Myth One “I Don’t Have Enough Equity To Invest In Real Estate”

#EntrepreneurOfTheWeek – Ronen Reshef, #Post2

In my introduction post, I already shared how I managed to buy properties in Israel without any equity at all.
But in recent years – with home prices skyrocketing and interest rates climbing – I realized my real estate journey in Israel had hit a glass ceiling 🏠💸

Now, don’t get me wrong – even today, you can still buy property in Israel without full equity if you know how to leverage:
🏡 A mortgage on an existing property
💰 Loans from pension and provident funds at ridiculously low interest rates

But then reality hit: 2–3% yields… and that just wasn’t enough.

So, I started looking outward 🌍
Greece, Spain, the U.S. – I attended conferences, listened to lectures, dreamed big…

But then came the same old barrier:
❗ “I don’t have any equity. Not even a dollar.”
And besides, I don’t speak Spanish or Greek…

Until one day I said to myself — enough with the fear.
If America is “the land of endless opportunities” – it was time to test if that’s really true.

The condition my family set for me was crystal clear:

“You can buy all of America — but without using money.”
So I went for it 🙂

Was it possible? Yes! It happened.
My first property in the U.S., a rental unit, closed with a total out-of-pocket cost of just $1,474 💵
That’s all I wired at closing — the lender financed everything else: the purchase, the renovation, the works.

And from there, like a domino effect, the deals kept rolling.
Up until my eighth deal, I didn’t take a single dollar out of my own pocket 😎
(Ask my bank manager — he’s still trying to figure out how that’s even possible 😂)

💥 Myth #2: “You can’t get financing in the U.S. if you’re not American.”

Well… wrong 😁
If I got a dollar for every time someone asked me, “But how would an American bank even talk to you if you’re not a citizen?” — I wouldn’t need loans at all!

In the U.S., they don’t ask where you were born — they ask if the numbers make sense.
Is it a good deal? Does it yield well? Is there a clear plan?
If so, the money’s already on its way with gold pens ready to sign 🖊

The secret isn’t the passport — it’s the deal.
Once you find a solid deal, you’ll always find someone who wants to finance it.
That’s called OPM – Other People’s Money, and it’s the real key to success.

💰 So where does all that money come from?

Here are the main funding sources real estate investors use in the U.S.:

⿡ Hard Money Lenders
Private lenders offering short-term loans (usually ~1 year).
Interest is higher (8.5–12%), but they’re fast, flexible, and usually finance:

Up to 90% of the purchase

And 100% of the renovation 💪
All you need is the remaining 10–20% to cover closing costs and interest.

⿢ DSCR Loans
30-year loans at favorable rates (6.2–7.5%).
The beauty?
They’re based on rental income, not your salary.
If the rent covers the payment – you’re in.

⿣ Debt Investors
Private investors who prefer fixed returns (10–12%) without dealing with tenants or management.
Great yields, solid collateral, and zero hassle — a perfect fit for Israelis seeking true passive income.

⿤ Pension and Provident Fund Loans
The cheapest source there is.
You can borrow against your fund at 5.5–6.5% interest,
or even withdraw part of it to invest — and earn several times more in return.

🔁 A Real Example of a No-Equity Cycle

My amazing partner Yulia and I bought a property in Cleveland (Garfield Heights) for $40,000.
Debt investors financed the purchase and renovation — another $30,000.
Total investment: $72,000.

After renovation, the property was rented for $1,500/month, and within 4 months we did a refinance.
New appraisal: $127,000.
We got a loan for $88,000 (70% LTV), repaid the investors —
and still had $11,500 cash profit 💸
(Plus a nice tax exemption 😉)

And the property?
Still generating solid monthly income.

Now here’s the exciting part 👇
When we do another refinance in the future — say the property appraises at $180,000 —
We’ll get 75% LTV = $135,000.
We’ll repay the $88,000 loan (which by then will have a reduced principal),
and pocket tens of thousands of dollars — again, without selling or paying tax!

All while the property keeps cash flowing monthly.
That’s what I call infinite returns ♾

Now imagine 30 such properties… or 60 😏

Over time, I’ve gotten better at identifying the right lenders and top-tier debt investors.
Today I know how to find the perfect match for each deal — and how to manage the relationship.
It’s not always simple — there are requirements and paperwork —
but everything that brings us closer to the goal is worth doing.

I learned that knowing how to work with lenders can get you more money, under better terms, and faster than you thought possible!

Coming Up Next Posts

🏘 Why Cleveland?
🏠 Different property types (long-term rentals, Airbnb, Section 8, and more)
💡 How to find the right lenders and partners to build your real estate empire — with zero equity

Spoiler: I’ve already found my amazing partner — together we’re living both our dreams 🙂

Because if there’s one thing I’ve learned, it’s this:

In real estate, money doesn’t make the deal – the deal brings the money. 💥