Todd: Hello welcome to Todd Miller TV. Special Three parts series here about the Trustee Sale. I’m joined with Rich Wise who is like the Trustee Sale Expert. I’m just gonna call you that, ok?
Rich: Yeah! That’s great! Thank you!
Todd:Alright! So thanks very much for being here on video. So, I first wanna talk about the Trustee Sale and the numbers. So everyone wants to know what the numbers are down there as far as profit. You know, how much. Like, what do you buy a house for, what’s the market value. Just you know, sort of talk about those numbers and talk about them in the low price range, middle price range, and the high price range.
Rich: Well, the cheapest house I ever bought was Twenty-two thousand dollars, and I think we sold it for Thirty-five thousand dollars at the end of the day. We made a handsome profit on it. The higher end homes, you’re looking at Three to Four hundred thousand dollars usually end up making about a Hundred Thousand, Hundred-twenty Thousand on homes like that. And then there’s all the middle range homes, up to a Hundred and Eighty, Two Hundred Thousand dollars. Anyway, from a Hundred to Two Hundred Thousand dollars, I find it/it’s not so much for percentage of return; it’s more of a Thirty Thousand dollars spread. So at the end of the day, you’re actually putting your wallet about Eighteen to Twenty Thousand dollars. The best property I ever did, I bought it for Forty Thousand dollars, sold it ten days later for Sixty Thousand dollars for about a 50% spread return in my money which was Awesome!
Todd: Okay! So, it seems like the average price in Vegas in One-Forty. So in that’s, were talking about it retail property. If you go in the MLS the Median sale is about One-Forty. The Trustee Sale do the Sales match up with that? or they skewed more towards less more or they pretty much the same as what’s in the open market?
Rich: No, the homes at the Trustee Sale, if we can sell it in the open market about a Hundred and Forty Thousand, we’re picking it up over there for about a Hundred and Ten Thousand. It’s about Thirty Thousand dollar spread there. And yet it’s taken in to consideration the rehab costs and the selling cost of; again you end up with about a Twenty Thousand dollar Profit, Eighteen Thousand dollar profit, something like that.
Todd: Okay! So, to make that money. So if you got that percentage, we’ll just say Twenty to Thirty percent or Twenty to Thirty Thousand, what’s the turn time on that? Because I think when people hear Twenty percent, they think in terms of a year. Like, Five Hundred grand, a year later Five-One-Twenty. That’s a Twenty percent return. If somebody, Let’s just say on January first a person walk up to you, he said here’s a Hundred grand, go buy houses and go through that process: Buy it-Sell it, Buy it-Sell it. What sort of return might we see in a year?
Rich: Well, when I say Twenty percent, we’re talking about anywhere from Sixty to Ninety days. It’s about on average.
Todd: Okay!
Rich: So you can do that Three to Four times a year with the same money. So, if you get a Twenty percent return off of each foot, and you can do that Four times a year, that’s an Eighty percent return. Now although it’s not a guarantee, sometimes it’s Ten percent, sometimes it’s Thirty percent. It just depends on the deal, depends on the structure, depends on any of the rehab cost that they’ve exceeded what we’ve planned on, but yeah! You’re looking anywhere for making Forty to Eighty percent return on your money annual.
Todd: So, it’s realistic that somebody could have, could start with a Hundred grand and a year later they could have One-Forty to One-Eighty. That’s gonna be reasonable.
Rich: Yeah! Yeah!
Todd: How many houses have you guided somebody through that? You bought it at the Trustee Sale in the last say Three years?
Rich: We’ve done over Six hundred homes now at the auction.
Todd: Wow! That’s a lot. So over Six hundred houses at the Trustee Sale, that could have margin it. I mean, that sound like a substantial number.
Rich: It is. It is, and we’ve/to be fair, we bought a lot of owner occupied homes, people that wanted to buy a home and they had the cash, So they went down at the auction and we bought them a home for Twenty/Thirty percent under market value. A lot of homes we flipped, several homes are rental properties, just depends on what it is that we’re doing, who we’re doing it for, and why we’re doing it.
Todd: Okay! So, I’m gonna go ahead and end this section of the video. For part 1. And, you can go ahead and subscribe to the blog, if you’re interested there’s an e-mail link. If you’re watching this on YouTube you can subscribe there as well. That is this part of the update and I wanna thank you for tuning in. Thanks a lot.