I Turned $10,500 into $100k in 90 Days at 19
43sThe shocking claim of turning a small investment into a huge profit in 90 days grabs attention and makes viewers want to know how.
▶ Play ClipAI Summary
The speaker recounts how at age 19, they turned $10,500 into $100,000 in 90 days using FHA loans and the 203K renovation program. By buying a fixer-upper with a low down payment, financing repairs, and then cash-out refinancing, they generated tax-free profit.
Chapters
[00:02]
Initial Investment
Invested $10,500 and turned it into $100,000 in 90 days at age 19.
[00:14]
FHA Loans Explained
FHA loans allow buying a house with only 3.5% down payment.
[00:27]
Renting Strategy
Realized you don't have to live in the house; you can rent it out to cover payments.
[00:54]
FHA 203K Program
The FHA 203K program lets you buy a house that needs repairs and finance the renovation costs.
[01:25]
Financing Renovation
Put 3.5% down on a $305,000 house and financed the entire renovation through the loan.
[01:40]
Cash-Out Refinance
After renovation, the house appraised for $550,000; refinanced from $340,000 to $440,000 loan, getting a $100,000 tax-free check.
By leveraging FHA 203K loans and a cash-out refinance, the speaker turned a small down payment into significant tax-free profit, demonstrating a creative real estate investing strategy.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (5)
What is the minimum down payment for an FHA loan?
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What is the minimum down payment for an FHA loan?
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3.5%
00:14
What program allows financing renovation costs into the home purchase loan?
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What program allows financing renovation costs into the home purchase loan?
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FHA 203K program
00:54
How much did the speaker put down on the $305,000 house?
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How much did the speaker put down on the $305,000 house?
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3.5% down (approximately $10,675, though he said $10,500 was total investment)
01:11
After renovation, what was the appraised value and new loan amount?
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After renovation, what was the appraised value and new loan amount?
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Appraised at $550,000; new loan of $440,000.
01:40
How much tax-free cash did the speaker get from the refinance?
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How much tax-free cash did the speaker get from the refinance?
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$100,000
02:09
💡 Key Takeaways
📊
From $10,500 to $100,000 in 90 Days
Demonstrates a high-yield real estate strategy with low initial capital.
00:02
🔧
FHA 3.5% Down Payment
Key enabler for first-time buyers with limited funds.
00:14
💡
Cash-Out Refinance Tax-Free
Explains how to extract equity without immediate tax liability.
01:40Full Transcript
[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.
