Flip It For Cash

Flip It For Cash
Wholesaling For Quick Cash Pay Days!
Retailing For Bigger Profits!
Want to learn how to become a “player” in this business?
The fastest way to make quick money in real estate is by using the “Wholesale/Retail” Approach.
You buy or control the purchase of houses for 40 – 60 cents on the dollar. Houses you can even buy or control on a signature.
I talk about them together because they’re so closely related. They’re similar because the type of houses you’re buying and the way you’ll buy them are the same. Only when you sell do you see the difference. When you buy these houses you’re looking for bargain basement prices. And I don’t mean what “conventional” thinking people generally accept as a bargain, like 90-95% of value. No. You couldn’t make the money you deserve. That’s a fool’s game, waiting only for the passage of time and inflation to build up the value of the house.You buy or control the purchase of houses for 40 – 60 cents on the dollar. Houses you can even buy or control on a signature.Believe me, there are literally thousands of them in every city and town. Shortly I’ll tell you how to find them in your city.
WHOLESALING
Let’s talk about wholesale first, because it involves doing a deal you may not have thought about or just not sure how it works. Most people don’t know how it works and the great income it can provide but it’s the basis for our free enterprise system. It’s just that most people haven’t thought about it in terms of real estate.Here you treat residential property as inventory that you’re selling through a distribution network, to a jobber or store, to the customer. Or maybe even more like a car dealer. You buy the property at one price, you may or may not do a little fixing, and you sell it at a higher price for a profit.You are looking for another jobber, one who likes to do the retail work. Don’t worry, this is where the majority of investor’s spend their time. Although some do it more creatively and profitably then others! Instead of selling to someone who’s planning on moving in and living there, you simply sell to another investor (see PKP later). The investor does any necessary fix up work and then either holds and rents it or sells it (what is referred to as retailing) to a homeowner. In wholesaling you actually function as a broker. The title of the property doesn’t even ever have to pass through your name! You’re a matchmaker, using your knowledge and your “resources” to help the two parties – a seller with a problem and a rehabber, fixer-upper/investor. I say your resources, because you don’t have to have any! Finding interested buyers for good deals is even easier than finding the properties! You just need to qualify or check on the investor to be sure they have the cash and can buy and close quickly. We have an easy solution to this problem. (More about this later. see PKP later). An example is a member of our real estate investment club John bought and sold a house right near where he lived. The owner was anxious to sell, but John had no idea how anxious. On the phone he wanted $50,000, so John agreed to take a look. The house looked pretty good outside, but needed about $15,000 worth of rehab. John offered him $35,000 and the owner didn’t even hesitate when he said yes. John set up a closing date a few weeks away and he got a contract to sell the house 2 days later to an investor for $45,000. That leftJohn with about $10,000 profit for about 8 hours of work.” Almost instantly John’s becoming successful. He found out there were more sellers wanting him to solve their problems than there were hours in the day. He got pretty good at this approach pretty quickly. He became the “matchmaker,” writing contracts on properties and “flipping” them before he ever closed on them. John got what was left over (the difference between what he agreed to pay and what his buyer/investor agreed to pay him.) usually $3,000 – $8,000 per deal! It’s incredible that people can make this much money, this fast, this easy! Everyday people are doing this on a regular basis.
CHECK OUT FLIPITFORCASH.COM
RETAILING
Retailing is the business of buying a house at one price, fixing it up and selling it at a higher price. The difference between the sell price and your buy price, minus your expenses, is your profit. Sounds Simple Right?….No.At least many people don’t get it right. Most people listen to greedy owners and conventional minded real estate agents, title company personnel, and attorneys. Believe me, once you learn the simple but factually business way to run your business, you’ll have these people tell you again and again you can’t do exactly what you’re doing. Something as simple as buying a property appraising for $120,000 for $100,000 will get their envious attention. You’re “supposed” to pay $120,000.
CHECK OUT BUYITFIXITFLIPIT.COM
The philosophy on retailing is simple: find ’em, fix ’em, flip ’em, forget ’em! Buy one of these ultra low-priced “distress sale” houses (and you’ll soon see they’re all around you), make it pretty and livable, then waste no time selling it retail and pick up a quick $25,000 – $50,000. Don’t panic about the fixing-up part! Most people finding these deals don’t want to be bothered or don’t have the money or experience for rehabbing. In fact, it’s a waste, or at least a misuse of your valuable time. You shouldn’t be putzing around on one deal trying to rehab the house which could take three to six months when you can better use your time finding another high profit deal. “Yeah but doesn’t the rehabber make a lot more money than me?” Yes but remember…You are making a fast $3,000 to $10,000 on your flip to an investor in DAYS! Now you can go out and get another and another and another. No money tied up and No valuable time tied up trying to get a three to six month job done to make more money. The rehabber comes up with all the money, takes all the risks and will be tied up for months on your deal. But they work on volume. Yes, you make could make $25,000 on the deal but if it takes you 3 to 6 months to rehab and sell it, what does that come out to? An average of $4,000 to $5,000 per month. You can do that by wholesaling, without the headaches of finding the money, credit, contractors, and other annoying and risky things that go with rehabbing houses. There are investors/rehabbers who enjoy and make it their business to gut the rooms, sheet rock the walls and ceilings, change the dirty plumbing, replace broken glass, repair the roof and siding and everything else that goes into a rehab project. Don’t get me wrong, they too make a good profit for their efforts (see PKP). You need the investor to buy your deals and the investor needs you to bring them deals. You both serve an important role in a mutually rewarding business relationship. A true win-win money making situation!
WRITE OFFERS DAILY!
Discouraged Newbie investors make one or possibly two mistakes common to new investors. They aren’t targeting motivated sellers and/or they aren’t making enough offers.Targeting Motivated SellersWhere I live, most homes sell for their full asking price and above as well. The only difference between me and Discouraged Newbie is that I concentrate on the areas and sellers who are motivated to sell at something less than full price. Typically, these are banks or individuals who have a VACANT property which needs work. I stress the word “vacant” for two reasons:
  • Vacant properties are nothing but trouble for the owners and
  • 90% of the properties I have bought have been vacant.
Handling Rejection Even though I focus on motivated sellers, most of them aren’t motivated enough to accept my offer. If I make 15 offers, with 12-13 of them, chances are that the seller is going to say “No,” or someone else is going to offer more. I strike out much more often than having a seller say, “Yes,” to my offer. But I’m not concerned about all of the, “No’s.” I accept them as part of the process and forge ahead, knowing that if I make enough offers someone is eventually going to say “Yes,” particularly if my offers are targeted toward sellers who have some degree of motivation. Making Lots of Offers to Keep Your Funnel Full In this business you cannot make money without inventory. It is extremely important that you always keep your pipeline full, and the way to do that is to constantly make offers. Many people come and tell me that they look at homes all the time but never buy anything. They say they find motivated sellers but none of their deals ever goes through. My next question to them is, “How many times have you put an offer on paper?” They are usually able to count their answer on one hand. In order to buy properties, you must make offers. Sounds simple, right? Yet it’s surprising how many new investors have trouble overcoming this hurdle. Successful investors average 15-20 offers per month, sometimes many more. You would rarely, if ever, buy anything if you only make one or two offers a month. Successful investors look at 10 homes and make 10 offers, not just 2. Some make offers even on the homes they couldn’t get out to see. If they are targeting the right properties (i.e., those with sellers who may be motivated), odds are that there will be several sellers out of 10 with enough motivation to seriously consider their offer. Remember…When you make an offer, your investment is $0. You have nothing to lose. If you make10 to 20 offers per month, and only got one deal per month, I bet it could be close to or even more than your current monthly income. If it’s close, heck… you’ve just doubled your income! If it’s more and with a little more effort… you might have just found a new career! I hope that this will inspire some of you to get out there and start making more offers. If you make it your goal to make an offer a day, then you will start to buy properties (or get them under contract to flip to your investor). If your offers are at the right price, then you can wholesale your deals and make money. You don’t need to make offers as some of the more experienced investors do, but you do have to make some if you want to buy houses. Do your homework, get your questions answered, and overcome your fears. Then make it your goal to average an offer a day because, as we all know, “An offer a day keeps the bill collectors away!”
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