In today’s episode, I interview Brandon Turner, who just wrote a phenomenal book called The Book of Investing in Real Estate with No Money Down. I highly recommend this book, and I am in fact going to spend the rest of the week talking about the topic of no money down investing in more detail.
I’ve talked to Brandon on the show before, but I was so impressed with his new book that I wanted to share it with my audience. Brandon briefly recaps his experience in real estate investing and his work with Bigger Pockets on today’s show, but I suggest that you go back and listen to him talk about his career in previous episodes.
I feel like there is a lot of material out there on how to find deals, but finding money is less talked about. So Brandon’s book on how to fund your deals with little or no money is really the golden ticket! Brandon talks about how the phrase “no money down” has been used and abused so much, but the concept is all about creative investing. It has nothing to do with being broke–in fact, the more advanced you become, the more you use creative investing. Brandon makes it very clear that his book is not about getting rich quick. He takes a good, practical approach to creative investing and does not present it as some sort of trick. He just lays out innovative techniques for funding deals, and makes sure people understand that creative investing is difficult and won’t make you rich overnight. But if you want to get started investing in real estate right now and don’t have tons of money, and you are willing to put in the hard work, creative investing can be very rewarding. Even if you do have money in the bank, you should try to use as little of your own money as possible. It encourages you to think about each deal very carefully, and to use a conservative and practical approach to investing.
One of the ideas that Brandon discusses in his book is owner occupied investment properties, or, as he calls it, “house hacking.” It’s the idea of using your primary residence as an investment, which has a number of financial benefits. Brandon says that there are two ways to house-hack: flipping house hacks and rental house hacks. Brandon also talks in detail about partnerships, which he says are his favorite method of creative investing, and gives us some examples of how he has used partnerships successfully in his own career. In the book, Brandon gives a wealth of advice on how to find private lenders and how to talk to them about working with you. Next, Brandon discusses home equity loans and lines of credit and how those can be used to invest in real estate. Brandon then talks us through lease options, or rent-to-own, and seller financing. Finally, Brandon explains why wholesaling is discussed in his book and is so popular for people starting out, even though it technically does not constitute real estate investing.
All of these methods are discussed in Brandon’s book, so if this interview sparked your interest in creative investing, I highly recommend that you check it out. As Brandon says in today’s interview, his book is a toolbox containing a variety of tools that you can use to invest in real estate. And as an added bonus, you can get a extra audio component with the book, featuring interviews with real estate investors including myself!