Jimmy Ogle elaborates on different aspects of the business that can get UGLY today. From a home that needs heavy cleaning and repairs to a closing that doesn’t go as smoothly as you had planned, it’s important to always be prepared.
Mike: Welcome to the We Buy Ugly Houses show, where real investors share real investing stories and lessons from the trenches, where our team buys thousands of investment properties each year. Now, let’s meet today’s host.
Jimmy: Hey, guys, welcome to the We Buy Ugly Houses show. My name is Jimmy Ogle and I am a development agent with HomeVestors and also own a franchise here in Oklahoma City. Today, I’d like to talk to you about being prepared for ugly. From the outside looking in, this can be a glamorous business, but there’s a lot of ugly to it that maybe you don’t see. And I wanted to go through a couple of examples of some of those things.
For one would be the ugly house. We look at many houses and you never know what kind of a house it is until you’re walking in. It could be clean and market-ready or it could be crawling with roaches or huge rats that have chewed through the walls. It could be waist high in junk and just covered in old egg shells. I mean, we’ve seen it all. We’ve seen houses with mold everywhere. But you just never know and you have to be prepared for these things.
One story I have is I went to a house and the lady opened the door and it was just full of cats and just a horrid stench of cat feces. And I literally just threw up in my mouth a little bit. And I just had to swallow it and continue like nothing had happened. And we’re there to help the people and spend an hour in the house, talking with the lady and so you’ve just got to be prepared for those situations.
The next thing would be an ugly contract. So you’re out, you get a contract on a house you comped. A few days later, the title company calls and the owner or the seller has a second mortgage that they didn’t know about. And you call the owner and he states he didn’t know about it, but it’s a bust. What are you going to do?
And then the next thing would be an ugly closing. So you’re on your way to closing, you swing by the house to do a final walkthrough. And you get there and you look in the house and it doesn’t even look like they’ve even started packing. So you talk to the seller, let him know, “Hey, you’ve got to be out of the house before we can close.” And so you postpone the closing until next week. You come back next week and go to do the walkthrough and, guess what, they’re still in the house. And now what? That’s definitely an ugly situation.
Here’s a good one, the ugly break-in. We literally just finished rehabbing a property, just got it on the market and it’s a Friday night, hanging out with the family and we get a phone call from the police. And apparently, somebody kicked in the back door and decided to order pizza. When the pizza guy got there, they robbed the pizza guy and took off running out the back door. And the police called us and we had to come and board up the door late on a Friday night. That’s great fun. Another one would be a day before closing and you go and the oven has been stolen out of the house.
All these are just situations that have happened to us in the past. Not to scare you off from the business, it can be a great and rewarding business, but you still have just got to be prepared for the ugly that there can be times of. And just remember one thing: relax, nothing’s under control and just go with it. Guys, thanks and we’ll see you next time on the We Buy Ugly Houses show.
Mike: Are you looking to get started in real estate investing or take your investing business to the next level? HomeVestors, the “We Buy Ugly Houses” folks, is the number one home buyer in America, where our franchisees purchase thousands of houses each year, many of which started with little to no experience. If you’d like to chat, please visit UglyOpportunities.com/contact. Learn more from the We Buy Ugly Houses Show, an amazing HomeVestors team, by watching more shows at UglyOpportunities.com/show or by finding us on iTunes or Stitcher radio.