[00:02] I invested $10,500 and I was able to turn that money into $100,000 turn that money into $100,000 in a matter of 90 days when I was 19 years old. I came across this thing called FHA loans. Basically, they let
[00:14] called FHA loans. Basically, they let you buy a house for 3 and 1/2% down. you buy a house for 3 and 1/2% down. That means I could buy with $10,000 like a $300,000 house. Now, there had to be a catch, right? Well, I mean, I'm taking
[00:27] on a lot of debt, right? As long as I can make the payment on the house, then deal, right? And I realized, wait a minute, I don't have to make the payment. If I can't afford the place if I'm living there, I can move and I can
[00:40] put a tenant in. [music] We ended up finding this place for $305,000. No kitchen, no bathrooms, and I'm like, okay, we don't qualify for like the $400,000 or $500,000 houses in California. We
[00:54] only qualify for like the crap that's at like $300,000 at the time. So, like, kitchen and no toilet and no bathroom? And so, I'm asking the lender, what how what am I supposed to do on this? How do I buy this? The FHA 203K program lets me
[01:11] buy a house that I can't move into because the condition isn't ready to be moved into yet. I ended up putting 3 and 1/2% down on this $305,000 purchase and they let me finance the fix-up and renovation costs on the house. I have
[01:25] fully financed this property. The entire renovation, the entire purchase, everything with 3 and 1/2% down. And we ended up getting a refinance and the appraisal appraised the property for $550,000.
[01:40] I was able to get a brand new loan for $440,000 without mortgage insurance. But my old loan's only 340. I replaced my old loan's only 340. I replaced my old $340,000 loan with a new $440,000 loan.
[01:55] worth of work, the refinance took longer. I refinanced a little later, but I was able to get a new loan for 440 replacing my 340 loan, which means they replacing my 340 loan, which means they wrote me a tax-free check for $100,000,
[02:09] wrote me a tax-free check for $100,000, which is absolutely insane.