Can you really start a portfolio with no money up front??

[Eric Sprecher]

So im new to real estate and investing in property. I want to build a rental portfolio utilizing fix n flips. I know a little about real estate but I keep seeing all these videos about starting up with no money. Is that really possible?

[Don Konipol]

Quote from @Eric Sprecher:

So im new to real estate and investing in property. I want to build a rental portfolio utilizing fix n flips. I know a little about real estate but I keep seeing all these videos about starting up with no money. Is that really possible?

40 years ago it was.  We used to use the ‘second mortgage crank”, seller “silent” second, substitution of collateral, and mortgage “subordination” to achieve this goal.

Legal clauses later placed into mortgage and deeds of trust make using the second mortgage crank, and seller silent second fraudulent; various laws destined to protect sellers by requiring full and honest disclose limit the effectiveness of subordination and substitution.  The expansion of liability to third parties makes title insurers unwilling to do anything  without covering their a… nine different ways.  

if someone has extensive knowledge, a verifiable track record of success, and excellent credit it IS possible to purchase real estate with no personal capital committed. But please be aware that (1) real property purchased using 100% leverage will almost always have net cash OUTFLOW on a monthly basis, be vulnerable to tenant loss, emergency repairs, and general deterioration.  And the property available with seller financing will most often be priced above market, in poor condition, or in some way have a defect.