I made 200K last year flipping real estate without using my own money (or the bank's) AMAA

I looked into this method before and was very interested, but I got stuck thinking what legal help I would need to draw up the buy options and various other contracts. Do you pay some firm to do that? Is that a specialized field?

What resources did you use to get into this? Any relevant blogs?

Thanks for your time too.

You're welcome.

You just need to learn how to fill out a purchase agreement that is applicable to your state. It's really easy and would take you an hour of research on your state's Real Estate Commission's website to figure out what contract. You'll need to read it and be familiar with it. The option period is pretty self explanatory. "I agree to buy your house, but I need x days to inspect it. This option allows me to back out if I find something I don't like." Then during that option your "inspection" is really other investors who want to see the house. You have to have it under contract for an extremely low price to be able to do this. That's where a lot of wholesalers fail. They are afraid to swing big and make shit tier offers.

Bigger pockets dot com has a lot of resources. I went to a Ron LeGrande quick start seminar, too. People shit on guru's, and mostly they are right, but I like ron. He taught me a lot at his course.

Also, I'm not affiliated with him. I actually got to go to his seminar for free because a guy I knew invited me.

Also, the agreement you use from your stat's REC should have an option period built in. They are very common in real estate and a normal transaction with a realtor almost always utilizes it. The option period is when the usual buyer gets the house inspected for damage, termites, gets the survey, etc.

I can look into all of that thanks.

What about entering the market? I already see some "we buy houses!" signs around, whom I assume are wholesalers. How do you find someone looking to sell for low?

Conversely, how to find a buyer in a small time frame? As some one with no particular contacts, it seems difficult. But still interested in trying

>know how to wholesale
>know the REI groups to go resell the contract to
>have LLC (would formulate another for wholesaling to add protection)
The eternal question and the hard part: where the fuck do I find deals? I fucking hate pajeet-tier signcanvasers who put up those WE BUY HOUSES CASH signs every Friday, only to go around again and take them down Sunday night so the city doesn't take them away Monday. Besides asking every nigger I know if they have family or friends in a pinch and promising I can make their mortgage and sales problems on shitty busted up houses go away like magic, I can only go so far. I know some people try to find out who's about to get btfo on their second mortgage, not sure where that data comes from though. Mailers are fucking cancer too, though I'd try that sort of pajeet shit after I wholesaled a property or two and had the money to toss at it.

Where you finding deals OP? What region you? Western US here, not the west coast left coast though.

There are not really any barriers to entry in this business. Yes, the we buy houses signs are 99% of the time wholesalers. It's a cheap way to get deal flow going.

I have found buyers by checking the tax rolls for landlords who own properties in that area. You can also make signs that say "Cheap house for sale!" and put them up, too. You can put ads for the house on CL and FB, etc. Finding the deal is the hard part. If you find a screaming deal the buyers will beat a path to your door. You have to leave meat on the bone for them, though. Example: House retails for 100K but needs 10K in work. I have to get that under contract for 60K so I can wholesale it for 10K which means my buyer is paying 70K. He'll put 10K into it and then sell for 100K or use as a rental. I make a quick 10K and he gets 20K in equity. It's win/win.

>How do I find a buyer in a short time frame

You fucking HUSTLE. I never said it was easy. But once you find one buyer he will 1) buy another one or 2) introduce you to his buddy.

It's a business that gets easier over time. I used to stress about finding deals and finding buyers. Now I stress about having the time to look at all of the leads that come in. I got 4 houses under contract this month with a potential 5th I'm looking at on friday that should make me 50K when they are all said and done. I'm actually nervous about finding enough money partners to cover future deals if it continues like this. I may hire a secretary this year, but she's got to be fucking hot and under 25. ;-)

Oh, and I'm a one man show. No employees. I've created this by myself and (not ashamed to say it) with the help of the good lord.

Also appreciate the info. I'm going to look into the resources you posted. You said you did about 20 deals this year, how many shit tier offers would you say you made in the same time frame?

I used to use the signs but I don't anymore. Here's a secret: Look for abandoned billboards and ask those people if you can rent them. Find cheap, but visible places, you can put up your own signs. I mean like banners that you have printed off at a print shop. I rent a spot on a guy's fence for $150 a quarter and I have a 4x8 sign that says WE BUY HOUSES with my number and website. You have to think out side of the box to get the deals that no one else has access to. Finding an off market deal is key.

what kind of houses do you like to do this with?

I get that question a lot (from sellers). My answer every time: "Any house I can make money on."

so what would someone need to start?

Probably 100-150. I've gotten to the point where I prequalify them over the phone due to time. If they aren't willing to sell for 60-70 cents on the dollar over the phone I will refer them to a realtor. If they say "yeah I know I'm not going to get what it's worth...." then I'm over at their house in like 5 minutes with a contract.

where is your market

Easiest way: go hang out at REI meetings and get some contacts there, then go sell the contract to them and they in turn mail it to their list of investors who are looking for cheap properties to reno and either flip or hodl as rental.
>Wrecked house with owners in trouble
>House costs 300k if it was fixed
>House can't sell on regular market because it's fucked up and owner can't afford to fix or owner has a time constraint life problem
>Owner owes 100k on mortgage
>Tell them you'll pay them 110k cash so they can get out of their mortgage and have some money
>They sign an *Assignable* Real Estate Purchase Contract to your LLC
>You write a new sales contract for 150k
>Shill to investors "Put in 50k of work and this property that cost you 200k will be worth 300k at market value!"
>Flippers and landlords get a deal and do their thing
>You made 40k out of thin air
>If the deal doesn't work out you back out of the original contract and lose only your earnest money deposit, which you wrote as being only $100
Keywords: REPC/Real Estate Purchase Contract, Assignable REPC

You need seed money to buy advertising. You also need to study it a LOT so you don't look like a dipshit. Make you mistake, you will screw up. You will also learn a lot from those screwups. You just have to keep pushing through. Yesterday I looked at some of the deals I did in 2012 and I wanted to smack myself. I was trying to make something out of nothing, but here I am. I didn't quit - and there were several times I really wanted to.

I bought my first house for 6500 and I had 7000 in my bank account. Once we closed I had $500 to my name and bills were coming due. Thankfully a week later I sold the house for 11500 and made 4K. Shit man, there was one point in 2017 when I had 5K in my bank account and 30 days later I had 55K in my bank account. Not joking. It's a stressful industry but the payoff is great if you play it right.

fuck I'm saving this thread, I hope our paths cross one day op

Yeah this, but I'll add to that list of people who sell to me:

>inherited a house and let it go to shit and didn't pay property taxes
>bought a house cash and "forgot" to pay property taxes for 5 years and literally had 2 weeks to sell
>hoarder doesn't want people walking through her house
>social anxiety and doesn't want a realtor bringing people over
>Rich and would rather not have the house than have the money they could get on the open market because they already have money
>etc.

There are a million reasons people sell to me. I stopped asking why a long time ago.

god damn op you're a legend

How long have you been at this? Selling real estate?

Interesting stuff OP. I see how you bring value to who you buy and sell to. I have a similar business model but in a very very different market - I guess the concept applies too.

I'm always curious how banks/ballers don't beat you to the cut. Do sellers not go to these places first for an offer? I imagine someone with more money would be happy to squeeze the margin if they have a bigger system set up.

Regardless, cool stuff

How do you find contacts?

>I stopped asking why a long time ago.
How often is the reason termites?

dude we make 200k in a week
>obviously you here because we better so stick around keep your face shut and your eyes and ears open and lern bitch

If one day you see a real estate investor who owns a website and telephone number that are the same, that's me. I don't have them active yet so there's no sense in googling, but pretty soon I'll have (as an example) www.fuckyourmom.com and 800-FUCK-YOUR-MOM as my website and telephone number. It's maximum branding and I'm actually a little nervous about it. I bought the number last month and the website earlier this month. Should be active together around the middle of this year. I'm meeting with a branding guy in Feb to see how I want to tackle it.

Easy come, easy go.

>keep your face shut and your eyes and ears open and lern bitch

I'd offer you the same advice.

not that often actually.

Since 2012ish

nice larp

be social. talk to people. Get out there and be prepared to conquer the world.

Want a pic of the checks in my desk right now that I haven't deposited?

salute my nigga

why even bother

good point.

Just FYI, I have 4 checks in my desk - right now - for 7K, 3K, $1200, $24.958.93.

how do you make an LLC, does it cost anything?
What are other legal prereqs for this?

Technically you dont need an LLC. Do the first deal in your name and then use that money to create and LLC and buy more advertising.

do you use targeted social media ads? where do the leads you mentioned come from?

I have before but I don't have any running right now. I have billboards around town, I do PPC on google and I"m about to add bing to that, and I have ads in all my local periodicals. Think of advertising as fish hooks in the water. You want as many as possible so you can catch that big fish.

can you elaborate on this? what's a money partner?

There are rich people who ask themselves every day, "Damn, I'm getting 1.5% return on this money I have sitting in the bank. Where can I get a better return that's relatively safe?"

Then I show up and say, "Hey Mr. Richman. I have a house I'm buying for 35K that's worth 65K. Want to put up the money and get a 15% return on it?"

"Yes, I do."

What would say is the longest you sat on a house before you could flip it? Also, what is the shittiest house in terms of quality you were able to flip? You sure took a gamble buying that house outright for 6500 that sold for 11500. How do you really know if something just isn't worth buying even at shit tier levels? or does .60 to .70 on the dollar usually cover that problem. Akron OH is a buyers market right now and I see houses being given away.

with the help of the good lord

my man

I don't know how to repay you for the info, have some good (almost perfect) coins, dyor if you're skeptical.

AMM
ELIX

put $1,000 in each, move them into wallets and wait until 2020.

>What would say is the longest you sat on a house before you could flip it?

2 years, back when I didn't know what I was doing. I paid cash and lost about 10K on it.

>Also, what is the shittiest house in terms of quality you were able to flip?

I bought a house that should have been torn down for 3K and sold it for 5K. I was so happy to get out from under that one. But from that lady's perspective, what's a 5K gamble on a house she could fix up and live in? Not much.

>You sure took a gamble buying that house outright for 6500 that sold for 11500. How do you really know if something just isn't worth buying even at shit tier levels? or does .60 to .70 on the dollar usually cover that problem. Akron OH is a buyers market right now and I see houses being given away.

You learn the market over time. Like I said, you will make mistakes. You just have to recover and learn from it. I don't buy 3K houses anymore because I don't like having to hustle for just 2 or 3K profit. I'm looking for 10-15K profit deals now.

If your market is a buyer's market then you have to swing super low. You have to make offers that make you physically uncomfortable to make.

I will take your advice. How do I buy them, and then how do I put them in wallets?

Saving this too

ah i see, you have the seller agree under contract to sell for 60k, the money partner pays 70k, makes 100k or rents. Buyer ends up putting in 80k though if I'm following correctly right?

Can this be done in say tight markets? Papers are saying NYC, SF inventory is low and many buyers so why would someone sell .60 to $1?

Almost. You're confusing my buyer with my money partner. Let me explain.

I get a house under contract for 60K so I have two options now:

1). Sell to one of my investor friends (wholesaler) for 70K and make 10K risk free and walk away and now he owns the house

2. Bring in a money partner and actually purchase the house and then list it with a realtor at 90K. It bears more risk because I'm borrowing money and actually purchasing it, but the amount of money I can make is greater.

I bought a house last year in the 2nd scenario that I netted 25K on and I owned it for a month. The month before that I wholesaled a house for 225K that I had under contract for 200K, but that house was worth over 300K fixed up so I flipped the contract to my investor buddy and now he's flipping it. I made 25K risk free, but he should make about 75K but he bears *all* of the risk. I'm a-ok with that. I like risk free money.

In a tight market you have to make higher offers, but there are more people to sell to when you have a deal. There will always be people - in every market - who *have* to sell. Your job is to find those people. That's how you earn your money.

1) (fixed) *sell the CONTRACT to one of my investor friends

>Some I don't technically buy. I agree to buy, then sell the contract to another investor

This is the oldest scam in real estate, lots of lowlifes excel at it when the market is going up. If you have a medium IQ, sociopathic impulses, and no moral compass, this is a great option to get rich quick.

Thanks. Can this be done part time to start?
Are there links u can provide to get get started? ( I am on bigpockets as well )
Does a RE LIC reqd?

I was wondering if Akron was good for this- Funny you said that.

It's not a scam. I make a lot of money doing just that. Oh, and my iq is 136 and I'm college educated. I used to be in mensa but I let my membership expire. Mensa is for faggots.

amazon.com/Art-Wholesaling-Properties-Estate-without/dp/1491775696

I do not have a license.

Yes, I had a full time job when I started and after about a year I quit. That was really scary, and my boss was a very good friend of mine (still is) but I had to give self-employment a shot. Now I fuck around on reddit and play BF1 all day and wait for the phone to ring. When it does, there is a good chance I'm going to make 10-20K from the person on the other line.

so say i agree to buy house for 100K. What if I don't actually have 100K? What happens at the end of the inspection period?

If you can't find a buyer you let the seller know that you're not going to purchase it. If you find a buyer then you wait until they close and go pick up your check from the title company.

You need to research this more so you understand it better. Search "wholesaling" on bigger pockets dot com.

thx bruh

you're a good dude

Fuck already have competiton, I've never gonna make it. Lol I originally considered just buying a duplex, I'm so close to my savings goal.

kek yw

Buying a duplex and living in one said/renting the other is a great way to get started. But don't be afraid to market for more deals. There will always be competition. What you don't realize is that you don't always see the same signs. People try, fail, and quit, and then a new guys starts in his place. You have to be the guy who doesn't quit. Your first deal will make you enough money to buy more ads, which will bring more deals, which will give you money to buy better ads, which will bring more deals......and on and on and on.....

I'm going to read my son to bed. brb.

haha- a duplex is a good idea. was looking earlier actually. good luck buckeye user.
hope we make it

kek lets see the blockfolio

I will admit, last year when I did my first AMA I think ETH was trading at like 30 cents a coin. I'm definitely kicking myself for not buying some.

This shit site isn't letting me type out the instructions, I'm gonna divide it up into separate posts, hope you get to see it.

Where I live has no properties below $500K within a 40 mile radius, is it possible to flip with that much money?

I don't want you to give up your location, but what part of the US are you in (ie. Midwest, Northwest, etc)? Thanks.

No lie this has been probably the most informative biz post I've ever read. Bless your soul user, seriously. I never came here until it was already /crypto/. That was the plan, and having the duplex would give me some wiggle room and less stress in terms of working less to focus on self-employment. Your time here was not wasted.

>It's not a scam. I make a lot of money doing just that.

You are selling something that you don't own and you can only make money in a hot market. Congrats on the money, but it's not a skill. I've seen a lot of guys do it. Make sure you save a lot of money because you reputation will be destroyed when the market turns around and people won't respect you. I'm not being a dick, I've just seen this happen more than once and I know how the book ends.

Lol same to you sir

for some reason a message keeps coming up saying my post is spam, here's a disposable email, you should use one too, I'll send you the info on how to buy the coins through there [email protected]

>I used to stress about finding deals and finding buyers. Now I stress about having the time to look at all of the leads that come in.

this sounds fucking terrible to deal with on a day to day basis

you've basically turned yourself into a used-car-salesman, only for houses

h.....how do you find buyers?
Do you sell to flippers you know, or use a real estate agent?

how do you find the buyer of the contract? is it the actual person who wants to live in the property or another flipper typically?

wow fuck sounds like a plan

What are the taxes like?

So your just a middleman lol what's stopping your customers from just foregoing you and buying from your buyer at a higher price

I am in the southwest.

Think about it this way. If houses sell for 500K, then you need to get the house for like 325K. Then you find a buyer for, say 340K. The numbers have to work, though. After purchase and repairs and your fee, the guy buying it from you needs to be in it for ~$0.70 on the $.

That makes me really glad to hear that. The opportunities are out there. You just have to find them - and *work* for them.

I operate in a market that appreciates 1-2% a year. I wouldn't exactly say that is hot. What I do is actually more profitable in a bad market when people *have* to sell. Try again - not trying to be a dick, either.

How is the money needed for repairs determined? Do you bring in an inspector when a seller contacts you, or does the investor do it on his own?

Do you have a lawyer write your contracts? If so how much does that eat into your profit?

if you think you actually "worked" more than any of us for that 200k you deluding yourself son

hey it's the dude with the coins from earlier, the site kept saying my posts were spam as I was typing instructions on how to buy the coins, I just made a random email, send me something confirming it's you and I'll send you the instructions on buying the coins. [email protected]

plus I want to stay in touch with you

yeah but used car salesmen don't make 25K on one deal. I do.

starting out I sold to other flippers. now I will list with a realtor to maximize what I make.

Usually it's another flipper, but sometimes end-users.

taxed like ordinary income. I don't hold these houses for more than 4-6 months.

Great question. The reason is that selling a house is stressful and you can't take it to a pawn shop. I'm the path of least resistance for these people. I've had people cry and hug me at the closing table when I literally turned around and sold their house 4 hours later for a 15K profit. Not joking.

This is the tricky part. You have to learn how much rehabs on houses cost. What is the $/sqft on flooring? How much are roofs? How much to replace an AC unit? How much to paint the house? You can bring in a contractor for a bid but he will only give you bids once or twice for free before he realizes you're wasting his time.

Your state real estate commission should have contracts available for download. I have a friend who is a real estate attorney, but I met him through doing this. He's one of my buyers now. I didn't know him when I started.

Meh, i'm not here to get into a pissing match. I make a lot of money, you make a lot of money. more power to us both. But one stroke of a pen at congress and all of your money is gone. But that could happen in real estate, too. That's what caused the 1987 crash.

johnson

please don't fuck me over. I have read stories about people getting fucked over on Veeky Forums.

you're a rare breed user. im glad you've managed to stick around after this board went to shit. we need more like you, for when everyone finally decides to diversify into other assets.

thanks man. According to an user up there, I'm about to dive into some crypto. Maybe I'll start coming here more often.

>I started 7 years ago with 7K to my name and average about $15K a month now and I work about 10 hours a week. AMAA
>nigga I don't use banks. I already said that. I borrow money from rich people and give them 15% apr on their money. The criteria is simple: Can I buy this house for $0.60 (or less) on the dollar?

I only have $7,000. You're rich, would you invest your money in me? Give me $100,000 and I'll give you 1% per day. (You're a scammer.)

and here I was thinking I'm the one putting myself out there

I'm deleting the email account now