House For Sale King Flips

051: Making Sense of Real Estate Markets with King Flips, Core Ohio, and Muirfield Realty Partners

Aug 5, 2021

At the halfway point in 2021, the real estate markets continue to be as crazy as ever in almost every part of the country, with no signs of slowing down. There’s a good chance you’ve heard stories about someone’s house selling for a huge amount over the asking price to someone willing to pay cash. Bidding wars are rampant, and finding rentals is a challenge. And anyone who does want to sell is worried about being unable to find something else to rent or buy! 

To help us make sense of this, we have three guests joining us today: Rudy Tirado of King Flips, Misty Linn of Core Ohio, and Mike Tarpoff of Muirfield Realty Partners. They’re partners in a wide range of different business ventures with lots of experience in the world of realty. 

In this conversation, we dive into the hard numbers and situations making our residential and commercial real estate markets so complicated, the processes that entrepreneurs go through on a variety of property deals, and how to avoid making costly mistakes as you consider purchasing or improving property of any kind.

Here are just a handful of the things that we'll discuss:

  • Why so many people are downsizing out of necessity when they sell their homes.
  • How the remote work revolution is transforming the commercial real estate landscape.
  • The benefits of bringing all your operations in-house where possible–and how King Flips has eliminated hundreds of thousands of dollars in expenses.
  • The value of asking for help and doing your homework–and the important questions you should ask any contractor.

Inspiring Quote

  • “The key is to tap into people’s expertise. Nobody can do this on their own. Start from scratch.” – Mike Tarpoff
  • “Interview the people that you’re working with and ask for references.” – Misty Linn

Interview Resources

Transcript

LeAnne Siddell: It's The Retirement Trainer with Ed Siddell, a podcast about finding ways to help you become financially fit for your future no matter what financial shape you're in now. Giving back to small businesses, this is a campaign we've been running for several months and we are highlighting two small businesses every month on our podcast, Ed Siddell, The Retirement Trainer, which is on iHeart, Spotify, Apple Play, or anywhere you listen to your podcasts, to promote these small businesses and learn the lessons of how they made it through COVID-19 and the year 2020 to help other businesses draw upon their success and to help them in their own situation. Today, we have Mike Tarpoff of Muirfield Realty Partners. We have Rudy Tirado of King Flips, and we have Misty Linn of Core Ohio. They are all partners together in many different business ventures, but they are here to share their experiences in their different fields. And I'm LeAnne Siddell and here to help us with all our questions and to give us some guidance, to help us stay in the best financial shape possible, the retirement trainer, Ed Siddell. Hi, all. 

Ed Siddell: Hey, guys. Welcome back. 

Rudy Tirado: How are you? 

Ed Siddell: Good. Good. You know, today, I really wanted to talk about real estate because it was going crazy, but now it's kind of doing a little bit the other way, right? You know, rates are starting to go up a little bit. Applications are going down. I think I saw a report, nine out of the last 11 weeks, everything's kind of settling a little bit. And so, with both of you guys being part of King Flips, Rudy and Mike doing both the commercial and the residential real estate and actually both you guys, do you think that that has more to do with, well, just inventory or inflation rates? I mean, has that really affected you guys at all? 

Rudy Tirado: It hasn't affected us but I think it has a lot to do with both the interest rates and the amount of inventory that's out there that's a lot of. There’s very little houses that are on market ready to go. And then on top of that, I think in the last couple of months, retail, and everything else has been slow all the way around. I think people are enjoying the weather, going out, doing a bunch of stuff, and focusing on just, "Okay, let's go buy a house or let's go...” You know, even with the restaurants, a lot of the restaurants, this week is restaurant week but last week I think a lot of the restaurants were slow and they had been for the last two or three weeks because I think people are doing more family things going out. And so, when things like that happen, it affects the real estate market as well because obviously people are out doing family functions and they're not consumed on just, "Hey, let's go look for a house. Let's go to these showings. Let's go put some offers in.” So, this has always been kind of the slow period in the year, but I look for it to start increasing again but the rates obviously do have something to do with that as well. 

LeAnne Siddell: And I think everybody has to be where they're going to be for the school year by August 1st. 

Rudy Tirado: Right.

Ed Siddell: So, that window is kind of closing. Well, I mean, it's almost closed for all intents and purposes. But you still hear those crazy stories. So, we just started working with the family and helping them. They were living over Ballantry. And someone said, "Hey, you should sell your house since you're thinking about downsizing,” and they floated it out there way above what they thought. I mean hundreds of thousands more than what they paid for just a couple of years ago. And it was crazy. They got before it was actually listed, they had five offers. By the end of the first day where it was actually listed, they had 12 showings scheduled and they had a cash offer for 23% more than the original asking price and when you're talking half a million dollars, that's a big number. 

Rudy Tirado: That's a big number and that's an aggressive bid. 

Ed Siddell: And it was cash and they closed in. And so, you still hear these kinds of urban legend type and if I didn't know…

LeAnne Siddell: Anecdotal, whatever. 

Ed Siddell: Yeah. It's really crazy. But then you also hear the other side of the story where they can't find homes. Not only can they not find homes, but people are having a hard time finding places to rent. I mean, it just seems like it's a juggernaut. I mean, is that what you all are seeing, too? 

Rudy Tirado: Yeah. It's definitely supply and demand, and right now there's a bigger demand than the supply, I guess. 

Ed Siddell: Yeah. 

Rudy Tirado: Yeah. It's tough. And I've seen offers go 25%, 30% over asking just because it's a desirable home and everyone that's buying, they know that the competition is going to be stiff and they know they have to, you know, it's a lot more appealing when you bring a cash offer to the table because you don't have to wait the 30 days for the financing or the 45 days for the financing. You're just, "Hey, I'll cut you a check.” 

Ed Siddell: There’s no risk to the seller. 

Rudy Tirado: There's no risk to the seller. So, anybody that comes to the table with that, they're going to blow everybody else away all the time. 

Ed Siddell: So, how are you guys? Because it's real estate, location, location, location, right? But it's also marketing, marketing, marketing. And even though demand is so high right now, I mean, you really still have to market, right? Because you have to get those listings because they're so far and few between. So, what are you guys doing? 

Rudy Tirado: He's more on the real estate and for the listings. 

Mike Tarpoff: Yeah. One of the things people are reluctant to put their house for sale is because they know they're going to have a problem finding a new home. So, from our standpoint to market to them, we have to find a home before they put theirs up for sale because they know it's going to sell very quickly. 

Ed Siddell: So, what's inventory like here in Columbus right now? Because I know we talked in the beginning of the summer and it was pretty…

Mike Tarpoff: Yeah, like 600 homes and there's 9,000 realtors so a lot of competition. 

Ed Siddell: Wow. 

Rudy Tirado: I think it was up to, I just looked at it, it's up to like 890. I thought it was around 890 homes. 

Ed Siddell: So, how far out is that in Columbus? So, obviously, when we say Columbus, it's the metro surrounding area…

LeAnne Siddell: It’s huge.

Ed Siddell: Which includes I’m sure New Albany and Grove City, Dublin. 

Mike Tarpoff: Right. Franklin County. 

Ed Siddell: So, is it just Franklin County or does it go outside Franklin County, too? 

Rudy Tirado: I think it goes through New Albany, Westerville, Lewis Center. I just want to make sure I didn’t forget anything but I think it's pretty much on the like Delaware and Franklin, I believe. 

LeAnne Siddell: And I believe it probably because of where we are located here in Dublin, where all four, Delaware, Union… 

Ed Siddell: Yeah. We’ve got three counties right here. 

LeAnne Siddell: We all come to a little T right here. Yeah. So, this area, we're watching people sell their houses within a day. 

Ed Siddell: Oh, yeah. I mean, you always say this, “I've never seen anything like this before,” but it's crazy what people are willing to pay for homes.

LeAnne Siddell: So, Mike, based off of what you just said there, what advice are you giving to people? Because we have a lot of clients. Right now, they're contemplating all these same things. They're saying to us, "We're going to downsize,” but what do we do? Where do we go? 

Ed Siddell: Yeah. What state? Because… 

LeAnne Siddell: Well, not just what state, but like renting right now, you're going to spend an arm and a leg to rent a house just because you want to be in this area. You don't want to go from a house to an apartment. Generally, you don't want to go that small. 

Mike Tarpoff: Right. Exactly. That's where Rudy comes in with his construction. And people can look at a house that may need repairs, upgrades, expansion, and we can price in that addition and give them the home that is their dream home and have that ready before they even move. Where if you don't have that option because contractors are so short supply, there are none to be found. That's why Rudy has such a corner on the market. 

Rudy Tirado: You know, we try when someone is looking for a specific and the real estate partners are showing them houses. And if it doesn't fit that mold, then obviously we can go, "Hey, if it's a house that can be converted into what you want, then we adjust certain things.” Pricing and construction in time to make sure that we can deliver that to them so that they have it. Because to be honest with you, it's very hard to find. And a lot of people if you're just looking for a particular home and you don't have a lot to choose from, you're not going to find, I mean, you will, but it's going to take a lot more time than what it would have taken two or three years ago where you get a plethora of homes that you could say, “Okay. No, I don't want this one. I want this one. I want a pool. I don't want a pool. I want a sunroom. I want two master bedrooms.” I mean, it's different now. It's not like that. 

Ed Siddell: So, are you seeing more people instead of selling their homes kind of… 

Rudy Tirado: Renovating and additions. Yeah. Absolutely. 

Ed Siddell: Remodeling and additions just because it's cheaper and faster? 

Rudy Tirado: I think that they're scared that they're not going to find, like Mike said, I think they're scared they're not going to find what they're looking for. They don't want to - what's that old saying? Don't leave the bird in your hand for the one flying. 

Ed Siddell: Yeah. 

Rudy Tirado: They don't want to do that. They don't want to sell their home because they know it's a seller's market. So, they're not going to have a problem selling the home. They're going to have a problem buying a home so they don't want to get rid of their house and then have an issue trying to find where to live. 

Ed Siddell: You know, even before the last couple 18 months, two years of what we were saying is people downsizing and going from 3,000, 4,000-plus-square-foot homes to 1,800 to 2,000. And by the time it was all said and done, they were paying the same amount or more for less square footage. Are you guys seeing those kinds of issues? 

Mike Tarpoff: One of the issues COVID brought to light when people hunkered down in their homes, they started looking around, "What can I do to make this house better?” 

Rudy Tirado: And more comfortable. 

Mike Tarpoff: So, Home Depot, Lowe's went nuts selling things for rehabbing those houses. 

Rudy Tirado: Do-It-Yourself projects went insane because it was like the weekend comes, it's like your couple says, "Hey, let's finish this. Let’s paint this. Let’s do this. Let’s add…” So, yeah. 

LeAnne Siddell: And how many of those projects have been redone by the contractor?

Rudy Tirado: Well, I mean, there are some people that do one heck of a job and there are some people that try and I give them credit for that. I always tell people like try, see how it turns out first, and obviously. We have YouTube now so people they try to YouTube everything to see if they can do it themselves. I admire that. I admire someone trying to put their best effort to doing it themselves. Sometimes it works, sometimes it doesn't. 

Mike Tarpoff: It's like your car. 

LeAnne Siddell: I was just going to say we're going to go to cars. We're going to start talking about rebuilding transmissions. 

Mike Tarpoff: A couple of things about cars. One, if you decide you want to sell your car, you go and you detail it and then you look at it and you go, "Wait a minute, this car's awesome. Why would I want to sell it?” When it was dirty and nasty and garbage in the backseat. 

Ed Siddell: It had that smell. 

Mike Tarpoff: Exactly. 

Ed Siddell: You know, that lived-in smell. 

LeAnne Siddell: Well, I don't want to change gears too fast but I am curious about the commercial real estate because we have watched a lot of people go to working from home and what that's done because they're not going back into the office space. We never left the office space. And actually, I cannot fathom working from home. I just can't. I wouldn’t get anything done. But there's a large group of corporate America that have decided that they're no longer going to keep that. Nationwide, being one of them, a large one that they're cutting back on the commercial real estate. What does that look like? 

Ed Siddell: Yeah. Because with your brokerage, I mean, that's a big part of what you guys do. 

Mike Tarpoff: Commercial’s on fire as much as the residential. 

LeAnne Siddell: It is. 

Mike Tarpoff: There's a couple of reasons. Large companies are downsizing to smaller offices so they're moving into that. So, there's a lot of sales from 100,000 square feet to 50 or 40. So, there's movement there. I don't know if you've looked the city, how many cranes are up, but cranes everywhere, construction everywhere, 

LeAnne Siddell: Just redoing the insides of commercial properties. 

Ed Siddell: Or just building new ones. 

LeAnne Siddell: For a while. 

Rudy Tirado: Both building new ones. And what I've seen is I think the spaces that were once used for retail commercial that are not going to be used for, I see them being rezoned into like residential living and then doing like condos in the buildings and all that other stuff. Because downtown living has become such a desirable place to be that any of these buildings that are not going to be used for corporate offices, they're going to go in there and restructure them and try to put condos or more of the higher-end living in there with the nice amenities and everything else. 

Mike Tarpoff: Expose the brick walls. 

Rudy Tirado: Yeah. 

Ed Siddell: And parking garages. 

Rudy Tirado: And parking garages. I mean, there's always a need for parking downtown. There's never enough parking downtown. 

Ed Siddell: That's an understatement. 

Rudy Tirado: Yeah. I mean, we see a lot of that stuff happening. I mean, I look at some of the buildings and I go, "Oh my God,” and then I'm like, “No, I think they're going to be all right. They're going to change to something else.” 

Ed Siddell: So, are you guys doing both the commercial as well as the residential rehab? 

Mike Tarpoff: Yes, we do. 

Ed Siddell: So, you’re doing both aspects. 

Rudy Tirado: Yeah. We do both aspects of it. 

Ed Siddell: All right. So, when you guys are listing the commercial properties, I mean, do you have people that come in and say, “Okay. You know what when someone's getting ready to buy it, hey, this is the build-out. This is what we're looking at,” and where you come in and say, "All right. This is how we're going to do it. This is what it's going to look like.” I mean, is it almost like a clean slate? Because commercial building is a little bit different than residential. 

Rudy Tirado: Oh, it's extremely different and it's not a clean slate. I mean, we go in there and that's when we get engineers and architects involved because in order to change the inside structure of something, you have to make sure that it can be done because of the way they ran their mechanicals and how they're running the mechanicals and where their loads are and everything else has to be made sure that it's done correctly. And so, there's always an option A, B, and C because no one sticks to one option because it just never happens. 

Ed Siddell: Never happens that way. 

Mike Tarpoff: And the second thing is people are becoming more visionary on what to do with properties. So, a smaller office, somebody come and look at, “Oh, that makes a nice restaurant or loft or another use,” like the Budd Dairy. I mean, you know what they did with that? A lot of nice projects out there. 

Ed Siddell: Yeah. So, with regards to because the residential is hot, commercial is hot, the listings are far and few between. So, how are you guys getting out there to get those listings? 

Rudy Tirado: Let me get Misty that. She's more… 

Ed Siddell: Misty, welcome. 

Misty Linn: How are you?

LeAnne Siddell: Yes. Welcome back. There you go. I’m going to push that out just a little bit.

Misty Linn: So, finding the opportunity is half the battle, right? So, we have to make sure that numbers make sense. I work a lot with wholesalers, so a lot of off-market deals and that's just through reputation. And when I say I'm going to close on something, we close on it. So, a lot of wholesalers will give me first rights to take a look at the property, usually hold it for 48 hours. 

Ed Siddell: So, explain to everyone what a wholesaler is. 

Misty Linn: A wholesaler is somebody that's looking at vacant properties, looking at deeds that have not been paid on back taxes, somebody that has a hardship with their home and maybe they're more desperate to sell than putting it on the market. Cash quick close is what they're looking for typically. So, we'll get wholesale deals. And like you said, I'll get those before a lot of other people just because of working with investors. 

Ed Siddell: Okay. All right. And so, Mike, how about on the commercial side? 

Mike Tarpoff: Same thing. One of the things, when Rudy is rehabbing a property, next-door neighbors or somebody will see him working and come in and say, "Hey, you doing a nice job. You think you can do that for me? Or would you have somebody that would want to buy my building so that you could do the same to theirs?” So, it's all word-of-mouth connections. So, we don't want to sit and wait for people to list it on the multiple listing service. It's more word of mouth and connections, talking to people on the street. 

Ed Siddell: So, your reputation, just because they're seeing it, they've known what you've done in the past and that's how you guys are getting a lot of the listings. Because it seems like you guys are way ahead of the curve with a lot of listings as compared to - because it is. It's so tough right now as a realtor to get listings and not so much to sell the homes but to be able to find the homes to actually list. 

Misty Linn: Yeah. Like that is a unique opportunity for me as an agent is that we're creating our own inventory. When inventory is low, we're rehabbing houses that have been boarded up and dilapidated for years and making them livable again. 

Ed Siddell: So, just because it's word of mouth, I mean, do you have your signs in the yards? And so, they're just coming in. That’s how they're looking at it right there? 

Misty Linn: Yeah. 

Ed Siddell: Now, how about as far as getting the permits done? Because it just seems like with all the building and everything else, I mean are they slow as well? 

Rudy Tirado: They’re a lot better now. They were slow during the COVID time but I mean now that they've picked up and they've gotten everything pretty, I mean, it's still a little bit of a wait and nowhere near what it was before. 

Ed Siddell: Not like it was last year. 

Rudy Tirado: Absolutely, no. 

Misty Linn: Yeah. City starting to catch back up. 

Rudy Tirado: Yeah. And like everyone else, I mean they were down for a while and now they're just getting back into their own groove. 

Misty Linn: Yeah.

Ed Siddell: Now, I know last time when we talked to you guys, your goal was about 150 homes getting them, flipping them, and selling them a year. Are you guys still on pace for that, even with everything kind of slowing down with inventory, mortgage rates, and everything else? 

Rudy Tirado: Definitely. Just like Misty said, I mean, if they're not brought to us, we find them. We find them. We make those offers. We make those purchases. This weekend we bought five houses. 

Ed Siddell: In one weekend, did you really? 

Rudy Tirado: Yeah. I mean, that's what you have to do. You have to be aggressive. You have to buy. The days of like, "Oh, let me get back to you in 72 hours and let me think about it,” those days are over with. If a wholesaler or somebody reputable, somebody that you know that you work with is bringing you some deals, then your job is to go look at them as soon as you get those deals and make those offers if those are properties that you want. Because if you don't, by the time - we got those on Friday. We made the offers on Saturday. And if we would have waited until today, they would have been gone. 

Misty Linn: Yeah. 

Ed Siddell: Wow. 

Mike Tarpoff: The other thing we're seeing is some group sales. We had one individual. He was a school superintendent and 40 years ago, he bought a house in the summer during summer break. Next year, he bought three houses. Next year, he bought five. Now, he's up to 433 homes. Now, he's ready to retire and liquidate. So, we're helping him sell 430 in one transaction. Because he has blanket loans, he can't just peel one off at a time. 

LeAnne Siddell: We watched some of that go very wrong for people back in 2008. There are a lot of people that did that. 

Mike Tarpoff: So, we helped put together a purchase on the whole group and it'll be fun to sell that batch. 

Ed Siddell: So, when you do something like that where we're getting 400 or just multiple homes and you're tying them up under one loan with one bank, do you have to get appraisals on each individual property and do title searches and everything else? Or how does that work? 

LeAnne Siddell: Because that's your collateral piece. 

Mike Tarpoff: These houses are sold so far under market where it's 38,000 per door. Some of these houses are worth $150,000 to $200,000. So, the lender realizes what they're worth. So, they said, "Instead of appraisals, we'd like a picture like 10 pictures of each home, front, backside, inside.” 

Ed Siddell: Just to verify that they have walls? 

Rudy Tirado: Yep. They just verify.

Mike Tarpoff: Verify that it's there. 

Misty Linn: It’s still standing. 

Mike Tarpoff: Because with all the technology today, there's so much information to see what the value of a home is. You just have to verify that it’s still there. 

Ed Siddell: That it's still there? 

Mike Tarpoff: Yeah. 

Misty Linn: So, they’ll then do title work, make sure there's no rental property or you’re not acquiring anything with it.

Rudy Tirado: It just happens when it gets to that process. 

Misty Linn: Yeah. 

Ed Siddell: So, does that slow anything up or the title companies that you guys are working with, are they pretty quick to be able to turn around those title searches?

Mike Tarpoff: We give them a three months’ notice and they've had plenty of time to work on because a deal like that doesn't close in 30 days. 

Misty Linn: Yeah.

Ed Siddell: It’s not an overnight. Yeah. 

LeAnne Siddell: So, as far as we learned a little bit about Misty and Rudy's team, do you have your own separate team that you… 

Mike Tarpoff: Yeah. 

LeAnne Siddell: That as far as handling the commercial or handling the real or is it - I kind of wanted a little bit…

Ed Siddell: It sounds like you guys are all kind of worked together too. 

Mike Tarpoff: Absolutely, yeah. In our office, we have two in-house attorneys that help us with all of our real estate contracts. So, not many firms are able to boast about having two attorneys in-house and just our connections with the title companies, insurance companies, it just makes it a seamless thing. We deal with people that we're used to dealing with. 

LeAnne Siddell: I kind of piggybacking off of a lot of what Rudy said the last time that we talked and it's about the relationships have established over time. I know you guys have all come together, but essentially what this is all building off of is your contacts that you've made and the promises you've kept over time, the integrity that you've built both individually and together. 

Mike Tarpoff: Right. 

Ed Siddell: It’s all reputation. 

Mike Tarpoff: Nobody specializes in everything. We have people that specialize in hotels, others in restaurants, others in multi-story office buildings. So, you kind of get your niche and you have a favorite place to work. Homes are always fun. 

Ed Siddell: And this is your full-time, part-time job. This is other than your full-time career, isn’t it? 

Mike Tarpoff: Yeah. I do anesthesia at Mount Carmel Grove City. So, luckily I have 24-hour shifts so I'm able to block my time. So, I worked seven shifts a month of 24 like a fireman and on the other days doing the real estate. 

Ed Siddell: Okay. So, that gives you a little bit of time. All right. So, let me ask this. So, how did you guys all hook up together? 

Misty Linn: Through property. 

Rudy Tirado: Yeah. Real estate. 

Ed Siddell: Well, I know, right, because last time, Misty, you and Rudy, you gave us your story. So, is that how you hooked up with Mike? 

Mike Tarpoff: Here's a story. My brother flips homes and he goes, “Mike, you need to get into this.” I said, “Okay.” He goes, "And I have the perfect reloader for you, Misty. She will find a great property for you at a great value.” I said, “Okay.” So, I called Misty and she said, "Come on down and check this gorgeous brick home.” It was 120,000. I said, "Sweet, but I don't have a contractor to fix it.” She said, “Don't worry about that. I have a guy named Rudy. Give him a call.” 

Ed Siddell: I got a guy. 

Mike Tarpoff: So, Rudy comes in and looks around. He says, “Okay. So, it’ll cost you 90,000. I want half upfront and half when I'm done.” I said, “Okay,” and he goes out to pick. I said, “I don't want to pick anything out. I'm too busy at work. I want you to pick the colors, the utensils, the appliances, everything.” So, he goes, “Okay.” So, I wrote him a check for half. A month later, he called me up. He said, “Hey, I need another check.” I go, “What do you mean? You said it was just one check upfront, one when you're done.” He goes, “I'm done. Come look at your house.” It was gorgeous. I could not believe how beautiful it was. 

Ed Siddell: In one month? 

Rudy Tirado: It's about 45 days. 

Mike Tarpoff: It is like on the television show where they move the bus and you look at it. I thought that was all bogus. I looked at it myself. I was totally blown away. I said, "This guy is unbelievable.” So, we just started doing more and more deals and we just got closer and closer and here we are. 

LeAnne Siddell: Wow. That's a really, really great story. 

Ed Siddell: And you guys are real entrepreneurs. We talked about this last time but what we didn't touch on, it was actually after we stopped recording the show, which is why I wanted to have you guys back on. You guys have branched out. Now, you're actually doing the I’m going to say demolition disposal, right? You guys started that business, which really just seems like every aspect that you guys are doing instead of hiring out, you're kind of bringing in-house. 

Rudy Tirado: Pretty much. I mean, we were paying a lot for the dumpsters and waste because, I mean, obviously, every flip needs to have the dumpsters dropped off and then hauled off and everything else. So, we got together and we just bought a dumpster company and now we just do our own. And that money that would have been - I think last year I paid 300,000 in dumpster fees. 

Ed Siddell: Oh, my gosh. 

Rudy Tirado: So, yeah, I'd rather keep that in-house. I can put 300,000 a year into more properties and more trucks and have that going instead to give it away. 

Mike Tarpoff: We have two Ford 550 turbo diesels and 15 dumpster bins and they service the houses that we're working on.

Rudy Tirado: Slowly everything grows so, hopefully, by next year, we'll triple the bins and a couple of more trucks. 

Ed Siddell: That's awesome. 

Rudy Tirado: I mean, that's how you start. That’s how you start, baby steps. 

LeAnne Siddell: Yes, I would agree with you 100% but I think those that are listening to this, they're also looking for tangible steps on you just don't suddenly decide, "Hey, I can handle taking on these dumpsters or this dumpster business,” knowing what you're getting your hands in. I guess, how many years did you deal with others before you decided that was it just a couple? 

Rudy Tirado: Well, it all came about with the King Flip thing that we're doing. It's like we want to make sure that we have everything in-house for everyone. You know, when you go on the website, if you have questions on how to get financing for a flip, how to contact either Misty or Mike for real estate. Everything is on there. So, every aspect of if somebody just clicks on the web page and says, “Okay. Where do I start?” I mean, there's a place on there that you just write us an email, you write us some info on there, and you ask us some questions and we'll get back to you and let you know exactly how to do it or refer you to someone. If we can’t do it, then we'll refer you to someone that can but we have everything in-house. We know we've done this for so long that that's the main reason that me and Misty came up with the King Flips because we want people to - there are so many people that want to flip their house that are so scared and they watch these HDTVs just like everybody else. They look at it and they say, "This can't be that easy.” And to be honest with you… 

Misty Linn: Or they think it can be that easy. 

Rudy Tirado: Right. 

Ed Siddell: I was going to say or the opposite, right? Piece of cake. There’s never a problem. 

Rudy Tirado: Well, you get in those situations and we don’t want to see people in those situations because me and her can both tell you we've been in those situations. We've been in the bad end. We've been in the good end. And once you've done hundreds and hundreds of them, you start realizing, “Okay. I'm not going to make that mistake again. I'm not.” And that's what we want to give to the people so that they don't make those mistakes because if we can save you a $50,000 mistake or a $75,000 mistake or a $100,000 mistake or even $5,000 mistake, why not? I mean, how hard is it? 

Ed Siddell: It's life-changing. I mean, it's between going bankrupt and being successful and being able to do another one. 

Rudy Tirado: Yeah. And who wants to get frustrated? Think about it. If that's what you wanted to do, if you wanted to rehab a house and it was your dream or your wife's dream and that you're like, "Hey, let's get into this and let's do this.” And then you have a bad experience, then you just let it go. You don't want to do it anymore. You have a bad taste in your mouth and it doesn't have to be that way. You want to avoid that because you actually want to enjoy the process, because honestly, the process, even me as the contractor, I like bringing that process. And nothing’s better than to see something horrible looking or demolished or just really ugly and then turning it into something beautiful that is going to last a lifetime if it gets taken care of, and that's what we do. I mean, the areas that me and Misty, the Southern Orchards, the King Lake and Old Town, help me out, because I forget all those areas. 

Misty Linn: Lyndon. 

Rudy Tirado: Lyndon.

Misty Linn: Just neighborhoods that have been neglected for years and years. I mean, you drive down the streets and there's 15 houses that have been boarded up, grasses overgrown, city violations. Just putting life back into those homes. 

Ed Siddell: So, yeah, you're revitalizing those areas. 

Mike Tarpoff: Franklinton will be amazing. 

Ed Siddell: Yeah.

LeAnne Siddell: Yeah. We watched Franklinton change over the last… 

Ed Siddell: Dramatically. I mean, over the last five years. 

LeAnne Siddell: We've been involved with them for well over 15 years. 

Ed Siddell: That's true. 

LeAnne Siddell: We’ve been down in Franklinton and it's unrecognizable. 

Ed Siddell: It is. It is. Yeah. It’s nothing shy of a miracle because there were certain times where like, "Man, is it…”

Rudy Tirado: Is it safe? 

Ed Siddell: Is it safe? Yeah. I didn't want to say that but, yeah, you know, it really is. 

Rudy Tirado: We've all thought it. We've all said it. I mean that's the thing. Now, it's a different time. It's a big change. And things are looking really good in those areas and things are changing and people are noticing and people are less reluctant to not go in there and look at houses and make their dream come true, whether it's a rehab or a purchase. I mean it's changed. A lot has changed. And that's the beauty of life. Things change. You know, we spoke before about when we were here before we left about things that happened in my past and all that stuff. And one of the main reasons that I'm a part of this platform is I want to show people that things change and people change and you can do good when you weren't doing good before in your life and there's always that second chance for success. And everybody deserves that. You're not defined by your mistakes and you're definitely not held to them to where a lot of people think, "Oh, man, I did this so I'm never going to be anything in life. I'm never going to succeed. No one's ever going to respect me. No one's ever going to look at me in a good way.” I thought like that for a long time. And now, no, it's not the case. 

LeAnne Siddell: I mean, it's the American dream. 

Ed Siddell: That is the American dream. 

LeAnne Siddell: What you’ve done is taken something and you made it your own and it doesn't matter what your past is. It doesn't dictate what your future is. 

Ed Siddell: And you keep going back to you love the process. It's the process, right? It's the whole thing for all three of you guys. It is. It's the process. Obviously, it's the culture that you guys are promoting, which is why you have the number of employees, but that's why you guys all work together. I think when someone's trying to start a business, go into business for themselves, they don't know what they don't know so they don't even know where to start. They don't know how to project numbers. Like we were talking about before, that's not your thing but, obviously, you already know in your head because of your experience. I mean, you're doing a pro forma in your head, basically, okay, hey, should we buy this? What's it going to cost if we think we can get this in a certain amount of time? I mean, that's basically what a pro forma is. At the end of the day, how are we going to lose money or are we going to make money? I mean, are those some of the things that you're going to help people with as part of the King Flip? Because you're giving people the ability to enroll in classes, too, right? 

Misty Linn: Yeah. I mean, numbers are black and white. You know, that's something that we can easily determine, the purchase of the home, the cost of renovation, and then what is the ARV, the after renovation value. Those are things that we can determine upfront. Now, once you go into the house, you start tearing up walls, that rehab budget might change a little bit but you should have enough cushion in there within those numbers to those unforeseens. 

Ed Siddell: So, how big of a cushion? I mean, is it like 10%, 20%, or does it just vary depending on… 

Misty Linn: Yeah. Some of them is 10%. Yeah. It shouldn't vary too much. We can look at a basement and say, yeah, structurally there's going to be some issues here. 

Rudy Tirado: And that's the thing when you've done it like we've done it so long, it's like literally walking into a house and just coming up with, you know, you already - when we both walk out of that house, we kind of know where we're at with the construction budget but you don't say anything. You just go to the office, you crunch the numbers, make sure you're right, and then you send them out, but you send them out with that security and that surety that it is what it's going to be. And when people see that, "Here's your price for purchase, price for renovation, and then your ARVs,” it's pretty simplistic because you were handling everything from A to Z. And when it comes for the sale at home, obviously, one of these fine individuals that will sell it and there you go. 

Ed Siddell: Now, is it the same kind of animal when it comes to commercial? Or is it a little bit different? 

Misty Linn: Commercial, you get into cap rates, rentals. Residential sales is I'm going to have this property and I'm going to exit typically. For commercial, I mean, you’ll exit too but you’ll have more cap rates and what's it going to lease out for unless you're selling it. 

Ed Siddell: All right. So, explain to everyone what a cap rate is. 

Misty Linn: Mike, you want to explain that?

Mike Tarpoff: You have to figure out what your income is on the property to make sure that your income will cover the payments and that's what the lender is most interested in. So, we take the place that rents for 10,000 a month. A year, it’s $120,000 so a 10% cap rate, 1.2 million would buy that property. 

Ed Siddell: Okay. So, that's how the lender knows, okay, it's a good deal. 

Mike Tarpoff: Yeah. There's more to it than that. That just simplifies. 

Ed Siddell: Yeah. That's perfect. That's perfect. Because I know what it is but people listening they're like, “Okay. What’s a cap rate?” So, they're going to google it so I figure we can size up a little bit. 

Misty Linn: Yeah. 

LeAnne Siddell: All right. Now, I was just going to explore on commercial property because I know people right now they’re a little afraid to buy commercial property. Anybody moving into any of these large buildings out there that everybody wants what they want as far as the perfect space but they're a little bit more hesitant about buying commercial right now. And what would you say to people? Because we deal with business owners all the time and they're looking, "Do we buy or do we just lease the space?” 

Mike Tarpoff: Well, it's very interesting. There's a building complex a block away from here, and some of these properties have been for sale for 10, 15 years and haven't sold in the past six months. Almost all of them have sold. One just sold for 5,000 square foot building 650,000. A beauty shop is rolling in. Another one, a t-shirt company. 

LeAnne Siddell: Very exciting to see that you're saying small business is moving in and they're buying them. 

Mike Tarpoff: As a matter of fact, this one company that moved in, they just said they need to move out to get twice the space so that they occupied 5,000. They need ten. So, we need to search for an appropriate 10,000-square-foot warehouse for them so that they can move out of where they're at currently. So, it's flux. People are downsizing, they’re upsizing. It's a dynamic time. 

Misty Linn: It depends on your business. 

Ed Siddell: Yeah. How it’s growing. 

LeAnne Siddell: But you're still seeing the growth there, which is pretty exciting to some. 

Ed Siddell: All right. So, what advice would you guys give to people as far as getting whether it's into the commercial end of it, buying as an investor in the same thing with doing what you guys are doing, which is there's a lot of moving parts. All right. So, I mean, where would people even start? 

LeAnne Siddell: Start with your class, right? Get into that. 

Rudy Tirado: KingFlipsUSA.com.

LeAnne Siddell: That's right. That's right. There you go.

Ed Siddell: You can start there. 

Mike Tarpoff: The key is to tap into people's expertise. Nobody can do this on their own. Start from scratch. So, instead of Rudy trying to find a welder, if he already knows how to weld, that gets him so far ahead. But if he doesn't, it's better to hire someone to do it and do the job right and not have to go back in and do it again. The financing, you want to talk to people to see what the best interest rates are, what programs, down payments, a lot of things. Get in with Misty and seeing what this property is going to be worth after it's completed because you could put a million dollars into a property… 

Ed Siddell: And what you call ARV, after renovation value. 

Mike Tarpoff: Yes. 

Misty Linn: Yeah. I always tell people, do your homework. You know, it's just like working in any profession or going on an interview to see if somebody wants to work with you. Interview the people that you're working with and ask for references because there are so many people and we've acquired several properties by people getting burnt by their contractor or burnt by their lender. You know, they think it's all good and everything sounds great and they're excited and they're, “Yes, yes. Let's do it. Let's do it,” and they haven’t done their homework. So, they're falling behind six months later and they're like, "Oh, why isn’t this project done? No one showed up. I gave them money.” So, do your homework. I mean, really, truly scrub the person that you're interviewing and talking to and you want references just like I would in a job interview because you're hiring them.

Ed Siddell: Well, and that's probably why people, they're seeing it firsthand. I mean, that's your reference. I mean, they're looking in next door, “Oh, my gosh, look at this. They're done in 45 days. I want them.” 

Misty Linn: Contractor says, "Yeah, I've done 30 homes.” “Okay. Can I see any of them? Can I walk them? Where are they at?” 

Rudy Tirado: What area it is? And here's the thing. If they say, "Oh, they're sold.” Well, you can give them the address and you have Zillow and all that that still have…

Misty Linn: Yeah. Photos are always listed. 

Rudy Tirado: They’re archived and the real estate photos are still there so that it doesn't matter if the house has been sold and gone. You can still look up the address and see the work that was done on it. There's at least 25 or 30 pictures on usually all those houses in there because they use it as a reference to sell the house. So, it's still there. We've done that where we've lost some after photos of a project that we have, the before photos, and we're like, "Man where's the drive for the after photos?” Nobody has it. And I just punch in the address and I see it. It’s online. 

Ed Siddell: Really? 

Rudy Tirado: Oh yeah. Because, I mean, I've lost photos before and I want my after. If I don't, you know. 

Ed Siddell: Yeah. Yeah absolutely. 

Rudy Tirado: I go in there and I just take them off online. I did the house so I'm not doing anything illegal. It’s my work. 

Ed Siddell: Yeah. It’s your work. Yeah. Absolutely. 

Rudy Tirado: I just take the pictures and use them that way. So, somebody tells you that they don't have it because the house is sold, that's not good. 

Misty Linn: Yeah. 

Ed Siddell: All right. So, we've got three different companies here. All right. So, Mike, how can people reach you? 

Mike Tarpoff: Muirfield Realty Group. MRG. And we're at 6085 Memorial Drive, a block away. 

Ed Siddell: All right. Do you have a website? 

Mike Tarpoff: We do, but I don't know what it is right now.

Ed Siddell: That's all right. We'll get it on our site. 

LeAnne Siddell: We’ll have it up on our site. 

Ed Siddell: And, Misty, we know this but go ahead so what's the name of your real estate company? 

Misty Linn: It's Core Ohio. 

Ed Siddell: Okay. What's the web address?

Misty Linn: It's CoreOhio.com and then you can always reach me at MistyLinn.com as well and that's all my social media handle as well. 

Ed Siddell: Oh, awesome. All right. And Rudy Tirado. Did I say it right? 

Rudy Tirado: KingFlipsUSA.com and our phone number is 1-844-KNGFLIP and our email address and everything is on there. And the site is obviously 24/7. I think response is 24/7 as well. 

LeAnne Siddell: I just have one final question in reference to King Flips. Do you guys have, basically, a reference when you refer contractors that you consider to be…? Because obviously everybody can't use you. 

Rudy Tirado: We do. 

LeAnne Siddell: So, I'm saying if somebody is looking to do something you can't do, the construction, if they come to you through King Flips and they're like, "We want to flip homes,” do you have?

Rudy Tirado: Yeah. If we can't do it, then we will get somebody that we know can, and then we'll stand behind that person as well. 

Ed Siddell: Wow. Really? 

Rudy Tirado: And guarantee that person can do it because especially if you're coming to us for that help and we have the responsibility to make sure that it gets properly done and see through it from A to Z. 

LeAnne Siddell: And like I said, they're coming to you with so many other questions and so many other things but, again, sometimes it’s tough to find reputable people. 

Ed Siddell: It is. Awesome.

LeAnne Siddell: Again, thank you, guys, so much. Thanks, Mike. Thanks, Misty. And thanks, Rudy.

Ed Siddell: Guys, yeah, thank you so much for coming back. I appreciate it. You’re really, really good. 

[CLOSING]

LeAnne Siddell: It was very, very worth the time. I appreciate it. We are looking to support, learn, and grow from small businesses that made it through 2020. So, if you know of a success story, please reach out to us. Or if you are a success story, we look forward to hearing from you at our phone number here at the office is 614-526-4118 or you can reach us at info@egsifinancial.com or our website is www.EGSIFinancial.com. Thank you so much. Thanks, Ed. 


[END]

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