All Forum Posts by: Ryan Phillips

This is a great post! Going back to the comment about distressed property owners don’t have the utilities to follow a FB ad; I have seen bums with iPhones. Things have change where people lose their home and car before they give up their technology. I think the FB ads and Google ads cater more to today’s clients. I never even read me mail because if someone needs me they will call or email.

@Account Closed Did you ever post the results of your experience building on the SFR lot? Did it turn a good profit for you? Sounds like a lot of work, but I'm very curious how it all turned out in the end.

@Will F.  I figured you weren't intentionally aiming those comments at me.  While I can't speak for your character, my account was still active so it seemed obvious that your comment was in error.  However, I did want it to be clear that I operate with a conscious and with integrity.  I know that a few bad apples can ruin the bunch.  However, I think this only adds to my point about wholesaling when I began the thread.  The original post highlighted the idea of doing a partnership vice wholesaling.  While the quick return on investment (ie direct mail) might be necessary for the system to keep working, thus not an option for a wholesaler to do anything but walk with the cash.  I actually like the idea of partnering in the business.  1.   A partner in the deal would be less shady than someone who quick turns the property simply because from an outsiders point of view it looks like a swindle.  This doesn't mean it was a shady act, but it is possible to "appear" to be and as they say, "perception is reality."  2.  I think you can actually return a better profit if you are willing to stick around to the end and see the fruits of your labor.  I don't have anything against a wholesalers, but I just like the idea of partnering when possible.

Will F. I am the original poster, and I am not gone. But I am deployed in the Middle East, so my time is split between my profession in the military and my passion in real estate. Forgive me for not posting right away, things got busy in this end. I'm always in a state of learning, self-improving, adapting, and over coming challenges. My desire to post this was to learn others perspectives on the topic, so I may make more informed decisions as I move forward in the business. I'm neither a fake or fraud and I work extremely hard in real estate, while serving my country and my family. I always strive to serve my community and one method is through improving my community.

@Justin R.  Hey man, thanks for posting the update.  I have recently been spending lots of time on MHP research, and I would tend to agree with you and @Garrick Oconnell, if you put the right quality of materials together they may be called Mobile Homes but they sure look like the stick built.  Plus, you don't have to worry about weather in SoCal so for many families this may be their best option to afford California near the beach.

Please post the final product pics, it looks like a good flip on all accounts.  Congrats.

@Cody L.  @Elliot Blanford  I saw this online a month ago.  Totally agree with Cody, you are buying dirt with a lot of debri on top.  I haven't seen the inside, but who would sell a $1M property without a single interior photo (This screams it probably couldn't pass any safety codes).  It's the location that gives it any value, and I think you would have to set your sights on a big project to make it a profitable move.  Never hurts to arrange a walk through though, unless of course the roof collapses.

@Cody L.  I'm with you on the lender's requirements.  Using set equations instead of the obvious huge benefits like equity and strength.  I have a W2 but it seems like consideration for those without a W2 but make a lot of money should have much higher value.  A W2 doesn't mean you can't lose your job unless you are an officer in the military.  Fortunately for us, it takes an act of Congress to be fired, literally.

@John Woodrich Oh no, I agreed that budgeting 5% for vacancy was good for SOCAL, and that he didn't need to budget 10%  I was just stating that mine has been .9% for almost a decade now so that was just evidence backing up my statement that 5% should be plenty.

@Todd Dexheimer You said he didn't incorporate a vacancy rate, but he did at 5%. You also suggest he use 10% but I think in SOCAL you are definitely safe to use 5% In San Diego, I don't really apply vacancy because the vacancy rate is so low in San Diego. My properties are not in a category that would stay vacant either. I put my property on a couple lists, and in 3 days I remove them just so I can start to funnel the 40 applicants I received. We don't get the 1% rule here but we sure don't worry about not being able to rent. This is nice because I have also learned through BP how to find great tenants. As a result, during my turn over I find there is less to repair. I give myself 10 days to turn over. 10 days of vacancy with a 3 year average on my tenants is a .9% I have had this vacancy rate on SFH for the last 8 years. This is also why as I explore buying in OH, TX, TN, or MN I have to retrain my brain to think about vacancy. It's such a dynamic equation, and each variable has a different weight depending on your market.

How do you approach making these calls?  Sometimes estate sales are just people moving out, de-cluttering, etc.  So what is your opening line.  More than likely it will be a loss in the family.  Yellow letter is near impossible because if you just roll straight into the property details, you are a cold heartless vulture.  I think it would be best to give your condolences but then its awkward when the old resident is just moving to a retirement home.  I don't want to come across as heartless, but simply someone wanting to help.