1. What is Flipping Houses?
Flipping houses (or wholesaling real estate)… is one of the most basic forms of real estate investing out there. Most of the time… it involves minimal risk on your part… and little to no money and no credit on your part to buy & sell houses.
Popular cable TV shows typically depict flipping houses… as buying run-down properties with your own cash/credit/or financing… fixing the property up… and then selling it to a retail buyer at the end. We call this type of investing “Rehabbing” or “Fix & Flip”.
While it is true that a person can make TONS of money doing this (checks of $20,000-$100,000+) in profit are not unreasonable figures… this involves a HUGE amount of risk on your side… just because you’re involving your money or credit in doing this… and you have to know EXACTLY what you’re doing on the rehab side & dealing with contractors (who may screw you any chance they get).
The safer way for the beginner to start flipping houses is by wholesaling real estate. This involves you getting a property under control using a contract… then you mark up the contract by a few thousand dollars… and then you “flip” the contract to a cash buyer, investor or rehabber… who will be the one bringing the money in to pay the seller.
The seller gets their money… you get a little money (typically $3,000 to $10,000) off the top… and the buyer gets a fantastic property at a great deal. Everybody wins! Plus, you have minimal to no risk on your side doing this type of house flipping.
flipping house no money down
2. How do I Flip Houses?
Basically in a nutshell… you will do marketing to find a motivated seller who wants to sell their house for cheap (typically around $.50 or less on the dollar)… and you use a specialized contract (that I can provide you in my mentorship program) to tie up the property. Don’t get scared… they’re are literally TONS of people out there willing to sell their homes cheap. I teach my students how to do this EVERY DAY!
In our example… let’s say you get a house that has an ARV (after repair value) of $100,000. You find a person who needs to sell their house fast… and is willing to sell their house to you for $50,000. You will then tie up that property with a contract… and find a cash buyer to buy the property from you for $60,000 and have them sign an assignment contract.
You will then take both TWO contracts down to an investor-friendly title agency or attorney’s office… and have them close on the transaction using either an assignment or a double-escrow close.
Your cash buyer will bring $60,000 to close… of which $50,000 will go to the seller… and the remainder ($10,000) will go to you as your assignment fee. Basically you have made money as a middleman.
how to wholesale real estate
3. Can I Really Flip Houses with Little OR No Money Down?
Yes. I have made a TON of money flipping houses… and I’m only doing it on a part-time basis! I have NEVER put down anymore than $20 as a deposit on a seller’s home… and have NEVER had to use any of my credit. The money you do spend will be spent in marketing.
can i flip houses?
4. How Much Can I Make off of a House Flip?
Depending on what part of the country you are at… that will vary. If you reside in the Mid-West or the South… where home prices are cheaper… there is a smaller spread to be made & you will be able to typically make about $2,000 to $6,000 on an average flip.
If you live on the West coast or East coast… where home prices are more expensive… you can typically expect to see $5,000 to $10,000+ on an average flip.
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5. Can I Flip Houses if I’m Working a Full-Time Job?
Yes you can! You can typically flip 1… possibly 2 deals a month working part-time.
6. What Kind of Marketing Should I Focus on Initially?
If you’re just starting out… you should try to keep your marketing SIMPLE. Try focusing on bandit signs, yellow letters & using online classified ads such as Craigslist/Backpage/Ebay Classifieds in the beginning… when trying to find motivated sellers.
how to find motivated sellers
7. Are there any Good Training Course on ‘How to Flip Houses’?
I will be releasing a course called the House Flipping Dojo system… which will be a monthly membership site that teaches aspiring ninjas how to flip houses like a CHAMP… by August 2012. Of course… you can ALWAYS apply to my mentorship program to work one-on-one with me.
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8. Is it Legal to Wholesale Real Estate if I’m not a Realtor?
Yes. Many people will falsely tell you that you can’t do it… but trust me, you can. When you sign a contract with a motivated seller to purchase their house… you at that point have ‘equitable interest’ in their property… and may freely market their property to the general public… just like an owner.
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9. How much should I give a Seller for Earnest Money Deposit?
I typically put down $10 as the EMD (earnest money deposit) in the contract… and never have gone higher than $20. In fact… most of the time I don’t even give the Seller any EMD when I sign the contract, LOL.
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10. What Kind of Homes Should I Target When Flipping Homes?
You should generally seek to target homes that are: (1) Being sold in the bread & butter parts of town/middle-income & blue collar neighborhoods — not in the wealthy sections of town & for the most part you want to stay away from war zones, (2) Houses that have 2-3+ bedrooms, (3) Houses that have decent foundations to them, (4) Houses that have equity in them, (5) Houses where the seller is BOTH motivated and needs/wants to sell their home quickly.
how to flip houses for profit
11. Can You Teach Me How to Flip Houses?
Yes, I can. I am very selective in who I work with… because (1) Not everybody has the work ethic to invest in real estate, (2) Not everybody has the money to work with me or spend on their marketing to find sellers. In fact, if you are broke & living paycheck to paycheck… just watch the videos on my site & subscribe to my website… and you’ll learn TONS of skills for free.
But if you want to get on the FAST track to flipping deals for $3,000 to $10,000 a piece (and that excites you!)… and want me to partner up with you and work one-on-one with you… then feel free to apply to my mentorship & coaching program by clicking here.
Want to learn how to make $5,000 to $10,000+/month flipping houses no money down and using none of your credit? Make sure you jump on my next FREE webinar as I give you a BLUEPRINT on how to createa 6-figure business. Spaces are limited to 100 seats! CLICK HERE NOW TO SIGN UP.