How I Bought 42 Houses with None of My Own Money In One Deal {Beginner Break Down}
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The speaker shares their experience of buying 42 houses in a neighborhood for $3.5 million without using any of their own money. The houses are tenant-occupied, and the speaker plans to do a long-term burst deal by buying and fixing up the houses over a couple of years, then refinancing and paying back the lender. They found a new private lender through TikTok, who committed to investing $1.2 million in the speaker's deal. The properties were appraised for $125,000 per door, which was higher than the speaker's initial estimate of $83,000 per door. The speaker emphasizes that developing relationships and meeting people at the right time can lead to incredible opportunities in real estate.
The speaker plans to make the whole neighborhood better by getting a better tenant base in place, managing the properties better, and taking better care of them. They plan to improve the lives of the people already living there and the tenants they bring in by increasing the value of everything and being landlords that care and have pride in ownership. They plan to spend between $50,000 and $100,000 to clean up the outsides of the houses they purchased to show their tenants and neighbors that they mean business. The speaker plans to enforce guidelines to ensure tenants take care of the property, pay on time, and keep the outsides clean. They believe that in two years, the properties will be worth $175,000 each, giving them a minimum of $3.3 million in equity. They plan to refinance and pay back their initial private lender, and throughout the next two years, they will be paying them a little bit of interest from cash flow.
The speaker shares their experience of buying 42 houses in a neighborhood for $3.5 million without u