You're listening to the Master Passive Income Podcast Network.

Welcome to the Master Passive Income Show.

This is Dustin Heiner, and I'm here.

To help you create wealth, afford anything.

You want in life by investing in real estate so you can reach financial freedom.

And in today's show, we are going to be talking all about how to get financing or funding for, for your real estate investing.

And I'm going to give you so.

Many options to get financing for your properties that no matter what property you get, as long it's a good deal, you're going to be able to buy it.

All right, let's start the show.

Welcome to the Master Passive Income Podcast where we talk about investing in real estate with a special focus on making enough money so you can quit your job and live the dream life.

And now, here is your host, Dustin Heiner.

What's up?

What's up?

Super blessed as always to have you here with me on the show.

Now, I gotta tell you, I am.

Super excited that I finally made it to Nashville, Tennessee.

Actually, Murfreesboro is where we're now living.

But I moved my family from Phoenix all the way to Tennessee in Murfreesboro, and it's so fantastic.

Like, this is working out as a real estate investor.

And the reason why I share with you this whole process of moving my entire family from Phoenix to Tennessee, or Phoenix, Arizona to Nashville, Tennessee, Murfreesboro is the actual city.

But I say Nashville because it's really, really close.

But we moved because of wanting grass.

We wanted more land, we wanted more investments.

And we also thought, let's actually invest while we move, meaning we are leaving our house.

We own it free and clear.

We're really blessed to have that paid off.

But that house that we left, we literally have it as a midterm property.

It's furnished.

As soon as we left, the next day we had somebody move in and it's in there booked for three months.

So the reason why I tell you.

This entire process of us moving and driving 1900 miles across the country, getting two big, large containers that we fit all of our stuff in, furnishing our old house so it can be a rental, furnishing this new house that we just moved into as an Airbnb, all these different things, I wanted you to think like an investor.

I moved over to the east coast.

Because we wanted grass.

We wanted green land.

Buy more land and maybe get acreage and all that good stuff with that.

I thought, you know what?

I don't know if I'm even going to like the East Coast.

So.

So thinking like an investor, I don't know if it's east, it's more central.

I guess, but on this side of.

The country, I don't know if I'm going to like it here, but I could just buy a house anywhere and move to it.

I mean, I literally don't need to work.

I have lots and lots of money.

Coming in from all of my properties.

But I thought like an investor, I said, let me buy a house and see if I even like Tennessee number one.

I mean, it gets really humid here.

I know that.

But if I don't like it, I can move right back.

So most people, when they move, they sell their house.

Well, I'm going to tell you, never sell any property that you own.

I will never sell.

I will literally give all these properties.

To my kids in generational wealth.

And the house that we just left, if I would have sold it, yeah, I would have made some money, which is great, but I would no longer have that house.

I would no longer have an asset now.

Because what I decided to do was keep the house, the one in Phoenix, and rent it out.

Not long term.

Long term would be $2,100 a month.

I'm doing it midterm.

That's 30, 60, 90 days.

Business people, nurses, traveling nurses and things like that.

Executives, they want a furnished place that they can live and they'll pay more.

So this place is rented for $3,500 a month instead of $2,100 a month, it's $3,500 a month.

So I'm making so much more money.

And then I bought a house that in Tennessee that we now moved into.

But here's the great thing.

Before we moved into it, we owned it for about six months.

And I rented it as a short term property this last month, the month of October, we had it rented for maybe 22 days out of the month.

You know what's great?

I made 1,000, no $1,200 in profit from this short term property.

So I'm looking at, okay, I left a house in Phoenix, making me money.

If I want to move back into it, I can.

I bought a new house that I know is making me money as a short term property, but I moved into it.

So he blocked out a few months for us to live here.

And our goal now because we know it's a money making property and we knew we can move into it and live in it, we are now looking for another property to buy that we will move into and Leave this one as a short term property.

In fact, in January, before we moved into it, this house now they booked, somebody booked in January this house for $2,600 for nine days in January for my short term property.

So what we're going to do, even though we'll be living here, we're leaving most of our stuff in the garage stored in boxes, and we're literally going to go on vacation for nine days because it's going to be rented for the nine days for $2,600.

It's going to pay for our vacation.

But at the same time, my wife and I, we know that we can buy another investment property and then move into that one.

This is a property that now we know makes money.

Why don't we move out and buy another house that makes us money?

So if you're calculating now, we left a house that's one property, then we bought another house that's a second property.

Now we're going to buy a third.

Property that's going to be a primary.

Residence that we're going to move into and leave this current one, the short term property, put it back on Airbnb and make a lot of money every single month because it's just a cash money maker.

That's the process that I want you to be thinking of when you are doing anything in life.

I want you to be thinking like an investor.

Now you might also be thinking, well.

Dustin, how do I get money?

How do I get financing for these properties?

Well, that's what this episode is all about today.

There are so many ways.

I mean, I've counted at least 15, 16 different ways.

And I go through all them.

I'm going to go through all them with you today.

And there are other ones, new ones that have just came out, like the DSCR loan, Debt Service Coverage Ratio loan.

That's basically your property is a business.

And if it generates revenue, it's not the loan based on your income from your job, but on the property, that's another one they're subject to, where you take over, subject to the mortgage.

So you make the mortgage payments you make, you take the property.

There's so many great things and we're going to go through all of them.

I'm probably not going to be able to get through all of them because we, there's so many great ones out there.

But my goal is to get you open to understanding that there are creative ways to get financing.

This is what we teach all the students at Master Passive Income.

We have so many students use Creative financing, coupling all these different types of financings, these 15, 16 different ways together to buy the property.

So if you get a good property, if you get a good deal, money is not the issue.

You might be thinking, well I don't.

Have money for a down payment.

That's not the issue.

If you have a good deal, money's going to come.

You just need to know what's out there.

The different types of options that are out there.

Another one, a business loan.

I've even bought properties with a business loan.

We're going to go through all these and I got to share with you.

We started the newest Real Estate Wealth Builders Club.

It's a monthly real estate investor meetup in Phoenix, Arizona and it's going to be November 19th at 6pm Check the link in the description.

It'll send you the page.

I want you to register so we know you're coming.

But we are going to be having a monthly meetup.

We already have one in Charlotte.

It's going fantastically well in Charlotte.

And now we're doing one in Phoenix in November 19th at 6pm it's going to be near the airport.

And just check the link in the description.

I'll give you all the details.

In January, we're going to start a new one.

It's going to be in Denver, Colorado.

And here's the reason why we have so many people at Master Passive Income and Rubecon that want to get together more often that we decided, you know what, let's go ahead and provide that service for them.

You guys know that we just want to help you to invest in real estate.

In fact, my mission in life now is to help 1 million people to invest in real estate.

And if you're one of them, you.

Need to come to Rube Club.

If you can't get there because you're not those cities.

I completely get it.

I completely get it.

You need to come to the Real Estate Wealth Builders Conference that's going to be in April 10th through the 12th in St.

Louis.

Trust me, you do not want to miss this.

It's, it's not one of those high pressure sales pitch, you know, run to the back of room.

It's normally a billion dollars, but it's 50 or $80,000 today.

No, it's none of that.

It's literally helping people.

All about coaching you.

And I'm actually going to be speaking at the very first Phoenix Rube Club that where I'm going to be teaching you how I invest in real estate, give you so much more Details answer your questions.

So come and hang out with me in Phoenix at the Rube Club.

It's in downtown Phoenix, right by the airport.

It is the Holiday Inn.

Super awesome place.

But check the link in the description and I'll see you there.

There are so many great ways to invest in real estate to get financing.

And that's what this episode is all about.

And I want to pause for a quick second and share that.

Honestly, I really want you to invest in real estate now.

My new goal is to help 1 million people invest in real estate.

So two things I would ask from you.

Number one, if you get anything out of this episode, please share it with somebody else.

Just say, hey, you know, check out Dustin and Master Passive Income.

He really wants to help a million people to invest in real estate.

That's number one.

Number two, I want to get you to invest in real estate.

Get my real estate investing course, absolutely.

For free.

Text the word rental R E n t a L233 7777 rental to 33777 I'll literally give you my course, show you how to find the area of the country to invest, how to build the business first.

You know, I always talk about that and how to find the right properties, how to make sure you're getting experts to do the work for you and scale the business to where you're making $250 or more in passive income.

Scale it up to quit your job.

I'll literally get to you.

Or go to masterpassiveincome.com freecourse.

Obviously it'll be in the description, but I really, really want you to invest in real estate because the more that actual normal, everyday people own real estate that are good landlords, the better everybody's Life gets.

These 12 ways to fund your rental properties.

I've used just about every single one of these ways and I want to show you how to do them.

The biggest and best one that I've known by far.

And everybody's going to be like, oh yeah, no brainer, it's all cash.

I love buying properties with all cash and the reason why.

And there are many different reasons why.

Number one, I can buy it faster, I can close faster, I don't have to worry about a bank.

Number two, I get a better deal because sellers are realizing, hey, this guy has cash, let me go ahead and sell it to him.

And number three, I don't have to worry about finding financing.

It's all cash.

But here's the great thing.

You don't have to have your Own personal cash.

You can use other people's cash to buy properties and be able to utilize all this together and invest in real estate.

So that's the first one is all cash.

Now it's going to take a little bit of time.

You're going to save up your own cash, but you could also get other people and have other people's cash ready to go when you find that great deal.

Now the next great one that everybody knows about is a conventional loan.

Now normally when somebody buys a piece of real estate, what they do is they get a mortgage broker and they get a realtor and then they put them together and they buy a property.

Like if you're going to buy a house for yourself, that that's what you do.

You get a mortgage broker and a realtor and you put them together and you buy a property.

Well, conventional loans are absolutely fantastic.

The reason why they're fantastic is they're fixed, the rate is fixed, the how much you're getting, you're paying out of your pocket is fixed.

And me as a buy and hold investor, I need to make sure my expenses are flat.

Basically they're not going to keep growing over time.

And so if I get a mortgage, a 30 year mortgage that I'm paying like $800 a month on the mortgage and all the expenses included total up to like maybe like $1,100.

But if I could rent it for $1,400, that's $300 in passive income.

And so a conventional loan is terrific because you have, you know exactly what your expenses are going to be every single month for 30 years.

And a great thing about conventional loans with rental properties, your tenants are going to be paying off that mortgage.

It's fantastic.

Now conventional loans are great.

So utilizing cash, utilizing conventional loans, those are just two, there's a bunch more.

One type of financing that I absolutely adore, like I just, I love this typ financing is delayed financing.

Now delayed financing, basically you need a little bit of money upfront to buy the house, to purchase a house upfront.

And then once you buy the house, you fix it up, you rehab it, you get it worth more.

So you make the value of it go up higher.

And then the delayed financing is when the bank, after you fix it up, they go in and get an appraisal and the after repair value.

So once it's already repaired, they give you the loan on that higher amount.

So you can even pull out your money and then some, let's say you increase the value by rehabbing it or Fixing it up by $50,000, you can effectively pull out cash after that property because you're getting it on the higher value.

It doesn't matter how much you owe on it, you're getting out that higher value.

So delayed financing in a quick way.

And I have a whole nother video, all these actually all these ways to do financing and funding your rental properties.

Check the description below.

I have so many videos on how to do each one.

This is a good overview so you can see which route you can go.

Now, delayed financing is a great way to get all of your rehab costs, everything already in there, and then do a cash out.

Delayed financing is fantastic.

So check below in the description to get that video.

Talking specifically about delayed financing.

Now I'm going to also give you a really advanced strategy.

Now this is an advanced strategy that not, I would not necessarily recommend this to everybody, but it's a fantastic strategy that I've used many times and my students have as well.

I've used credit cards, no joke, literally credit cards.

I have a credit card somewhere around here.

There we go.

I have my credit card right here.

This is my credit card.

I have my credit cards.

I've literally used my credit cards to buy properties.

And really what it comes down to is I had a cash advance.

Basically they wanted me to start a whole brand new credit card and I get a cash advance for like $15,000.

And the interest rate is like 0.01%.

It's like so low, it's almost zero for the life of the balance of that loan.

I said, you know what credit card, yes, that's a cheap mortgage.

I'm definitely going to do that.

So I pulled out 14 or $15,000, bought two different properties with those.

That payment that I had to pay for that, that credit card, that loan was paid for by the tenants.

I made sure that was a cost accounted for when I bought these rental properties.

And with those properties I made $250 or more with paying the credit card, with paying the mortgages and paying expenses, I made $250 or more from each one of those properties.

So that's $500 a month in passive income with all the expenses paid for and the credit card paid for.

Now I did pay off that credit card because over the time it was like a five year loan that over the time of paying off the minimum, it eventually paid itself off and I had the property and I still didn't have the loan anymore.

So credit cards are an advanced strategy.

So be careful when you're Using that.

But that's a great way to get funding.

And if you're getting started investing as a beginner, the best way, the absolute best way to get funding is an FHA loan, a Federal Housing Administration loan.

That is absolutely the best way to get started.

And the reason why a Federal Housing Administration loan is if you're going to live in the house yourself for just a year, you only have to put down 3.5%.

Imagine 3.5% out of your pocket, as opposed to 20%.

A normal conventional loan is 10, 15, 15 or 20% down payment that you have to put down on a property.

So if you're buying $100,000 house, you're going to have to put down $20,000.

To buy $100,000 house with an FHA loan, it's $3,500.

So 3 1/2% of the purchase price is how much you're going to have to pay.

So it's going to be so much dramatically less.

Now, one caveat, like I said, is you have to live in the property for one year.

Now, what's great is if you house hacked, and I have a whole nother video on house hacking.

Check that one in the description below.

If you house hacked, you can buy a duplex, live in the duplex, put three and a half percent down, have somebody else rent out the second portion, that other part of the duplex, they're paying the mortgage.

You're living rent free.

Now, here's a big pro tip for you.

You can utilize this FHA loan over and over and over again.

What you do is with that first house, that's an FHA loan.

Hopefully it's a duplex.

You refinance, get it out of that FHA loan, get it into a conventional loan.

Now you have the ability to have another FHA loan ready to go.

So you go and buy another property with that FHA loan, You live in this first one for a year, refinance it, move out after the year, because that's the criteria.

And then you buy another house, another duplex, a triplex or a fourplex.

Five units above is a whole nother.

You know, that's commercial loans.

We're not going to go there.

But if you did this, you can use FHA loan again and buy another property with an FHA loan.

You can do this over and over and over again.

FHA loans are fantastic, especially if you are getting started with very, very low money.

This is the best way to go.

Now I'm going to give you another advanced Strategy, an advanced strategy that I'm going to give you a pro tip on how to get in and get out as fast as possible.

But it's hard money.

Hard money is a great way to get financing.

Now what's great is usually I used to think it'd be like, you know, you go to the local mobster and a guy named Jimmy the Wolf will lend you some money.

And if you don't pay them back, he'll cap you in the kneecaps.

Well, that's not how hard money actually is.

That's what I originally thought.

I know it's a lot of people think, but what hard money actually is, it's a company.

It's basically a company that is going to lend their money like a bank, but they charge you more fees.

They want to get their money in and out as fast as possible.

So the trick is to get your money out of the hard money loan as fast as possible.

Let's say you use a hard money loan to buy a property.

You use that hard money loan, they want their money back as fast as possible.

Six months to a year, maybe two years at very max.

They charge you high fees and high points.

But that's a way to get into the property with no money down.

But here's the pro tip I want to give you.

You want to make sure that you have a way to get out of that hard money loan with a conventional loan.

So before you even try to get that hard money loan, you go to banks and mortgage companies, mortgage brokers, you say, I'm using a hard money loan.

This is a big pro tip.

So write this down.

Using a hard money loan, I'm going to buy the property and then I want to refinance out of that hard money as like within a month or two months, I need to get out of that.

You get that all locked in, you get all dialed in, you get the pre approval letter, you get all that stuff ready.

So that when you get the hard money loan, that utilizes you to get the property and then you refinance, because now you own it.

You own that property, you could refinance, pull it out.

So hard money loans are fantastic.

Now it is an advanced strategy.

All my students, I show them how to do that as well.

So if you're interested in coaching, go to masterpassiveincome.com, the link will be in the description as well.

But hard money loans are fantastic ways to get real estate.

Now here is another great.

It's something people wouldn't even think about this.

But let's say you needed cash to buy something.

Well, you either work a job or you do something else to get creative and find money.

And I interviewed a great couple.

They go to swap meets or they find things that people want to throw away, they fix it up and they sell it on ebay and Craigslist.

So, anyways, the next way you basically find ways to make more money.

Now, let me give you an example.

So this couple that I interviewed on the Master Passive Income podcast, I interviewed them and the reason why is because they found a chair, an old chair.

You know, they just maybe wiped it down.

They found it on the side of the road, picked it up, took it home, wiped it down, cleaned it up, maybe, you know, wiped off all the, you know, food smudges and stuff like that.

Then they sold it.

I think they made like a couple hundred dollars on that chair.

That's $200 right then and there.

But then they kept flipping that over and over and over again, and now they have $100,000 in inventory, and they're currently selling that off to have that money to buy an investment property.

So they're going to have over $100,000 in cash because they took a chair and flipped that over and over again.

It's called a flea market.

Flipper is what is who they are.

So check in the description for below.

But that's a great way to make money.

But you could also drive for Uber.

You can do Uber eats, you can start whatever, you know, cut people's blinds.

Finding more ways to make more money, to save, to buy that property is another great thing that you must do in your business.

Now, of these 12 ways to get financing, I'm going to jump into the eighth way.

The eighth way is to get private money loans.

Private money loans are basically like friends and families or, you know, businesses that you may be frequent and, you know, the owner, and they may have a little bit of money.

You say, hey, I'm an investor.

I invest in real estate.

I flip properties or I buy and hold properties.

Would you like to loan me money?

Would you like to be a part of it?

Well, this.

You don't just say, you know, can you give me money?

You say, would I have an opportunity for you?

Would you like to be a part of this opportunity?

I would love to give you a great return on the money.

So instead of putting your money in a savings account where you're getting like 01%, which is pennies, I can actually get you 6% return on your money or 8% whatever you want to give.

But you borrow money from friends, family members, acquaintances, business owners.

You borrow money from them, you give them a promissory note.

It's, you know, a contract written out and terms and everything.

And you utilize their money.

I have so many students utilizing friends and family members and businesses and utilizing their money to buy the property.

It's great.

So private money is not to be overlooked.

And the best way to get private money is literally to tell everybody, you know, that you are now an investor.

Say, hey, hey, my name's Dustin Heiner.

I invest in real estate rental properties, like, or I invest in flip fix and flip properties.

I invest in real estate.

You're going to get a lot of people like, oh, really?

You know, how do you do it?

Okay, well, then you say, then that transitions.

You tell them what you do transitions into, this is how I do it.

And you know what?

I might have an opportunity.

If I ever have an opportunity, would you want to take part in it?

The great way to get funding for your real estate investing.

Now, the term portfolio loan, which is the ninth in all of the list of 12 different things, ways to get financing.

Portfolio loan is something that people, it's kind of like almost elusive.

People like, well, what is a portfolio loan and where do I get them all?

It basically boils down to, is a normal loan, a conventional loan.

You have a big bank, they lend the money and then they sell that to like Fannie Mae or Freddie Mac or sell that to the government, basically, and they are the ones that actually finance the property.

Now what happens is a portfolio is not like that.

Instead of selling off, the bank would actually hold it as their portfolio.

It's their money that they're lending out, and it's their portfolio.

It's in their portfolio of things that they lend to.

Very, very simple way to explain it is it's a bank lending their own money.

Now to get a portfolio loan, it is super easy.

It's people think, oh, it's hard.

How do you find them?

You literally just call it bank after bank.

Hey, do you do portfolio loans?

Hey, do you do portfolio?

It's literally as easy as it is.

And what's going to happen is you're going to get whoever the mortgage person is, say, well, what do you really need?

Maybe I can help you out.

Maybe you need a signature loan.

This is one, this is a pro tip that I'm going to give you.

That is not in this list.

There's actually, I guess this would be number 13.

But a signature loan along with the portfolio loan, which is, you know, they're loaning on the property.

If you just do a signature loan, which I've literally done, I go to a bank and say my signature, basically use my Social Security card, my Social Security number, and it's credit on me.

You're not lending against the property, you're getting the.

I am guaranteeing it as myself.

So it's called a signature loan.

So I guess that would be another one is a signature loan is fantastic for you because you basically go in the bank, say I guarantee it, and then they will give you that money, whatever you qualify for and whatever they're willing to give you.

Utilizing portfolio loans and signature loans are great ways to use.

And I would personally suggest go to regional banks or local banks or credit unions.

Go to them first before you go like the bank of the west or bank of America, Wells Fargo, big companies, you don't want to go there, in my opinion.

Try to find the little companies.

They're the ones that love giving out these little micro or small type loans.

Now I'm going to have to say this is by far my favorite.

I almost saved the best to last.

But my by far my favorite way of getting financing is seller financing or owner financing.

I absolutely love that.

And I do have an entire video showing you how to find seller financing, how to utilize it.

Check in the description for that video.

But seller financing or owner financing is phenomenal.

Basically, somebody owns a property, you find that seller they want to sell, you say, hey, instead of me just giving you cash upfront or getting a loan, how about you become the bank?

You know, banks make money by getting interest.

How about I pay you that interest?

So instead of paying $100,000 to you right now for that house, over time it'll be 180 or $200,000 if you carry that note.

So with seller financing, you get the property.

You don't have to go through the appraisal, you don't have to go through your background check, you don't have to do all that sort of, you know, like credit check and everything.

You don't have to do that unless the seller really wants you to do that.

But they can take back the property anytime if you stop making those payments.

Not just for anything, if you stop making those payments, which is great because then you can refinance and pull that cash out, pay off the seller and own that property outright.

Seller financing is amazing, or owner financing is absolutely amazing.

You must do seller financing and the next great way to get financing for your rental Properties for your real estate investing is with home equity.

If you already own a home, if you have your own personal residence, and I've literally done this dozens of times.

I've done this over and over again.

I have equity in my properties.

I cash out.

I literally get a cash out, refinance, refinance a property.

I have, let's say $100,000 in equity.

I pull out that money and then buy more real estate with that equity.

It's great because the equity is inside your house, your house has that equity and the banks realize, hey, that house is worth more.

Let's go ahead and lend more on that.

Now.

What's great, and here's a pro tip.

Whatever price that you're going to be getting for the loan, you want to make sure that increase in the amount of payment for that loan is going to be covered by the properties that you're going to buy.

Now we're not going to just cash out and go buy a Lamborghini or a Ferrari or buy a new car, because that's just going to be wasting that money.

We're going to take that money out.

We're going to buy a rental property that makes us $250 or more every single month in passive income.

And when we do that, we're going to also be covering the increase in our mortgage in whatever residence we have.

And I've literally done this and I'm going to give you even an extra one.

The one just came to my mind right now is getting a bundle loan.

A bundled loan is a fantastic way.

Also think of a portfolio loan where the bank is actually lending their own money.

A bundled loan is where the bank is bundling many properties together.

I've done this where I've bundled like four or five properties altogether, got one loan, got appraisal for each property, but I got one loan, got one payment, got one everything.

And I can even sell each one of those out individually and pay it off.

And I got a bundled loan.

It's a commercial bundle loan.

I get a decent interest rate that's pretty good.

Not like as good as conventional loan, but a bundle loan is another fantastic way.

So what you need to do to find a bundled loan is call up any bank and say, can I talk to your commercial lending department or whoever does the commercial lending?

If they do commercial lending, more than likely they're going to do bundled loans.

I've used other banks, many other banks, but you can absolutely find them.

Just got to do your homework, start calling people.

But a bundled loan is a fantastic way to actually get many, many things, like utilizing your home equity to actually use that to buy more properties.

And partnership loans is another great way to get financing for a real estate investment.

Partnership loans, where you're utilizing other people's money, you're also giving them a little bit of equity.

And don't give them a lot.

Like, don't give them half because it's still a loan.

You're still paying them back.

But what you want to do is partner with somebody, have them bring the money, you give them a little bit of equity, you also give them that loan.

They also make money.

They also get part of the equity.

It gives them more reasons why to invest with you.

So that is all that now 14 different ways.

It was 12.

That was 14 different ways to get funding.

And that is it for today.

Go ahead and get my free real estate investing course.

Text the word rental to 33777.

You can also join my real estate wealth builders group coaching.

Get all my courses.

All right, guys, we'll see you in the next show.

See ya.