The deal’s numbers seemed solid to Rick Ginn from Flip with Rick from the start. The house’s PITI was $960, and the rents in the area were between $1400-$1500. It had great cash flow and the seller didn’t want to make another mortgage payment. Because she didn’t have enough equity, Rick did a subject-to on the house.
Rick does not love being a landlord. He has a hard time saying no to tenants, and he’s inclined to believe their stories. So he turned to someone else to help him get his new property rented out. And when a buyer offered to pay a year’s rent upfront, Rick was just thrilled.
The first inkling he had that something was going down at the house was when he saw his company’s name and a picture of the house on the front page of his town’s newspaper. The next clue was when the FBI called him up to talk about his role in their newest drug bust.
It’s hard to decide which was more stressful for Rick: the potential damage to his reputation or the real damage he had to repair on the property. With six HVAC systems and a massive gun safe to get rid of, Rick spent months and months trying to get the property back into a liveable condition. And of course, reconnecting the electricity to the power grid was incredibly hard when the power company was ticked off at him.
This deal took a lot of confidence out of Rick, and he generously shares how he changed his real estate strategies to make up for the weaknesses this whole experience exposed in his business. Pull up a chair and listen closely so that you can avoid the litigation nightmare that proceeds a drug bust.
Watch and Learn:
Listen and learn:
- As the self-proclaimed, “worst landlord in America”, listen to Rick’s advice about how to avoid wrecking your properties by outsourcing your weakness.
- Great cash flow can potentially blind you to other problems in a subject-to.
- How Rick vets tenants and property management companies today to protect himself from himself.
Mentioned in this episode:
- JoeMcCall on Youtube
- Text the word BAD to 313131
- The New Way to Profit from Probates with Rick Ginn
- How an 18-Year-Old Wholesaler Went From Bags to Riches
- Flip with Rick on Youtube
- Flip with Rick on Facebook
- Flip with Rick on Instagram
- From Bags to Riches
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