Morris Invest: How to Get Started Investing with $30,000

Morris Invest: How to Get Started Investing with $30,000


How to get started in
real estate investing with only $30,000– that’s today’s show. Let’s dive into it. Hey, everyone. I’m Clayton Morris. I’m Natali Morris, and this
is the show where we teach you how to build passive income
and wealth for your family, so that you don’t have
to go to that day job unless you really want to. So today we’re going
to talk about how to get started
with just $30,000, because I think that’s kind of
a good number where people may have that somewhere accessible
in some form or fashion, either together or apart. And so we thought, OK, if
we only had $30,000 to get started– which is actually
what we really did in our real lives– where would we get
started, right? So if you haven’t already, go
back and watch our journey. We talked about how we went from
0 to several dozen investment properties. But let’s pretend that
you’re just getting started. You have $30,000. What do you do with it? So I think the first thing
you might want to consider is– well, you want
to buy real estate, but you’ve got to buy it right. You have to buy it correctly. Now, we have a lot
of different videos here on this channel
which teach you about the types of
properties to buy. And what our team
does at Morris Invest is we actually help clients
get these types of properties. But if you’re doing
this on your own and you want to do it totally by
yourself, that’s totally cool. That’s not what this
channel is about. We want you to go out and be
empowered to do it on your own. The types of
properties we do are going to be in the $50,000,
$60,000, $70,000 range. For instance, we just
bought three properties that we kept in our
personal portfolio. We closed on them
about two weeks ago. And I think, all in,
they were about $63,000, $65,000, the three
that we bought, right? So if you had
$30,000 how would you buy that kind of a property? Well, $30,000 does
not equal $60,000, so you’re going to have to
come up with the balance. So how do you do it? I think the most obvious
way to get started is to get some kind of a loan. Now, whether it’s
with a local bank, whether it’s with a hard money
lender, or a private money lender, there are ways to get
loans, non-recourse loans. And our team can help
people do that, as well. But I think that’s probably
the most obvious first way to do it, right? Definitely. So hopefully you
already know we don’t suggest you buy a
property in your own name that you’re owning on your
own social security number. We teach you how to buy that
in various other videos. So you set up some
kind of corporation, whether it be an LLC
or something like that. And then yes, you go in
search of a property. And once you find a
property, then you’re going to want to
find someone who will lend you the remainder. And so I remember when I
was working back at CBS back in the day, and I
thought, well, I’d like to own some real estate. Then I just started to Google
investment real estate markets. I didn’t know where to start. I didn’t know how to find it. I thought, should
I find a realtor? I don’t know. I didn’t know that there
were entire businesses to help you find
off-market properties, and then become a landlord. And so obviously,
that’s what we do. If you book a call
with our team, we help you identify a good
market, identify a property, and then work to get you a
loan, a non-recourse loan. That means it doesn’t fall
back on your own personal name. It’s in the name of your
LLC or what have you, right? Right. And also, it’s going
to be about 40%. So typically, if you’re
buying a primary residence, you’d put down 20%. That’s kind of a normal amount. On a non-recourse
loan, you’re going to have to come
with 40%, even 50%. Now, on this hypothetical
$55,000 home or $60,000 home, $30,000 will get you there. And if it’s going to produce
$900, $1,000 a month in rent, that’s great. Because now that rent
is going to be covering the cost of that
loan and the balance, and you’ve brought half. You’ve brought
half to the table, and now you’ve got
a great property on the backs of somebody else. And you’re able to go and
start snowballing your process of buying rental real estate. Exactly right. Another way is to find some
kind of line of credit. We’ve done that before. Ooh, I’ve got one. I’ve got an awesome one. So unsecured credit–
now, we’ve done a whole show with our team and
partners from Fund and Grow. And you’ve got to check it out. If you go to our website at
morrisinvest.com/funding, on that page, we will show you
a way that you can actually get 0% interest credit
cards for your business. Now, what they do is, they set
up business lines of credit with an LLC. So it’s not tied to your
personal credit score. And then they will
get you a number of credit cards that will
allow you to buy real estate. And so we’ve had so many
people use this method. I think they’ve raised
over $35 million, for people who watch our channel
and others, to buy real estate. You can use it to pay off
high interest student loan debt and so forth,
so a number of ways. And you could get $50,000,
$60,000, $100,000. We got $175,000 of
unsecured 0 interest credit in order to buy real estate. So that’s a killer
way to do it, right? Yes, it absolutely is. And so obviously, I
don’t want to continue to own that real estate
property in this line of credit. Because the line
of credit we used had a pretty high
interest rate, and it was an interest only loan. Well, that’s not going
to get me very far. So we got into these awesome
properties, these properties that we just didn’t have the
cash for right then and there, but we wanted them. And then now we’re
working to refinance it with a local bank that’s in
the 5% or 6% interest rates. But since we
already own it, it’s so much easier to
refinance a property that you already own than it is
to, say, get a brand new loan on an investment property. Because when you go
to a bank and say, I’d like to buy an investment
property in this LLC, I’m not going to say it’s
impossible– it’s certainly not– but it’s harder. It’s harder. And the thing with– Natali brings up a great point– is that– I bring up a lot
of great points. Maybe one today. But you bring up a
great point today. Which is that, you
have skin in the game. And so banks love it
when you’ve already taken ownership of the property. Like you’ve already
put up your 40% or 50%, or you’ve already
taken ownership of it. Maybe you used like the Fund
and Grow method we talked about, and you go through
that entire process. And now you’ve taken
ownership of that property. Yes, you don’t want to remain
in those high interest credit cards or a high interest
short-term private money loan, where you’re going
to be paying 11% or 12%. You want to get out of it
within six months or so. You want to try to
move it and shake it. The bank is going to look at you
more favorably if you already have ownership of that property. You already have
skin in the game. A refinance is way easier than
a brand new loan for a property. We’ve also used these sort
of in-between type lender services, where it’s not
like a bank bank that’s regulated by the SEC, where
you’re going to get the lowest interest rates. And it’s not like a
private money lender, like these hard
money lenders that charge between 10% and
12%, sometimes 15%. I think I’ve seen even 17%. But there are these banks
that are kind of in between. I’m not sure exactly why
they’re not regulated, like this Lima One Capital. They’re not
regulated by the SEC, because I think they’re
a pool of investors that lend to other investors. And so you’ll get sort of middle
of the road investment rates. We have like 7% interest
on a portfolio loan. And so that’s pretty good,
especially considering those properties cash-flowed. We were happy to pay that
for the life of that loan. And I didn’t feel
like it was worth it to refinance that and pay the
costs of another refinance. I was fine staying at like
7% versus what the banks are offering on an investment, which
is now in the high 4’s and 5’s. Well, if you think about
the types of returns that we hope to get
on the properties that we do, not
only at our company, but on our personal
portfolio, we want to be between 8%,
9%, and 12% net return on the properties that we do. And that’s common across
our entire portfolio. So again, maybe on our
upper B-class property might be closer to that 8%,
which is still better than 7%, which is what you’re
paying for the loan. And your net worth
has increased, and you’re building up
equity and cash flow on the backs of somebody else. But imagine, even if the ROI
was a little bit higher, 10%, 11%, 12%, still on the backs of
somebody else, other people’s money. That’s a win-win, right? Exactly. Let’s say you bought
a $75,000 property. You only paid in your
original $30,000. But still on your
taxes this year, you’re going to
depreciate $75,000, even though you didn’t pay that. Right. And the beauty of that– she brings up a great
point, another great point. Again? That’s two in one day. I told you I’m full of them. It won’t happen for
another month or so. So you have the
$75,000 that you get. The beauty is that then you’re
also building up that equity. So let’s say the property
appreciates up to $90,000. And then you refinance it. You pull all of
your money back out or a large percentage
of your money back out. And now you’re
entering the territory of infinite returns, an infinite
return on your investment. Because now you’ve been
able to pull out almost all of your initial $30,000 and
roll it into another investment property. That’s the beauty of using other
people’s money when you can. Exactly. Yeah. So one little side note
about using the Fund and Grow method– if you go to
morrisinvest.com/funding, they’ve partnered with us. You’ll get $500 off
your sign-up fee. And so it’s like a few
thousand to work with them, and you only will
pay that if they get your money,
meaning they get you the money for your investing. If they can’t get you the money,
you don’t pay them for that. But you’ll save $500
off as a little bonus for watching this show. But I should say, we
have so many great videos here on the channel
that can help you with that– finding
great properties, using that $30,000 to go out and
take action to find properties and to start to
build your portfolio. I don’t care how you do it. You work with us, you do
it on your own, great. If you have the time, go out
and do it on your own, right? I suppose so, yeah. This is another
way to use $30,000. We have a lot of people
who come to us and partner with a friend who
has $30,000, too. If you don’t have
friends who have $30,000, you need to get
some new friends. No, I’m kidding. But I also really highly
suggest local Meetup groups. It’s a great way to go out
and find other investors. Find people who are
like-minded and ask, what are the deals around? How are they finding their
deals, what kind of cash that they have. We have an episode on
the show here about how to partner, how to take
title as a partnership. Make sure that you listen
to those before you do anything like that. But we’ve seen a lot of people
partner up with other people, with other investors
to great success. Yeah, and it’s a
phenomenal point, to go to like meetup.com and
look for your local real estate Meetup groups, and
to go out there. They usually meet like
once a month in your area. We’ve had a lot of people
who’ve bought properties through us who’ve come to
our– we’ve talked with, who have said, I
listen to your show. I went to a local Meetup. I met John. We’re now friends. We’re now buying our
first property together as a partnership LLC. And they’re super
excited about it, and that’s how they
started building wealth. They started to build
a business together. So yeah, listen to that episode. So there are a few great ways
to use $30,000 to get started in real estate investing. As you can see, there is no
one size fits all approach. But I think all it really
does, all it takes is action. So pick one of them. Run with it. Start taking action and
become a real estate investor, because we believe it’s the
number one way to build wealth. And by the way, thanks
for subscribing. We’ll see you next
time, everyone.

75 thoughts on “Morris Invest: How to Get Started Investing with $30,000

  1. today i talk with one of you guys and he told me that he is going to send me options….. i’m still waiting 🙁

  2. Clayton Morris i have 3 properties 40-60k range free and clear. Why is it so hard to do cash out refi? i tried HELOC but they are more for primary resident not rental.properties.

  3. Have about 10k saved up i live in texas i found this duplex for 60,000 i make about 80,000 a year now the only thing is that i am not a citizen so any bank i go to will not give me a loan any ideas on how i can bypass this?

  4. you guys are amazing you make owning real estate so possible with your channel, you guys are so informative thank you so much i live in NJ

  5. Natali I've noticed your hair is just growing and growing and its looking super shiny and thick. It's gorgeous!!!! Please share your hair secrets as well 🙂

  6. If you buy at your high end of 60k do you still rehab? So the actual all in is 70 to 80k? A bit confusing.
    Natalie reminds me of my wife. Hi Natalie
    Thanks

  7. I did some work as a subcontractor on a few projects run by a commercial developer. These were all professional buildings to be leased out. I got to know the owner of the company a bit, and he is spread thin. He mentioned that he is getting to the point of wanting to just fund other projects to free up some time. I asked what he considered a good return and he said 7% for hands off.
    There is money available in many places, but you have to network a bit and think creatively.

  8. I love your videos!!! Congrats on your success!! Quick question… you mention not to buy under a personal name, but and LLC instead. What about an S-Corp?

  9. I am wanting to sell my current home and move into an apartment. I want to use the equity from my current home to start investing. Can I go ahead and form a LLC and use it to pay for the expenses of fixing up my current home to sell?

  10. Hi , im currently living in Los Angeles with $20k to invest on property , can the methods you and your wife talked about in the video benefit me ?

  11. there is Nothing like RE investing. for example….last month, I bought a 3bd 2ba trailer home from tax delinquent owner for 2k all-in…place was trashed, paid 1k to have it cleaned out plus new carpet and paint, which the painting i did myself (pretty well if you ask me). so ur thinking, "ok 3k, how do you make your money back"…right? …so easy, these are my bread and butter, they are called: lease options. i turned around and listed the property for 20k!!!!! in a C area at that!!! …. only I know that being in a C area, my buyers wont have cash up front so I put them on a 6 year payment plan with 15% down payment up front for them to get the keys. What is 15% of 20k u ask? oh, just a measly 3k (oh darn, my initial investment back). what happens with the rest of the 17k?? my tenants pay $200/mo for 6yrs directly to me while they maintain the lot rent and the property. so essentially, I paid 3k to GET PAID $200+/mo passive income for the next few years. CANT DO THIS STUFF WITH A 9-5 JOB GUYS!!! "Hey boss, mind if i come in to work for one week and then take vacation for the next 51 weeks and still get paid?"" Lol…ur ass is fired. But if you invest, take calculated risks, you can become your own boss with real estate investing.

  12. To get started in real estate investing I think places likes Detroit and Midwest in general make a lot of sense, as the property values are significantly lower.

  13. Thanks for the information…once you secure the credit through the business credit cards, how do you use that credit to buy a house. Do you have to make a cash advance or is there another way?

  14. 60K or 70K can not even buy a Bathroom in California, in LA area, 30K only 10% of a down payment of average property

  15. Clayton I have $40k and would like to leverage that in don payments to get 4 houses is the $40-$50k range is that possible?

  16. If you have money saved to purchase a house around 50,000, would you recommend using your own money or another method like a home equity line of credit?

  17. I took out 30k equity out of my house and looking to buy tax liens I know that's one way you probably wouldn't reprimanded. Do I still need to be a LLC.

  18. My parents are about to retire and they want me to take over their mortgage with a balance of about $200k. House is currently valued in the upwards of $400k. Would it be a good idea to get a loan and pay it off and use the equity to buy another property?

  19. I just paid off my primary home my question is should i get a HELOC on my home to buy a couple investment properties i live in Nebraska so they are not very expensive

  20. Exact situation I’m in, born and raised in Michigan but now in Austin. I have one investment property in MI, but I’m struggling to purchase a 2nd. I have a lot of equity and cash but I need help with making the next move.

  21. First time viewer here, I would like to know if u favor buying undeveloped land and then building a new home on it. Is this a cheaper way to make $ rather than buying a property with a pre existing home. Is it more risky? Thanks.

  22. Investors say ex-‘Fox & Friends’ host turned them into unwitting slumlords

    What's this about? I wanted to invest with this company.

  23. I'm a new subscriber, and I love your videos, but as a prospective investor, this is where I get discouraged: I'll only have around $30k to get started. I'm browsing Zillow for homes in the DFW area(I live in Las Vegas), and these homes under $100k were built in the 50s,60s, etc. Most look like total dumps. If I were to use that $30k as a downpayment/closing costs, that leaves not much money for any rehab, knowing many homes in this price range require thousands. Am I missing something here? Thank you very much.

  24. Clayton..my first rental is cashflowing $800 a month i paid cash for it…… I have $70k in cash remaining.. .should i buy another cash rental for 50k and then use credit to buy house #3? Or should i try to buy a 4 unit apartment on credit?

  25. every time his sister makes a great point he cuts her off and says she wont make another great point for a month….and his less than witty sarcasm hurts her….then she looks deep into the camera with a saddened expression…why must his sister endue this when they do youtube together ??

  26. i live in ohio. have an opportunity to buy 3 houses. a 2 bd 1.5 bath, a 3 bd 1 bath, both for 109k needs work. and a 3 bed 2 bath modular home on basement for 120k. rent around here is $500 per bed. do these sound like decent investments? with the limited info haha

  27. Every single day people still put their money in the banks to earn 0.0001% back . ANNUALLY! And you people think .90% daily is unsustainable? Bitcoin is going to be above $17,500 per by September 1st 2019 .. BTC is making hand over fist in revenue from the exchange and the rise of their own token alone.. Cryptocurrency is the future so I suggest any business minded person, newbie or beginner in cryptocurrency should try every possible means of contacting Mr crow via ( cryptocrow800 at gmail) for his mining software because it has made me About $37,000 in just 3 weeks

  28. It ain no 50k 60k houses in the states no more unless it is in the projects!! But the info was good but not realistic!!

  29. Hello. Remember me. I shared paying off my house. I watched your videos on how to get into investing in properties. I bought a couple lots, and going to build then sell in 2 years. Your advice is good. I’ve been screwed over in business. I invest and do business alone now. I take it you got screwed. You try and help people and you got screwed. I was pulling for you and your family to “win” at house buying. How will you rebound from this?… I lost everything once, business’s, house, wife etc. it wasn’t my fault, but then it was even if I didn’t do anything wrong. A person I helped 10 years ago called me a dead beat a few weeks ago. It bothered me even though I’m not. As an entrepreneur there is risk, and reward. When I was up I had tons of friends, then a few friends. I’ll pray for you, and your family.

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