All Forum Posts by: Ryan Dossey

How to vet mentors: 

What sort of success & track record do they have? Is it current or past? No sense in learning from someone who knew how to do something that no longer works. 

My advice is to always look at the fruit. 

Are they uniquely successful? I won't pay to learn from average. 

I've advanced my life and career more from masterminds/mentors than anything I've done. 

@Paul Beets It's a fairly common product among regional banks. It's a loan that they're going to keep on their books and not sell on the secondary market. The cap you run into isn't about units but their legal lending limit. Assuming that you have the credit/cash to back it up. 

@Maximilian Marck Anytime you have a way for people to make large amounts of money you have bad actors. Thanks for the kind words on the show! I'm glad you enjoyed it. 

@Brandon Sturgill Great question. For starters, I think this all falls back on the individual. I don't operate with even a hint of impropriety. I'm a licensed broker and do not mislead anyone. In fact, we often tell people that they should list their house and not sell to us. If we have a lead where someone doesn't appear to be educated or is elderly we often loop in their legal counsel and/or family to make sure everyone is on the same page. 

@Sterling Fields How I recommend folks reverse wholesale is basically finding a guy like me to give them a price on every lead they get. If they can get the deal done and build in margin sweet! I have zero issue with this approach. They know they have a legit buyer and  the seller knows they have a done deal. Lastly, thanks for the kind words! 

@Munir Hassan Yes that's correct. We pay brokers who bring us buyers a premium well above what they would normally get on a deal. 

We also didn't spend a dollar on rehab! Simply closed and kicked on utilities. 

$18,934.52 in 24 days.

I'm scared to ask my acquisitions manager Noah for another check pic... We don't normally get checks (because it's 2019) but this wasn't from our normal title company. So many investors operate under the assumption that people have to be "desperate" to sell to them. These folks had cash to remodel it themselves, had an appraisal done, had talked to realtors, and knew their options. They simply wanted to hit the easy button. 

So how did we do it?

This deal is a perfect example of my philosophy: Keep the best and wholesale the rest.

The sellers simply wouldn't sell at a price that we could successfully Brrrr out of. This lead was a referral from someone we bought a house from earlier this year. The challenge was that the sellers had a full appraisal done and it came in at 137k right before they called us.

Here are the notes from my acquisitions team:

"Lets call ARV 145k. Needs: dumpster and clean out (2k), interior paint (4k), kitchen and appliances (4k), carpet in areas (2k), flooring (2k), misc (1k)
ARV = 145k
75% = 109
rehab = 15k
wholesale = 94k
mao = 90k

I'll start this around 85 and see what I can get from here."

The seller wouldn't budge off of 100k.

Lesson: Don't be afraid to exceed the 75% rule on nice vinyl village deals you plan to flip or wholesale.

We almost walked...

We sold to a hedge fund for 87% of ARV. Purchase of 100k. 6k for the buyer's agent. Sold for 127k. The number above was our net profit. We did close and sit for 2 weeks while the fund did their thing.

Here is the actionable piece here: My team had over 10 follow up conversations and was outright rejected 3 times before we got this deal.

Are you being persistent?

Pro tip: If your team doesn't have fun while they're making money you may suck to work with. ;)

Not a bad week to pull in 18k net, have my podcast go live, and close on 5 new units for the portfolio. 

To find hedge funds in your market I would suggest trolling vinyl village sold comps off the MLS. Looks for properties that are owned by strangely named LLCs, trusts, and non-disclosure state entities. Reach out to the buyer's agent and see if their clients are still purchasing.

**Note** : Hedge funds are typically only really looking for this kind of asset: Built post 1995, 3/2, 1200+ sqft in a B class neighborhood or better.

When my wife and I started we were 20. We were renting a crappy 600sqft apartment in a rougher part of town and our folks didn't understand why we owned houses we didn't live in. 

My grandpa told me I would flip burgers for the rest of my life. 

My inlaws wondered how I would feed their daughter yet alone put her through grad school. 

I'm not going to sit here and tell you it was all rainbows and butterflies. In 2016 I barely kept us above water. At one point we had a flip that wasn't selling and I owed a HML over 300k just on that deal.

Here is my timeline: 

2015 this was a game. I did a few deals and bought 2 rentals. 

2016 I went full time and wholesaled 5 houses. 

2017 I did 74 wholesale deals and kept 4 rentals. 

2018 I did 3 dozen or so wholesale and kept 73 units. 

YTD 2019 I've done about a dozen wholesale and have closed on 59 units making our total unit count 132 doors. 

I employ 30+ people in my various businesses, could retire if I want, and am having an absolute blast. 

It's going to be harder than you think. It's going to take you more time than you think it will. Stick it out and you'll be glad you did. 

Skip Genie is solid. The guy who runs it is great as well!