All Forum Posts by: Matt Powell

Sounds like you two need to get together and hash this on the phone. As always I've learned a lot from this post.. This is the most entertaining post I've seen on BP in a long time.. Good luck to you two!

Hello @Libby Baugher

I am an investor here in Bloomington. I am also looking to expand outside my backyard. I currently have 37 Units. Just closed on a 5 Unit last Friday. 

There is a meet up here in Bloomington ..and a Facebook page called "Central Illinois Real Estate Investors". We meet on the second Tuesdays of every month. Our organizers Marti and Marshall are in constant contact with the Peoria REI Group. They meet in Washington, IL. I'll be willing to help you out where I can. Let's talk!

Hello @Megan Greathouse

Your last name is Greathouse?!? How awesome is that for a Real Estate Investor. AND you're a Marine.. very cool.. I am a Marine as well. Would love to attend this or a future social hour.  I am looking to expand / network outside of my current market here in Central Illinois and I'm in St. Louis area a few times a year. And who doesn't love some real beers. I'll send you my info!

@Brandon K. I looked into doing this very thing myself. If you're even considering doing this in the future you need to get your license now.. This is what I was told.. read on:

1) Can I still buy/ sell properties for myself without having to pay commission to managing broker? – As a licensed or unlicensed person it is your choice whether or not you want to offer commission for a property you are selling. However a managing broker won't allow you to list it via their office if not. If you are licensed you do have to advertise agent interest even if you don’t pay commission.

2) Can I run my own property management company without having to pay commission to a managing broker if I don't use any of their services? – In order to run a property management company that manages properties other than your own you must be a managing broker. This means you can't manager other people's property without a managing broker's license. You can only manage your own.

3) Is there a way to keep my REL active without having a managing broker? Illinois requires you to have an active license for 2 of the previous 3 years before becoming a managing broker. – True in order to become a managing broker you have to have two years of active experience under a managing broker, take the managing broker course and pass the managing broker state test. So no you HAVE to practice under a managing broker for two years.

4) Are there any other caveats to being an investor and having a REL? – The biggest fees for retaining a license are from the local board or MLS.  Like in our local market we pay the Bloomington-Normal association of realtors fees. But if you are just managing properties you probably don’t need to be a member of the local board.

Hope this helps.. good luck!

Hello Michael,

I know this was from last year.. I stumbled across this and I am now curious on how did this turn out? If I would have saw it last year I could have given you some feedback. Hope it went great and here is to your success! *Cheers*

Thanks,

-Matt Powell

@Casey Pollard 

Hello Casey,

What are you doing this Tuesday night Oct. 10th at 630pm? I'll be speaking at our local Real Estate Investment Group (here in Bloomington).. You can PM me for more details. I'll be talking about how I went from 1 unit to 32 Units in 11 months. I won't go into great details during the presentation on all YOUR financing options but I will touch on how I did it. 

I do like what @Andrew Johnson has already said.. I would also like to add do you have a list of investors in your network? This business is all about networking networking networking. If you don't know someone who can help you out with the 20% (That knows you and trust you) the people you already know, should know someone. You just don't know who knows that person until everyone you know knows you invest in real estate, you know?

 Just saw an article on here about meeting 10 NEW people a week.. that's 520 new people a year. That's a lot people you could help get what they want, so you can get what you want (Zig Zigler).  

I'd like to meet up with you and give you as much advice I can offer even if you can't make Tuesday's meeting. You buy the beers though.. ha ha.

Cheers..

-Matt

Hello Matthew..

I didn't realize there was a Bloomington Florida?!? I'm actually in Bloomington Illinois so of course it hit on my keyword alert. And funny I was just in St. Petersburg and Tampa area this past weekend for the Bears-Bucs game. Not a good game for us Bears fans. I assume when you say Bloomington you're not talking Illinois? If you were I'd have some names for you.

To your success!

-Matt

Hello Shane,

Welcome to BP! I'd like to say I wouldn't say your wife is incorrect, and 6 years ago I'd be right with her because I didn't know what I didn't know.  After much education and learning I have bought properties with low or no money down. And I can give you friends names that have bought many properties on NO money down.

My friend Mike bought three different buildings on two different transactions where he wrote the contract to state 80% bank financing with the owners taking a 20% note back. Both offers were accepted and both properties were UNDER the ARV and the appraised value. He did this in the last 3 months (a 12 unit building, and 16 units - 2 8 unit buildings).

My friend Lewis convinced two banks he'd take a total of 32 "stressed" properties (all SFH) in Peoria, Illinois off their books. And they would do 100% of the financing. Both banks grumbled and said no.. but both banks came back and said fine and did the deal with 100% financing. 15 houses in one deal and 17 houses in the other deal. All houses he bought for around $30k per house. This was all in the last 6 months.

Point is you show confidence to a bank that you know what you're doing, and you convince them to invest in you.. and you may have to ask several banks in your area. But don't take NO for an answer. Now the no or low money down is sometimes easier than finding the deals.

To your success. Cheers 

@Nichole Stohler for me.. both would be beneficial. I'd like to see the Business Plan. However, it might flow better to analyze a property first. This has been exciting last few months for me. I'm noticing a lot more 'off-market' contacts directly to me and not going straight to the MLS. Oh and I have done five of the six methods you mentioned for coming up with the down payment.

Hello @Brent Mowery

Welcome to BiggerPockets and Real Estate Investing! I'm an investor from Bloomington.. and have friends that invest in that CU market. Great place to meet like minded people who have experience.