BiggerPockets Real Estate Podcast

BiggerPockets Podcast 092: No (and Low) Money Down Real Estate Investing with Brandon Turner

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What would you do if you didn't need money to invest in real estate anymore?

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That’s the question we tackle today on the BiggerPockets Podcast as we interview one of our own… Brandon Turner, to learn how he’s purchased over $2,000,000 of real estate with almost no money of his own! Brandon, although co-host on the BiggerPockets Podcast, is also an avid real estate investor who rarely-if-ever puts his own money into his deals. In this groundbreaking episode, Josh interviews Brandon about how he built his business using creativity rather than cash and the lessons that he learned along the way.

This episode will leave you inspired, refreshed, and with a laundry list of new ideas to use in your investing business to invest with less (or none) of your own cash!

Read the Transcript

Click here to read the transcript.

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In This Episode We Cover:

  • The method Brandon used to buy his first house and make $20,000BiggerPockets-Podcast-Cover 300 300
  • The one conversation that almost derailed his entire investing future
  • How Brandon bought two homes of one of the world’s most famous rockstars – and didn’t know it
  • The mistake that almost destroyed his business on the first hard money deal
  • How Brandon bought a 24 unit apartment building for no money out of pocket
  • The downside to several “no and low money down” strategies
  • Getting a partner to fund 100% of the down payment
  • Where to find great real estate deals – no matter how hot your market is
  • The legal entity Brandon uses to hold his properties and why
  • Brandon’s #1 productivity tip
  • And LOTS more!

Links from the Show

Books Mentioned in the Show

Tweetable Topics

  • “It’s better to have 50% of a great deal than 100% of no deal.”
  • “The foundation of a great creative real estate investment is an incredible deal.”

The Book on Investing in Real Estate with No (and Low) Money Down

f8e37d4f-no-money-3d-book-cover-png_0aj0f60aj0f6000000Is Your Lack of Cash Holding You Back From Your Real Estate Dreams? Don’t let the contents of your wallet define your future. Discover the real life strategies that smart investors are using in today’s market to invest in real estate with creativity!

In The Book on Investing in Real Estate with No (and Low) Money Down, active real estate investor and co-host of the BiggerPockets Podcast Brandon Turner takes readers past the hype and dives into real life strategies that investors across the world are using to invest in real estate using creativity – instead of their own cash.

In this book, you’ll explore:

  • Numerous Strategies to Mix and Match – Creative investing requires a creative mind, and this book will share numerous examples of creative deal-making.
  • Get Started with No Money or Experience – Looking for your first deal? Learn the best strategies for getting your feet wet without paying thousands!
  • The Ugly Side of Creative Investing – Learn the downsides to all the strategies mentioned in this book, as well as tips for overcoming those problems.
  • Attract Private Money, Lenders, and Partners – There are millions of millionaires walking the streets. Discover the best way to attract them to you.
  • Wholesaling, Flipping, Rentals, and More – No matter what niche or strategy you plan to use to build your real estate empire, this book can help you proceed.
  • The Truth About No Money Down Investing – Investing with little to no money down is possible, but it’s not about some step by step strategy. It’s about a mindset.

Click here to get your copy of the book now!

Connect with Brandon

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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    Ben Leybovich
    Replied almost 6 years ago
    Brandon – I’m proud of you!
    Brandon Turner
    Replied almost 6 years ago
    Hahah thanks Ben. Your little boy is all grown up!
    Burnell B. Renter from Manhattan, Kansas
    Replied almost 6 years ago
    Whoa!
    Chad Carson
    Replied almost 6 years ago
    Congrats Brandon! You always share a lot of great information without holding back the details or the humor. This podcast and the great book are no exception. Thanks.
    Brandon Turner
    Replied almost 6 years ago
    Thanks Chad! I really appreciate it, and thanks also for all your help in preparing for the launch and recording the video with me! You rock 🙂
    Douglas
    Replied almost 6 years ago
    In one word: impressive. He can sing too! #rockstar
    Brandon Turner
    Replied almost 6 years ago
    Hahah I can sing… but not sure if I can sing “well”
    Terry Li
    Replied almost 6 years ago
    Great stuff! Brandon, do you plan to bring Josh up as a guest next time?
    Brandon Hicks
    Replied almost 6 years ago
    I haven’t listened to whole thing yet but I’ve enjoyed it so far! I plan to order the audio version of the book as well. I have a question on the 24 unit deal….. You stated you had a cash down payment of $15k on the $550k purchase price leaving a land contract note balance of $535k. I have to assume the sellers had security deposits on the 11 tenants that were in place and I assume that property taxes are prorated (maybe not in your state). What I’m getting at is what happened to those credits? Did they pay them to you at closing or did you just miss out on that extra down payment cash (credit)? I buy a lot of deals on land contract and I word my down payment clause in the letter of intent in the following manner…. “The down payment is to be made up entirely from credits for prorated property taxes, prorated rent for the month closing takes place and the transfer of security deposits that you have collected from the current tenant(s). The land contract note amount will be the balance owed after the above credits have been subtracted.” I always close these deals on the 8th of the month so that all my payments are on the same date and it creates a 22-23 day rent credit in most cases as well. My attorney drafts my contract with blank spaces for down payment, land contract note balance and monthly payment. The title company enters those numbers once they have determined the credits due to me to be used as my down payment. I pay the roughly $700 for closing paperwork and the seller brings nothing and leave with nothing.
    Brandon Turner
    Replied almost 6 years ago
    Thanks for the comment, Brandon, and great question! So we did get back SOME of the security deposits (not many) when we started the Lease Option part, but I think it was only around $3k. The guy who was foreclosed on stole the rest! But we got some taxes credited back as well, so I think we actually only came to closing with around 9k if I remember right. Thanks for listening!
    Brandon Hicks
    Replied almost 6 years ago
    I haven’t listened to whole thing yet but I’ve enjoyed it so far! I plan to order the audio version of the book as well. I have a question on the 24 unit deal….. You stated you had a cash down payment of $15k on the $550k purchase price leaving a land contract note balance of $535k. I have to assume the sellers had security deposits on the 11 tenants that were in place and I assume that property taxes are prorated (maybe not in your state). What I’m getting at is what happened to those credits? Did they pay them to you at closing or did you just miss out on that extra down payment cash (credit)? I buy a lot of deals on land contract and I word my down payment clause in the letter of intent in the following manner…. “The down payment is to be made up entirely from credits for prorated property taxes, prorated rent for the month closing takes place and the transfer of security deposits that you have collected from the current tenant(s). The land contract note amount will be the balance owed after the above credits have been subtracted.” I always close these deals on the 8th of the month so that all my payments are on the same date and it creates a 22-23 day rent credit in most cases as well. My attorney drafts my contract with blank spaces for down payment, land contract note balance and monthly payment. The title company enters those numbers once they have determined the credits due to me to be used as my down payment. I pay the roughly $700 for closing paperwork and the seller brings nothing and leave with nothing. Reply Report comment
    Melodee Lucido
    Replied almost 6 years ago
    ohmygosh! I can hardly breathe after listening to this podcast!! It was a nail chewin, cliff hanging, ponytail twisting, sweating time following the fast pace of the adventures of Brandon. I had to turn my listening up to high speed level. I am passionate about seller finance so it was great to hear how you have worked it Brandon. This truly is the best I’ve heard so far—and that is hard to say. You guys are so freakin funny!! So much juice in there. Thank you for telling it like it is; the stress, the work . . I say I’m not a drama queen but I sure have a drama biz. I needed the comic relief today. Thanks so much for all both of you do for everyone on BP.
    Brandon Turner
    Replied almost 6 years ago
    Hah thanks Melodee! This has to be the best comment I’ve read in a while. And yeah, I love seller financing and look forward to doing more of that in the future! Thanks for listening! (and I’m glad you think we’re funny! )
    Ben Grise
    Replied almost 6 years ago
    Great job Brandon! I look forward to reading the book. Wait I don’t read books, I only read BiggerPockets and other blogs. No worries it’s in audio format. I loo forward to listening to the book.
    Brandon Turner
    Replied almost 6 years ago
    Thanks ben! And yeah, enjoy the audiobook! 🙂
    Ryan
    Replied almost 6 years ago
    I can’t download this podcast to my phone like the others. When I click download it just trys to stream it.
    Brandon Turner
    Replied almost 6 years ago
    Hey Ryan, that’s odd! Not sure why it’s doing that. I’ll see if I can figure anything out.
    Chris Lawrence
    Replied almost 6 years ago
    This was an awesome podcast! I was waiting to hear more about how Brandon got his start in Real Estate. Being new myself, I like to hear about how investors start out and get the funds to purchase their first couple deals. Keep up the good work guys!
    Brandon Turner
    Replied almost 6 years ago
    Thanks so much Chris! Keep in touch 🙂
    Chris Lawrence
    Replied almost 6 years ago
    This was an awesome podcast! I was waiting to hear more about how Brandon got his start in Real Estate. Being new myself, I like to hear about how investors start out and get the funds to purchase their first couple deals. Keep up the good work guys!
    A.C. Cooley
    Replied almost 6 years ago
    Great podcast. BP has the best real estate podcast definitely. Hey Brandon, I like the idea of using partners to acquire rentals. I know you said your partner provides funding for 100% of the down payment. Does your money partner fund the monthly payments as well? What about when the property is vacant? Does he or she pay for repairs and maintenance as well? I have heard Shaun McCloskey talk about during something similar except his money partner buys the property free and clear with no mortgage.
    Brandon Turner
    Replied almost 6 years ago
    Hey A.C. thanks! With my partnerships, we typically have saved up all the cashflow for the first year or so, so that way when things go wrong – we use that. The one time we had to spend all of that, we just split the difference (including the vacancy) but I suppose I could have it set up the other way! I guess its all in what you negotiate. Thanks for listening!
    A.C. Cooley
    Replied almost 6 years ago
    Makes sense Brandon! Thanks again for all the free content you guys deliver.
    Robbin Andersen
    Replied almost 6 years ago
    I enjoyed learning from your real estate story today while grocery shopping! I’m guessing everyone assumes I’m listening to music on my iPhone. Haha. I have several things in common with Brandon. I’m currently reading the book ABC’s of Real Estate Investing. Another similarity, I got one of my tenants at church. “You need an apartment?, Robbin has an apartment. Look her she is now!” Yes, right there on the sidewalk, the connection was made by a mutual friend. Sweet. Thanks again for sharing your real estate story through the podcast.
    Mehran Kamari
    Replied almost 6 years ago
    Amazing podcast, one of my favorite so far! Thanks for sharing Brandon 🙂 I’m doing a similar thing with my new partnerships and it’s working out great for everyone. Just bought the ultimate package and I’ll start listening to it tonight at work! I appreciate you setting a good bar among the best of them.
    Brandon Turner
    Replied almost 6 years ago
    Thanks so much, Mehran! Hope you enjoy the book 🙂
    David Krulac
    Replied almost 6 years ago
    Brandon, Great podcast! And congrats on the new book! The first 11 properties that I bought were essentially nothing down in one fashion or another. I borrowed $2,500 from the parents and partnered on 2 other properties. I did it because I didn’t have any money, so your example should be another proof that people shouldn’t let the lack of money stop them from investing in real estate. David Krulac
    Melodee Lucido
    Replied almost 6 years ago
    Brandon, I had to jump back here to say that I love your book! And the bonus’ on the Ultimate package are just WOOOWWW. I mean really. Talk about telling it like it is! I wish every beginning investor or people that think they want to be one would do themselves a BIG favor and listen to these every day. Even after a couple years of working this industry I STILL think it should be easier (I love the sweating your brains out at 3A.M. confession) that I should be making money every-single-month. Who tells the truth like you do—and your interviews do? I gotta say Brandon, thank you so much for your honesty partnered with pure comedy. This came at a good time for me. I’ll put away my flogging weapons now and get back to work. Crazy good success to you
    Karen
    Replied almost 6 years ago
    Great podcast (and I’m not 100% done, but it is all awesome so far). Brandon I love your passion for investing and it is fun to hear you talk about your journey because it is clear that you love what you do. Great stuff and good idea to have you as the guest! P.S. Be nice to Josh. –Karen
    Swat Khan
    Replied almost 6 years ago
    This was awesome! Thanks for sharing.
    Joshua Dorkin
    Replied almost 6 years ago
    Thanks for listening, Swat!
    Joshua Dorkin
    Replied almost 6 years ago
    Thanks for listening, Swat!
    Will Barnard
    Replied almost 6 years ago
    I have a concern created from listening to the podcast. Josh stated that Brandon buys without using any of his own money because “he does not have any in his pockets”. For someone working with and a large part of “Biggerpockets”, it appears we have a contradiction here!!! How can one who is “Biggerpockets” actually have small pockets? . . . . . Hmmmm Time to ask Josh for a fat raise Brandon!
    Douglas Larson
    Replied almost 6 years ago
    Great podcast and thanks for the mention! I can’t wait to hear all the interviews. I just started the book and I’ll be done before the end of the week! Great stuff so far, especially when you manage to relate pepperoni pizza to investing with no money. These are also a few of my “addictions!” . . . and if there is a treatment for these vices, I don’t want it! – Douglas
    Georges Arnaout
    Replied almost 6 years ago
    Brandon, I cannot wait to read this book being an all time BiggerPocket evangelist. Having said that, do you have any plans of putting it on Audible by any chance? Let me know Thanks and looking fwd
    Oren
    Replied almost 6 years ago
    Brandon, on the podcast you said you sometime partner with a person who has the money and can take a loan under his name. You also said you put the property under an LLC. How does this process work? Do you take the loan and then change title to an LLC? Is there another way to do it? Thanks
    Brandon Hicks
    Replied almost 6 years ago
    Im not Brandon Turner but Ill answer this by saying that smaller local banks (aka. portfolio lenders) make loans to LLC’s every day. They normally require personal guarantees.
    Nazz Wang Investor from San Francisco, California
    Replied almost 6 years ago
    @oren One option is to take a personal loan for the property and then put the property in a trust with the LLC as the beneficiary. This is commonly done but things will be a little tricky if you want to refinance the property.
    joe
    Replied almost 6 years ago
    Great podcast as always. It was one of my favorites for sure. I’m going to get the “ultimate package” deal you guys talked about! Brandon, I have a quick question for you. Having multiple LLCs must cut into your cash flow and profits. Establishing LLC in Washington state cheaper than elsewhere? I considered LLC but looking at good insurance ($1 million liability), personal umbrella, and commercial property umbrella over my properties to save money or improve cash flow. Also, the doing taxes having multiple LLCs must be expensive.
    Rebecca
    Replied almost 6 years ago
    Brandon, you said in the pod cast you are using Facebook advertising, Can you send me a link to your real estate Facebook page. I am wondering what information you post on it. Thanks
    Grayson Adler
    Replied almost 6 years ago
    Great podcast guys. I had a question for you Brandon about one of your answers to the famous four. You mentioned the Total Money Makeover by Dave Ramsey as one of your favorite business books. I’m reading it now but I’m finding it discouraging towards real estate investors…All of his preaching about not using debt as a tool is counter intuitive to using it as leverage for re investing. Did you just ignore that aspect of the teaching and focus on the budget stuff? Thanks! Grayson (Nashville TN)
    Nazz Wang Investor from San Francisco, California
    Replied almost 6 years ago
    @Brandon Turner Great show guys! I loved the partnership portion! All the specifics you shared are really helpful for people who are venturing into partnerships. One thing I can’t rationalize is why would an investor choose to have a partner instead of taking a loan from the same person. For the person with the money, he / she will not exactly how much return to expect and will not need to do any work or face any risks. For the real estate investor like myself, I will not have to reach consensus with every decision regarding the property, will have complete control over the investment and how to run it. I also wouldn’t have to set up a business structure or maintain it. Why would I choose to have a partner instead of just borrowing his money?
    Kimberly Gillock Rental Property Investor from Denver, CO
    Replied almost 6 years ago
    alright, a little behind the 8-ball and just finished this one– loved it! First of all, thank you both @brandonturner and @joshdorkin for always keeping it entertaining. I found myself laughing a lot during this particular podcast! Second, thanks for changing the way I think about financing deals, ie- “it’s an art, not a science.” Love that! Looking into more house hacking and seller financing for my next few deals (as interest rates start to rise that whole 20-25% down thing is going to be a literal deal breaker). Thank you all so much for doing these podcasts– I’ve learned so much since I joined BP! Can’t wait to read the full version of the low & no money down book!
    CL Tumlin
    Replied over 5 years ago
    Hey Brandon I’ve listened twice and I don’t recall this part: “The one conversation that almost derailed his entire investing future” …..which convo was that? Thanks
    Keisha F. from Brooklyn, New York
    Replied over 3 years ago
    @brandonturner @joshdorkin is the no or little money method on this podcast and in your book still relevant in 2017 or are there new laws or anything that has changed?