Buying 28 units at 19! How to buy any property low to no money down!!

Hello YouTube, it's Cody and Christian. We are back this week to talk about how anything is possible. A lot of people have told us that, hey, you can't replicate what we did. Cody was 19 years old. What did you do at 19?

Well, I bought a 12-plex with zero money, zero credit, and zero family experience.

So a lot of people said, hey, you just got lucky. So what did you do next?

I bought another 12-plex with zero money, zero family experience. I had a little personal experience, but I also still had no credit.

Then he bought a 6-plex around the time I was buying duplexes because I was still thinking small. So I got a duplex and then Cody's like, hey, buy the duplex next door to my 6 and we'll be neighbors. From there, I started getting all into this, hey, wait a second, I'm out of money now because I've spent it on my 2 duplexes. How do I move forward?

And we bought a 38-plex.

Exact same way. From there, within a few weeks of closing that, we bought a 7 and a 6. And if you guys have followed this channel at all, We rolled pretty fast from there. So anything's possible. There's two other things people said you can't do. They said, hey, it only works because you're in a tertiary market. So we bought in Seattle, which is an awesome market. Then people said it only works because it's Class C.

So we bought a Class A resort that I'm moving into. Also seller financed, also long-term fixed rate debt.

Also watch episodes on that every Saturday.

Yeah, that's launching tomorrow. So I got to start working on that.

You probably should get that done.

However, When you keep it simple, it becomes repeatable. When it gets complicated, yeah, you can have a cool story. However, no one else could do that. And so I started out with no money, no credit, no experience, and I built a portfolio valued over 8 figures today. And it, like, no money out of my pocket. It was $10,000 into multiple 7 figures of personal equity and multiple 6 figures a year in cash flow over the course of 3 years. Now that's cool and all, but some people think it's too complicated to repeat. Can you do it in Seattle? Yes. Can you do it in Class A? Yes. Can you do it in Class C? Yes. But it doesn't matter if we can do it if you can't. So we have today two guys who actually repeated our strategy. We found each other online and 9 months ago we started chatting and they just are now closing on a 10-plex. So come on over.

I'm the shortest one in the crew, so we'll figure out how to crowd everyone in. If our audio quality sucks, I don't have enough mics for a big room, but we want to share this.

We're not worried about it because it's better to be done than perfect.

Absolutely.

So introduce yourself. What are you doing?

Who are you?

Did you come from, you know, rich, rich family in real estate? Incredibly rich. Oh yeah. Yeah, they're the richest of the rich. What's going on?

Yeah, so I'm Caleb. Chuck. Yeah, we're closing on our first 10-plex here next week in Texas.

How are you financing that thing?

Seller finance.

Okay, that's from your dad, right?

Nope.

Okay, so everyone, that's out of the way now. It's not his dad. How did you find that?

On market LoopNet.

Dude, my first deal was on the market. How long did it take you to buy it?

Couple months.

Oh.

So how much did you have saved up for this first property when you started?

Complete zero.

Yeah.

Zero dollars.

By the way, they did our consulting and their payments bounced more times than it's gone through on time.

Yeah, probably bounced double the amount.

Yeah. So if you have literally no money, no family experience, no personal experience, and no credit. Turns out it is repeatable, but you got to keep the steps simple.

Simple as possible.

So how did you structure the seller financing? Because you got no money, you have no reserves, and that's similar to me. I had no reserves.

Toughest part.

How did you structure the first few months? Because you're closing on it like today or tomorrow.

Yeah, whenever.

Monday, Tuesday, one of those days.

Yeah.

All right, so how did you structure the seller financing?

Yeah, so the hardest part, just having no reserves, is if rents are low and you're not making the cash on cash you need, it's like, well, what do we do? We can't go negative. So the way we did it on our first deal, we're going 6 months of no debt service to start.

So no payments at all?

No, nothing.

That's awesome.

We've never done that.

So it turns out you just keep it simple. I don't want to pay you for 6 months. Okay, you just have to ask, you know, ask, you know, get.

Yeah, guys want a flat interest rate and we're like, how about— you're like, how can you do this? I said, I don't pay you for 6 months. And you'd rather that than change it.

That's awesome. So that'll build up your reserves. And then are you still building the portfolio or are you stopping at 10?

Oh no, come on now. Building up 10x.

So what are you doing now? What, you're under contract on some other stuff?

Yeah, we've got an 8-unit closing in Laredo this coming month as well. Seller finance as well. 2 months no payment on that one. Okay, again, what else? Another 10 the following month.

Okay, so point of this is if you keep it simple, turns out you can actually buy stuff without any money. You get no payments, turns out you build out your reserves pretty quickly, and you guys borrowed money for the down payment like I did. How are you planning to cash out the investors on your deal?

Yeah, so really cool thing about this deal is you got the duplex, 5 duplexes, 10 units, and then behind that you've got another acre and a quarter just sitting there. And we don't have any plans of developing at this time, not around our journey.

If you're cash poor, it's a little hard to develop.

Yeah, a little tough. So we're going to sell off that acre get a deed release on it and cash out our investors in the first 6 months.

What's a deed release?

Basically, it's where the owner signs off and he has to agree to an amount.

Yep.

Where he's like, okay, this goes— that much goes towards principal and you guys net this much.

Okay, so essentially they owe money on the land and so they're going to sell off a portion of the land, pay a little bit towards the seller finance note, keep the rest. And are you going to use that to cash out your investors?

Yep, within 6 months.

So that's just a free deal. It's pretty real estate. Insert meme. Yeah, yeah.

So it's Chucky and I have a 10-unit deal to ourselves.

So is that repeatable for everybody? Yeah, because you found it on the market. How long was it on the market?

A year.

Okay, so I've been saying this forever, no one believed me, and then we get these 18-year-olds, now 19-year-olds, that decide, oh, I'm gonna try and look on the market, and they found it and they're getting it for free. Doesn't get better than that. It's crazy.

I also want to point out They're in San Diego, they're buying these deals all in Texas.

They wanted to buy in Texas because they don't like California. Turns out the Mexican food everywhere else is better than California too.

Yeah, that's debatable at best.

Okay, well, real estate's definitely cheaper everywhere else.

Yeah.

So if you want to buy in a certain market, you can do it. If you want to buy deals off the MLS, you can do it. They sit on the market. In every market, there's opportunities. It doesn't cost you money. It's just how do you buy it? How do you never lose it? Long-term debt and cash flow.

That's it.

Do you have anything else you want to share, Chuck? The quiet corner.

I'm good.

I'm good.

Okay. Well, if you guys don't have anything else to share, we just wanted to share this with you that this is repeatable. If you want to do it, you can. It doesn't take forever. I met them 9 months ago. Took me 9 months to buy my first deal. Took them 9 months to put theirs together.

Yep.

It doesn't take forever. Real estate's not clicking a button, but it's not rocket science. And if you keep it simple, you can repeat it.

Now, law of the first deal is once you get your first deal, it's usually between 3 to 5 years you find financial freedom. You guys really grinded hard to get to that first deal. That was not easy, right?

Yeah, definitely didn't go the easy way. I've heard you guys say it plenty of times. We were banging our head against the wall for 9 months, but turns out it still works.

What happened though? You haven't even closed on the first deal. As soon as you got the first one under contract, You immediately, next deal under contract, next deal under contract. I had to tell you to stop getting stuff under contract, close first.

They had a 46-unit that they were going to buy in Texas seller finance, which was a great deal. I just told them to stop because they'd implode. Yeah, these deals are everywhere and people say they're nowhere. So that's awesome, guys. Yeah, banging your head against the wall can work. It's a little bit of brain damage.

Yeah, it takes a little longer, but it gets the job done.

Yeah, they're going to pass 100 units in there. First 12 months.

But they, it works in and out of market. It works in tertiary markets and primary markets, Class A, Class B, Class C. You can do this anywhere with anyone, anytime. You just need to find the opportunity. Don't get caught up on price. I think everyone here, almost all the negotiations had nothing to do with price, right?

No, it's, don't mind overpaying for anything if I get terms.

Yep. Yeah, if your tenants pay for it, what's it matter?

Yeah, creative financing lets you have more inputs. You can buy things, just figure out the deal first and then line up the debt and equity. And that's— if you can figure that out, you can do this absolutely anywhere with absolutely any opportunity.

Yeah. Boom.

It's repeatable.

Good job, guys.

Appreciate it.

Yeah, I appreciate having you guys on.

If you want to do this too, check out themultifamilystrategy.com. We appreciate you being the 27% that's made it this far into the video. Like, comment, subscribe, and we'll see you on Monday.