All Forum Posts by: Michael Key

 The bank can loan the money back out at a higher interest, yes. But... now the requirements are even tighter. 

Who says I'm going to reapply at that bank? So they take a risk by calling the loan due in that they are giving up a performing asset in the hopes of loaning out at a higher rate to someone else...

I'd suspect their balance sheet will play a role in who is looking to loan out at higher rates. But then they'll also be dealing with declining customers who can get approved. Americans are seeing rising debt as it is. People just aren't applying for loans.

What Bigger Pockets needs to do is get rid of negative people with a scarcity mindset.

I joined BiggerPockets in 2016 and you can see that in my profile. I bought my first rental property that year after buying Brandon's book. But you know what else, I listened to bad advice from negative people in this community and it set me back years. 

Pace Morby's community and his mentorship has done more for my mindset and more for my investing career in 1 year than 6 years of BiggerPockets membership, which I stopped paying for. I've actually started achieving those goals we set out to accomplish 7yrs ago.

What makes it different from this forum, is that it is a COMMUNITY of go-givers who actively help each other, and who have growth and abundance mindsets. Not limited mindsets of saying "that's a scam" or "that's illegal" because you doubt someone else's success.

We have bought deals creatively and we have wholesale'd deals. We've done fix and flips. And we are growing our portfolio.

And I actually learned how to find OPM via Pace's community. The mentorship paid for itself and did more for me in a year, than podcasts and this forum ever did. 

BTW: I joined SubTo in August 28th, 2022

Listening to the opinions of realtors on this site when I joined in 2016 set me back by YEARS in my real estate investing journey.

Pace changed my life in a year with all the opportunities he's helped me to uncover. The program is worth every single penny, because unlike BiggerPockets and the scarcity fixed mindsets of everyone, it's a COMMUNITY of go-givers with growth mindsets.

You found the key to your problem already. However, that deal might not be the deal for you. This is something a lot of new investors don't learn right off the bat. You don't need a bank, and you don't need a realtor and the MLS (no matter what they say). You can find yourself an off-market seller financing deal. But it's going to take hustle, and it won't be overnight and it will require finding the RIGHT seller to partner with. It's a numbers game, the more searching and reaching out you do the better your chances.

Start going to local REI meetups and connecting with people and asking about off-market deals, seller financing and looking for private money lenders. Ask them what a win is for them, what they are looking for when they partner up with someone.

10k might not be enough. But it might be in another market. I am friends with a couple here locally that are teachers, they make a combined 65k a year. And yet they own 8 rental properties. Because they don't buy here in Idaho, but have been buying in Colombus, OH where houses are 50k.

If I had a time machine I wish I could go back and tell myself how important relationships are in this business. If you want to grow your portfolio, you will need to do so with other people. Especially if you want to grow quickly. The right relationships will open doors.

 I agree with @Curtis Bidwell there that you shouldn't use your name. I know people do this... but ... everything he said and then some. You know it's like a trust is designed to give you privacy and then people go and name it "Lee Family Trust" or "Mary Jane Jimbob Living Trust" <-- Don't do this.

Something to consider is possibly considering the message you want to convey. I'm just an investor. I have an LLC, literally, no one cares. But when I do represent myself in any capacity, I wanted certain ideas to come to mind.

Friendly, Local, Neighbor, Trustworthy, "Like Me"

So I named my company Hometown Investors

But something else to consider if you could just name your LLC "Rockstar Agent, LLC" and then just file a DBA for something more professional or as your personal brand.

Did people actually say that prices would keep going up, or did they simply say there wouldn't be a 2008-style crash and that we might see prices level out to normalcy? 

Personally think we just stripped all the emotional equity out of the market.

 This is something I've only learned more recently about. Structuring deals, notes, 1st or 2nd position, etc. But it goes back to the relationships thing. I had to find people who have done this and then ask directly, what does a win look like for you?

 They gave you a pre-approval based on whatever limited info you filled out when you applied for it. Sometimes pre-approval can be more or less than the actual amount. It allows you to shop with a realtor.

But it will always change once they dig into your finances. Since it's 800k and not 20% down, then it's a JUMBO loan which has different lending requirements. Such as you needing to have reserves. If you have a 401k or brokerage, that can also be used. If you have a relative with a significant amount, ask if they can put you on that account. It's only used to prove you have access to such funds.

Something to consider would be trying to find another property, or seller finance where the barrier to entry won't involve a bank.

Also, throw partnerships into that. It's not just a relationship with another human being you have to develop, but it's also a business and legal relationship with requires a lot of due diligence and groundwork. Not to mention, commitment. 

But they also always get mentioned like they just magically appear out of nowhere and always are perfect and go perfect 100% of the time and no one ever ends up in court suing each other.

It would be really helpful to people starting out, to really explain the dynamics of how to put these things together, because honestly, I don't think anyone ever has other than to say "get out there and network"

That's a free niche masterclass idea for someone.

In real estate investing "OPM" is thrown around so much like it's just some magical thing. You just wish for it, and it shows up on your lap. It just doesn't magically appear. Yet in everything, it gets tossed around like it's magic and as convenient as your whipping out your credit card. But that's not at all how it works. And yet, it's literally behind every single "I BOUGHT THIS WITH ZERO MONEY" or "How to buy X when you don't have money"  video and blog post out there. And no one is ever upfront or honest about the amount of leg work or effort that goes into obtaining other people's money. It's just a magical solution to all your problems.

I literally made a comment today about not being a cash buyer (yet) and the first comment is "Don't forget about OPM" 

Yes, excuse me while I go pull it out of my rear end.