All Forum Posts by: Ryan Schultz

Fight Club 20+ years ago My story started when I read Rich Dad poor Dad and realized I wanted to get into real estate. As a continuous student (only) with no money and poor credit I studied Cre8ive financing on and off continually thinking I'd actually start soon. Soon turned to weeks to years to... 7yrs ago Fresh out the clink for drive and drink. I was walking in my Daughters Moms neighborhood and she asked me what I wanted to do. I said real estate. I pointed to a 4plex on the corner. Maybe something like that. She laughed pointing to the house on our left with the 20' tall Dr Seuss bushes trying to escape the horrors of the house behind them. "Yeah you'll end up with this ********!" 😬 2yrs ago I was out of town doing construction and I returned to my town house I was a renter at to find a 24hr notice of eviction for failure to pay. Fought it...tons of stress...(Turned out to be a book keeping error) In hindsight I was EXACTLY what I needed. The literal push out the door 🚪 I realized I would never rent again. I answered a FSBO ad on Craig's list and met the owner of a crusty duplex in the driveway. It looked like hell but was in a great location. Walking distance to downtown and around the corner from my Rachel's old rental. As I discussed price issues ect with the owner I remember telling him I loved the neighborhood and that Rachel used to rent around the corner. As the conversation continued I glanced to my left and STARTED LAUGHING HYSTERICALLY. The owner looked puzzled and asked me what was so funny. I took a second and said "Remember how I said Rachel lived close? We were walking here years ago and she said if I ever got into real estate that I would buy this EXACT ********" (me😂 him😳) "Well, I'm in. I'd like to buy it!" While working out a lease option he agreed to fix the basement wall that was caving in. Wall got fixed papers signed. The house was mine! My plan was to house hack the duplex, pull equity, rinse repeat... Enter FIGHT CLUB The first week I moved in the power got **** off from failure to pay (last tenant) no power added with the no water (I shut it off as the bathroom had been leaking for who knows how long 🤷🏻‍♂️) Just like the movie 🎥 no power hell, I think they even had water in the film. One issue uncovered a multitude of others...uncovering my mid life crisis and my internal struggle with myself much like the film. (Lots of detail omitted) Present day One of the two is almost complete. I'm currently putting back together the bathroom. It's been a long ordeal but I can see the light. I've made friends with my alter ego(s) and unlike most my mid life crisis will actually make me money. Thank you for reading my 📖 (PS Oh there's plenty of pictures)

I've never went to a HML though we did have one, out of Milwaukee, come to our local REIA. Here's some take aways: •Lending up to 80% ARV. •Possibly increased to 💯% ARV once a borrower establishes a positive track record. •Needed skin in the game but not based on application fees It's understandable why you're weary. Given what you've said...Personally, I would continue to shop around. It seems reasonable that HML may ask for a small non-refundable fee to process apps but typically they do enough business to have title searches ect done for almost free. A couple of hundred seems more of a reasonable charge to process. Hats off the the HML that have lower or no fees...[the credit union compared to bank style 😎] Happy hunting and well wishes on your financing!

Definitely a good option to add to an investors tool belt. Here's some benefits •Less property management head aches. •It turns the renter style mind into an ownership mind. •Allow families with past credit issues (can't currently bank qualify) to get into home ownership. Were you thinking of lease options (short term 2-3yrs) or acting as the bank and adding cash flow in the monthly payment for full loan term (15-30yrs)

Hey all! I'm currently remodeling a duplex. I've had under contract for 2yrs and would appreciate helpful solutions that worked for you on extending it. Here's the back story: built in 1890, great neighborhood in old section of town near downtown. The multi family was in terrible shape except newer roof. Last updates done probably in the 50s. Previous owner didn't fix anything in the 20yrs he owned it. I have it under contract for $39k and the zestimate is around 100k in un remodeled condition and as a single family (it was converted years ago) From my comps it looks like it will end up in the 180-220 range as it's a near total remodel. I was hoping to have one apartment ready before contract is up as my talks with the owner lead to him offering to owner finance it to me for 6mo-yr (to give me a little more time to get my credit score up and show a payment history (currently 600) This doesn't look like it will happen. As a contractor I've put a sweat equity and $$$ into getting this far. I've uncovered issue after issue as expected continuing to plow forward. He keeps telling me it shouldn't take this long. Wants quick fix not right fix. (After all he didn't fix anything in 20yrs) I mentioned extending the contract. He seems hesitant for 39 since he wants out and he sees the progress. He was worried about taking a big capital Gaines loss when we started talking. So I was thinking about offering small good faith payment (towards the 39) to get thing back on track in his mind. I plan to finish the bottom and live there. Airbnb the upper. Use the BIRR strategy to get the next. Thank you for reading my current saga. Any thoughts, ideas or help that's worked for you is greatly appreciated. Ryan Schultz...signing off! 😎

I'm attempting to combine this idea with me the house hack I'm current undertaking. Fixing the downstairs of a duplex in a great section of town to live in. Plan on turning the upstairs into an AirB&B. I should get about the same as renting it out  4-5 nights a month rather than 30 days. If for some reason it doesn't work. There's always the 30 days to fall back on. 

Read Rich Dad Poor Dad. Cre8 assets to buy your liabilities. It would be best to first cre8 enough passive income to afford the payment on the car. Building passive wealth usually takes a while. Think of ways you can buy assets, add value and sell them for more. Possibly BIR strategy, flipping or wholesaling. These may get you the car quicker but lose you tax advantage and passive wealth down the road as you seek newer shiny objects. I'd ask yourself why the car is so important. What feeling does it invoke? With a good self analysis and a little more study you may choose to put off the instant gratification for a future lifestyle.

@Josh Braun

Alright, with your advice I'll approach title companies and find a flat fee contract. Thank you!

In Wisconsin we have rent subsidized housing. Apartments ect. Call your county health and human services building and ask for a list of subsidized housing. (Often times there is a long waiting list 2-3yrs here) Call apartment complexes and ask if they have subsidized housing. (This is how I found one. $450 2bed 2 bath. Normal rent was $750 but the gov subsidized the rent to $900 so there is incentive to keep these tenants in the units) Sounds like she needs a 1bed 1bath in the $200-275 range. It's possible. Just keep in mind your helping her and make sure to do right by her. 😊

@Josh Braun

Hey Man, congrats on your first deal! I'm in the process of a similar deal.

Mine is a value add duplex, that I'm in the process of remodeling. I've talked with a few attorneys in my area and non of them are experienced in "sub-to" deals. They would need to "research" to make contracts. That word makes the sound of $$$ flying out window to me.

Would you be willing to share a copy of your contract to help me get a head start? (Blacked out names, addresses, ect)

Almost all of my extra cash is going into the remodel. Though the seller and I are working together to make a win-win we both are pressing for contracts that are done right (instead of on a napkin). Just like you I don't want him to think I'm fumbling through this first sub-deal. 

Thanks and congrats again! It's nice to see it work for someone a few steps ahead of me.

Sounds like your number aren't going to work. This is far from the 50/50 rule. Unless this is a brand new house. (Doesn't sound like it is) I'd rework the numbers and do more due diligence. Run these through the BP deal evaluating tools. Seems you want to do the best you can by this Lady. The last thing you want to do is take over payments and have a problem, repairs ect and put her in a position where she would need to take it back. On the bright side if this deal turns out to be a flop you've gained knowledge and the next one is a phone call away!