 Welcome back to the channel, everybody. For those of you who are new around here, my name is Michael, aka Dr. Chlini, and I'm a board certified diagnostic and interventional radiologist in New Jersey. Recently, I posted a video on my most recent real estate venture and it got some good traction, but it also got a lot of questions in the comments asking me to further explain a few things. And it also got some comments like, well, it must be nice being a rich physician, being able to afford a $300,000 house, or it must be nice being able to invest with two other people who are rich as well like you. But that couldn't be further from the truth because realistically, we didn't really spend hardly any money buying this house and made a $105,000 profit when it's all said and done at the end of three months. So I wanted to kind of dive in to show you all exactly how we made $105,000 with barely spending any money whatsoever. So let's get into that right now. All right, so if you haven't watched my prior video on how we turned almost $0 into $105,000 in three months, you should go check out the link up here and go watch that video. I'll wait or will I? So in that video, my partners and I, which is my older brother and my long-term family friend, Jason went together and we bought a $225,000 house, but we ended up getting the seller down to $163,000 because it was going to cost upwards of $80,000 for renovations. Our overall plan of purchasing this house was to eventually rent it out and refinance it and repeat, do it all over again. So we purchased the house for $163,000, put $82,000 into the house with a grand total of $245,000, all said and done. We ended up selling the house for $350,000, giving us a net profit of $105,000. Now you probably knew that if you watched my video last week and again, link up here if you haven't already, but the strange thing is we didn't actually buy the property. Like we didn't actually come up with $165,000 of our own money to buy the property. That was the misconception in a little tidbit that I honestly accidentally left out. I thought I had all the numbers, I thought I had all the information together, but I happened to leave that part out, which was obvious by all the comments, so I kind of wanted to touch on that today. So how exactly did we come up with $165,000 without using any money of our own? Well, it was easy. We used someone else's money. Well, that's partly true, right? So if we were to buy the house for $165,000 cash, we would need $55,000 each, and we didn't want to put up that much money up front. And honestly, with all of our stuff tied up in other real estate right now, we didn't really have $55,000 each at the time. So what we had to do was get our money somewhere else. And we were a little lucky getting that $165,000 because we were looking at other places like hard money loans, which had interest rates of 10, 20, even 30%, but we were fortunate enough to get this $165,000 loan from a family friend of my partner at an interest rate of just 5%. The interest rate was 5% for a year, and then after a year it went up to 10%, but we knew that this house was going to be completely done in a couple of months, so we didn't really care about having that graduated interest rate. If everything went smoothly, which obviously it did. So $165,000 at 5% is, I can't do the math, so hold on a sec. $8,250 per year in interest. However, we were paying it monthly, so divide that by 12, comes out to $687.50 interest per month. So essentially without putting up $55,000 of our own money, we would have to pay $687.50 per month in order to have that cash and pay for the house, which we were fine with. We knew we would end up flipping it pretty quickly and be done with it. And we didn't mind paying that low of an interest rate if it meant that we didn't have to put up our own money, which we didn't really have. And that is why I say in that video, and this video as well, we made $105,000 without putting up hardly any money at all. And by now you're probably like, okay, yeah, you bought the house for $163,000 and you had a $165,000 loan, which gave you a net of $2,000 to do whatever you want with, renovations and whatnot. But Michael, I thought you said renovations were $82,000. Where did you come up with the $82,000? Well, I'm glad you asked. So $82,000 would come out to $27,333 and 33 cents repeating. And we didn't want to put that up either, but each of us had that money in the bank in case we needed to come up with that money. However, we actually never needed that money. And here's why. So during the renovation process, all the renovations were done in a pretty timely manner because we were working with a contract company that is associated with our property management group that we are closely connected with and work with on a daily basis. We all worked together, we all know each other and everything was very smooth. We trust each other, went perfectly. The thing is though, about halfway through the project, we realized we were going to sell it quickly and we knew the market was hot. And when we saw the prices of the houses being sold adjacent to this house, plus we saw the bidding war on our house when we put it up for sale in the first 48 hours, we knew we'd be able to offload this house as quickly as possible. And that's exactly what happened. And it turns out we offloaded it so quickly that we never had to come up with the money for the renovations because the invoices weren't due until after we sold the property. So we already had the profit from the sale of the property to pay those renovations with. Hopefully this is all making sense. So let me break it down, slow it down a little bit, put some numbers up on the wall. So we bought the house for $163,000. We used a $165,000 personal loan to buy this house. The $165,000 loan had a 5% interest rate which came out to about $687.50. Per month, we would pay an interest. So we ended up paying three months worth of interest which came out to $2,062.50 over the course of the time that we had the house. So essentially one could say that we got the house for $2,062.50 divided that by three or $687.50 each. So we each paid a month worth of interest to own this house. So essentially we bought a $350,000 house and sold it all by only investing $687.50. Seems pretty crazy, doesn't it? Now, obviously I'm not including any closing costs but I'll go ahead and look those up just so we're complete here. Okay, I lied. I can't find where the closing costs are but I may find them and put them in the comments below because I can't find them on the ledger right now. Anyways, so the renovation costs that we were prepared to put up if we had to but we actually didn't have to until after we sold the house. So we just paid off the renovations with our profits from selling the house. So it actually worked out pretty well. So we didn't hardly put up any money of our own and we ended up making a nice profit and that's exactly how we did it. So now you know exactly how we bought and sold a $350,000 house with a $105,000 profit with putting up hardly any money of our own. So now I just wanted to touch on a few comments and questions that you all had on my video and hopefully this will kind of clear some things up as well. The first question that I got asked a lot is does the third investor, the guy making the home video, the guy with the belt buckle, Jason who is my partner, does he do the renovations himself? If so, how does that work out? Money wise, great video. So he actually doesn't do the renovations but he did function as the property manager during this whole process. So I touched on it briefly that the real estate company we worked with also happens to be the property management company who manages all of our rental properties which is quite a bit between the three of us. They also have a contracting company who works together for all the repairs of all those houses and all that stuff. So we actually used them for this project. They were phenomenal and we all know each other. Everything worked out perfectly and it's like a big happy family. And the thing is with these deals it is a symbiotic relationship. So it benefits them to get the job done well and do well because they know that we will do another project and if they did well, this project will use them again. So they do it in a timely manner. They do it quickly. We work well together. They want to work with us. We want to work with them. The real estate agent and property management company must have worked with us because we all make money in this process. So it's a symbiotic relationship. I think that's kind of the hardest thing to insert yourself in is a nice group where everybody's working together and everybody's working well together. But luckily Jason, my business partner has been working with this company for a long time and I just kind of fell in there. So it was kind of nice. Now Jason obviously, since he does all the work in Georgia, he lives in Georgia and he's the project manager and supervises this whole thing. He obviously takes a small percentage of the profits to kind of pay for his time and we're completely okay with that because it allows us the freedom to sit up here, work and know that someone is watching this property and making sure things are getting done and we can feel comfortable about our investment even though we didn't really invest that much this time. All right, so the next question I wanted to answer is someone says yay for gentrifying the neighborhoods and exploiting the tenants. So this is not something we do and that's not the reason why I'm doing this whole thing. We actually found a very dilapidated house that we knew would need some TLC. We got a good price for it and we actually renovated the house as you saw in the prior video. And now that neighborhood looks better and the houses around that house actually gain value by that house looking so good, so pristine, having a high value itself. So we actually better the neighborhood and help the neighbors surrounding that house and we don't exploit any tenants because we didn't have any tenants. We sold the house to a nice family actually. So thank you for your comment. All right, so this is the final comment I wanted to touch on real quickly because I got this a lot in the video. The most important number, the first paycheck amount is the main number missing. I know the title of the video was kind of misleading because I said I used my first paycheck to pay for this thing, which ended up being this investment. But as you know now, I didn't actually pay for the property with my paycheck and I wasn't going to disclose my monthly paycheck because you should know by now I don't do that. I don't know why so many people were asking what my actual paycheck is when that wasn't the point of the video, but I guess I kind of was a bit misleading with the title of the video. So for that, I apologize. So that officially concludes this video. Hopefully that kind of cleared things up a little bit on how we bought this property for little to no money down and made a nice profit on it. So if you have any questions, leave them in the comments below. If you like more videos like this, let me know as well. Gently touch the subscribe button, follow my Instagram and TikTok if you don't already and I'll see you all on the next video. Bye.