All Forum Posts by: Ryan Mertz

I am new to BIGGER POCKETS and I want to become a BiggerPocket player in the REAL ESTATE GAME!

I am learning and haven't even made my 1st deal yet but Im doing my home work and getting prepared.
I was wondering about business and credit and was going to start 2 LLC's in the up coming months.
I remember reading a book about a professor at a university who held a class for students interested in business and real estate and was teaching these 18-22 year olds how to achieve a million dollars in credit and actually have cash flow (money in there pockets) of $200 a month or more with $200 start up money. It was amazing and I hope I can summarize this book up in a few short 1,2,3s. even though im going off what i remember of the formula they used!

When you open any kind of bank account regardless if its business or if its personal you want to have atleast $500 in start up money these days in each account (different times,same game I assume)
1.Deposit $500 into both personal/ business accounts
(this shows the bank you have money in your company and that it actually holds a value (at least to them)
and you personally have money saved so clearly your not an idiot.
2.Apply for a business loan of $200 or more. really whatever you need,want,and can afford to pay . bargain something of a low percentage rate so you can work out the numbers at bank and set the loan to be paid back within lets just say 6 months. or really anything you think! its your credit
the numbers and time just mean how big or small your are building.
ALSO
If they deny you any kind of loan it would seem impossible because you are asking them to borrow there money while you have money in there bank!!
You could always offer your account as collateral
say you have $500 in the bank
you should be able to get atlest $500 from the bank.
there risk is minimun in this situation.
They loose nothing and you loose your credit you are trying to build if you default. YOU GUYs FIGA DEAL ME?
also when you think of percentage rates remember your account will also build interest which takes away from your debt interest you will be paying and also maximizes a tax refund in some states if not all for example claiming interest or maybe losses
ok
.Now you have the extra $200
you have 6 months to pay. You can just hold on to the money and pay the loan off and pay the interest out of pocket on the loan. ( this is what i call buying credit) slow or fast !! but you will build this way. it just depends on your hustle.
.Now find another bank that offers free money if you open up a bank account thats if you can (sometimes they will give you $50)
put that $200 in there keep it there get the $50 now you just let another bank pay for your loan.
now go to this 2nd bank and ask them for a personal loan of $100 ( these are such small numbers it would seem wrong for them to deny you)
( i guess the basics of it is this .use your money as collateral for a loan.pay it back exactly to terms no sooner definitely no later. Use the loan money to open another bank account.
ASAP . that way you get the benefits of interest on your accounts.
5.keep doing this using bigger numbers and more banks if you want.
*there is no law saying you cant have bank accounts in all the banks in the world . you better just remember what you have or it will be in the states lost and found property.
6. also if you guys now of any banks that pay for referals let me know
for instance my bank will pay me $25 for each referal
lets network strategize a actuall plan for this formula and start making money and building credit just off using bank loans with a little start up money. and referals so that we can get some money back.
internet banking is great because you can transfer money from bank to bank so easy so you will most likley only have to leave the house on rare occasions. I think my bank even has a loan application on line! SO there it is keep it a secret
THANKS

and all in all you did all this for your business. so hopefully with the extra funds and meeting the loan officers and getting to know them and people /banks beginning to trust your business you can start expanding if you would like and start thinking of other businesses that you may be able to write a plan for and present to maybe a lender who has worked with you before .

Its just a thought.

(also if you need a reason for the loan, simply state you are doing it for credit and that you will gladly pay the interest up from out of you pocket!! That should be straight forward enough. Also if you think it helps tell them that you need the small amount of money to buy materials ,tools, or something of that nature to get a job done and that after the job you will have the money. Its all about socializing. Meeting face to face and being honest.)
I dont see anything hard about this. So if any of you are interested keep in touch.

YOUR A GOOD MOTIVATOR.
I WAS WONDERING WHEN YOU ARE A WHOLESALER OR DOING OPTION CONTRACTS DO YOU ALWAYS HAVE TO SELL FOR CASH / FLIP FOR CASH

EXAMPLE I HAVE AN OPTION TO BUY A HOUSE AT $40,000
I HAVE A BUYER WHO CAN GET A MORTGAGE FOR $70,000 . HOW DO WE GO ABOUT THIS SITUATION HERE.
I THINK ONCE THIS QUESTION IS ANSWERED THINGS WILL START MAKEING ALOT MORE SENSE.

IM STARTING TO THINK THAT WHOLESALING IS MARKETING BOTH BUYER AND SELLER TO MEET YOU IN THE MIDDLE AND GIVE YOU A FAIR CUT FOR PUTTING AN EFFORT IN THE DEAL.

ID LIKE SO ADVICE AND SOME INFORMATION ON WHOLESALING AND LOCKING IN DEALS.
I THOUGHT IT WOULD BE BEST FOR ME TO HAVE LOCKED IN A FEW PROPERTIES (1-3 PROPERTIES)
FOR A MAX OF 3 MONTHS OR MORE ( IM IN MICHIGAN MARKET SUCKS) AND MARKET THE PROPERTY TO BUYERS OR MAYBE PURCHASE MYSELF.
IF I WERE TO COME ACROSS A BUYER WHO IS WORKING WITH A BANK OR MAYBE FEELS THEY NEED A REAL ESTATE AGENT WHERE AND WHAT DO I DO AND NEED?

HELLO I WAS DIRECTED TO THIS THREAD .
THIS INFORMATION IS UNBELIEVEABLE TO ME.
HOW COME ALL THIS TIME I WAS HEARING ABOUT DEALS LIKE THIS I DID NOT BELIEVE PEOPLE WERE ACTUALLY DOING THE NO MONEY DOWN AND WALK AWAY WITH CASH WHEN YOU FIND A BUYER. AND IM ALMOST ASSUMING THAT SOMETIME EVEN WHEN YOU DONT. BUT HECK I DONT KNOW. THIS ALL SEEMS TO GOOD TO BE TRUE AND IF ANYONE WOULD LIKE TO HELP ME OUT AND GIVE ME SOME GUIDANCE SO I CAN GET SOME DEALS AND SOME BUYERS HERE WHERE IM AT. I WOULD ENJOY TO SHARE THE WEALTH!!
ILL ALWAYS REMEMBER WHERE I COME FROM AND IM HERE TO MAKE NEW ASSOCIATES AND HOPEFULLY SOME COOL FRIENDS ALONG THE WAY.
I AM IN THE STATE OF MICHIGAN (DETROIT AREA)
I HAVE SOME CASH FUNDS, I HAVE THE DRIVE AND SO FAR THE KNOWLEDGE KEEPS FLOWING IN. NOW I GOT THE BASICS I NEED SOMEONE TO GIVE ME A BOOST TO GET MY FOOT IN THE DOOR.
I AM REGISTERING FOR A BUSINESS LLC LICENSE AND JUST DOING AS MUCH STUDYING AND NEIGHBORHOOD SCOPING AS I CAN. I HAVE BEEN TALKING TO AGENTS,INVESTORS,BIGGERPOCKET COMMUNITY AND SELLERS.

I NEED A GOOD LINK TO ASSIST ME IN BUILDING A PROPER BUYERS LIST. I DONT MIND PUTTING THE LEG WORK IN. I HAVE EXPERIENCE IN HOME REPAIRS AND REMODELING AND MY BROTHER IS A CONTRACTOR SO WALKING THROUGH HOUSES AND FINDING OUT WHAT ARE GOOD DEALS AND WHAT ARE NOT SHOULD BE NO PROBLEM. AND IF I AM SLIGHTLY BEHIND I WILL BE SHARP ENOUGH TO CATCH RIGHT UP.
I WONT THIS TO WORK GUYS. AND IM WILLING TO WORK. I HAVE A FAMILY . I HAVE A MORTGAGE ON A $140,000 HOUSE THAT IS ONLY BEING APPRAISED FOR $80,000 RIGHT NOW. I KNOW IT MAKES ME SICK.
BUT MY FATHER SAID ALWAYS TAKE YOUR LOSSES TO LEARN HOW TO GAIN.
I WANT TO TAKE SOME OF THIS MONEY BACK THAT THE ECONOMY FORCEFULLY TOOK FROM ME.

SORRY THIS IS SO LONG BUT I WANT YOU ALL TO KNOW HOW SERIOUS I AM AND HOW PROUD I AM TO SAY THAT THERE IS GOOD HONEST PEOPLE STILL IN THIS WORLD TO MY DAUGHTERS AND LET THEM KNOW THAT YOU DONT HAVE TO BE AFRAID TO ASK IF YOU DONT KNOW BECAUSE THERE ARE GENUINE PEOPLE WHO CARE AND WOULD BE GLAD TO HELP JUST OUT OF THE KINDNESS OF THERE HEARTS.
KEEP IN TOUCH BIGGERPOCKET PLAYERS!!!

Makes sense. Thanks Jon.
Is it legal to tie up a property like this and come part of the deal without a real estate license?

Thanks you guys... I appreciate the time!

I do have something that I am interested in but I really want to tie it up for maybe 3 months at a good price and look for some other deals.But I would also like to be able to help the seller find a buyer so i can in my own words "quick flip" the property and make a profit. Or if I dont find another property I find interest in go back and purchase his.

I hope that gives your guys an idea. And I am just assuming this is legal from my research on the internet.

sorry about the caps. i didnt realize that it was rude. i truly apologize . sorry everyone.

I AM SORRY TO POST TWICE SO FST BUT I AM IN NEED OF SOME GUIDANCE. SOMEONE WHO CAN GIVE ME SOME ADVICE AND POINT IN THE DIRECTION OF SOME GOOD BOOKS THAT I MAY BE ABLE TO CHECK OUT THE WILL HELP WITH OPTION CONTRACTS.

WHAT I AM IN NEED OF IS THE KNOWLEDGE OF HOW TO CLOSE A OPTION DEAL.
CAN SOMEON GIVE ME the 1.2.3s (4,5,6. ect...) to closing a option deal.
what is needed to bring the buying and seller together with you as the middle man so that the seller is comfortable in the deal and the buyer has a piece of mind that he is dealing with someone who is honest and professional.

When you do a option can a buyer with a mortgage loan purchase the property and you still recieve your finders fee (percentage)

please help!
I would love some advice personally from some seasoned real estate game players and also some information on books ,internet articles that may help me.

SO FAR BIGGERPOCKET.COM is becoming one of my favorite things to do on the internet. MY WIFE complains that all i do is work and learn!!! haha can someone help me get some money so i can give to my wife to shut her up for a little while so i can handle some business .!

THANKS and peace and wealth be with you!

RYAN

OK, I AM NOT ASHAMED TO SAY THAT IM NEW TO REAL ESTATE INVESTING. I HAVE DONT NUMEROUS REMODELING JOBS FOR INVESTORS BUT NEVER INVESTED IN PROPERTY MYSELF. I WAS SEARCHING FOR A HOME WHEN I CAME ACROSS A NICE DEAL. I THEN FOUND BIGGERPOCKET.COM AND NOTICED THAT THERE IS A OPTION CONTRACT THAT I STARTED BECOMING VERY INTERESTED IN. THIS SOUNDS LIKE SOMETHING THAT MAY WORK IN CERTAIN SITUATIONS AND DEALS.

MY QUESTION IS .
IF I GET INTO A OPTION CONTRACT WITH SECONDARY OFFER CANCELLATION RIGHT OF 1ST REFUSAL CLAUSE WITH A SELLER (OPTIONOR) AND I NOW HAVE A SIGNED CONTRACT AND INTEREST IN THE PROPERTY WHAT IF HE WERE TO TELL ME THAT HE FOUND A BUYER WITH A OFFER BETTER THAN MY OFFER SO THAT HE DOESNT HAVE TO FULFILL THE CONTRACT WITH ME.

EXAMPLE . I HAVE A $50,000 HOUSE OPTION WITH SELLER HE CLAIMS TO FIND HIS OWN BUYER FOR $60,000 AND TELLS ME SO NOW OUR CONTRACT IS CANCELED. HE REALLY DECIDED TO KEEP THE PROPERTY BECAUSE HE FOUND GOOD TENANTS AND WANTED TO CONTINUE TO RENTING INSTEAD OF DUMPING HIS PROPERTY.
***I WANT TO KNOW WHAT I CAN DO IN THIS SITUATION TO BACK MYSELF UP SO THAT IM NOT WASTEING MY TIME OR MY INVESTORS TIME AND MONEY!!
I WANT TO BE A NICE GUY AND LOOK OUT FOR THE SELLER SO THAT IF HE IS TRULY ABLE TO GET MORE MONEY FROM A BUYER HE CAN. BUT ALSO DONT WANT HIM TO 2ND GUESS THE CONTRACT AND USE THE "I FOUND ANOTHER BUYER WHOS OFFERING MORE"