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“With the RIGHT Tools of Success… it’s Virtually IMPOSSIBLE for You to Lose!” -Daniel Wiafe
1. FREE Comping Tools
When you get properties under contract… you want to know what the comps (comparable values) of the subject property (the house you’re getting under contract) is.
Comps are largely based off of the PRICES that past properties have sold for… in the general vicinity of the subject property.
It is generally BEST for you to get your comps off of MLS, RealQuest or FreedomSoft… but if you don’t have access or the money to get these tools to get accurate comps… the NEXT BEST thing is to use the wide variety of FREE online comping sites out there on the Internet.
What you will do is get the comps from 3-5 of the separate sites listed below… and average them out… and you will use that for estimating what the ARV (after repair value) of your subject property is.
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2. How to Calculate How Much I Should Offer a Homeowner for their Home
It’s generally agreed upon by most investors… that 65% of ARV minus REPAIR ESTIMATES minus YOUR ASSIGNMENT FEES is a good solid calculation to use.
This will be different in different markets. You may be able to offer a higher percentage up to 80-85% in some markets that are HOT (like Phoenix, AZ and Las Vegas, NV).
You may have to offer a lower percentage in other markets that suck (like Detroit, MI). It’s always BEST to try and get that figure from other investors & wholesalers in your local area.
A good, quick way of estimating is to take $8-$10 and times that by the square footage of the house (if the house only needs moderate repair). So a 1,200 sq. ft home that you are flipping would have a repair estimate of $9,600 to $12,000.
If a house is a TOTAL dump from head to toe… then take $12-$15 and times it by the square footage. So that same 1,200 sq. ft home would have a repair estimate of $14,400 to $18,000.
YOUR ASSIGNMENT FEES:
On houses that I will wind up flipping for UNDER $25,000… I generally try to attach up to a $5,000 spread for my assignment fee. Remember, when you get your cash buyer to buy your property from you… they will ALMOST always try to negotiate price. So that $5k spread… might wind up only becoming $3k for you after negotiations.
On houses between $25,000 to $100,000… I try to attach no less than a $10,000 spread for my assignment fee.
Over $100,000… try to attach $10,000-$15,000+ for your assignment fee.
ALWAYS strive to make sure that even with your assignment fee calculated into the total price and investor will buy your property for… that they are getting a slamming deal. Generally you want to have your assignment fee be no more than 1/3 of what the total profit potential in a house is.
Meaning if there is a total of $45,000 to be made on a deal… leave $30k for the cash buyer… and take no more than $15k for your assignment fee.
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3. Get a Satellite View of Your House
I absolutely LOVE Google Maps… because it allows me to see a satellite image of the house I’m aiming to get under contract… as well as allowing me to scroll the neighborhood and see what it looks like.
how to flip houses
4. Untrackable Phone Numbers
Part of being a NINJA… is having plenty of discretion. This comes to play when you get phone numbers for your motivated sellers to call you back on.
You definitely don’t want your victims (or the local bandit sign police)… to be able to Google your number & track your phone number down to your name & home address… and hand you down NICE, $500+ code violation tickets for placing your ugly signs all across town.
a. Google Voice
The BEST and the FREE solution. Pick a local number… and have it either ring directly to your cell phone… or have it ring straight to voicemail.
Only thing that sucks about Google Voice… is that you can only have 2 Google Voice lines ring to one phone.
I have about 10 RingCentral numbers for my real estate business & other business. Beautiful thing about RingCentral… is that you can have an UNLIMITED number of local OR toll-free phone numbers ring to your cell phone.
Plans start at only $19.95/mo. for your 1st line… and $4.95/mo. for each additional line. It’s useful to have a bunch of different numbers (if your budget allows it)… so that you can track your results.
For example… have at least 1 separate number for different campaigns that you do… or different forms of marketing that you do (yellow letter, bandit sign, postcard, website, etc.). This way you can track your results… and see which form of marketing is giving you the most BANG for your buck! Do yourself a favor & get their FREE app on your iPhone or Android phone.
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5. FREE Website for Your Wholesale Properties
So you already know that it’s the 2000’s… and you look like a fool if you don’t have a website. You know this!
If you are broke… or better yet, still a WordPress “virgin”… then try this simple AND free solution to having your very own website.
I love Postlets… because it’s nice, simple, free and has a clean layout for putting your properties, pictures & description on. Plus it blasts all the details of your properties… to Zillow, Yahoo Real Estate & tons of other real estate websites.
If you love Postlets… you will LOVE VFlyer! What can I say about their graphic layout…? It’s straight up SEXY.
But with everything in life… if you want the souped up version of Postlets on steroids… you gotta pay. Prices start at $129.50/annual for having up to 10 different listings.
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.