Summary: “How to Invest In Real Estate with No Money”

Podcast: Radical Wealth Plan
Host: Paul Morris, Entrepreneur Media
Episode Date: December 10, 2025

Episode Overview

In this episode, Paul Morris tackles the widely-held myth that you need significant personal capital to get started in real estate. Drawing from his own investing experience and practical dealmaking advice, Paul breaks down accessible strategies for acquiring investment properties by leveraging other people’s money—including banks, private investors, and creative partnerships. The episode is rich in step-by-step guidance, real-life anecdotes, and actionable insights, making it a must-listen for those curious about their “in” to real estate, regardless of their bank account.

Key Discussion Points & Insights

1. Reframing Real Estate Investment (01:41 - 03:30)

• Mindset Shift:
  Paul emphasizes that most large real estate deals are rarely purchased with all-cash; “Every single building that you drive by has been purchased with other people’s money. Very few buildings are bought with cash like other asset classes.” (02:05)
• Stop Focusing on Your Bank Account:
  Investors often limit themselves by believing they need their own funds: “Most investors are stuck on the amount that’s inside of their bank account, rather than focusing on the deal. The deal determines the funding.” (02:15)

2. What Makes a Great Deal? (02:30 - 04:50)

• Key Concept—Yield:
  If you find a property that can produce a return above prevailing market rates, investors will be attracted. “If you can find an opportunity that provides a great yield… it’s easy to find the money to put into the deal.” (03:00)
• Real-Life Example:
  Paul shares how apartment buildings bought “ramshackle” and half-vacant can be transformed into profitable assets through strategic rehab and rent increases.
  • Steps: Analyze the cost to renovate, estimate market rents (using Zillow or rent aggregators), factor in the upside, and project the new net operating income (NOI).

3. Competence and Clarity Win Investors (04:20 - 07:30)

• Pitching Deals Without Being an Expert:
  Investors don’t need to know everything about real estate. Instead, “People are willing to invest in competence and clarity…You don’t have to be a real estate expert to have competence. What you need is real clarity on that particular deal.” (05:10)
• Calculating Value:
  Look for value-add opportunities—a building that needs work:
  “If the apartment building were totally done, they wouldn’t need you…But what you’re doing is looking at an apartment building or a property that needs work.” (05:46)

4. The Investor-Realtor Shortcut (07:30 - 12:05)

• Finding the Money First:
  Reverse the approach—start by finding an investor and understanding their criteria for returns.
• Partnering with Specialist Realtors:
  Locate a realtor who consistently sells value-add, “mom and pop” buildings (usually 10 units or less) to new or mid-tier investors.
• Out-of-the-Box Incentive:
  Offer a higher-than-typical commission (for example, 3% instead of 2.5%) to the realtor for your first deal to ensure you get access to their best deals on the front end.
  • Quote: “I would consider…paying a higher rate of commission to do your first deal. Get to the front of the line…” (10:45)
• Promise Future Business:
  Guarantee the realtor will get the listing if you sell, further sweetening the relationship and making you a preferred client for top deals.
• Act Quickly:
  Speed in decision-making is critical.
  • Quote: “The one thing that will sort of kill that deal is if you don’t act quickly.” (12:25)

5. How to Evaluate a Value-Add Deal (08:30 - 12:00)

• Work with the Realtor:
  Together, analyze the property:
  • Purchase price
  • Renovation costs
  • After-repair value
  • Projected rents
• Math Matters:
  Map out concrete figures for your investor.
  • Quote: “The clarity is the exact numbers…here’s exactly how much I’m buying it for, here are the exact things that need to be done, here’s how long it’s going to take…” (11:20)
• Present a Clear Story:
  Investors and realtors want transparency. If you can present the deal with specifics, you’ll attract money and good partners.

Notable Quotes & Memorable Moments

• “Every single building that you drive by has been purchased with other people’s money. Very few buildings are bought with cash like other asset classes.” — Paul Morris (02:05)
• “Most investors are stuck on the amount that’s inside of their bank account, rather than focusing on the deal. The deal determines the funding.” — Paul Morris (02:15)
• “People are willing to invest in competence and clarity…You don’t have to be a real estate expert to have competence. What you need is real clarity on that particular deal.” — Paul Morris (05:10)
• “I don’t usually hear people talking about paying realtors more than the commission that they’re asking for, but it’s a great way to get to the top of the heap.” — Paul Morris (13:15)
• Memorable Tactic: Paul suggests, if necessary, sweetening the deal for your realtor to “get to the front of Sarah Smith’s list” (the fictional high-volume deal-making realtor he's using as an example).

Timestamps for Key Segments

| Segment | Timestamp | |--------------------------------------------------------------- |------------ | | Reframing investment mindset | 01:41–03:30 | | What makes a great deal & using yield as a metric | 02:30–04:50 | | Competence and clarity as keys to raising capital | 04:20–07:30 | | The “find an investor first” shortcut strategy | 07:30–12:05 | | Deep dive: Evaluating a value-add deal with a realtor | 08:30–12:00 | | Realtor incentives: Paying extra to access the best deals | 10:45–13:20 | | Importance of speedy decision-making and clear communication | 12:20–13:35 |

Takeaways

• You don’t need your own money to get started in real estate—what you need is a great deal, the right partners, and the ability to communicate with clarity.
• Find opportunities where you can add value through renovation and increased rents; this attracts both money and seasoned realtors.
• Build strong relationships by incentivizing top realtors and moving quickly when presented with a worthy property.