SPECIAL FOCUS: PIP GROUP - REI INK
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
I N D U S T RY S P O T L I G H T SPONSORED CONTENT Clients CO M PA N Y OV E RV I E W fix-and-flip to getting money back to the said. “But it’s not going to happen Tried and True client. Each investor holds 100% own- overnight. You have to be willing to get ership of his or her properties—the inves- your hands dirty, and you have to take T H E P I P G R O U P H A S B E E N D E L I V E R I N G O N P R O M I S E S TO I N V E S TO R S F O R 1 6 Y E A R S tor is not buying into a fund or a REIT. “It makes a complex investment very some calculated risks.” There are several ways that The PIP Know Best simple for our investors,” Sells said. Group creates value for its clients. One “They really do kind of get to treat it distinctive example is the company’s like a stock. Log in to the platform day online platform, which allows investors In the scheme of things, 16 years might million for a client base that exceeds real estate, including the increasingly or night and see how your investments to check on their properties at any time W H AT O U R C U STO M E R S not seem like a major milestone. But in 700 investors. And they don’t show any popular fix-and-flips. (For the past six are doing—all while letting somebody of the day and see their progress. A R E SAY I N G A B O U T the realm of turnkey real estate, where signs of slowing down. years, their clients’ typical net profit else do the dirty work.” THE PIP GROUP so many operators rarely make it past on a fix-and-flip was at least 18%.) “You can see exactly how the invest- “We’ve been around a long time, and The company focuses on states that ment is performing,” Sells said. six years, it’s worth noting. we’ve managed to stay consistent with “We are a true turnkey service provid- it knows particularly well—Georgia, our services to our clients and our per- er, the emphasis being on ‘true’,” said North Carolina and South Carolina— The platform streamlines communica- Sixteen years just happens to be how long Platinum Investment Properties formance for our clients,” Sells said. Sells, who founded PIP in 2004. especially in college towns and popular tion with PIP, which makes clients hap- “” When one of my fix-and-flip investments vacation spots like Savannah, Georgia. pier. “We’re available literally almost Group (The PIP Group) has been help- The company, based in Hilton Head, Platinum’s team consists of approxi- suffered accidental but disastrous flooding It targets properties priced at $50,000 24 hours a day,” Sells said. ing investors globally to source, pur- that was entirely out of their control, PIP South Carolina, made its mark by mately 40 or so who work in the office to $100,000, with the expectation of The company also has produced a still accepted responsibility and took a chase and manage their investments. helping clients invest in tax liens and or on field crews. They handle all the selling them for $150,000 to $250,000. range of free educational content for loss of over $11,000 to make sure to hon- To date, founder Charles Sells and his tax deeds, but it has grown its opera- nitty-gritty details, from due diligence to or their 16% performance promise to me. Still, Sells noted he won’t shy from its website. team have managed more than $180 tions to include a range of distressed managing the assets, to overseeing the It is nice to know there are still businesses going for a grand slam, like flipping “All of our information is free,” Sells out there that do what is right, regardless a $3.5 million beach house he and his said. “If we give a webinar or an educa- of their contractual obligation to do so, or wife picked up for just over $2 million. how it impacts their bottom line. tional series, we don’t charge a dollar for “If the market is strong and investors it. I would like to get in the habit of doing — Dan Lukeheart want to sell, that’s great. But if the econ- more webinars, because there is a lot of omy takes a hit, there’s also the option misinformation out there. Everything we to offer owner financing or rent out the broadcast is documentable and verifi- property,” Sells said. “We end up getting able, which is rare in this business.” “” multiple exit strategies by investing in I always wanted to expand my market in these types of properties. A big problem One of his biggest challenges is retrain- flipping houses … The PIP Group helped ing people who might have shelled out me make this possible. When I first with many of the novice investors out learned about their full-service option, I there today is they all want the grand thousands of dollars for a “master-level” was immediately interested. I purchased slam and don’t invest conservatively.” coaching program that’s given them a in their Savannah, Georgia, market and lot of ideas—not all of which conform to was told they will take care of the work Sells is passionate about providing realistic outlooks and solid, reliable in- how real estate investment really works. needed to flip it. They not only did what formation to clients. Too many turnkey Sells’ commitment to transparency and they stated they would but exceeded my consistency is one reason why The PIP expectations. The whole process only operations and gurus leave new inves- Group has endured as long as it has. took nine months, and when I had any tors with the wrong impression, he said. questions, they were available at my Clients aren’t given any wild, unreason- “The biggest misconception is this is a convenience. I appreciate everything your get-rich-quick opportunity and that it’s able promises. organization has done for me. Thank you! easy,” Sells said. “That’s how you stay in business longer — Alex Moyer Can you make a healthy return with than most have in this industry—be turnkey investments? Absolutely, Sells realistic,” he said. 3 6 D E C E M B E R 2 0 19 CONTINUES ON PAGE 39 »
I N D U S T RY S P O T L I G H T SPONSORED CONTENT I N T E RV I E W W I T H F O U N D E R C H A R L E S S E L L S “” Passion Pays Off Tax lien laws and returns vary from state to state, but PIP is extremely knowledge- able and seamlessly walks you through the process. They offer countless webi- LU C K Y ‘ FA L L’ I N TO R E A L E S TAT E nars to enhance your skills, explain what G OT P I P ’ S S U CC E S S S TO RY S TA R T E D to expect before, during and after your purchase of tax liens. They are a full turnkey service provider who handles the purchase, management, O&M and Charles Sells runs the highly successful At last count, Sells and his team have liquidity of investments. They happily PIP Group, which helps clients around managed more than $180 million for share their knowledge and genuinely want the world invest in distressed real their clients, whether it be in tax liens, you to be as knowledgeable and success- ful in your investments and investment estate assets. But Sells’ first job in real fund oversight or fix-and-flips. decisions. They are accessible to answer estate was much humbler: In his early questions and to assist in issues that may How did Sells build The PIP Group into 20s, he got his start stuffing marketing arise, which as a client, I really appreciate. what it has become? Through steady, envelopes at $10 an hour. I highly recommend them to a seasoned calculated growth. His old business investor or a novice who wants to learn “I literally fell into it,” said Sells, 46, partner, Don Fullman, now retired from and profit from their service. who has earned many awards and ac- the company, used to preach the impor- — Derrick T colades from his peers and competitors tance of not doing too much too fast. in the industry. “I was bartending in “As a young self-starter,” Sells said, “I Atlanta, Georgia, and my girlfriend at wanted to do everything. I wanted to “” the time was an administrative assis- bility,” Sells said, “we take it 10 steps fluently and can get us through with We thought we had a few boxes to PIP Group does exactly what they say. They be in all the states. I wanted to do com- find distressed properties in areas they tant for a company that was investing further and try to always do what is ease in three other countries. She deal with.” Nope. There were 250,000 mercial, multifamily, you name it.” have experience with, analyze the oppor- in tax liens.” right—not just what is required.” essentially runs the show now.” The brand-new, brand-name, ready-to-sell tunity, rehab the property with their crews One of Sells’ biggest challenges, couple has two children together. hair extensions, plus a bunch of new That entry-level position was a tremen- Another secret to success? Always and resell the property for a profit. My last ironically, came when The PIP Group Sells also has two teenage sons from a windows and even a forklift with no two rehabs netted me 24% and 20% on dous blessing. Sells had always been level with your clients. Avoid pie- experienced a surge of growth. In known owner. The company was able an annual basis. Turnaround time has been interested in real estate. Thanks to his in-the-sky dreams. Instead, provide previous marriage. 6-11 months. I'm looking forward to a sim- 2009, its business nearly tripled over- to sell the items and make a healthy new job, he quickly learned the indus- No day at The PIP Group is exactly ilar return on my newest Georgia property reliable, trustworthy information, night. It’s a “blessing” that might have profit for the client. try and rose in the company, becoming fix/flip. It’s been a learning experience for and back it up with documents and alike, which keeps things interesting. a real estate manager. He earned such killed a less prepared company. For “Oddly, we find little treasures like an investor like me that's used to hands-on verifiable facts. Case in point: The property that held a control. But, they deliver without me lifting a good reputation with clients that he many companies caught in unexpected this more often than you think,” Sells treasure trove of hair extensions. a hammer any more. soon was able to strike out on his own, surges, “they can’t handle the growth,” A native of Hilton Head, South said. “Last month, it was a custom-built “It was a running joke around the — Chuck McEvoy starting with just four customers. he said. “Their customer service goes Carolina, Sells is married to Lena, $8,000 spa tub we sold in a day on office for about two weeks,” Sells down, and their profits go down.” who was an administrator for a compet- Their initial investment? About said. “We had our field services Craigslist.com for $2,000, or a 2009 itor before Sells hired her away. $20,000. Sells had only $4,000 for the The PIP Group powered through by “And then I fell in love,” he said. director in the area checking on Mustang convertible, still parked in the garage.” Every day, he said, “there’s “” legal agreements and other paperwork going above and beyond for its clients. some repairs around northern Illinois Excellent company to work with. he needed to form his own company. “Rather than hide behind contractual “She is the smartest person I have and asked him to check out the a new problem that needs to be fixed, — Douglas Curtis And that’s what became The PIP Group. obligations and fiduciary responsi- ever met. She speaks four languages property with the hair extensions. so there’s a new opportunity.” 3 8 D E C E M B E R 2 0 19 CONTINUES ON PAGE 41 »
I N D U S T RY S P O T L I G H T SPONSORED CONTENT FIX AND FLIPS BEFORE “” The Do-It-RIGHT-For-You Team I chose PIP since it was clear they had the expertise that I needed. Some (tax liens) redeem quickly, and others have gone to foreclosure. PIP has educated me and AT P I P, T U R N K E Y D O E S N ’ T M E A N CO O K I E - C U T T E R walked me through the entire process and have answered my “what If” questions and fears. Their expertise and guidance are as- These days it seems that everyone At age 46, PIP founder Charles While reality TV and gurus selling suring and most importantly to me [have] protected my investments and grown my wants to be a fix-and-flipper. But that Sells has spent half his life involved from the stage claim that a simple for- portfolio. At this point, my portfolio has strategy is not nearly as easy or as in real estate—and he knows the mula like “The Rule of 70” can ensure purchased close to 60 tax liens and one foolproof as so many reality TV shows landscape well. success in flipping, Sells and The PIP building purchase. I continue to trust their make it appear. Group know better. (“The Rule of 70” wisdom each year. “I was flipping homes long before it was postulates that you can determine the — Charles Janosick Done right, fix-and-flip investing takes a catch phrase, or there were 77 reality target purchase price of an investment a full-time commitment and a specific TV shows on the topic,” Sells said. AFTER property by taking the after-repair set of skills and know-how. value and multiplying by 70, then sub- He laments that even to this day, That’s where The PIP Group comes in. too many people are lured by gurus’ tracting your repair costs. Sells calls it “” The PIP folks have been extremely trans- The company is there for investors who false promises of overnight success “possibly the dumbest, most dangerous parent and honest with me, they have want to take advantage of the potential and huge profits—if only they’ll max idea I have heard of.”) done great work and they have a wealth of knowledge about the arguably complex profits offered via this strategy but out their credit cards to the tune of Countless variables come into play world of real estate that is a powerful who may not have the time or experi- $50,000 or more for so-called “educa- in all facets of real estate investment, hedge against the risk inherent in real es- ence required. tion” from these pitchmen. Sells pointed out. tate investing. So, I have great faith in their integrity and capabilities and wouldn't hesitate to recommend them to any friend or business associate. BEFORE AFTER Based on my first, tentative foray into working with Platinum Investment Proper- ties, (I found them to be) very patient and thorough answering many questions I had “Real estate is a moving target, and if buyers are not interested in, make sure about the business aspects of our relation- you apply a formula to your strategy that market has followed a historical ship, as well as the logistics of buying and rather than analyze each opportunity success pattern and then dominate rehabbing a property. They moved fast to individually, you are guaranteed to buy a property, and did some really nice, that market. first-class rehab work on a surprisingly lose,” he said. For example, The PIP Group currently small budget. I believe this illustrates one Further, the presence of institutional is finding great success with fix-and- of the important assets they bring to the investors in a market could push that table, which is a great deal of experience flips in Savannah, Georgia, which and an obviously strong team working in market out of reach to an individual Sells likens to the boom market of the field. Throughout this first project, I be- investor who needs a higher margin to Charleston, South Carolina, of some lieve they were extremely honest, efficient compete and thrive. 15-20 years ago. Because of Charles- and ultimately did a great job, including ton’s infrastructure and growth at the the sale of the property. The PIP Group’s fix-and-flip method- ology is simple and straightforward: time, it was able to come through the — Steve Cobb Choose a market that institutional Great Recession relatively unscathed. 4 0 D E C E M B E R 2 0 19 CONTINUES ON PAGE 45 »
I N D U S T RY S P O T L I G H T SPONSORED CONTENT PIP and Sells look for markets like keep the costs low. We earn our pay, “Lena has a pair of pink steel-toed Savannah that are capable of that based on the performance of the asset, boots and she is not afraid to get her same resiliency in case of a coming rather than a high, front-loaded fee, hands dirty,” said Sells, meaning downturn. or ongoing management expense even top management is active in Because of such deep research and that eats into the profit. Yes, we occa- all aspects of company operations. operational skill, PIP offers its inves- sionally lose on a deal, but our fail Investors can count on PIP’s executive tors “The 16% Promise.” It’s not a rate is less than 5%, when compared team to spot inefficiencies and correct guarantee, but a promise, of better- to the national average of 87%. them immediately, so profits are not than-average returns. Some say we have lost our minds for adversely impacted. offering a promise like that, but the “Lena wanted to prove a point a couple “Stuff happens in this business a lot, fact is, the ones we lose on are insig- months ago that a 16-foot by 32-foot deck and there are no absolutes in flip- nificant compared on the whole scope, should not cost $20,000 and take three ping homes, regardless of what one and it is a methodology that gives weeks to build,” Sells said. “What did she might convince you to believe,” Sells clients a certain comfort level of a do? She built it herself! From digging the said. “The average successful flip is worst-case scenario.” postholes to laying the deck-boards, she between 10% and 15%. We have never been average, so our promise to our Acting on such a promise and being did it all in four days. The message was customers is we will earn them 16% able to perform above that promise (for that PIP’s lead executives are not afraid or better. As a servicing agent, it is PIP to earn a service fee), requires a to get their hands dirty and make sure in our best interests to buy right and substantial amount of time and effort. the job is done right.” BEFORE AFTER 4 2 D E C E M B E R 2 0 19
I N D U S T RY S P O T L I G H T SPONSORED CONTENT THE HOPE PROGRAM Briefly, here’s how the HOPE the buyer repair and improve his “” Dream Makers program works: or her credit and fundability. Ideally, We learned how to invest in tax liens and tax deed properties three years ago. We The PIP Group’s Passive Profits after three to five years, the buyer’s bought two properties and rehabbed Program enables PIP to invest into a fundability is fully optimized and them ourselves. It is very stressful and T H R O U G H H O P E P R O G R A M , P I P I N V E S TO R S O F F E R A H A N D U P the buyer can obtain traditional full of dishonest contractors and people fix-and-flip opportunity on an inves- who we found we could not trust. After tor’s behalf. If a potential buyer of financing that takes over the investor’s buying a tax deed property through PIP, the renovated property states that he role as lender. we let them do the work and see how it While The PIP Group has been focus- part of the American dream was The program, a collaboration between or she would likely not qualify for a all went. To our surprise, they are not only ing increasing attention on its fix-and- forever out of their reach. PIP and the credit optimization experts Those who invest through PIP’s honest but excellent in every aspect of traditional mortgage and would need HOPE program are essentially flip program to generate profits for its at CreditSense, combines elements of the business! They protect their clients’ In many cases, they’re reliable, investors, there’s another group that a lease-option or owner financing, PIP repairing a broken dream. There investment. The return on our money is hardworking people who have expe- owner financing with credit optimiza- steps in to help buyer and seller (the more stable than the stock market and also can benefit. tion to helps buyers “get their foot in are tens of thousands of Americans rienced a run of bad luck. Or maybe much higher. Now we trust them with our investor) negotiate a price and other who work minimum-wage jobs, just Through its program known as their credit has been wrecked, or the door” and start making payments investments and plan to for years to come. terms of sale, just as any other tradi- wishing there was somebody who HOPE—the Home Ownership Prepara- their minimum-wage job doesn’t on a home. Within three to five years, — Jessie Smeltzer tional purchase would be handled. could help them become a home- tion Experience—PIP is helping make allow them to save up enough money their credit is fundable and they have homeownership a reality for many for a down payment on a house. enough equity to qualify for a tradi- As part of the terms of the sale, owner. They just need one individual people who may have thought that HOPE is changing that. tional mortgage. PIP and CreditSense work to help to open one door, so they can open “” the next and the next. You often learn more about a company by how they respond when things go poorly, Sells finds it particularly satisfying and that would be true of my experience that PIP and its investors can open with PIP. They remained responsive, and in the end, while I did not profit on all of my those doors. liens, PIP continued to work on my behalf. “I have been working in distressed It took time, but other than some oppor- tunity cost, my investments were satisfied real estate since the start of my without any significant loss. PIP commu- career,” Sells said. “So many investors nicates well and does not run away when the going gets tough. NATIONAL ACCOUNT SERVICES are scared of the stigma of being called a ‘slumlord’ or investing in — Michael Miller Facilitating Title Settlement broken communities, when in fact, those are the most profitable and Services Nationwide! rewarding transactions you will ever “” PIP handles the entire process of tax lien make, both financially and personally. investing, from the initial placement of You have the ability to repair neigh- funds through fulfillment. When fore- Brenda Flatter closure becomes necessary, they have Executive Director of National Sales borhoods, families and broken dreams demonstrated the capability of handling Mobile: 574.855.8968 while, at the same time, putting the entire process, including legal, repairs, Direct: 866.996.8262 Ext. 3011 substantial profits in your pocket. marketing and the resale without requiring bflatter@meridiantitle.com involvement on my part. I have been very When you see how you can change meridiantitle.com somebody’s life (and profit from it), pleased with their performance, respon- siveness and very helpful and professional you will be addicted to this style of staff. Great group to work with! investing, just like I am.” — Beth Hurley 4 4 D E C E M B E R 2 0 19 F I N A N C I A L I N VR EES IT IIN NGK 45 CONTINUES ON PAGE 47 »
I N D U S T RY S P O T L I G H T SPONSORED CONTENT T Y P E S O F I N V E S TO R S “” The Match Game This is a great company for all your tax lien and deed investments. Get a self-directed IRA so you can invest with PIP and make substantial retirement income. They are W H AT T Y P E O F I N V E S TO R A R E YO U ? transparent, professional and keep you informed every step of the process. — Glenn Kresge Distressed real-estate investors come ments for fix-and-flip and long-term PIP Group focuses on states where in all shapes and sizes, just like the cash flow holds. the redemption laws are longer, less Purchase Price assets they are trying to acquire. Tax Lien Investors aggressive and provide a high annual $35,001.00 “” Knowing the type of investor you are is yield. Sells admits the tax liens are I think what separates PIP Group from a Tax lien investors are usually lot of the info-commercial people are the the first step to becoming a successful administratively expensive to oversee, following: investor of distressed real estate. The more interested in obtaining a but that is where he got his start and • Honesty - At PIP, they make it very clear PIP Group offers passive investment conservative, high-yield return upon it’s a part of his life. that you’re not going to get the property opportunities in both high-yield tax the redemption or payment of the for pennies on the dollar. Why? Because Tax Lien Foreclosure Investors there will often be other costs to clear liens and high-yield foreclosure invest- tax liens. For these investors, The Foreclosure investors also—poten- title and/or clean up the property. tially—can be tax lien investors. Yet • Education - PIP has many online classes, including for tax liens that take you through they are more interested in obtaining the process before and after you purchase the property after the redemption liens. They are detailed and can run 45 period has expired. The PIP Group minutes or more. The education material is FREE. They don’t sell seminars or books. focuses on select opportunities or • Customer Service - I have never had an states where the odds of obtaining a issue with PIP Group responding, and I deed to the property are either very frequently contact them. strong or entirely absolute. Currently, Sold For • Reporting - They provide quarterly de- $157,500.00 The PIP Group offers foreclosure tailed reports for each tax lien certificate. They also have a website that allows you opportunities for fix-and-flip and long- to view the status of each lien. I would term cash flow holds by secondary tax recommend PIP Group if someone is lien market acquisition or traditional interested in doing tax liens. bank foreclosures in states such as • Fix and Flips - PIP Group worked with by investors who are not interested • More experienced investors who my IRA Custodian to get the property Illinois, Georgia, South Carolina and in ultimately taking possession of paperwork in order. Secondly, PIP Group specifically want to foreclose and North Carolina. a foreclosed property but who want contracted with necessary contractors to take over the property rather than perform the rehab on the property and Secondary Market Tax Lien to reap their profits before the lien managed the work. They provided me wait for the profits available when a matures or is paid off by the repair estimates from contractors. Going Foreclosure Investors high-interest lien is paid off. into the transaction, they notified me of The PIP Group pioneered the concept delinquent taxpayer. the estimated fix-and-flip time and were of secondary market tax lien sales This strategy is particularly With secondary market tax lien pretty close in estimating the total time. I would recommend them if someone is about 15 years ago. desirable for: sales, there is no minimum investment interested in doing this type of buying The strategy is simple: Investors • B eginning investors who may lack required and the time to take a prop- and selling properties. buy maturing tax liens already held time, money or experience. erty into foreclosure is immediate. — Steven Harlow 4 6 D E C E M B E R 2 0 19 F I N A N C I A L I N VR EES IT IIN NGK 47 CONTINUES ON PAGE 49 »
I N D U S T RY S P O T L I G H T Self-Directed IRA’s: SPONSORED CONTENT Investing in CO N C LU S I O N “” Real Estate, tax liens or Identifying I have been investing with PIP Group for the past year now and I can't express enough how helpful they have been! lending people money Opportunity Their service and staff are completely transparent and always reachable when I have questions. I started with a few tax using your IRA. liens that all redeemed and now am in B E AU T Y O F A N I N V E S T M E N T the process of a fix and flip. Thank you to L I E S I N T H E B OT TO M L I N E everyone at PIP Group. Great job! Learn how you can — Willian Feauve 1.) Set up a Self-Directed IRA. Thanks to many of the self-proclaimed “gurus” in the 2.) Buy Real Estate or tax liens with your IRA. industry, many new investors come to The PIP Group 3.) Lend monies from your IRA. with a mental image of what they want their investment “” I have invested with PIP in tax liens for two 4.) Borrow from an IRA. to look like, rather than what their investment will be. years, and so far I have received regular 5.) Go in Partnership with an IRA. Are there $300,000 houses that you can pick up for payments with good returns. Any ques- tions I have had were answered clearly. $100,000? Of course, there are. Yet, 99% of the time, 800/607.0145 x250 clients will be investing in middle- to middle-low- — Ian Cox Call TODAY to learn more! income property. Guess what? That is also what 99% of Americans can afford when it is time to resell or flip the investment property. “” I have been investing with PIP for about “I have seen, literally, thousands of incredible opportuni- four years and couldn't recommend them ties slip by because our investors sometimes want to more highly. I have done a substantial follow their instincts, rather than take advantage of our number of tax liens for three years in a row and found the results to be excellent … years of experience investing in real estate,” Sells said. Recently I started doing some flips with The opportunity to make a return on your investment them and found the process to be equally is real; however, the reality is that the biggest profits satisfying and the record keeping and follow-up outstanding. Lena and the folks are usually in the most average-looking properties, rather in the office are great to work with and I than those that might look the best, Sells noted. expect to continue investing with PIP for many more years. The key is to stop thinking you will get rich quick or that this is so easy that anyone can do it. The reality is — Bob Mikesel there will be no quick “rags-to-riches” stories. But when investors take the rose-colored glasses off for a min- ute, they will see the potential of tremendous profits in “” Great company to invest with. Invested distressed real estate. The PIP Group can help investors some self-directed funds with them a few achieve those results effectively, passively and within a years back and the tax lien investment has reasonable amount of time. performed better than anything else I have tried. Easy to work with and great communi- MidAtlanticIRA cations throughout the redemption period. — Ryan G. Self-Directed IRAs & Tax Strategies www.MidAtlanticIRA.com F I N A N C I A L I N VR EES IT IIN NGK 49 CONTINUES ON NEXT PAGE »
You can also read