Buying from Holton Wise- poor communication

[Brad Fausett]

I made a offer on a property HW has listed via my agent yesterday.  All cash, 7k under 135k ask after determining the flat roof was in need  of repairs.   My agent followed up later in the day after submitting the offer earlier in the day via their submission link with their receptionist and said she was quite abrasive and rude.  She seemed bothered by the phone call. 

I feel I made a reasonable offer and requested a 8pm response.  No response came yesterday however this morning we received one simply stating no showings are available for occupied units offer declined.

I agree this time, it seems abrasive and short.   No direction, almost like they could care less about representing their seller (another BP member).    Why are you declining the offer, what can we do to make a deal?   We have toured the available unit, we are requesting to see the other units after an accepted offer.   We offered all cash, accepted no repairs will be made.   How do you work with a company who isn’t working with you?   More importantly, who would want this level of service from their selling agency? I expect more from an agent hired to sell my property.  

I guess when you spread yourself out thin and try to be a one stop shop for investors customer service has to go to the wayside.  I would not want this level of effort representing one of my properties.  Good luck to the party hoping to sell their property with this level of effort and communication.   

I made a reasonable offer, followed all protocols and rules set forth and what we were given in return was not much to work with. 

[Luke G.]

I'm guessing that didn't go how you thought it was going to go...

[James Wise]

Originally posted by @Remington Lyman:

Originally posted by @James Wise:

Originally posted by @Brad Fausett:

Excuse me... Both names are on the proof of liquidity, upon accepted offer the transaction would have been handled in a cash purchase.  Cash is Cash, apparently not to you Mr. Wise.  My partner was providing a bridge as my liquid is tied up in another property for 45 more days, I can sit on the sidelines or continue to use the resources that I have developed to move projects forward.   Is this not BiggerPockets, a forum dedicated to learning how to leverage the resources at our fingertips.  I was putting up $80k and leveraging a resource to keep my projects moving while another closed.  

Again, not sure what world you live in but this is a cash offer, and proof of liquidity were supplied to your firm.   My partner was also taking a position in the property.

If you have received other offers I extended my apologies.   I have seen this property on the market since last September and it has seen a number of price reductions and  time pass along in a market where properties sell within days.   I made an error in judgement assuming there were no offers based on the information I had.   I called in a favor from someone with more access and I see you have had it in contract 2 times since.  However, I think you are missing the entire point of this post.

$7,000 below asking price is total nonsense?   This is after I toured the upstairs property and was met with multiple places where the roof is leaking and has damaged the interior ceiling, black mold Is present on the walls and you were kind enough to leave an industrial size bottle of rat killer sitting on the kitchen sink?   This is a total non-sense offer?   

You sent us the video yesterday in your email, It was watched at least 10 time, I walked the property and visited the upstairs unit.  Your email yesterday did not include a former inspection report, that information would have been helpful but was NOT present.  

To the gentleman who said " I guess that didnt go how you expected", actually it did entirely.   When a customer wants to do business with them and made a reasonable offer on a property he only had time to say offer declined.   I must agree with the other first person who commented that HW is more worried about being HW then actual working with a buyer. The time and effort he spent in his response here on bigger pockets proves my exact point of this post.  After my first experience dealing with them, I find they have poor communication skills.  0 effort was made to bring a prospective buyer any closer to any other offers or to the goal of their seller.

Go ahead and bash the clients who are up and coming investors, those who have multiple properties under their belt or the long time pros on here, its clear, customer service is not imperative in your operation.  Had you given 1 tenth of the effort you did in your BP response to my offer I would never had voiced my experience of your company poor communication skills.  

_

 Brad are you lost? I literally posted the email in this thread twice where I sent you the inspection report as well as explained what type of offer terms where acceptable. Here it is for the 3rd time.

In addition, you're rambling about this guy giving you a loan in the screenshot below. This ramble of yours is completely contradictory to reality. I also posted the form your agent sent in this thread. I will post it again below. 

#1 It states he has the money, not you. His name is not on your purchase agreement, yours is. 

#2 the fact that he is loaning you money for your purchase means it's a loan. I don't know how else to explain that to you.

# 3 You not understanding what is and is not a loan isn't even the only problem here. I have explained to you about 4 times now the offer needed to be AS-IS.

Just put down the shovel dude. You are digging the deeper. Let it go, you've made mistakes and hopefully learned. Now it's time to move on.

_

_

I thought you could write cash offers and submitted proof of funds from JPMorgan. They have the money in their accounts. It is just going to take me 45 days to get it from them.

I have been doing this wrong the entire time.

 Lol I coulda told you you've been doing it wrong with all the Cleveland = Bad. Columbus = Good marketing. 

J.K. - I actually took inspiration from one of your hand made charts when I drew that big ole' arrow to the inspection report attachment for Brad because he missed it the 1st 9 times I posted it.

Why don't you post that bad boy for the BP Nation. It was truly a work of art.

[Brad Fausett]

James, yes I missed it in your screen shot.  My realtor missed it in your message to her. I reached out to her about it and she sent me the screen shot, which It is indeed attached but blends into your signature on mobile.  I’m sure she isn’t the only one who had missed it as most realtors are operating via phones in the field.  It was a mistake and I wish I would have know or had that information.   She attempted to call and was met with what ultimately prompted this post.  

I am moving on.  We all have learned something here, and that is the entire point of bigger pockets as a whole.   Have a good day. 

[Remington Lyman]

Originally posted by @James Wise:

Originally posted by @Remington Lyman:

Originally posted by @James Wise:

Originally posted by @Brad Fausett:

Excuse me... Both names are on the proof of liquidity, upon accepted offer the transaction would have been handled in a cash purchase.  Cash is Cash, apparently not to you Mr. Wise.  My partner was providing a bridge as my liquid is tied up in another property for 45 more days, I can sit on the sidelines or continue to use the resources that I have developed to move projects forward.   Is this not BiggerPockets, a forum dedicated to learning how to leverage the resources at our fingertips.  I was putting up $80k and leveraging a resource to keep my projects moving while another closed.  

Again, not sure what world you live in but this is a cash offer, and proof of liquidity were supplied to your firm.   My partner was also taking a position in the property.

If you have received other offers I extended my apologies.   I have seen this property on the market since last September and it has seen a number of price reductions and  time pass along in a market where properties sell within days.   I made an error in judgement assuming there were no offers based on the information I had.   I called in a favor from someone with more access and I see you have had it in contract 2 times since.  However, I think you are missing the entire point of this post.

$7,000 below asking price is total nonsense?   This is after I toured the upstairs property and was met with multiple places where the roof is leaking and has damaged the interior ceiling, black mold Is present on the walls and you were kind enough to leave an industrial size bottle of rat killer sitting on the kitchen sink?   This is a total non-sense offer?   

You sent us the video yesterday in your email, It was watched at least 10 time, I walked the property and visited the upstairs unit.  Your email yesterday did not include a former inspection report, that information would have been helpful but was NOT present.  

To the gentleman who said " I guess that didnt go how you expected", actually it did entirely.   When a customer wants to do business with them and made a reasonable offer on a property he only had time to say offer declined.   I must agree with the other first person who commented that HW is more worried about being HW then actual working with a buyer. The time and effort he spent in his response here on bigger pockets proves my exact point of this post.  After my first experience dealing with them, I find they have poor communication skills.  0 effort was made to bring a prospective buyer any closer to any other offers or to the goal of their seller.

Go ahead and bash the clients who are up and coming investors, those who have multiple properties under their belt or the long time pros on here, its clear, customer service is not imperative in your operation.  Had you given 1 tenth of the effort you did in your BP response to my offer I would never had voiced my experience of your company poor communication skills.  

_

 Brad are you lost? I literally posted the email in this thread twice where I sent you the inspection report as well as explained what type of offer terms where acceptable. Here it is for the 3rd time.

In addition, you're rambling about this guy giving you a loan in the screenshot below. This ramble of yours is completely contradictory to reality. I also posted the form your agent sent in this thread. I will post it again below. 

#1 It states he has the money, not you. His name is not on your purchase agreement, yours is. 

#2 the fact that he is loaning you money for your purchase means it's a loan. I don't know how else to explain that to you.

# 3 You not understanding what is and is not a loan isn't even the only problem here. I have explained to you about 4 times now the offer needed to be AS-IS.

Just put down the shovel dude. You are digging the deeper. Let it go, you've made mistakes and hopefully learned. Now it's time to move on.

_

_

I thought you could write cash offers and submitted proof of funds from JPMorgan. They have the money in their accounts. It is just going to take me 45 days to get it from them.

I have been doing this wrong the entire time.

 Lol I coulda told you you've been doing it wrong with all the Cleveland = Bad. Columbus = Good marketing. 

J.K. - I actually took inspiration from one of your hand made charts when I drew that big ole' arrow to the inspection report attachment for Brad because he missed it the 1st 9 times I posted it.

Why don't you post that bad boy for the BP Nation. It was truly a work of art.

 I have been selling the originals for millions in Ethereum 

[Khoi Le]

This isn't rude, and you shouldn't take things personally in this business.

[Lynnette E.]

Originally posted by @Jay Hinrichs:

Originally posted by @Matthew Olszak:

Originally posted by @James Wise:

Originally posted by @Brad Fausett:

Don’t hold your breath on that...  good on you for redacting the document however.   I guess you seen my name was also provided now.  

You should not have posted a financial document with names involved, poor business decision. I’m sure your own personal legal team would agree.  

Moving on, you are not the type of business person I want to engage with,  we won’t be crossing paths again.  Your desire to post confidential private banking information is irresponsible, especially in retailiation of someone voicing their displeasure with your company communication skills.   Anyone who reads this thread in the future will surely feel they are in good hands with info they provide since you were so quick to place it on the Internet over a bad review.  Not to mention your point was to say I used someone else account info as proof of funds when both parties who would have been engaged in the purchase's name were clearly on the document that was drafted specifically for the purchase of this property.

No hard feelings here.  I’m all the wiser as what to expect from your firm after this engagement.

 Bruhhhhhhhhhh.

See that below, that's the purchase agreement with your name and signature on it. You know who's name and signature is not on this purchase agreement? The guy who has the money. You know what else is on there? Contingencies that were not acceptable. 

You can't still be this confused can you? Not possible. Nobody is this clueless. You must be trolling now.

Well to be fair it was a cash offer, just not his cash. I guess we can start calling FHA offers cash as well since that's what's being paid in the end.

When I was a broker, I'd ask my clients if they even want me to bring certain offers to their attention, like owner-financed, or offers below x% of list. 99% would say no, don't bother me with it. You replying to his agent that his offer w/ contingencies was declined, after specifically stating no contingencies would be considered, was going a step above all in of itself versus just deleting the email all-together. Especially with the nonsense "we need to view all units" - which coupled with someone else's POF being provided 100% sounds like someone trying to wholesale an MLS deal where the "partner" comes in and doesn't approve of the condition or whatever.

Mathew that was my thought.. I get deluged by wholesalers weekly.. And those that actually follow up and will send a POF ( its rare they will because they dont have one) but when i get them its 99% of the time the partners POF or some rinky dinky HML I never heard of..

Plus this being MF its COMMERCIAL real estate its not resi home owner real estate its a far different world. professional buyers professional sellers and ANY BROKER worth his salt is going to double end these deals first and foremost and then only put it out to the other agents when they have run through all their personal book of buyers.. that's how MF is handled that's why you don't pop on MLS and see 100S of apartment buildings for sale.. they are traded by the listing agent to his buyers first.. then to his office and then only when that does not work it goes out on loop net or Coastar or last MLS> But if he wants to I will sell him my off market duplex in Cleveland i just put a bunch of money int

 Awh, but can he see each unit?  How many times?  Pre purchase?  Inspection?  Follow up to inspection?  Final walk through?

[Uchenna A.]

@Brad Fausett

Thanks for admitting the report was indeed attached.

One more thing to clarify - what part of the POF had your name on it? Was the referenced bank account a joint account?

[Troy Albers]

@Brad Fausett welcome to the real estate world. Learn, listen, think, and be consistent. There are a lot of deals and opportunities out there. Search for another one.

[Chris Seveney]

I also did not find anything rude with the response. I also do not see where it was "poor communication" as noted in the heading. 

[Cheryl Vargas]

@Brad Fausett

I’m glad you have shed some light on the character of James Wise.

But there is a lot of blaming going on here with both sides, and no one wants to admit to making any mistakes.

I probably won’t do business with HW in the future due to the vindictive way he handled this whole BP post and saying that all the fault was with Brad and his own company did nothing wrong. That’s no way to earn my respect for sure.

[Simmi Minhas]

@Justin L.

Same lol

[James Wise]

Originally posted by @Remington Lyman:

Originally posted by @James Wise:

Originally posted by @Remington Lyman:

Originally posted by @James Wise:

Originally posted by @Brad Fausett:

Excuse me... Both names are on the proof of liquidity, upon accepted offer the transaction would have been handled in a cash purchase.  Cash is Cash, apparently not to you Mr. Wise.  My partner was providing a bridge as my liquid is tied up in another property for 45 more days, I can sit on the sidelines or continue to use the resources that I have developed to move projects forward.   Is this not BiggerPockets, a forum dedicated to learning how to leverage the resources at our fingertips.  I was putting up $80k and leveraging a resource to keep my projects moving while another closed.  

Again, not sure what world you live in but this is a cash offer, and proof of liquidity were supplied to your firm.   My partner was also taking a position in the property.

If you have received other offers I extended my apologies.   I have seen this property on the market since last September and it has seen a number of price reductions and  time pass along in a market where properties sell within days.   I made an error in judgement assuming there were no offers based on the information I had.   I called in a favor from someone with more access and I see you have had it in contract 2 times since.  However, I think you are missing the entire point of this post.

$7,000 below asking price is total nonsense?   This is after I toured the upstairs property and was met with multiple places where the roof is leaking and has damaged the interior ceiling, black mold Is present on the walls and you were kind enough to leave an industrial size bottle of rat killer sitting on the kitchen sink?   This is a total non-sense offer?   

You sent us the video yesterday in your email, It was watched at least 10 time, I walked the property and visited the upstairs unit.  Your email yesterday did not include a former inspection report, that information would have been helpful but was NOT present.  

To the gentleman who said " I guess that didnt go how you expected", actually it did entirely.   When a customer wants to do business with them and made a reasonable offer on a property he only had time to say offer declined.   I must agree with the other first person who commented that HW is more worried about being HW then actual working with a buyer. The time and effort he spent in his response here on bigger pockets proves my exact point of this post.  After my first experience dealing with them, I find they have poor communication skills.  0 effort was made to bring a prospective buyer any closer to any other offers or to the goal of their seller.

Go ahead and bash the clients who are up and coming investors, those who have multiple properties under their belt or the long time pros on here, its clear, customer service is not imperative in your operation.  Had you given 1 tenth of the effort you did in your BP response to my offer I would never had voiced my experience of your company poor communication skills.  

_

 Brad are you lost? I literally posted the email in this thread twice where I sent you the inspection report as well as explained what type of offer terms where acceptable. Here it is for the 3rd time.

In addition, you're rambling about this guy giving you a loan in the screenshot below. This ramble of yours is completely contradictory to reality. I also posted the form your agent sent in this thread. I will post it again below. 

#1 It states he has the money, not you. His name is not on your purchase agreement, yours is. 

#2 the fact that he is loaning you money for your purchase means it's a loan. I don't know how else to explain that to you.

# 3 You not understanding what is and is not a loan isn't even the only problem here. I have explained to you about 4 times now the offer needed to be AS-IS.

Just put down the shovel dude. You are digging the deeper. Let it go, you've made mistakes and hopefully learned. Now it's time to move on.

_

_

I thought you could write cash offers and submitted proof of funds from JPMorgan. They have the money in their accounts. It is just going to take me 45 days to get it from them.

I have been doing this wrong the entire time.

 Lol I coulda told you you've been doing it wrong with all the Cleveland = Bad. Columbus = Good marketing. 

J.K. - I actually took inspiration from one of your hand made charts when I drew that big ole' arrow to the inspection report attachment for Brad because he missed it the 1st 9 times I posted it.

Why don't you post that bad boy for the BP Nation. It was truly a work of art.

 I have been selling the originals for millions in Ethereum 

 Maybe I can just buy one from you then? Don't worry, no financing needed. I know a guy, who knows a guy, who's got the funds in his account.

[Carlos Ptriawan]

Unfortunately, biggerpockets is not "Yelp for Real Estate co.", because most folks here are the professional and seller who benefits in higher real estate transaction.

You may want to create or join such "Yelp for RE co." if there're any, such as investor club or such where the member is from the buy-side investor only.

[Henry Lazerow]

Response seems fine. In Chicago lots of agents don't even take the time to respond rejected when they don't accept your offer. Markets hot if you want property give a better offer that will get accepted. 

[Tushar P.]

@Brad Fausett if indeed the property has dog cruelty going on and requires industrial rat killers to keep it habitable (though no remediation for black mold), are you not happy that you didn’t do business with someone who takes pride in representing/selling such properties? Or are you unhappy that you couldn’t patronize such things?

[Carlos Ptriawan]

have been wondering the same with @Tushar P. :) In fact the seller doesn't respond, I thought you shall be happy, but I could be wrong..... there're thousand of real estate being sold every day, you can even choose the seller that you want to work with. 

[Judy Parker]

Who makes a lowball offer in a Seller's Market?

[Alan Grobmeier]

@Brad Fausett, personally I am surprised that a 'local' would use @James Wise.  I have found his YouTubes to be entertaining, but would never set foot into one of his turnkeys.  

James' business model looks like a 'honest version' of Clayton Morris.  James will tell you the property is in the 'hood, where as Clayton was trying to peddle D/F properties as C.  

I'm not saying they aren't right for someone else, but I don't feel they are the right thing for me.  And I view them as probably being unprofitable from an ownership point of view.  I want to be where things are appreciating and the only thing I see appreciating in Ohio is taxes. :-(

And there are easier ways to make $$$, if that is the goal, with much less risk/headache.  The stock market, right now, is like shooting fish in a barrel.  Pick one, any one.  ;-)

In my estimation, you will be 3rd or 4th on the list for 'profits', if there are any.  The 'pecking order' is as follows:

1.  State of Ohio, property taxes are high.

2.  Company that maintains the property/fixes things (Not sure if H/W does that in-house or contracts it out)

3.  H/W for Property Mgmt.

4.  You (maybe).

I have watched a number of James' YouTubes. Dumpster fire, house fire, trash heap, scary tenants, appear to be the norm. Not sure why anyone would want to 'invite' that type of chaos into their lives for a sub-5% COC return.

[Jay Hinrichs]

Originally posted by @Alan Grobmeier:

@Brad Fausett, personally I am surprised that a 'local' would use @James Wise.  I have found his YouTubes to be entertaining, but would never set foot into one of his turnkeys.  

James' business model looks like a 'honest version' of Clayton Morris.  James will tell you the property is in the 'hood, where as Clayton was trying to peddle D/F properties as C.  

I'm not saying they aren't right for someone else, but I don't feel they are the right thing for me.  And I view them as probably being unprofitable from an ownership point of view.  I want to be where things are appreciating and the only thing I see appreciating in Ohio is taxes. :-(

And there are easier ways to make $$$ if that is the goal.  The stock market, right now, is like shooting fish in a barrel.  Pick one, any one.  ;-)

In my estimation, you will be 3rd or 4th on the list for 'profits', if there are any.  The 'pecking order' is as follows:

1.  State of Ohio, property taxes are high.

2.  Company that maintains the property/fixes things (Not sure if H/W does that in-house or contracts it out)

3.  H/W for Property Mgmt.

4.  You (maybe).

I have watched a number of James' YouTubes. Dumpster fire, house fire, trash heap, scary tenants, appear to be the norm. Not sure why anyone would want to 'invite' that type of chaos into their lives for a sub-5% COC return.

yes the appreciation VS the cash flow  debate..  I don't know for certain but I think James company is strictly a broker of rental properties and you can pick services from them ala carte ???   Morris as you noted was very deceptive / fraudulent / and many think criminal in his MO. 

These markets serve a purpose for many especially high value markets were so many simply don't have enough horse power to partake at all. So instead of doing nothing they go to where they can pull it off financially and fulfill their dream of being an investor / landlord .. No one really knows how they are going to do until they have owned these for a number of years.. And for sure if your going to invest with the idea that cash flow is the main benefit IE live off of it then scale is important takes a lot of doors at 100 or 200 a month to make an appreciable dent in ones life style while tying up a boat load of your borrowing power.. This is why I think MF is so hot these days folks can buy one prop and have 20 to 40 doors or hundreds of doors. 

End of the day though many investors simply want to stay close to home and invest in their markets  they feel comfortable doing that even if its not the best place in the US to buy.. 

[Alan Grobmeier]

@Jay Hinrichs, the pandemic has seen rents AND appreciation skyrocket in my area.  The purchase price is one thing, but I think the added risk of non-paying tenants will impact ALL renters as we move forward.

The increase in rents, over the last 2 years, is so much that my rents are woefully behind IF any of my properties were to be marketed today.

Obviously there are a FEW differences.  For one, ALL of my tenants have been with me over 3 years.  One has been with me 7 years.  I was not impacted by non-paying tenants except for one that I put on a payment plan.  That family is now caught up.

There is a greed/fear factor involved, as usual.  I did not raise ANY of my rents in 2020.  In good faith I just couldn't do it.  

I told my tenants last March we would get thru this together, but we needed to work together if there were any issues.  I count myself fortunate as there was only one minor non-pay.  On a personal side I experienced my own job loss, but was only out of work for 4 weeks.

At the end of the day I decided to 'dance with who brung me' vs 'what's behind the curtain'.  ;-) 

[Carlos Ptriawan]

JH youtube channel is very educational. Thanks ! that's the way it should be displayed so the public understands the risk of having rental property. JH is doing a great job on this aspect.

As for the house, JH is a broker and not a turnkey provider.

[James Wise]

Originally posted by @Alan Grobmeier:

@Brad Fausett, personally I am surprised that a 'local' would use @James Wise.  I have found his YouTubes to be entertaining, but would never set foot into one of his turnkeys.  

James' business model looks like a 'honest version' of Clayton Morris.  James will tell you the property is in the 'hood, where as Clayton was trying to peddle D/F properties as C.  

I'm not saying they aren't right for someone else, but I don't feel they are the right thing for me.  And I view them as probably being unprofitable from an ownership point of view.  I want to be where things are appreciating and the only thing I see appreciating in Ohio is taxes. :-(

And there are easier ways to make $$$, if that is the goal, with much less risk/headache.  The stock market, right now, is like shooting fish in a barrel.  Pick one, any one.  ;-)

In my estimation, you will be 3rd or 4th on the list for 'profits', if there are any.  The 'pecking order' is as follows:

1.  State of Ohio, property taxes are high.

2.  Company that maintains the property/fixes things (Not sure if H/W does that in-house or contracts it out)

3.  H/W for Property Mgmt.

4.  You (maybe).

I have watched a number of James' YouTubes. Dumpster fire, house fire, trash heap, scary tenants, appear to be the norm. Not sure why anyone would want to 'invite' that type of chaos into their lives for a sub-5% COC return.

Hopefully this post will clear things up for Alan Grobmeier and anyone else who may also be confused as to how we operate here at HoltonWise and on HoltonWiseTV.

We don't as a business model even engage in traditional turnkey sales. I have nothing against turnkey providers nor am I speaking ill about the turnkey business, it's just not what we do at HoltonWise. To make this as crystal clear as possible so that we are all on the same page - when I say traditional turnkey sales I am talking about my company buying distressed properties, fixing them and then reselling them. Now having said that, HoltonWise owns a considerable amount of rental property in the Cleveland market and we do from time to time sell properties as anyone else would. This however is not what I would anything more than a one off when you look at our business model as a whole as this amounts to no more than 1%-2% of the property videos you see on HoltonWiseTV. 

As for the videos that you on see on HoltonWiseTV there are two ways you can buy property from us. Both of these come with the full set turnkey services provided to you on an ala carte basis. We can provide you as many or as few of the normal turnkey services you may or may not need including property management, construction/maintenance, landscaping/snow removal, rental property insurance and Broker representation. 

• Option 1 is The Investment Properties For Sale Show - These are properties we are hired to sell by the sellers approx 98%-99%. The 1%-2% of the time HoltonWise is the actual seller is always disclosed. When working with sellers we explain we will create the videos and give the buyers the most transparent look into the ownership experience of said property. We market and sell properties ranging from A Class to F Class and anything in between. We are a real estate brokerage, we sell whatever comes though the door in the most open, honest and transparent way possible.
• Option 2 is The MLS Search & Analysis Show - These are properties buyers have asked us to find and analyze for them. We have no affiliation with the seller. We are not the listing agents. We are either finding properties based on your criteria and giving you are completely unbiased thoughts on them or you are sending them to us and we are giving you our completely unbiased thoughts on them. The types of properties you folks buy are totally irrelevant to HoltonWise. Alan clearly has a problem with buying low income high risk rental properties. That's fine by us. When we are working with investor buyers they fill out their information on what they want and we bring them what is available that best fits their needs along with my take on what they are trying to buy, how I think it will perform and how I think it will work in regards to their overall business model.

[James Wise]

Originally posted by @Carlos Ptriawan:

JH youtube channel is very educational. Thanks ! that's the way it should be displayed so the public understands the risk of having rental property. JH is doing a great job on this aspect.

As for the house, JH is a broker and not a turnkey provider.

 I'm not sure who you are referring to when saying JH?

[James Wise]

Originally posted by @Jay Hinrichs:

Originally posted by @Alan Grobmeier:

@Brad Fausett, personally I am surprised that a 'local' would use @James Wise.  I have found his YouTubes to be entertaining, but would never set foot into one of his turnkeys.  

James' business model looks like a 'honest version' of Clayton Morris.  James will tell you the property is in the 'hood, where as Clayton was trying to peddle D/F properties as C.  

I'm not saying they aren't right for someone else, but I don't feel they are the right thing for me.  And I view them as probably being unprofitable from an ownership point of view.  I want to be where things are appreciating and the only thing I see appreciating in Ohio is taxes. :-(

And there are easier ways to make $$$ if that is the goal.  The stock market, right now, is like shooting fish in a barrel.  Pick one, any one.  ;-)

In my estimation, you will be 3rd or 4th on the list for 'profits', if there are any.  The 'pecking order' is as follows:

1.  State of Ohio, property taxes are high.

2.  Company that maintains the property/fixes things (Not sure if H/W does that in-house or contracts it out)

3.  H/W for Property Mgmt.

4.  You (maybe).

I have watched a number of James' YouTubes. Dumpster fire, house fire, trash heap, scary tenants, appear to be the norm. Not sure why anyone would want to 'invite' that type of chaos into their lives for a sub-5% COC return.

yes the appreciation VS the cash flow  debate..  I don't know for certain but I think James company is strictly a broker of rental properties and you can pick services from them ala carte ???   Morris as you noted was very deceptive / fraudulent / and many think criminal in his MO. 

These markets serve a purpose for many especially high value markets were so many simply don't have enough horse power to partake at all. So instead of doing nothing they go to where they can pull it off financially and fulfill their dream of being an investor / landlord .. No one really knows how they are going to do until they have owned these for a number of years.. And for sure if your going to invest with the idea that cash flow is the main benefit IE live off of it then scale is important takes a lot of doors at 100 or 200 a month to make an appreciable dent in ones life style while tying up a boat load of your borrowing power.. This is why I think MF is so hot these days folks can buy one prop and have 20 to 40 doors or hundreds of doors. 

End of the day though many investors simply want to stay close to home and invest in their markets  they feel comfortable doing that even if its not the best place in the US to buy.. 

This is correct Jay, we are a Broker with Ala Carte services. See my response to Alan Grobmeier above for a more detailed response as to exactly what we do and how we do it. The comparison to Clayton Morris was way off base and honestly rather ironic given who I am, the Clayton Morris content I've produced and the money I've spent beating Clayton Morris in a $7.2 Million lawsuit.

[Alan Grobmeier]

@James Wise, 'Alan clearly has a problem with buying low income high risk rental properties.'

Before I get into the rest of this post, I would like to commend you on an entertaining YouTube channel. :-)  I realize I do not have the number of properties you manage and never will.  But I have not gone thru, as an owner, even a MINUSCULE fraction of the problems you encounter and post on YouTube.  I have yet to encounter a dumpster fire or other calamities you have posted.  I guess it's 'dumb luck' on my part, but I think it has more to do with business model. 

Many of your owners, or perhaps even yourself, encounter tens of thousands of dollars of damage on some of these properties.  That has to eat into YEARS worth of profit margins, no matter the price of the property.  In some cases the damage MIGHT be more what the property cost to purchase.  Yikes!

I apologize if I offended you with regards to the CM contrast.  It is my belief that CM could be YOU, if he was an honest person & operated with integrity.  Obviously you are making money doing what you are doing or you wouldn't be doing it.  ;-)  

There is nothing wrong, ethically, with running D/F properties.  After all, somebody's gotta do it.  A friend of mine has 32 doors in what I would call D class.  He could write a book on reasons rent is late.  I can't write that book.  That's not my experience.

The 'problem', however, is that many of these investors, even newly accredited ones, really have no idea of the real risks they are signing up.  Add in, what I would call a low return for an elevated risk, & I don't see these types being a bargain for the first-time Cali landlord.  

They'd be better off buying their stock options with cash and selling covered calls.

[Steve Maloney]

Hard to understand the motivations of the buyer's agent here. One obvious step you can take is to lodge a complaint with this broker regarding the unprofessional treatment. If that does no good, you could take this issue to your real estate board for possible censure and/ or fine. In the end, if this is how they treat potential buyer's you wouldn't want to  live through a full-on transaction with them-that would be a nightmare.