A thousand dollars for a real estate deal? Is it really possible?
Watch this short video now and learn from Jay Conner and his guest, Henry Washington how to take your real estate business to the next level.
Henry is an author, entrepreneur, and real estate investor with more than 65 rental units and dozens of house flip under his belt.
He built his rental portfolio in just 3 and a half years, allowing him to achieve his goal of financial freedom.
Henry has been featured in numerous online and television publications like FOX Business Morning Show FBN: AM, Yahoo Finance, Business Insider, NBC, CBS, CourseMethod & BiggerPockets – where he enjoys showing others the power of real estate investing and financial freedom.
He strongly believes that helping other people is what helped him become successful in the real estate business. For him, every investment is going to involve risk, and the most successful people in the world are successful because they take calculated educated risks.
For more valuable information click on this link and watch the complete episode: https://youtu.be/2L21ksmtO8E – “Henry Washington, Helping Real Estate Investors Achieve Financial Freedom with Jay Conner”
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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.
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Real Estate Investing With Jay Conner, The Private Money Authority
Jay Conner:
Well, tell us the story about that first deal and how in the world did you do it with only a thousand dollars? And what kind of creativity did you have to bring to the table?
Henry Washington:
All right. Right. So as I said, I was, once I had that epiphany, we’ll call it in the middle of the night, everything I did from that point forward was to put me in place to be able to buy property. So I was surrounding myself with other investors by going to meetings constantly and through, and then I just decided, like, that next morning, I knew that this was going to be the path I took. So I just started telling people I was a real estate investor. I had no money, never bought a property, didn’t know how to buy a property, but I was telling people I was a real estate investor because I firmly believe that this life, this world gives us what we put out into it, which you get what you give. And so I just decided to put it out there, I’m a real estate investor.
Henry Washington:
Nothing’s going to stop me. That’s what I’m doing. And that word of mouth is how I landed my first deal. A buddy of mine heard that I was buying property. And he was in a really, really tough spot with a house that he owned. He had to sell it in 30 days. He needed to get X amount of dollars for it. He didn’t care what the house was worth. All he cared about was getting this amount of money because I need this amount of money to go buy my next property. And he said, “If you can close on it in 30 days, you can have it for this price. I don’t care how much equity is in it. That’s all yours. I just need this amount of money.” And so I said, “Sure, I’ll buy your property.” I had no idea how, I had a thousand dollars, but I was going to do it.
Henry Washington:
So what happened was because I was surrounding myself with other investors, I had people to bounce ideas off of, and a buddy of mine, I called him and I said, “Hey, I got to buy this house in 30 days. What can I do? What can I do? I have, I need $19,000 to quote, to put down on the house. I, I’m sorry. I need $20,000 to put down on the house. I have one. So I need to come up with $19,000 in 30 days.” And so I started looking around my house at all the things I could sell and I couldn’t come up with $19,000 of stuff. So, he brainstormed with me and, and really what happened was, was he really gave me my first lesson in entrepreneurship, because after I figured that I didn’t have enough stuff to sell, but that’s all I could think of to do.
Henry Washington:
I didn’t know anything else to do to generate income. And he said, “Henry, if you want to be a successful real estate investor,” he was, like, “you need to figure it out.” He was like, “I could buy this house. It’s a great deal, but I’m not going to buy it because you need to figure it out.” And it was like, that was the first time, like my mindset shifted from, like, “I can’t” to “How can I?” And once I had that mindset shift to how can I make this happen? We started brainstorming different ideas and we landed on the idea of a 401(k) loan. I didn’t know a 401(k) loan was a thing. I thought you just could withdraw money from a 401(k) and pay the penalties and interest and fees and all that. And so through some research, we found out, you can, you can borrow against your 401(k), and then you pay yourself back with monthly payments. You pay interest, but it’s your money. So the interest you’re paying goes back to you.
Jay Conner :
Does your credit have anything to do with borrowing against your 401(k)?
Henry Washington:
No.
Jay Conner:
That’s a write-‘er-downer right there, folks. Henry Washington just gave you a great big, old, gold nugget. If you need money to buy a house and you don’t have any private money lined up as you should. And, but you got a retirement account like Henry, you can borrow against your retirement account and your credit score has got nothing to do with it. That’s a great big share right there, Henry.
Henry Washington:
Absolutely. And so what had happened was, I didn’t have a 401(k) cause remember I was bad with my finances before, but my wife did. And she, we borrowed against her 401(k). Your employer takes the payments for your 401(k) back, your 401(k) loan. It takes them directly out of your paycheck, pre-tax dollars. So it actually reduces your taxable income, which is a benefit to you. You pay yourself back with interest, which is a benefit to you. And then if you buy a cash-flowing asset, you’re essentially buying an asset that pays you cash flow, and that cash flow technically covers your payment. So my asset was paying back the 401(k) loan with interest. So I went from not being able to buy a property to then buying a cash-flowing asset that was paying for itself, as well as paying for the loan I used to buy it with. And that was my lightbulb moment to see how powerful real estate was because I took Monopoly money essentially, and turned it into a cash-flowing asset in 30 days.
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