As CEO of Do Hard Money, Ryan spends a lot of time with investors, especially beginners, securing financing for their deals. He loves working with the investor who are tackling their first deal, but works with others as well. Hear how he may be able to help your business by tuning in! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!
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Ryan Wright Real Estate Background:
- CEO of DoHardMoney.com, author of 3 books, investing in real estate since age of 21
- Funds fix & flips, refinance, & buy and hold loans in 34 states
- Say hi to him at https://www.dohardmoney.com/best-ever
- Based in West Jordan, UT
- Best Ever Book: Atlas Shrugged
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TRANSCRIPTION
Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff. With us today, Ryan Wright. How are you doing, Ryan?
Ryan Wright: Fantastic! How are you, Joe?
Joe Fairless: I am doing well, and I’m glad to hear you’re doing fantastic. A little bit about Ryan – he is the CEO of DoHardMoney.com. He is the author of three books, and has been investing in real estate since the age of 21. He funds fix and flips, refinance and buy and hold loans in 34 states, and you can say hi to him at his website, DoHardMoney.com. Based in West Jordan, UT. With that being said, Ryan, will you give the Best Ever listeners a little bit more about your background and your current focus?
Ryan Wright: Yeah, absolutely. I kind of grew up in the real estate business a little bit. I think my grandfather was flipping homes before it was even popular down in Southern California, and I kind of grew up in the rental business.
I got into a traditional agency, and then got into flipping, and got into lending, so now we kind of do all the aspects of real estate investing, with our primary focus being in lending, in doing fix and flips and those types of deals.
Joe Fairless: Why is that the focus, versus other types of ways you could be involved in real estate?
Ryan Wright: Great question, Joe. I think the big reason is I love helping people get their first deal under their belt. We have a niche for that. I mean, we can help experienced investors, but we really have a good niche for helping newer investors get started.
I just remember what it was like being a young investor, trying to get funding for my first deal, how difficult it was… And if it wasn’t for a guy named Dan that I ran into and met just through a referral, I don’t know if I would have gotten my first deal done… So I just really have a passion of seeing somebody — helping them get through that hurdle of that first deal, because I think it’s one of the hardest, and once you do that, it’s a lot easier.
Joe Fairless: From a business standpoint, in order for you to stay in business, you’ve got to mitigate the risk of this beginner defaulting, so what are you doing to do that when you qualify the individual?
Ryan Wright: Great question. First and foremost, for us, we’re really looking at the property having a lot of value. We scrutinize the value of the property pretty heavily, because we feel like if we’re into a deal right, even if our customer, our borrower has concerns or troubles, we can usually come out good, as long as we’re into a decent property with good values.
So we’re really critical on the values, probably more than other places, and that’s how we’re able to work with first-timers. And again, we can work with experienced investors well, but as far as first-timers, I think scrutinizing the value is probably one of those.
Also, we give a lot of support. We have project managers that help through the construction phase, before we even close on the loan go through the bid with the general contractor and the borrower, make sure the pricing is right… So I would say values correctly and construction pre-closing work, and post-closing work is really the key to us being successful.
Joe Fairless: Specifically, what value of the property do you need to see?
Ryan Wright: We’re really looking at that after-repair-value being solid, meaning we need three good comparables that are active and three good comparables that are sold, that are all within a mile radius, hopefully closer, that are solid.
We don’t like the speculation, “We might be able to get this higher.” We basically use the three lowest actives and the three lowest solds values that are in move-in-ready, good condition, rehab condition. We won’t use the highest. So we start at the lowest and work our way up and say “Would our property be in the same or better condition than this one?” “Yes.” Go to the next comp. “Are we same or better?” “Yes.” Go to the next one, and then we basically use three actives and three solds.
So I think for us, we’re using the lower of the good, move-in-ready, rehabbed properties, not the most expensive. I think it’s a mistake a lot of new investors make as they’re finding the most property out there and saying “My house is gonna be worth that” and they fall in love with that one comparable… It leads to a lot of problems, frankly.
Joe Fairless: So you look at the three lowest active and the three lowest sold, within ideally a one-mile radius… But then do you look at the amount of dollars that they’ll have into the deal relative to the overall value? Do you have some sort of equation there?
Ryan Wright: Yeah, absolutely. Really, our goal is to not be more than 70% of the after-repair-value minus the cost of repair. So if you can keep everything under that 70% minus the repairs – you need about 30% margin plus the repair cost. That’s kind of the target.
We’re also looking at other things, Joe. We’re looking at crime, we’re looking at the neighborhood… We’re looking at some other factors as well. And again, it’s more on the first-timer or the newer deals where we’ve gotta be more critical, to protect not only our risk, but also the borrower’s risk or our customer’s risk as well.
We kind of look at ourselves as the last line of defense. Once somebody’s looked at everything, then let us take a look and we can let you know what our thoughts are, and making sure…
And when we say the lowest, I wanna clarify – it’s not the cheapest house on the market, it’s the cheapest house that’s gonna be in comparable condition to what your house is gonna be once it’s fixed up. So it’s not like the lowest house, it’s the lowest that’s in good, move-in-ready, rehabbed type of condition. That’s what we’re looking for.
Joe Fairless: Will you elaborate more on “We give a lot of support”? You mentioned construction… I think you said pre and post, but will you just elaborate on that part?
Ryan Wright: Yeah, we’ve been doing this for quite some time, and one of the things that we’ve found is we’ve gotten pretty good at trying to make sure we’re getting ourselves into good deals. Sometimes we make mistakes and sometimes the borrower makes mistakes, but for the biggest part of that we do really well at that.
So the other aspect that we really got into several years ago is we were good on the values, but then we found the construction was having problems all the time.
One of the things that typically happens to a newer investor is they’re really price-shopping. They’re looking for the cheapest construction price, which that may be good as long as that actually happens, as long as the contractor follows through. We’ve found a lot of times either they would select a contractor, or subcontractors, or handymen, and they would get into the project and then the contractors say “We need 20k more” and they didn’t have the budget for that, and they get themselves into problems.
So what we did is we have professional project managers. These guys went to school for construction project management, or have owned construction companies, pretty legitimate… So what they do is when the borrower selects a contractor or who’s gonna do the repairs, they break that out item by item, and then our project manager talks to the contractor and talks to the borrower and looks at that bid to make sure those are fair prices, that they’re not too high and that they’re not too low, and then turns that in to our compliance or underwriting department. That way, we can make sure “Hey, this is over-bid/This is under-bid”, and then they’re also looking at the full scope of the property to make sure nothing’s being missed, as well as afterwards, once it closes, they’re meeting with that contractor on a weekly basis, they’re going through and saying what got done, what didn’t get done, to make sure the project continues on.
So we’ve been able to solve a lot of the problems that most newer investors have in dealing with contractors by being very proactive.
Joe Fairless: Oh yeah, that’s really helpful. Do you also look at the contracts that the borrower has with the contractor?
Ryan Wright: We don’t necessarily give legal advice on that, Joe, but we’ve got a few things we make recommendations on. One of the tips that I really like to have is make sure you have a solid deadline of completion. One of the things we like to do is give the contractor a bonus for early completion and a penalty for late completion.
We basically say “Whatever your loan is, whatever your daily interest – we typically double that. If you’re late, it’s $50/day, but if you get done early, we’ll give you $100/day.” It gives some motivation to the contractor to complete, both the carrot and the stick.
Joe Fairless: And any other tips with the contractor contracts? I know that you’re not an attorney, but just any best practices that you’ve come across?
Ryan Wright: The biggest thing people do is they get broad bids. The guy goes through the property and says “Oh, I’ll do it all for $30,000.” They make a relationship with the contractor, they fall in love with him and say “Okay, $30,000.”
We have a multi-page form that goes through line by line by line, and we break everything out line by line… Because one of the problems that happens is if they say “We’ll paint and sheetrock the whole house for $3,000”, when they get part of it done, they wanna get some of their money, but you don’t know which part you should pay them, and then you can get into a situation where you overpaid, you’ve paid too much, and then if they don’t finish the work, you can get yourself in trouble.
So we really recommend, number one, have an agreement or a contract, number two, document item by item what’s gonna be done and what the prices are by item, so if they finish one thing but don’t finish another, you can pay them appropriately… And it also helps if you have any problems with contractors down the road, to have that documented, as well as having early completion.
The other one I would just say is making sure they’re responsible for their insurance or they carry insurance, if you had a slip and fall or some type of event on the property. Those would be my three most important things.
Joe Fairless: And what about paying them early for supplies, before they do anything?
Ryan Wright: Yeah, the way that we do that is we give a little bit of money upfront for the job, kind of to grease the wheels… If the project is $30,000 total, what we do is give a 10% up front to get the project going, and then we do draws. We do draws based upon line items, and based upon those line items, it has to be 100% complete. And what we mean by 100% complete – that faucet can’t be leaky, the knobs have to be installed, 100%. There’s no tolerance to not being done. “We’ll install the doors tonight.” “Nope, it doesn’t count.”
So we do that, and then we do it on a draw schedule. Some of the contractors will float the money, some of our borrowers will pay some money to work things out with contractors… I think the important thing for us is if they know the money is sitting in an Escrow account and just waiting for them based upon that, then we get more contractors willing to say “Okay, I’ll take less upfront”, but materials and paying upfront is a big deal; we hear horror stories all the time about that, and people getting taken advantage of… So it’s a difficult thing, but I think managed properly, you can make it work.
Joe Fairless: Outside of working with contractors, what are some mistakes you see beginning fix and flippers make when they’re assessing an opportunity?
Ryan Wright: Well, I think the number one mistake people make is they fall in love with a deal, and they put blinders on and they’re not critical of the deal.
You’ve gotta put on the hat and look at it as if you were the end buyer, and say “Would I rather have this house versus this house?” Simply over-paying for the property or falling in love with the deal is probably my number one, along with not valuing the property appropriately.
I’d also just have to say a lot of newer investors are trying to buy properties that are listed on the multiple listing, and that’s the most difficult, lowest margin, frustrating lane… So not going after what we call off-market properties, and finding properties that have less competition, less people. It’s huge to find better opportunities.
Joe Fairless: You mentioned comps earlier, and you said it’s a comparable condition to your property once your property is fixed up… What are some things to look for in a comparable property? For example, does the number of bedrooms matter, number of bathrooms matter? Does the backyard matter? What needs to be the same and what can be different?
Ryan Wright: I think the answer is yes, yes, yes… But what you’ve gotta do is you’ve gotta be able to objectively make those decisions. What I tell people is to be within 10%. If the square footage is 2,000 square feet, you wanna be from 1,800 to 2,200 square feet when you’re choosing your comparables. Then as far as bedrooms, I say within 10% – you’re basically one bedroom, give or take… But then there’s what’s called adjustments. Then we actually have to make adjustments based on the comparables.
If mine has five bedrooms and yours has six bedrooms, I have to make an adjustment. That adjustment is gonna be area by area – what’s it worth to somebody to have an extra bedroom. Sometimes that can be substantial; that can be 15k, 20k, 30k, and sometimes that could only be 5k difference. So you’ve gotta be a little bit of an investigator and understanding…
If you really wanna get good at this, there’s actually a database that you can look up of what the average cost of bedrooms and different areas, and get an idea for that…
But I think what’s most important is rather than choosing comps that have big differences, try and get comps that don’t have any differences. The best thing is if you have multiple houses across the street that are the exact same, that sold, that you can use as a comparable… But that isn’t always the case.
The other big problem people are constantly doing is they’re jumping what we call natural barriers. You might have a street that’s a busy street. We have a street here locally, 7th East. If you’re on the East side of 7th East, your property is worth 30k-40k more than if you’re on the West side of 7th East, but they’re still both within the mile radius… So there’s these natural barriers where it’s like, “No, this is not a comp.” If you’re choosing one on the other side of the tracks, it’s not a good comp, even though it may be within the mile.
Joe Fairless: How do you all, as individuals who I believe are all in Utah, unless some work remotely, but still – unless you’re in that market, how do you know what those natural barriers are per market?
Ryan Wright: We’re in the local markets is really what it comes down to. We’ve got people on the ground in all of the different markets, that actually work for us, that are going to take a look at the properties, and they know those natural barriers and boundaries, as well as the values, as well as the comparables… And we hire them to go look at a property.
We also get pretty good at it because we see so many deals; we’re constantly looking at deals and we have a pretty good flavor for that… But being a local is huge for us, because we have a local presence everywhere that we’re currently lending.
Joe Fairless: What about if you don’t have comps within a mile radius? Either it’s a more remote area, or the market’s going one direction or another and there’s just not a lot of other comps?
Ryan Wright: Well, I think that’s gonna come down to your experience level as an individual investor. For a brand new investor, I’d probably shy away from that. You kind of have two different issues there – you’ve got your rural properties, and in some cases we can help out on some of those rural properties as long as we can expand some searches and that there’s enough supply and demand in the area… But that’s more difficult, if you’re dealing with more of a rural area.
Secondly, the other problem you’ve got is changes or fluctuations in the marketplace, and what we’re gonna be looking for is demand – is there enough buying and selling actually happening in that area? And then secondly, maybe you expand out a little bit, but am I gonna be able to find good comps? Adjustments – what they’re called when you’re comparing a 3-bedroom house to a 5-bedroom house, those adjustments, that’s where you can really get yourself in trouble, because in the end it’s an educated guess, and sometimes it’s less educated than other times… And it really comes down to what the end buyer is willing to pay for the property.
An appraisal or anything else is simply a guess as to what they’re hoping someone would be willing to pay for that property, and you don’t know until you actually get in the deal and find a buyer on that.
So those are two things that I’d be cautious with as you’re dealing with a newer investor. A more experienced investor should be able to have a better feel for values, and if it’s a risk that they’re willing to take… But the less information, the more risk.
Joe Fairless: From a financial standpoint, thinking about a lending business versus you doing the fix and flips, if you were to scale a fix and flip business, why does it financially make more sense for you to do lending versus the fix and flips?
Ryan Wright: I don’t know if it does… [laughs] But I just have a passion for helping people doing deals, getting started, putting deals together. And we do some fix and flips, we’ll do some deals here and there, so we’re not out of the marketplace in that realm…
For me I don’t think it’s a financial thing. It’s more of a lifestyle thing. It’s easier to have my money working for me than having the projects and some of those types of things… So I think it’s maybe a little bit easier to scale and maybe a little bit easier on the lifestyle than being in there.
I think if you’re really in your rehabs, you’ve gotta be on top of them. You’ve gotta be in there all the time, you’ve gotta do those things… Which I really enjoy the transformation process, but I think financially — it’d probably be better to be flipping a bunch of properties, but I just get a lot of satisfaction out of helping… There’s nothing like having somebody say “You changed my life. I just got a huge payday. I implemented the stuff you told me to do, I found that property, you guys got the money for me, we just closed, I just got a check…” That’s just super-rewarding for me, and I’m in a position where I can do what I love to do, so this is the direction that we’re heading down.
Joe Fairless: I love it. And just so the Best Ever listeners who are listening who are doing these types of deals, so they know what type of fees to expect on your loans… What are they?
Ryan Wright: It’s gonna vary based upon several factors. It’s gonna vary based upon the marketplace, it’s gonna vary based upon experience… You could be anywhere from a couple of points up to six or six and a half points. You could be all the way down to 9% interest or up to 18% interest… But one of the things we’ve got is a tool – when you put in the deal, it will actually do all the math for you and it’ll make all those determinations online, and it’ll pop up and tell you what we can do. It just automatically does it. In less than a couple of minutes you’ll fill it out and it’ll say “Boom. This is the best thing.” And you’ll have an option of saying “I want the cheapest money” or “I want the longest-term money”, or “I want the lowest down payment money…” Depending upon what your needs are, it will tell you different pricing structures based upon all the other factors, and that’s a technology that we’ve built and are perfecting.
Joe Fairless: Oh, that’s interesting. So they have different options, from the cheapest, to the longest-term, or — what was the third thing you said?
Ryan Wright: Least amount of money down. We find there’s really three things: I wanna bring as little money down as possible, or I wanna get the cheapest deal I can, or I need a longer-term, or I want a several-year deal… Some of those types of things. We try and look at those factors and say “Well, what’s the most important…?”
So between that, and your personal circumstances, and the property’s circumstances, our logarithm does all the work and says “Here’s the best deal we have for you.” And we have all kinds of things; we don’t just have private capital, but we have hedge funds, we have lenders you may find online, but all of that comes into our database and it can say “Boom! Here’s the best deal. You don’t need to look any further.”
Our mantra is “If it can be done, we can do it”, because we’ve got such a breadth of different capital sources that can bring that… And not only from our own capital, to private investors, to hedge funds you’ve never heard about, to things that you have heard about, and it basically says “Here’s your best deal.”
Joe Fairless: Just using a hypothetical example, what would be a typical term or just a term, just so I can wrap my head around “cheapest” versus “longest-term” versus “least money down”?
Ryan Wright: Shortest-term – you could be looking at a deal that’s 5-6 months. Longest-term – you could be looking at a deal that’s five years, maybe even ten years. We’ve got some options that are opening up… I mean, literally, we have so many options it’s hard for me to nail something down.
As far as cheapest down, we’ve done some deals where they came with a few thousand dollars, or not even that much, as we have some private investors that if it’s a really rockin’ deal, they’ll say “Hey, we’ll use the collateral”, so… Little to no money on that.
And then for some of our other ones that are cheaper, you could be looking at 10% of the overall project… But your mainstream investor that’s maybe done a couple of deals, we’ve got some killer money where we’ll fund, say, 100% of the rehab and 90% of the purchase, so you’ve gotta come up with 10% and some costs… And that’s a pretty attractive deal, with pretty attractive pricing… A couple of points, give or take, depending upon circumstances, and somewhere between 9% and 12% on the rates… So that’s good.
But again, Joe, it all depends… And that was the answer I got a lot when we first started – “It depends, it depends…” and I hate that answer, so that’s why we built a sophisticated computer system that you can plug in and it will say “Boom!” Because it really comes down to you, the property, and what you want, what are you looking for, what’s the most important to you, and based upon all those factors it comes and says “Here you go.” It even looks up the property before it gives you an answer. Is the property in a rural area? Are taxes high in that area? Is there seasonality in that area?
It does so much stuff for you on the back-end, while you’re waiting for that, and then it’ll say “Boom! Here you go.”
We’ve invested heavily into our technology, because I think that’s the future of where this goes, of helping people do their deals. That’s really what we’re all about.
Joe Fairless: That’s really what I was wondering – what the variable was for the cheapest that you moved up and down…? Because I obviously understand if someone’s looking for the longest term what variable you change, and that’s the term of the loan; and then the least money down – I understand that, it’s how much you put down initially… But the cheapest – I was wondering your variable that you change… I should have asked it that way… And you answered it – it’s how much you bring to the deal; basically, how much in total you’re borrowing on the deal, based on the rehab and the purchase price.
Ryan Wright: And a multiple of other risk factors – crime in the area, volatility, how many deals are happening in the neighborhood… If someone is gonna do a deal where you virtually come in with little to no money, we’re gonna look at everything. If there’s bad crime in the area, that’s gonna be a problem. If it’s in a rural area, that’s gonna be a problem.
So we’re really looking at everything when it comes to that, because that’s a higher risk situation. It doesn’t mean that we wouldn’t be able to do the deal, but we might not be able to do it where you’re coming in with little to no money.
So when we look at that, that’s more of a complex structure, because we’re looking at really what’s everything that could possibly go wrong. But again, it’s kind of on a deal-by-deal basis. I think the most important thing is we just have so many options that we can find an option that works most of the time, as long as two elements I can’t control – and that’s that you’re getting a good deal on the property, and number two, your construction budget is on the line. Those are the two things we have the most friction on, because lots of times we have people bringing us deals, and in the end our independent evaluators go to the property and they’re gonna say “No, it’s not worth this.”
And we get two independents, so they don’t talk or know each other. Or if our construction or project manager says “There’s no way. You can’t rehab this 5,000 square foot house for 10k and redo the whole thing. The math does not work.” Those are the two things, the skillsets I think that newer investors really need the most help with – finding, then valuing, then rehab, project management and the cost structure.
Joe Fairless: What is your best real estate investing advice ever?
Ryan Wright: Okay, when it comes to real estate, there’s two sides to the equation – you’ve got the making money side and you’ve got the living on less side. I find so many real estate investors are focusing so much on the making more side that they forget about the “living on less” side of it.
It’s funny, because I was with my brother-in-law down in St. George, and we’re about the same age and he was just like “Hey, you guys made some interesting choices”; we kind of compared it to that debt snowball – you take extra money to pay down your debt… Everybody kind of realizes that – take that extra money and pay down your debt. What they don’t think about is the investment snowball and the compound effects that an investment would have… So my best real estate investing advice is start early and do it often. Buy a property, whether that’s a rental, whether that’s a wholesale deal, whether that’s a rehab, and reinvest those funds. Don’t go to Disneyland. Maybe take 10% of the profits and do something with it, but reinvest, reinvest, reinvest… And then you get to a point where that snowball is going down the hill pretty rapidly in the investment direction that it spits off quite a bit of money, and you’re saying, “Wow…!”
So I think the best real estate investing advice for me is invest that money, keep reinvesting it, and let this compound investing snowball continue, and you’ll be amazed what it looks like ten years down the road.
Joe Fairless: We’re gonna do a lightning round. Are you ready for the Best Ever Lightning Round?
Ryan Wright: Okay, yes.
Joe Fairless: Alright, let’s do it. First, a quick word from our Best Ever partners.
Break: [00:24:33].27] to [00:25:34].21]
Joe Fairless: Best ever book that you’ve read recently?
Ryan Wright: My best ever book is Atlas Shrugged. Have you read it before, Joe? Are you familiar with it?
Joe Fairless: I am familiar with it, I have not read it. I think there was a movie on it, a TV series, or something… I might have seen it a while ago.
Ryan Wright: Yeah, there’s a couple of movies; they’re okay… The book is amazing. It was written by a girl that defected from Russia and was in communism and saw capitalism… It’s a novel about capitalism. I named my son after a character in the book, that’s how much–
Joe Fairless: It had a big influence on you.
Ryan Wright: Best ever book – Atlas Shrugged, hands down. It talks about the psychology of capitalism, and true capitalism, things like that. It’s a big deal for me.
Joe Fairless: Best ever transaction you’ve done?
Ryan Wright: The best one I would say is a property up in Sandy. We actually bought it from a private auction (funny enough), and we purchased that property, rehabbed it, and we ended up clearing about $70,000 on that deal… So a really nice profit margin for the area that I’m in.
Joe Fairless: What’s a mistake you’ve made on a transaction?
Ryan Wright: I got emotional on a deal, a property in Murray… We bought a property as an investment. We said it was gonna be an investment, then we thought maybe we’d live in it; we bought the property… The mistake I made was we rented it, we decided not to move into it — the idea was, hey, we love this house, so we’ll buy it as a rental and later we’ll move into it, and we were feeding that thing – I think we lost $800/month on the property – and I kept it way to long. I ended up losing about $100,000 on this property, and it’s because I invested with my heart and not my head.
Joe Fairless: Best ever way you like to give back?
Ryan Wright: We have this safe house that we’ve kind of adopted, and during the Christmas season what we do is we provide Christmas to kids that are in this safe house. It’s in a rougher area, and it’s kids that, for example, just a few days before Christmas we got a call where the dad murdered the mom, and the kids — so dad’s in jail, mom’s dead, and the two kids just went into a home two days before Christmas, and they call us… And we have the privilege of being able to help those kids out.
The most impactful thing for us is we actually were able to take our kids and shop for the kids — we don’t have a name, but we know their age and the color, and that they like Legos, or whatever the case is… So I’m able to take my boys that are the same age as kids that are there, explain to them, and to have them be a part of that process. It’s pretty rewarding.
Joe Fairless: Oh, lifelong lessons for your kids, those kids, and you and your family, that’s for sure.
Ryan Wright: It’s really impactful, and all of our team members here were able to do the same thing, so we have just tremendous stories, not just from the families, but from our team member’s families that are impacted by doing that… So I think that’s my favorite. We still have letters hanging up now from moms that just break your heart to walk by, but you also feel a sense of satisfaction.
Joe Fairless: Yeah, you’re doing what you can to help improve their quality of life, that’s for sure. Best ever way the Best Ever listeners can learn more about your company and get in touch with you?
Ryan Wright: If you wanna go to DoHardMoney.com/best-ever – we put together one of my books, “How to Get More Money Than You Can Ever Handle – A Real Estate Investor’s Guide to Finding Deals.” They can download that, a free copy; we sell it on Amazon for $25. Download a digital copy for free. I’d love for you to take advantage of that, so you can get to know what we do, and if we can help make your life better.
Joe Fairless: Well, thank you so much for being on the show. I learned a lot about how you all evaluate borrowers, and it’s interesting to hear that, and then it’s really interesting for fix and flippers who are listening, to learn how a lender evaluates borrowers, how to assess comps, mistakes that beginning fix and flippers make, falling in love with a deal, and specifically making sure that you have a good deal and the construction budget is in line. I’m really glad that you got into the details of the construction budget, doing bonuses for early completions, penalty for late completions, doing draws based on itemized timelines, making sure they carry insurance – all the nuances of working with contractors, as well as assessing a good opportunity… The 70% of after-repair-value minus the cost of repairs, looking at the comps; you got into detail with comps… A really valuable interview. Thanks so much for being on the show. I hope you have a best ever day, and we’ll talk to you soon.
Ryan Wright: Thanks, Joe. I really appreciate it.
