How We Bought a House With Other People’s Money 💰

Name: How We Bought a House With Other People’s Money 💰
Uploaded: 2025-11-12T14:00:35+00:00
Duration: 10 s
Channel: Nathan Payne
Description: In this short dialogue, the speakers explain how they acquired a property without using any of their own capital. They first secured a hard‑money loan…

12 Nov 2025 · 0 min

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In this short dialogue, the speakers explain how they acquired a property without using any of their own capital. They first secured a hard‑money loan from Matt Strong, which covered roughly 85% of the purchase price. To fund the remaining portion, they turned to a private investor found via social media, raising about $60,000 (approximately 15% of the deal) and offering a 10‑12% annual return. They advise borrowing slightly more than the exact equity needed to also cover closing costs and minor repair expenses required for inspections, emphasizing that over‑borrowing can provide a financial cushion and ensure the deal closes smoothly.

I'm sure you guys are wondering like, how did we do this without any of our own money, right? Yeah, I mean, that's the main question on everybody's mind, right? How do you make $86K with no money of your own invested?
First thing we did is we hit up our boy Matt Strong, the hard money lender that we use, and he funded I think 85% of the deal. Yeah. And then what I did is I went out on social media, I posted and said, hey everybody, I've already raised 85% to fund the deal that I'm buying. Who can bring 15% for the deal and I'll pay you a 10 to 12 12% return on your money. So I found someone that was willing to give us, I think it was $60,000 to fund the deal, and we paid them a return on their money. So we had the hard money lender brought 85%, we had the private money lender brought 15%, or whatever the numbers work out to be. We gave that private money lender, uh, 10% on their money.
Private money lender actually brought more than the 15% and we covered, which is a good idea because it helps cover closing costs. It helps cover, like, even though we didn't fix it up, we did pay to do some minor repairs to like meet inspections. So if you can, when you're borrowing private money, always borrow more than what you need. And if you can get repairs, get repairs too.