All Forum Posts by: Phillip Metzger

I am 22 and have estimated $40k ($10k of my own) going towards my first home as a long term investment. I plan on leasing the property.

The down payment is being funded by my partner (father) and I will be funding appliances and whatever random fixes or improvements the property will need before and during lease.

I am meeting with a lawyer later this week to setup an entity.

I need help understanding how purchasing a home through a entity works. Call up the bank and tell him I am a company and want a loan for a property? How does the bank handle the mortgage?

I would be grateful for any experienced input on this strategy. Not only if it works, but if it is a reliable strategy to use and the real life potential as opposed to the hyped writing I have just read.

I finished reading the book Making Big Money Investing in Real Estate by Peter Conti & David Finkel.

This particular strategy is to purchase a real estate valued at $200,000 with a 6 year lease for $1,500 a month and an option to buy in 6 years for $200,000.

Then turn it over immediately with a 3 year lease for $1,850 a month and purchase option for $236,000 ($200,000 + (6% * 3 years)) with a front payment of $10,000.

The $10,000 is used to pay anything that needs to be financed for upfront or just a nice bonus for the buyer. Of course these numbers can be tweaked to give the seller more “motivation” to sell and or give the investor a better buy for bigger profits.

The authors give a “secret hint” to add to the contract a clause which states the investor (buyer) will not be obligated to the first lease option contract until a tenet is found.

Hopefully this is understandable.

Thank you for this. :mrgreen:

What is a good way about finding a good Birddog? I do not believe they are actually called Birddogs... are they? Are these companies, orgs or private operations?

I once talked to a guy who was honest to say when he tried his hand at real estate he was his own worst enemy.

I am curious what investors here have experienced in relation to other investor competition.

I hear a lot of, "Oh... everyone is doing that." (Flipping, rehabs, Subject 2, forclosures, etc)

Has anyone experienced it in a way that hindered your efforts?

Basically what brings this up is around here in Arizona where "deals are happening" SFH lots are being scooped up and built together into one large estate. There are a lot of people with lots of cash from the 5 or so years of houses going from $200k to $900k+.

I read a lot about super-great deals but there cannot be that many or everyone would be rich.

- Phillip

I have been reading this forum all day; and more days to come. I am 20 in Arizona... investing in real estate has always been my desire and been a growing passion for years.

I am finding answers to countless of my questions and I just wanted to say, "Thanks." For those who spend the time to provide all this 'free' information.

Landlord & Tenant Issues is by far the best forum! That alone will save me lots of time and troubles.

<3 all cash, biggerpro
:beer: