Noelle Randall provides a comprehensive explanation on how to buy a home without a job or money using a strategy known as “subject to.” This method has been transformative in her own real estate journey and has allowed her to acquire numerous properties, building substantial wealth. Here’s a more detailed breakdown of the key points she covers:
- Overview of Buying Homes Without a Job or Money:
Noelle introduces the concept of purchasing homes without needing to have money upfront or a stable job. She emphasizes that this approach is not only possible but also something she herself has done successfully. Additionally, other students have used this method to acquire properties. - The Benefits of Owning Real Estate:
Noelle shares the immense benefits she has gained from owning real estate. She mentions that owning multiple properties has changed her life, significantly increasing her wealth and net worth. Real estate has been the primary wealth-building tool for the majority of millionaires—89% of millionaires have accumulated wealth through real estate.
Her success story began from humble beginnings, starting in her parents’ basement, and now she is a wealthy millionaire with a large portfolio of properties. This wealth has also allowed her to pass down properties to future generations.
- The Concept of “Subject To”:
The core strategy Noelle advocates for is the “subject to” method. This involves buying a property while leaving the existing mortgage in place. In this case, the buyer does not assume a traditional mortgage but instead agrees to take over the seller’s mortgage payments, while the deed and title of the property are transferred to the buyer’s name.
The key to this process is that the existing financing (the mortgage) stays intact. The buyer and the seller create an agreement where the buyer takes responsibility for the mortgage payments, but the mortgage company is not involved in the transaction.
Noelle has personally used this method to acquire properties for just a few thousand dollars, which can be life-changing for someone looking to enter real estate with minimal upfront costs.
- Traditional Home Buying Process vs. “Subject To”:
Noelle compares the traditional home buying process, which typically involves applying for a mortgage, proving income, showing assets, and qualifying through a lender, with the “subject to” method.
The traditional process can be difficult, especially for individuals without a steady job, a strong credit score, or sufficient funds. Most people who do not meet these criteria are unable to secure a traditional mortgage, unless they can afford to buy a home in cash—which is often not realistic.
The “subject to” method bypasses these traditional hurdles, making it accessible to people without a job or a large amount of money.
- Why Would Sellers Agree to This?:
A common question is why a seller would agree to leave their mortgage in place. Noelle explains that the sellers typically are in financial distress. When people are struggling with their mortgage payments (due to foreclosure, job loss, divorce, bankruptcy, or illness), they are often eager to find a solution without going through the lengthy foreclosure process.
By taking over their mortgage payments, buyers provide a solution for distressed homeowners who need to unload their property quickly without further financial strain. This creates a win-win situation where the buyer gets the property without needing to secure a traditional mortgage, and the seller avoids foreclosure and financial fallout.
- Targeting Distressed Homeowners:
To find sellers who are in financial distress, Noelle suggests marketing directly to people who are behind on their mortgage payments. Strategies can include sending letters or putting up signs that say things like “Behind on your mortgage payments? We can help.”
These distressed homeowners are more likely to be open to a deal where they can offload their property and avoid the negative consequences of foreclosure.
- How to Fund the Deal:
While the “subject to” method allows you to bypass the need for a traditional mortgage, you may still need some money to cover overdue mortgage payments if the seller is behind on payments.
Noelle shares that you can use a variety of resources to fund these payments. Options include using lines of credit, credit cards, borrowing from family or friends, or finding private lenders. The key is ensuring that you can cover the overdue payments to keep the property in good standing.
If the property is just a few months behind on payments, it’s possible to secure it with a relatively small amount of money (such as $5,000 to $6,000). This creates a path for acquiring property without needing a large sum of cash upfront.
- Conclusion and Encouragement:
Noelle emphasizes that real estate is still one of the most reliable ways to build wealth, and the “subject to” method is a powerful strategy for those without money or a job. She encourages viewers to take action and start marketing to distressed homeowners, offering them solutions and opportunities to build a real estate portfolio.
Key Takeaways:
You can buy a home without a job or money by using the “subject to” strategy, which involves taking over an existing mortgage.
This method works by finding sellers in financial distress (e.g., foreclosure, job loss) who are willing to leave their mortgage in place, allowing you to take over payments.
You don’t need traditional financing, but you may need some money to catch up on overdue payments.