All Forum Posts by: Ryan Hinricher

Ambitious 22

I can tell you a bit from the seller side of this. We have a lot of investors that purchase homes in Memphis, Tennessee from us for cash flow.

It seems that the number one thing was having a great closing attorney that is familiar not only with investment deals but also has experience in working with investors from other areas. I say this because in the wholesale side of the business timing seems to be everything.

With a great closing attorney, half the battle is done. If you have bought and sold property, you can do it across the country. If you are looking to build a buyer list, to sell properties to people, I suggest internet marketing. Rather than just hire a firm, we poured over a ton of books and did a lot of networking with REIA's all over the US, then built a good site and spent time adding a lot of content.

If you can be a bit more specific on your question, I can digress

Thanks

Ryan - Memphis

Matt,

I've bought property in other states before and out of the country with limited problems.

Finding good people who are willing to communicate seems to be the major concern. If people you are interviewing to do business with do not return calls, etc. then don't use them. The people you do business with out of state should have a good track record of working with people from other states and have a good process in place.

My partner and I do a lot of wholesaling and many of our buyers are from other states. Basically we use a team approach. If you are looking at other areas to invest in, make sure a good team is in place.

Our group prefers using people that specialize rather than "one-stop-shop". For example,

My partner, myself, and our team of people focus truly on finding high quality deals. Then we found a great rehab group and that is all they do is fix properties. Additionally we have 3 property management companies we use. Investors that buy from us can either use the team or go outside it. A couple years back, I worked for a "one-stop-shop" It seems like that group was never truly superior at anything, just pretty good at a number of things. We've found our investors have more success when they use experts on specific areas rather than a group trying to be all things to all people.

Once we adapted this approach, we found out we could buy deals cheaper, our rehab people rarely went over budget, and the houses rented fast.

This is of course a buy and hold perspective.

Ryan
Memphis, TN

I'm chiming in from Memphis, Tennessee here. We have some similar things going on in the Memphis area. I do wholesaling and buy and hold for passive income. We do a large volume of wholesaling to out of state investors as well as local guys.

However, what we are seeing is guys that are flipping deals to out of state investors who are buying in the wrong neighborhoods. These are areas many local investors won't touch. We'll see investors come to us that are trying to dump deals that they bought in batches of 10 that are now, vacant, vandalized, and decaying.

Life keeps coming back to a few certain things: You get what you pay for. Supply and demand is an overpowering force. Also, if it sounds too good to be true, who knows? We sell deals to investors in lower price points but stay out of the area that are overridden with crime. I don't know a lot about Detroit besides that it has similar demographics to Memphis and a lot of people are buying up there. I have heard that the city is losing population...Our economy is growing here ever so slightly but I still suggest further investigation.

Ryan

Just a bit of caution..

gk

You are on the money. We've been buying and accumulating as many houses as financing will allow here. Cash flow is good. Rents are very high in proportion to pricing of homes. And it seems that as you know credit is not very good here in general so the rental pool is large.

Oh just so you know, looks like no regime change in the mayor's house. He was just reelected for a 5th term last night.

But anyway, I do a lot of wholesaling to investors that have caught on to what you said about Memphis. The number of available deals at low prices is so huge that there is no way we could keep them all.

It is an interesting market. One of the things I'm trying to learn is how the mindset of investors from other places is. We are used to the landlord prosperity we have here, however, we have never received the appreciation that many other cities have gotten. To me it is so interesting that the microeconomies of every city in the US can be so different.

How is Louisville?

Ryan

Chaz,

I wanted to add a response. I have been in your shoes before. If you met me to today you would probably think I'm an extrovert, but the fact of the matter is I am still an introvert. I get intimidated in large groups but have found myself confident in smaller groups and 1 on 1 conversations.

I basically got confident by setting small goals and achieving them. I have my goals in front of me on my desk framed like a photo. I see them all the time and have set attainable goals. Additionally, I have set up a rewards system based on surpassing milestones within my goals. When I do this it is a constant confidence booster.

You goals need to be small to start with. Sort of like the old joke, "How do you eat an elephant?" Answer: "One bite at a time".

Goto the REIA for the first time, have a pen and paper in hand. Just go and get acclimated to your surroundings. Don't worry about power networking. I was a basket case at my first REIA meeting. Get a friend or someone to go with you. The next time, order some business cards if you don't have any kinkos/office max/ or an online company. Set a small goal of meeting 2 or 3 people.

These may not seem like big milestones but they are. Once you start achieving the little things, your mindset will change. Nothing will be impossible. Within no time you'll be headed towards your first deal or your next deal.

I mean, hey you had the confidence to join BiggerPockets right?

You are already on your way.

Ryan

Jason

Thanks for the kind words. I'm looking forward to sharing experiences and forging new relationships.

Have a great weekend

Ryan

Hi all

My name is Ryan from Memphis, Tennessee. I've been investing for 8 years. Five of those years just owning rental property and over the last 3 years doing wholesaling to investors looking for cash flow, small condo developments, consulting, and some international investing. I've been to the site several times looking at the amazing amount of information and interaction and decided I needed to become part of it.

My goal is to continue to build on the foundation I have formed with my partner, Robert (he is really big on education), and network with other investors to expand our business, forge new relationships, and learn new techniques. Additionally I want tap the experience that exists on the site for new fresh ideas.

Hope to talk to some of you very soon.

Ryan
Memphis