Todd: Hello welcome to Todd Miller TV. I’m here with Rich Wise. This is the part three or our video series on Las Vegas Trustee Sale. Rich, I wanna sort of expose everybody to the timeline, so let’s just say that someone has a Hundred grand on January 1st and they hand it to you and say “buy me a house.” Take them through that timeline of what that would look like from the very beginning ’til the sale at the very end.
Rich: Well they would hand us their money in cash or in checks in different denominations, they would also give us a Power of Attorney which allows us to use those checks down at the auction. Assumingly we got on very lucky on the very first day, January 1st and we actually do buy them a home on January 1st, you’re looking at anywhere on average form a Sixty to a Ninety day timeframe from the time you purchase it to the time that you sell it and take your money back. What happens when we buy it and it’s occupied? Well we’ve got to get those people out and there’s separate ways to do it. And that also can affect the timeline. But the first way is, knock on the door, introduce yourself, tell them “hey, we just bought the house, will you take Cash for keys to leave?” Because the quicker that person is out of the house, the quicker our rehab crews can get in there and rehab the house and the quicker it sit on the market. Let’s just assume it takes them Thirty days to leave the house, now it takes another week to clean the house, takes another week to like time to put it in the market, takes another week or two get a bite on the house and negotiate a contract, and then the Thirty day close. So when it’s occupied usually around ninety days, could take longer but if it’s not, Sixty days, even less.
Todd: What about repair time frames? Like a traditional repair, Is that just something that’s happening during the initial period like as soon as you get access to the house, do you analyze that?
Rich: Yeah.. As soon as I get access to the house, I’m there with the painter, the carpet guy, whoever I need to fix that house up. We send the crew in there, we bang it out ASAP. Time is Money.
Todd: What are the most common things? ‘Cause obviously I wanna fix every single thing. You’re just trying to get a return. So what are the best things to fix on one of this flips to get the best return?
Rich: Well, you gotta do carpet and paint. Or tiles if the floor is tiles. The tiles needs to be nice, the carpet needs to be clean, you need to change that if you need to, the curtains, the window treatments, those need to look nice, ceiling fans always help to sell the home. Just depends on the house. On a Fifty thousand dollar house, we don’t put granite in it. But on a two hundred/three hundred thousand dollar house, Yeah! There better be granite or that house isn’t gonna sell. So you need to spend money.
Todd: And there’s obviously an eye towards the most effective/ like you don’t just put super expensive stuff, you wanna put quality stuff but hit the right price.For all repairs.
Rich: Yeah! Exactly… You do the best you can for as cheap as you can. You actually have to put it nice enough carpet that passes the FHA inspection.
Todd: So for/There’s people out there that/And they ask me this all the time and interested in doing this, some of them have a hundred grand, some of them like ten million. Okay? For those people, what is your availability to work with somebody? Like do you have room? ’cause I know you have a lot of clients, you bought six hundred of these in the last Three years for people, okay? And, what is your availability to take on like potential new client in this process?
Rich: It’s definitely limited! You can’t sit there and take on a hundred million dollars at the auction since collectively we spend about two hundred million, I’m sorry! We spend about Seventy million dollars a month, Sixty five to Seventy million dollars collectively. So, it’s not like you can take on Fifty million dollars. So, space is limited.
Todd: Okay so, if somebody is interested in going through this process or finding out more, what I’m gonna tell them to do is respond to the video, and I’ll just forward the questions to you, or they can respond under the post and we can answer them that way pretty much, and then if they’re interested in the next step, is that something that you’re willing to take on more people and help them do that?
Rich: Absolutely! They just need to call Todd, e-mail him, contact him, come down to our office, and we’ll sit down and we’ll explain this whole thing a lot further and a lot more in depth, and find out what your comfort levels are and move on from there.
Todd: And just so people out there know, you make money at this, you actually do this for yourself, you buy houses yourself, you buy for other people too.
Rich: Yes, I do both. I’ve got my own money in the game, I bought and sold, I don’t know how many houses of my own, and total of about six hundred homes, all over six hundred homes in the last three years. So, it’s been busy.
Todd: Thank you very much I appreciate it. That is the end of the Video update for the Las Vegas Trustee Sales, Hope you enjoyed them. If you have questions you can respond right below. Thank you very much for tuning in.