Investing In Properties With Dirty Title Issues The Right Way

Ryan MacDonald of Asset Resolution Partners never thought of being in the real estate business. In fact, he’s gone through plenty of fields before finally settling down with the industry.

From graduating with a Biology degree, working in marketing and advertising, to doing sales with Heineken–he’s done it all. He ventured into real estate when he realized that corporate work wasn’t for him.

In this interview, he talks about learning the inner workings of real estate and the importance of reading and networking with people who are experts in the field. Now dealing with tricky title issues, Ryan also shares the significance of finding good like-minded partners for your business.

Don’t Forget To Reach Out To Max Fisch:

Linkedin: https://www.linkedin.com/in/rymacdonald/
Website: https://arpusa.com/
Email: ryan@arpusa.com

Quotes -

“For anyone out there, I definitely recommend that you do anything you can to get yourself a mentor. Tie yourself to them as soon as possible because it helps expedite your learning curve substantially.”

“San Antonio is such an old town. A lot of the properties have been handed down from generation to generation. And because the type of people who were buying back in the day when they pass away, they do not have wills or estate planning in place.”

“A regular house-flipper, wholesaler, or investor would do 20%-30% aftermarket or after-repair value minus repairs. And they’ll come up with a price there. Well, whenever you’re buying in the situation of the seller, you need to capture equity because a lot of that can be consumed with the capital and opportunity cost as well as time and effort.”

“A lot of times, wholesalers will bring us properties that they’re running across. And they’ll say, “Well, this property’s worth $240,000 fixed up. I’m pitching it for $135,000. And then I tell them, “What’s it worth today if you put it on the market?” “Well, it would probably be worth a hundred.” So then I tell them, “I need to pick it up for 50 cents on a dollar.”

“We’re the easy button. We’ll come in and step into your situation. You’ll get cash now, and you don’t have to mess with it anymore. But we take your spot, and now we’ll go through and resolve your problem and then take it to market.”

“There has to be enough equity in the deal to absorb those legal costs and the time and effort that goes with it.”

“We have to treat each one individually because a lot of times you’re just dealing with different personality types. And so sometimes, it’s hard to get them to come into an agreement with you.”

“We normally like to have several exit options but at times, it could take a while.”

“The value of the asset ends up being the determining factor on whether or not we pursue something.”

Concepts -
If you find someone in your field who has more experience than you and you want them to be your mentor, just ask.
Attaching yourself to a mentor can help speed up your learning and understanding of the industry you’re in.
Identify a grueling issue or a problem that’s specific to the area you’re in.
When dealing with situations involving dirty titles, try to capture equity value.
Some deals take a lot of time, so you need to secure the equity and be prepared for whatever it is that’s needed.
Handle your estate to avoid complications down the road.
Some people might give up on their rights to something, but you can help them attain what they’re due with a creative yet fair deal.
When dealing with the people involved in a property title situation, you have to consider their personalities.

Time Stamps -

0:00 Introduction
0:25 Landlocked property in Texas
2:45 What led you to this business?
4:55 Finding a deal in San Antonio
7:00 Attaching to a mentor
9:00 Getting into the dirty title game
11:15 What to do in these scenarios?
13:40 “We’re the easy button”
14:40 Results of poor or no estate planning
16:20 Solving a 40 to 60 heir problem
18:20 Approaching the situation differently
20:00 Buying the majority of the shares
22:00 Too dirty problems
23:40 Protecting the returns
25:30 Process, outsourcing, inhouse work
27:30 What does a resolution partners team look like?
28:37 Asset Resolutions operation
29:50 Shifting from mentee to partner
31:50 Looking for the team members
33:20 How do you maximize your strengths as partners?
35:00 Marketing and working on similar deals
37:20 Leads to deals
40:00 What’s your driver for your deals?
41:30 Dichotomy of the business
43:21 Advice to rebuilding this kind of business
45:43 Vision for the next year

Sources Mentioned -

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