How To Buy Commercial Real Estate Without Money | The Easy Way - Capital Raises - Investment Fund

How To Buy Commercial Real Estate Without Money | The Easy Way - Capital Raises - Investment Fund

In this video, I'm going to show you how you can raise money to buy real estate without using any of your own money. Make sure you stick to the end because you'll be able to take the pieces throughout the video and see how they may apply in your unique situation. So if you're a new real estate investor, or maybe you haven't even invested in real estate, and if you're new to this, and then you want to actually raise some serious capital and create your fund.

And make sure that everything is all proper and do this one really has to make sure that they have something called Negotiation leverage or they add value Really at the end of the day people are just looking to get from point a to point b in as little effort as possible And so if you can show somebody that find somebody that wants something and help them get what they want really quick You'll be able to make money for doing so so in a nutshell There are two main ways that I see people do this number one.

There's something called seller carry or vendor take back And if you want to buy a business from somebody or buy real estates, you want to check to make sure you can buy the business and sometimes find a seller of the business or the real estate that you want to buy who's very motivated to sell it.

If you find somebody who is motivated to sell their real estates, they'll be willing to do more than what you may think. So if you find somebody who is willing to use some of their own money to help you buy their own real estate That's actually a thing. So make sure that you try to find people who would do that Some people call it vendor take back other people call it seller carry So in the number one step always ask people and find a way to ask people who sell real estate to you if you want to buy real estate with very little money or for no money make sure you ask them if they do seller carry Or vendor take back and this is only done on deals.

Usually that deals, you get money. So if you're buying real estate from somebody and there's nobody renting the real estate, there's probably no money in it, or it's probably no cashflow. And if there's no cashflow, then it's probably really hard to do that. So you want to find real estate or find businesses that are generating cash.

And then if you do this, and then if you do this, then you just be able to use the cash from the businesses to pay for the acquisitions. So, you know, that's what, that's number one, number two. You want to make sure that you help the person and add value to them because if you want to buy real estate without using any of your own money, you want to make sure that you negotiate your way in by saying, Hey, in exchange for you giving me this real estate, I'm going to bring something else in.

For example, I'm going to find somebody to help you buy this business with cash. And in exchange for doing so, I want this much equity. So you just become a capital raiser for the thing that is selling and then you take part of the equity. So that's pretty much brokering. Instead of taking a percentage cash of the money that the investor puts in, you just take some equity.

And so, you can only do this if you have to be careful of this because you want to become a business partner of the company because you don't want to break any securities laws. Securities laws is a really serious part of law when it comes to private equity investments. But yeah, just make sure, just tell the person, hey, I'm going to help you find somebody that has the money.

And in exchange for doing so, I'll take part of that money. That's the second way you can buy real estate with very little money down. Because instead of using money, You're using labor and it may be your labor because money and labor are pretty interchangeable and money is really just a storage of labor So you're just using your labor to do it And then the third way and the third little known way is when you do something and I like to call This is a really interesting one Is when you basically break things down into pieces.

So you say, if somebody is really reluctant to give you sell or carry, in other words, use their own money to help you pay for any, to pay for buying their real estate or their business. Try to break things down into chunks, into, they call it troshes. break things down into chunks. Whenever there's a big risk or a big ask of somebody, you can always reduce that ask and that pain by breaking things down into chunks.

So the first chunk may be something like, Hey, instead of you putting in like 50 percent of the business down right away, maybe just put down 10 percent and then after two months, put down the other 20%. And then after that, put down, you know, another 10 percent if you do things like that, then you'll be easy to manage the cash flow of the business with the cash flow of an investor bringing in the money or you bring it in the money.

For example, you acquire a part of the business and then you can also do this for your acquisition. Let's say instead of somebody putting down 50 percent of the buying price and giving you that so that you buy it, our business, they put down 10 percent initially. And then in exchange for that, you put down a smaller chunk of your own money.

And then in exchange for that, you own a smaller part of their business than you want it. And then you make some of that cash flow slowly. And then you take the next part of both of put some money in, they put some money in, and maybe another investor puts some money in the points I'm making is you can always break things down on a longer timeframe to reduce risk.

And increase the amount of yeses that you get on the acquisition on the seller carry That's investors putting money or the seller putting money into their own deal basically And investors working with you to buy the deal and so if this makes sense Number one make sure that you just try to ask for a seller carry whenever you can That is getting the seller of the business or the real estate to buy to put the money down for you.

Number two, make sure that you use labor to try to reduce the cost by saying, by putting everything in the seller's best interest. And these are motivated sellers who are motivated to sell their real estates or their businesses that are cash flowing, are generating cash. And number three is to make sure that you break things down into longer time frames so that you reduce the risk of all parties and you're more likely to get a yes and get what you want.

So if there's something that you want to get started, make sure you head to

Go to Raises.com/website to book a call as well for your equity fund.

Follow Raises.com on LinkedIn by clicking here.