FHA Loophole Loan Makes Millionaires

What if I told you there was an FHA loan that could turn you into a millionaire? In the next few minutes, I'm going to show you how first-time buyers can build a real estate empire with an FHA loophole, just three and a half percent down. And this isn't just about buying a home. This is about creating generational wealth. So let's get right into it here. If you like this video, please subscribe to our channel and share the video. When we think FHA loans, we usually think low credit score, first-time buyer with little down payment, or the loan a last resort. And that all may be true, but there's a little known fact about FHA loans that can make you a millionaire. First, you must follow these rules to make it work. If you are a first-time buyer, do this and you'll be on your way to becoming a millionaire in real estate. Multi-family investment is a clear path to millions. Many people do it over and over again. But getting into the multi-family business is very difficult and very costly. This is why most banks want 25% down, 30% down for multi-family investment properties. Now for any expert out there, I must tell you, there are many alternative financing models. This video is not about alternative models of investing. This is basically about where most of us go to the bank for a loan for a home. If you're interested in a video about alternative financing, leave a comment below. I'd be happy to do one for you. But for this focus, 25% to 30% down. So let's just say you want to buy a three-family house. It's 500k. You need 25% down. It's $125,000 plus your closing costs. It's a lot of money. Most people just don't have that when they're just starting out. This is where the FHA comes into play. Not many first-time buyers have any kind of down payment. So they resort to the 3.5% deal that FHA orders. The first-time buyer FHA multi-family program allows first-time buyers to buy one to four family home with as little as 3.5% down. So on that same $500,000 mortgage, you can get in that house $17,500 or 3.5% down. The same property, most investors have to put down a minimum of $125,000. It's just the way investment works. The only time you can do this is when you're a first-time buyer and your first home is a multi. If you're a first-time buyer, let me know in the comments below, would you consider this path? If you purchase a property with good cashflow, you're getting good rents. You have normal appreciation. You paid a half a million bucks for it just with the appreciation. By the time you're paid off and you have that property for that 20 or 30 years, you're going to be a millionaire just in property alone, collecting rents, probably collecting enough from that one building to retire. And there's so many ways you could go after you get your first win-in. But remember, you only get to do this once. You have to live in the house for at least a year. You're going to have to be a landlord. So you're going to have to take care of the other apartments, the plumbings. You could always farm that stuff out if you have the cashflow for it or the money for it, but it's a certain lifestyle running real estate. And I'll tell you what, if you're living in an apartment now and you're going to go make a purchase, it's very similar except you get the phone calls when there's problems. So when you're buying a house, just make sure you're buying a house that's going to work for you. It's in good shape and it's easy to maintain. So that's very important. Here's the thing. After the first year you're living in there, you can move out. You can add now your third rent. And now that property is going to just about pay for itself if you purchase the property at the right price. But here's the better thing. You can actually become a first-time buyer again for a single-family home. So now you could go get into a house again for 3.5% down from FHA. And if you have great credit, you don't need FHA. You can get in for 3.5% or 3% from a conventional loan, which is going to probably cost you less and get you a better interest rate. So it's the best of all worlds. If you're considering becoming a real estate investor and you're a first-time buyer, make that first-time purchase a multifamily. You will be so happy and you will be well on your way. If you want more tips, watch the video right here, especially if you're a first-time buyer. Thanks for watching. I'll see you in the next one.