving up money and buying is just too slow. At that rate, it will take you 30 years to own 100 doors!

That’s great, but what if I told you that you could get 100 doors right now, and not have to wait 30 years…

Let me point out something real quick. If you found a duplex and made a bid, then you would compete with 50+ people!

However, if you made a bid on a 100-door apartment complex, you’d be competing with 1 or 2 people!

More capital = less competition

Another upside to going bigger: you can justify hiring a property manager or a team to help you because of all the rent revenue streaming in.

On the contrary, it doesn’t make sense to hire someone to manage your singular duplex.

The 2 Models

We talked about the syndication and fund models earlier this week, so for more clarification, click here.

A syndication loop looks like this: You pool money from yourself, the bank, hard money lenders, and other investors and put it into an LLC that was made specifically for that deal.

Using the capital, you flip the house, sell it, and distribute capital.

I have a friend who used this model and flipped 4 houses per year, making about $50K on each one. Not bad!

However, I taught my friend how to use the fund model instead, and he flipped 72 houses the following year!

Funds operate like syndications because you find a deal and frame your model.

But, with a fund model, you only set it up once. You set up the legal documents and structure once.

Set up a limited partnership (LP) instead of an LLC and complete dozens or hundreds of deals with the pool of capital!

When those deals make money, it flows back into the LP, and you split the returns between yourself and the investors.

Funds beat Syndications

Not only can you do more deals with the fund model, but you can beat out competition.

I know a guy who runs a $4.5B real estate fund…

In my video, he told me…

“Bridger, when we go and bid on $100M apartment complexes, we aren’t the highest bidder, yet we still win.”

How’s that possible?

Here’s the difference: He can make that transaction within 14 days with his fund. The competing syndication guy has to wait 6 to 12 weeks to go and get his capital!

In other words, when sellers want the money sooner than later, they will go with the fund over the syndication every time.

Like I said in my video

“Winning a bid isn’t just about money, it’s about terms.”

Conclusion

So, how do you buy real estate with no money? With a syndication loop or fund model!

Fund Launch helps both parties with starting and scaling a fund or setting up a syndication. Click here to learn more!

I hope you use one of these models to buy 100 doors this year!

Thanks,

Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author.


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