All Forum Posts by: Ryan Mullin

Contractors take them too...   I think they are able to use utilities illegally while they rehab with a stolen meter.  Not sure how that works.  But yeah.  It happens.  

My first flip I made like 4k LOL. Of course I bought the house for 8k at auction (this was 2008) did very minor work and sold it for roughly 25k... annualized ROI was off the charts... and to this days still one of my favorites. but yeah 4k. :)

Yes, I think I know the house.   If its the one I am thinking of its a good deal but needs at least 100k to get top dollar.   Probably more like 130k.   Unfortunately we do not have the capability of taking on a project that size at this time. 

My wife and I live, work, invest and play in downtown Indy.  We love it here.  I'd be happy to chat about specific areas that we buy and manage in.  

Also, everyone who has replied on this thread would be excellent to talk with and do business with.  :) 

Happy investing, and come visit Indy when you get the chance.  You won't regret it.  

 Ah...   thats a shame.   When people think of turnkey they should think of the Clothiers and Memphis invest.  

Or perhaps use the phrase "renovated, rented and performing investment properties"  LOL.   

A common problem in the turnkey world is pushing rents to high so that the TK provider can sell for more...    then accepting bad / problematic tenants because they are willing to "pay" the higher (above market) rent.  Not sure if that is what happened here but I would be aware of it.  Maybe ask to see the tenants' applications on the next go around.  Possibly lower the rent amount.  Next time I'd wait for a 700+ credit score tenant that will hopefully stay for several years (and maybe they pay 25 bucks under market rate).   The best tenants find the best deals.  It goes hand in hand with being financially responsible.  

On the other hand too..   this stuff does happen.  Sometimes there is just bad luck.   Either way this is a long term hold, so don't get to frustrated right out of the gate.  Give it time.  

My opinion is this..   If you are wholesaling properties you are acting as a 3rd party real estate service provider (or solution provider, or consultant, or whatever..)  So, you should have a license.  Going through RE school and getting your license one of the only useful things that they really teach is ethics.  They provide examples and show you how and why something is unethical and how to avoid it.  Like for example even representing both sides of a transaction (which is what wholesalers typically do) and how that can be a sticky situation.  

Now.. here is how I approach a motivated seller or any seller. I disclose I am a broker 1st.. (and also and investor) then I ask them if they want to get top dollar and list on market, pay a commission, go through inspections, possibly make repairs etc.. OR.. do you want cash right now, quick close, no commission, no inspections etc. I run quick numbers for them and let them know how either situation would work. I tell them my price would net you X amount. Or we could list at X price on the MLS and try to predict the net to them and Days on market.

The fact that I can present options, provide comps, and give them a bit of control I think puts them at ease and makes them want to work with me. 

If I can get the deal, good.  If I can get a listing thats also good.  If I'm to busy to list it, I can kick it to another agent and take referral.   

I feel like I can close a higher percentage of the leads that come through, pushing my advertising costs down and I don't have to make the redicoulus mark up that some wholesalers have to make because they spend 10k a month on mailers and ads and ditch 80% of the leads because the spread isn't big enough.  

Also, if I do get the property under contract and the end buyers back out or fall through I make sure that I have the cash to actually buy it make sure it closes no matter what.  

To me its just good business and makes it ethical.  Give the seller all the info, treat them like a client.  Do what you say you are going to do, put your money where your mouth is etc..  

If you are acting as "finder" you are acting as an agent.  You should be licensed.  And thats what I said is to start out by bird dogging.  Its the same thing.  

Also, you should definitely listen to other people on here.  When you wholesale someone a deal you are selling it to an end user who will either flip it or hold it and either way they will have a formula or some numbers behind there logic.  If you understand there business model then it will be easier to figure out how to find the deals.  BP has rehabbers, flippers, turnkey providers, finance guys,etc etc..  the more you understand about each niche the easier it is to structure a deal.  

I would recommend talking with Barron Property Services, Dorfman Property Management and IPM real estate.  

 Honestly there is no good answer because if you do have to back out of a deal..   A.  you will typically lose your ernest money.  B.  You could be sued.  The seller might try to make you buy the property.  C.  You will develop the reputation of someone who doesn't close on deals which is the worst thing to be in the acquisition world.  

Personally, if I tell someone that I am buying a house (handshake or contract) I will close on it 100% of the time.  Reputation means a lot.  You will find that buyers and sellers in the investor world run in the same circles and talk to each other.   Word will travel fast.  

Thats why I suggest to get into earning bird dog fees and commissions before attempting to flip a contract.