All Forum Posts by: Ryland Taniguchi

When you get it under contract, be sure to add "and/or assigns" after your name. We'll usually say that we need to assign it to an LLC created just for your property and so we need to add "and/or assigns" to the contract. After you know a contract will be signed, it's also good to let the seller know that you plan to partner to get the rest of the cash to purchase their property and let them know that you'll need to show the house to your partner(s).

When you wholesale, an issue will be how to get your end-buyers access to the property. It's better if you can get a construction lock-box set-up and set expectations that a partner or potential investor will need to also look at the property.

Find out from the title and escrow if they do double-closes. We used to do it all the time, but no title/escrow do it anymore in my area in Seattle. You probably don't need to do a double close as you just get an assignment contract with the end-buyer prepared by your lawyer. We just use a standard contract for the purchase and sale agreement.

If you have bad credit, it really shouldn't matter for the assignment. If you don't purchase the property, you don't own it and so judgements and liens shouldn't matter. 

One thing to keep in mind is that your end-buyer can't get conventional or FHA financing on an assigned contract. I've called everyone and no lender will do it. You need a cash buyer or someone borrowing hard-money.

Welcome to Seattle. I've been buying and investing in real estate since 2000 and have never seen this market with such low levels of inventory. Most areas have less than 1 month of inventory. Finding a deal on the MLS is a 1 out of 1000 chance. If you know the zoning, sometimes you can find land deals on tear down properties. Good deals will most likely come from "off-market" inventory.

As a realtor with a team of 8 agents that sold 152 homes last year, I can tell you that you're not likely to get good deals from realtors here in Seattle. We also represent the bank as REO agents and finding REO deals here are very tough right now.

In my wholesale/hard money/development/flipping business, we send out tons of marketing and put about 15 to 20 deals under contract every month. In Seattle in today's, you'll want to network with wholesalers rather than realtors. If you send me your email and phone #, I would be happy to send you daily "off-market" deals that we've got tied under contract. 

I have been both flips and rental properties since 2000 in the Seattle market. If I were starting all over again, I'd follow the advice of what my mentor has told me over the years. Wholesales/flips are an S-quadrant job, while cash flow rental properties are an I-quadrant investment. 

If you have money already, the best advice is to start with cash flow properties where your passive income exceeds your expenses. If you don't have enough capital, I'd start with wholesaling. 

It's great that you have a construction background. I was a general contractor and finish carpenter and so flips made sense. Regardless of my construction background, I still lost a lot of money on my first flip. Lost over $100,000. If you flip, do a small project and don't go big. If you flip, make sure you factor in holding costs such as utilities and mortgage payments and purchase and selling closing costs. In flipping, you've got to nail the After Repair Values (ARV)

If you don't have a lot of capital to buy cash flow rentals, I would go for wholesaling. We have our target market dialed in where we send out 100 mailers and get 10 calls and one deal under contract. On BP, it seems that most are sending 1000 mailers to get one deal under contract. I would wholesale first to learn the business and flip every 1-2 "home run" deals for every 20 deals wholesaled. 

Finally, for both rentals and flips, the most important advice is to know how to analyze the deals property. For rentals, learn how to correctly calculate cash-on-cash return using the Pre-Tax Cash Flow numbers that include the Annual Debt Service. For flips, learn how to correctly calculate the ARV and the construction costs.

It doesn't seem like a popular theme on BP but I buy my cash flow rentals in other areas of the country from turn-key flippers. They rehab the property and do the property management and I get a 16% cash-on-cash return with 20% down. In my market in Seattle, the cash-on-cash returns are usually below 7% and so I no longer buy rentals in Seattle. In Seattle, I wholesale, flip, and develop.

Best of luck! 

Bellevue duplex in Lake Hills. Each unit is 2/1, 810 sq feet and rents for $1500/month. Currently have tenants in both units.

ARV - $685 k according to a third party BPO.

Rehab - $25 k

Price - $550 k

Contact me if interested. 

Looking to wholesale or JV on this off-market project.

ARV - $790 k

Rehab- $60,000 includes $12,000 for foundation repair.

Price - $570 k (includes wholesale fee)

Projected Profit - $70 k

Close to I-5 on a slope.

Two blocks to McDonald International Elementary (Has Japanese and Spanish Immersion and very popular area that parents are trying to get into)

We do hard money lending and will lend at 70% on the $790 k ARV.

Home is current rented by UW students. Access is difficult and only for serious buyers.

Email me if interested in more info.