How to Find Low to No Money Down Rental Properties in 2022!

Hey YouTube, it's Cody and Christian. We're back for this week's Whiteboard Wednesday and we've got 5 more questions for you today. We're gonna be starting off with Chris.

Chris Alf. Cody, I'm gonna direct this one to you. They asked, have you done the Cardone courses and do you feel you got a return on your investment?

Oh my goodness, well there are a lot of those. I've done a couple. I tried Cardone University, went through that a handful of times and I got a lot of value out of it. But it depends what you're looking for. If you're just trying to be a real estate investor, Cardone U is not your platform. If you want to get a little bit better at sales, that's likely a good start, especially if you're doing it as an individual. But I've gone through that a few times. If anything, it's given me a few ideas of what to say, and it's just given me more confidence when I'm going out to talk with people. I have personally gotten a pretty significant return from it. However, you got to know what you're looking for and be very intentional with what you're trying to get out of it. Because for me, I had no sales skills getting started and it was a lot of direction. However, if you've been in the sales game for a long time, you could get some value out of it. But again, it comes down to what are you trying to get from the program?

And it is a program I've been through as well, and we actively pay for our employees to go through it. We continue to use the Cardone courses and use those throughout our company. So Recommend. Thus far we've both got a return on our investment, but it is sales training, not real estate training. Question 2 is also from Alf. It's, how did you locate owners of properties? He doesn't have access to the MLS and didn't realize how many properties are listed versus unlisted. How are we actually finding them when we don't use the MLS?

Well, when you're not using the MLS, because that's— I mean, I don't use the MLS a ton. I use Google Maps, and then folks are like, okay, well, you can find properties on Google Maps, but then what? You're going to go to the tax assessor, and on the tax assessor, you can find out who owns it. Now the question comes, okay, well, how do I contact them? Because typically, you're not going to find their contact info on the tax assessor unless you look at excise tax affidavits, but that's another video. You got to Google who they are, and you got to figure out, okay, where are they based?. And you plug in the info and you can typically find a contact number. And with that contact number, I am not going to call them to try and buy a property. I'm going to call them to, number one, learn how they got into the game. I do not call people to buy their property. I call them to learn how they got where they're at because typically, and by typically I mean always, these people have more real estate than I do. And so I can go learn from them, get the skill But it starts with Google Maps, which then leads into the tax assessor, which then leads into a Google search, who they are, give them a call, book a lunch, get coffee, and learn how they did it, and then go replicate that on other properties, sometimes their own, but usually other properties.

And something not everyone does, we don't have any software that we are using with this. It is all free Google. We are just going through the existing software. We're not buying lists. There's no skip tracing. We are just running through everything as it, as it appears.

And then we've got another question, and this one's for Christian from Silver Pibb. I've been watching you guys' videos for the last few days. I'm trying to understand where to find opportunities. I'm getting started. Would it be BiggerPockets or something else? I want to explore the multifamily process before going in on another single-family home.

Okay. Now this plays very closely to the last question, right? For how to find stuff, BiggerPockets does have an off-market network, and I know people have done deals on that. I haven't personally.

I don't believe you have either, Cody.

No. That being said, from what I've heard, it is fantastic, and I have colleagues who have used it and successfully sourced deals and listed their own. That said, Google Maps has been what's most effective for us. What we always want to stress is that relationships are what's going to get you there. So if you find a relationship on BiggerPockets, you want to talk to them about how they got to where they are, not their specific deal. I wouldn't source the deal there. I would source relationships on a platform like BiggerPockets.

Deals are going to always be different. I mean, you can find something that's similar, but the structure is usually going to be a little bit different. However, you can go learn skills from people that have bought stuff. Seller financing is a repeatable method to acquire, right? You got to come up with debt, or equity. Owner contracts is a great way to get debt, and there's some creative ways to get equity, but you're not going to learn that from just buying a deal. You're going to learn that from meeting with people. And that goes back to our last point of Google Maps. Every single off-market property out there just so happens to be on Google Maps. And I mentioned that to someone on Facebook and they didn't believe me, and then I explained. I was like, oh, that's pretty simple. Literally every property that you could buy is on Google Maps. So you got to figure out who owns it, tax assessor, and then that new relationship is a new opportunity to go learn and thrive and build up your real estate portfolio, your business, and your connections.

And on the back half of that question, wanting to explore multifamily before buying another single-family house, I love that because what that tells me is you want to be in multifamily, or at least you're interested. Take steps towards what you want to be doing. So if you want to get into multifamily, I absolutely recommend don't buy another single-family house. Learn multifamily, figure out what you want to do, start with your plan, and then take steps towards that. So excellent question. Cody, we got a question from Isaac Fernandez. He said, hey, great video. I have a question. How do you guys manage to get owner financing these days? We've answered this before, but he has a part of this question I love. I've been trying for the past few months to tap into the market through seller-owner financing, but almost everyone doesn't want to do it the way you do it. They want a large down payment as assurance.

How do you guys work with that? Okay, so you got to think about this and take a step back. People want security in deals, and typically folks equate security to how much money you're putting down because you're putting a lot of skin in the game. Well, how else can you securitize a deal like that? Well, you can go and prioritize a relationship. And I know this, like, we're beating the same drum, but if they feel like they know you and that they're not going to have to take it back, they will not need as much money down. If they truly know why you're doing what you're doing, meaning that you didn't just meet up with them to buy a property. I can't stress this enough. But if they actually know you as if you were their own family member, they're not going to ask for as much down. They won't on a typical deal. I've gotten deals where typically they want 20 to 30% down when I first meet them, and I'm like, okay, I can't do that today. And then I keep on meeting with them. I share a little bit more about why I'm doing what I'm doing and what I'm doing actively to get there. And then they went down to 15% down. I kept meeting with them. They went to 10% down. Christian and I just bought 3 duplexes from them 10% down. And then we keep on working it and potentially getting some 0% down deals. It's not done yet, but there was no way we would have gotten that little money down if I just kept trying to ask first more than I was giving back upfront. If you just ask for 10%, you're probably not going to get it. However, if you continue to meet with them, show them what pieces you're working with, why you're going where you're going, they're more likely to give you low-down terms because people— and I've said this before— people get to a point in their life where they have more money than they have time and they don't actually need the money. They just don't want to go through the hassle of taking it back. So if you can show them that you are 100% committed, and it's not going to happen through one meeting, but you show them over periods of time, 6 months, 12 months, 18 months even, that you're here for the long game, they're not going to ask you for as much down. And most people will not go through that process because it's not a deal today. And that's okay.

Yeah. Under contracts, they're the lender, and your lender is another player in the deal. Like, they are a continuing partner in that deal, whether you You view it that way or not, the fact is they have a stake in it. So if they don't know you, of course they want you to have more skin in the game. They need to feel secure in their investment. The only way that you can add security to them is building a relationship. If they know you, they can invest in you, and they're willing to do that at a higher level if you can connect with them and get buy-in on who you are, what you're trying to accomplish.

And then our last question from Giorgio. Thank you for answering my last question. I have also understood that you have a mentorship program going on. How is it possible to chat about that?

Ah, that's a good question. And I don't think we've answered that on this channel yet. Cody and I will mentor in small groups. We started this a while back on a one-on-one basis. And what we found is when we bring a few investors together from around the country, different walks of life, different points, people learn faster and there's built-in accountability where people actually start bringing deals to each other and we see stuff start to happen. So what it's evolved into is usually about every 1 or 2 months, we'll start another group, 8 to 10 people, and we'll just get together and go over how to set goals, how we're analyzing a deal, how to talk to owners and brokers. And the goal is that someone's going to buy a property in their first 6 to 12 months. If you're not ready to buy yet, mentorship's not for you, and that is okay. Keep learning, keep watching the channel. If you go, this is the year that I want to buy and I want to do multifamily, hit me up @ChristianOsgood on Instagram. That's the easiest way to reach me, and we can have a chat. And if it's right for you, would love to help you reach your goals.

And just to understand, I've said this so many times, I believe I said it on BiggerPockets, but application is more important than information. This is the information age, and anything you want to learn is online. I realized that when I started the consulting company with Christian, and so I share this with people. You can get as much information as you want online. At the end of the day, it comes to how do you actually go apply this so that you can scale up what you're doing and more so what you're doing, um, go accomplish the goals that you are setting out to accomplish. So that is what we focus on. But shoot Christian a message, and if you guys have more questions, drop them down below because we're doing this every single Wednesday. We're hoping to get a little bit better every week at answering these questions. So comment below, like, subscribe, and we'll see you guys next time.