I’ve purchased 14 light industrial warehouses valued at over $14 million… and I did it with none of my own money.

If you’re currently grinding through single-family rentals to find passive income, I’ve been there.

I eventually sold my 55-unit SFH portfolio after reading Commercial Real Estate Investing by Dolph de Roos, which helped me break through the fear of "sophisticated" metrics like debt service coverage ratios.

Fake It 'Til You Make It

My first deal was a 70,000 square foot warehouse in Tarrant, Alabama, for $1.35 million.

The Problem: I was 27 and didn't have the $350,000 down payment or a bank mortgage…. YET.

The Action: I printed business cards, called myself an investor, and tied the deal up with $10,000 in earnest money borrowed from my life insurance policy.

The Solution: I went to the bank that already held the mortgage on that property. They loved the tenant and the site, so they were thrilled to lend me the million dollars.

The Three Ways to Fund a Deal

To cover that $350,000 down payment without using my own cash, I discovered the power of "Second Mortgages" and partnerships:

1. The “Seller Second”: Get the seller to “leave 25%-30% of the purchase price in the deal in the form of a second-position mortgage (behind the bank).

2. The "Priority" Partner: Find a partner to bring the equity for a 50/50 ownership split. To make it a "win" for them, offer them 100% of the cash flow until their initial principal is repaid.

3. The “Private Second”: Some investors (like doctors or dentists) have cash but don't want to own or manage property. You can borrow the down payment from them as a second mortgage, paying them a set percentage of cash flow every month.

How I was first introduced to Seller financing:

The seller of this deal actually offered ME to leave the $350k in the deal as a second position mortgage.

I thought he was trying to pull a fast one on me, so I spoke to my accountant before agreeing.

My accountant verified that it’s just a tax play for the seller since he won’t receive the cash at closing and won’t be hit with immediate capital gains tax.

The Result:

On that first CRE deal, I increased the rents and made a few improvements.

A few years later, it appraised for $2.4 million.

I refinanced, paid off both mortgages, and put $100,000 in my pocket. 

How you can buy $1M warehouses with none of YOUR own money

Over the years, I’ve been able to systematize this process of convincing sellers to leave money in all these deals.

Now I’ve packaged up these tools and resources so you can do the same thing.

If you want to learn how to buy warehouses with no money down and change your lifestyle for you and your family, let’s get to work.

If you’re wondering if our CRE investment group is legit, check out what other members are saying about it: