Marco Kozlowski has been investing in real estate for 20 years. Anyone, he says, can buy income-producing properties from home – without money or credit.
You just need a proven process. Something he has.
The money? You’ll get through what’s called asset-based lending.
And it makes no difference your background, your credit score, how much you have in the bank, what your skin color is, or whether or not you have teeth, Marco jokes.
None of it matters because it’s the asset, not you, that is going to qualify for the loan.
Even as a broke Canadian citizen with no social security number, Marco was able to do hundreds of deals in the U.S. during his first few years in business.
Really interesting things can be done when you use your mind and execute.
So if you’re sick of working your butt off to make someone else rich, listen up.
“What an asset-based loan is, is a loan that’s based on the income of the asset or the value of the asset,” Marco explains.
“Now, if you’re in residential real estate, which I don’t do much anymore of, it would be like a hard money loan,” he continues.
“Meaning, if the property is worth $100,000, you can get a $70- or $75,000 loan all day long. And if you don’t pay, they take the property back.”
“It’s that simple.”
“It doesn’t matter what your credit is. If you don’t pay them, they just get the property back.”
“But it’s a high interest loan. Which is fine,” Marco assures us.
“The key is, can you pay the monthly mortgage with a high interest loan? The answer’s yes.”
“If it’s in commercial real estate it’s actually a lot easier to do that.”
“And there are a handful of commercial asset-based lenders that will lend money at reasonable rates (I’m talking 9- to 11%)) and as long as the cash flow supports it, you can actually do it quite easily.”
As a hypothetical example, consider a property that grosses $300,000 a year.
About half of that $300,000 will go towards expenses, leaving half as the net profit.
So $150,000.
Depending on location, that building will be valued at about $1.5 million.
An asset-based lender will give you a loan for 70% of that.
Or about $1.05 million.
That means you’d have to buy that building for $1 million, leaving yourself $50k for closing costs, to finance 100% of the purchase price.
How will you get it for that cheap though?
Won’t the seller know it’s worth $1.5 milli? Maybe, maybe not.
This is where you have to apply some elbow grease. You have to do the work to find these deals and/or be able to out-negotiate the current owner.
If you can do that, it’s a beautiful thing.
You get the building without risking a penny or putting your credit score on the line.
And say you do get it for $1 million flat. Even after paying a high interest loan, you’ll pocket about $45,000 a year.
Now you can make small improvements, up the rent (and thus the value), refinance, borrow even more, and up your tax-free income.
Do the work once, get paid monthly for as long as you have the property.
“It’s really pretty phenomenal,” Marco says. “And I don’t know why more people don’t do this.”
Want his help? Marco sells a mentoring experience called Virtually Invest.
The cost is $2,500.
Comes with 1-on-1 support until you purchase your first three- to five-unit building.
Tap below for a simple side hustle you can do online.