Mon, Mar 15, 2010
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The Quickest Flip/Wholesale Course in the World!
| | Friday, November 07, 2003 @ 06:00 PM EST
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Contributed by: Christian Beebe
Christian Beebe Properties
Read more archived articles about Buying
How about a ten second proven flip course? Now, I can't take all the credit for this, I learned a lot of this from a guy named Lenny Dias who makes about $1 million plus a year from just flipping...not bad huh?
1. Jump in your car and drive around look for homes that have high grass that look like no one lives there or homes that are for rent.
2. Go home and pull tax records, find out who the owner is.
a. Send them a letter ask them if they would like to sell their home.
b. Pull tax records to see what the homes in the area are selling for.
c. Find out how much it will cost to rehab the home you are looking at (contractors due this for free). Lets say FMV of the home is $100,000 after repair and rehab is $10,000.
d. Offer this person $65,000 for their home They will say are you nuts?
e. You just have to show them that their house is worth $65,000 as is, just break the numbers down to them tell them, “Ok lets say you put $10,000 to repair your home (They probably don’t have the money to fix it that’s why it looks the way it does) and you list your home for $100,000. Chances are you wont get that but lets say you do…now you have to pay a realtor $7,000 commission if they sell it and maybe 3% or $3,000 towards buyers closing cost. If you hold out for the $100,000 it could take as long as 6 to 12 mortgage payments, lets just say another $6,000, well that adds up to $74,000 gross to you. On the other hand, I will give you $65,000 for your home, handle all the paper work, and see you in 31 days at the closing.” 4 out of 10 people will take the deal and run and now you have complete control of the sale.
f. Write a contract that gives you a 15 day inspection period, here is how my addendum reads:
i. 1. Buyer accepts the property in as is where is condition seller has no knowledge of written of verbal notice from any local or governmental agency as to any currently building, environmental, or safety code violation.
ii. 2. Buyer shall have 15 days from effective date to perform any inspections desired. Buyer is responsible for charges for inspections. If during the inspection period, buyer determines that the property is not acceptable, buyer may cancel the contract by delivery facsimile or written notice of such election to seller or seller's agent within 48 hours after the expiration of the inspection period (gives me another two days to flip and they never see that in the contract ).
iii. 3. There is no contingency for financing in this contract (it does not say I will pay cash, it just says that there is no contingency) buyers deposit will be retained by seller as liquidated damages if buyer fails to perform as agreed, deposit will be returned to buyer if seller fails to perform or if buyer timely cancels contract for inspection period noted above.
iv. 4. Buyer may assign but not be released from liability under this contract.(I tell them I may assign the contract to one of my credit lines depending on what I am closing on that month)
v. 5. Closing shall occur within 31 days from effective date or within 3 days after notification of clear title by closing agent, whichever is later. (I don’t start the title work till after I sell the house)
3. Now you have put the home under contract, you now have to sell it. The easy way I find buyers is to have some signs made up that say (I will use this house for example):
Handyman Special Worth $100,000
needs $10,000 in rehab
sell $69,900 ### - ####
Place the signs all around the area but NOT in front of the house and DO NOT put an address on the sign. (Note: This is how you will build you investor list!)
4. Call back every person that calls! 80% of them will be dreamers who could not buy that home. But the other 20% will be real investors so sell them your house. They will ask you if you are the owner and you must tell them that “No, I am not but I have rights to the house with a assignable contract that I will assign to you.
5. Be firm on your price and don’t drop prices if the numbers work! They don’t care how much you make. They will ask you “that if it such a good deal, why am I selling the contract?” Tell them that “I am doing five homes right know and don’t have the time to do this one, BUT if I don’t sell it soon, I will close on it myself and rehab it and sell it for full retail” (You never do but you tell them this so they don’t try and back door you and wait for you to bail.
6. Next I place a add in the flyer and it says the same thing my sign does. Loads of calls. Talk to everyone! You will build your investor list everyday.
7. If they don’t like that home you ask them what they want and in what area. When you find a house in that area you call them.
8. When you find a buyer, sign a contract, get a deposit from them and give it to the title company. Then call the seller and tell them you are done with your inspections and that you will see them at the closing.
9. If you can’t find a buyer, you bail before your inspection is over and walk away and do it again .let me tell you if you find a deal that a investor will make $15,000 to $20,000 you will sell that house in one day .i have so many investors i sell my deals with a one phone call
Good luck....
Christian "The Solutions Kid" Beebe
Note: Christian has created two cheap calculator spreadsheets that might help you in your investing REI career. Take a look at them here
Word Cloud:
after shall deposit with period lets have around them call will about tell date like inspections $10,000 flip/wholesale credit rehab home deal owner sign closing they world! period, contract don’t list written notice buyers never such you. selling find this worth much look course assign fails build buyer, effective within buyer title give $100,000 repair take inspection contract, quickest could there just investor signs seller says homes area days other under perform home. what person property $65,000 investors numbers another sell back house flip
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