How To Generate Quick Cash Flipping Houses

Flipping houses (also known as wholesaling houses) is the quickest method to make cash in real estate investing. It is also the business model that needs little to no money invested.

You can get your check in as little as two to three weeks. The profits may not be as big as other real estate investing business models, but you can generate a healthy income just by wholesaling houses. You can make an average of $5,000 to $10,000 per deal, with very little effort and work. It is possible to do 2 to 3 wholesale deals part time each month.

Generally, you have to identify great deals at below market value and buyers with cash, usually other real estate investors.

I do not rehab anything when wholesaling houses; this is the work of the real estate investor that I flip the deal to.

To be successful as a real estate investor flipping houses, here are a few tips you must follow.

1) Buy at a Price Range Comfortable to You

Most rehab real estate deals fall in the middle price range. In my area, this is around $250,000 or lower. Some lenders demand you stay within a certain price range before they can lend their money. By going too low, you could end up buying in the wrong neighborhoods. Going too high can limit the number of buyers you have. It is necessary to have high speed for successful wholesale real estate investing.

2) Avoid Insecure Neighborhoods

Fairly priced neighborhoods are most popular with most real estate investors. Notwithstanding the fact that lower prices are always better, most real estate investors would rather buy where they can rent them out easily. It is therefore necessary to target good neighborhoods for successful wholesale real estate investing.

3) Estimate Your Repairs Fast and Accurately

Rehab cost estimate is a necessary part of flipping houses. Most need repairs, and you must take this into consideration when making your offer. When buying wholesale houses, I buy below 70% of fair market value minus rehab costs. The lower my offer, the more my potential profits when I flip to other real estate investors.

4) Make Educated Offers that Get Accepted and Leave a Profit

The most important part of real estate investing is making an offer. When flipping houses, you must make a profit and still leave a profit for the real estate investor buyer.

Obviously, as long as you know the estimated rehab costs and the after repair value after it is fixed up, you will be able to make an offer that both gets accepted and leaves enough cash on the table for both you and the wholesale real estate investor you flip the house to.

5) Identify Rehabbers with Cash, Mainly Other Real Estate Investors

Once you have a contract to buy, you must get a wholesale buyer with cash who will fix it and sell, or hold it. You must verify where the money is coming from before flipping your houses. Hard cash in the bank or line of credit is always preferable. This way, you avoid lending red tape and sell your houses fast.

Most importantly, they must produce a sizable nonrefundable earnest money before I can sign a contract.

6) Close Your Deals Quickly

As long as you have a cleared source of cash, you can close your deals in 2 to 3 weeks. Speed and volume will then be easy, making you more profits.

Back To The Basics – Doing It Right From The Beginning

Wholesaling is a strategy for real estate investors to find bargain priced properties and pass them on to investors who will fix them and sell them at retail or hold it as a rental. Wholesalers charge a fee for their service, anywhere from $3K-20K per deal. You may choose to wholesale properties as your primary source of income for your business or as a substitute for cash flow during slow times. In either case, wholesaling is a great way to make money in a short period of time.

Flexibility is also a great benefit to wholesaling. The business of wholesaling is done primarily on the computer and driving to view properties. You can make your own schedule and be your own boss. Probably the most important thing that you need to remember when you decide to wholesale is, your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity. This does not mean that you find properties and give them away for $1,000. If you did that, you would be a bird dog, not a wholesaler. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be while still maintaining an excellent profit for your buyer.

 

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

New Wholesale Deal From JB House Investors!

Nice property on BIG lot!

2603 Olive Ln Santa Ana 92706

5 Beds

4 Baths

ARV $700K

Repairs $100K

Asking $485K

Take possession on assumable loan only

 Get more details HERE

The Benefits Of A Walk-Through Video

Most Wholesalers are lazy! That’s right, I said it. Wholesalers are lazy. Very few will take the time to make a video walk-through of their property they have under contract. To tell you the truth, most wholesalers never even get properties under contract! What?! That’s right many “wholesalers” only forward email to try to get buyers for a property someone else has under contract. This is NOT wholesaling, this is lazy. Wholesaling take a lot of work, it takes time and effort to find deals and get them under contract. If you are going to be a wholesaler, do it right. Check out an example of our walk-through videos below.

 

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

Defining Your Target Area-Where Do You Want To Work?

Ask yourself these questions to find your target area. Don’t just go out there and tell yourself that you will go wherever you can find a deal. Many new RE Investors do this and end up spending more time than is necessary to find a deal. You, however, will be different from the usual newbie RE Investor. You will focus on one area, your target area, and be the best Wholesale RE Investor in your target area. If you don’t focus on a target area you will end up spending so much time and energy driving and learning a new area that you will probably get burnt out and quit. Getting burnt out and quitting is not where we want to end up, so focus.

Your target area is usually within a 7-10 mile radius of where you live. You want to start with where you live because you probably already know the area, the side streets, good areas and bad. Starting where you live as opposed to wherever a deal is will shorten the learning curve and the quicker you learn the sooner you start making some money!

Get a zip code map (http://www.usnaviguide.com/) and find 3 to 5 zip codes around where you live. Print the map out and draw a circle around the zip codes you chose. This is your target area, it is in your backyard, you probably already know most of the areas. Now, it is your job to drive those streets and really get to know the area. You want to know the street names, know which areas are good and which areas are bad, know different tracts, etc. Next time you are driving to the grocery store, work, the bank take your time and look around at what the areas are like. Look for old and ugly houses. Take a different route home. Maybe even get lost. Just get to know your area better than anyone else. Be the ultimate authority when it comes to your target area.

What kind of houses are on each block? Are they stucco, wood, craftsman, bungalow’s, one-story, two-story. Is the landscape desert, gravel, rock, grass, large trees, fences? Do they have driveway’s garages, street parking, alley access? Are they mostly single family homes or are there some duplexes and triplexes? Are there any large apartment buildings near the homes?

These are many questions you will need to start asking yourself. Take the time to recognize what you are surrounded by, slow down a bit and take the time to learn where your business will be operating. This is your business and you need to take it seriously if you want to succeed.

Don’t forget to keep your gas receipts or log your miles. You now have a write off for your taxes. (Please note: I am not a tax advisor or CPA and this book is not intended to render any legal or accounting advice. Please consult a competent professional).

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

Is Now The Right Time To Start Wholesaling Houses?

Many people will ask me if it is smart to wholesale real estate now instead of rehabbing homes. I can always, and truthfully, answer yes. Wholesaling offers very low risk compared to rehabbing, it also offers a short turn around time compared to rehabbing. When you are rehabbing homes you have either your capital or someone else’s invested into a property for 2-6 months or even longer. With the volatility of the market right now it could change drastically within the 6 months you are waiting to fix and sell the house.

Another reason wholesaling is a good option is because of cash flow. You can have several properties in your pipeline under contract and make quick cash month after month, the wait time is usually 3-4 weeks instead of 3-6 months. You have very little risk if you do it right. We teach how to wholesale using none of yur own credit or money, this takes almost all of the risk away from you, the investor.

Also, you won’t have to worry about surprises with the house when you are wholesaling. If you are rehabbing you will almost always run into surprises that you were not able to find during your inspection. This means more money out of your pocket and more time.

Wholesaling provides a quick, low risk advantage to your investing portfolio.

 

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

Why Every Real Estate Investor Needs A Coach

Whether you’re just getting started down the road towards fulfilling your real estate investing dreams or you’re a little more experienced, a good coach can get you closer to the realization of your goals by showing you some of the tips, tricks, and other shortcuts that have fueled their success.The problem many new real estate investors face – and some with a little more experience – is self doubt about their ability to put together profitable deals, as well as having numerous questions about when certain techniques would be most appropriate. We all doubt ourselves at times, it is those that ignore doubt and push forward that succeed.These doubts and questions can easily be alleviated by knowledge, but a lot of real estate investors have trouble applying principles they may have read about or heard about. This is one of the primary areas a good, experienced coach can help increase their base of knowledge and give them the motivation and the direction they need to reach their goals and fulfill their investing dreams.

First of all, coaches aren’t all created the same. In order to be effective your coach should have practical, relevant experience in the same kind of real estate investing as those they are coaching. Your coach can be one of the nation’s foremost authorities on creative commercial real estate investing techniques, but much of that knowledge and experience is pointless if you’re primarily interested in foreclosures, short sales, or rehabbing abandoned properties.

A good coach will be concerned about your development as a real estate investor and will take the steps necessary to ensure that you are well-versed in multiple investing strategies. He or she will share with you accumulated knowledge and advice about how to better market yourself, and provide you with essential real estate investing tips and strategies that you can implement in your own business. By understanding a variety of ways of structuring investment deals, you will not only increase your knowledge, but you’ll become comfortable crafting deals of your own.

In many cases, a mentor will work one-on-one with you in the field and explain to you why certain strategies may or may not be appropriate in a given situation. In addition, certain strategies can be altered or modified in a way that a less experienced real estate investor might not be aware of, or may not have even considered. When you’ve been around the block several dozen times, you learn things that a simple textbook just can’t teach.

If you want to really ramp up your real estate investing career, you owe it to yourself and your future to thoroughly investigate the idea of working with an experienced mentor to shine a light on the opportunity you have to build a strong investment portfolio and a bright future for you and your family.

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

How To Find Cash Buyers

Wholesaling Houses- How to Find Cash Buyers for my Wholesale Deals 

In today’s real estate market, wholesaling houses provides the best opportunities for real estate investors to cash in big time without having the risks that is tied to taking ownership of properties.  Wholesaling is basically “moving paper”.

Sometimes, you may come across a great deal, but even the buyers that are on your buyers list will not pursue the deal.  If this is the case, what can you do to find a buyer pretty quickly without spending a ton of money on marketing the property?

Well, I’ll share one thing that works for me…

Keep in mind that this technique allows you to search for new buyers for the subject property as well as add more cash buyers to your buyers list for future properties and of course results will vary from area to area.

Here’s what you can do:

1. Visit Zillow.com– When you get to Zillow.com enter the property address of the property that you have signed contracts on.  Once you enter the property address and hit search, the property details will come up.

Then you will need to click on the property address link inside the small box that shows up.

Once you do that, if you scroll down the page a little bit, on the right hand side of the screen there will be a section that says “Nearby Similar Sales”.  Once you spot that section you will want to click on the “See similar sales link in that section”.

After clicking on that link a bunch of recent properties that have sold will show up.  What you need to do next is jot down all of the properties that sold within a 1/2 mile radius of the subject property.

2. Cross reference the “SOLD” Properties– Once you have the addresses of the sold properties, you need to go to your county tax assessors website to find out who the new owners of those are and jot down their mailing addresses.  If the mailing addresses are different than the properties that they have bought, then these are potential cash buyers.

3. Contact the Potential Cash Buyers– Send the potential cash buyers a letter stating that you have a property for sale within the vicinity of the property that they have recently purchased.  Give them a flyer with some information on the property and let them know that you are willing to offer them a great deal on the property.  Give them your contact info and website address (if you are have a site), and wait for the phone to ring.

This is an easy way to increase your chances of selling your properties and finding more cash buyers in your area in today’s market.

Remember, you can’t focus on just one strategy to sell properties you have to combine strategies in order to be successful in this business as a wholesale real estate investor.  Add this strategy to your arsenal and get out there and take MASSIVE ACTION in order to get MASSIVE RESULTS.

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

 

Keys To Wholesaling

An important fact to remember:

Probably the most important thing that you need to remember when you decide to wholesale is, your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity.

This does not mean that you find properties and give them away for $1,000. If you did that, you would be a bird dog, not a wholesaler. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be – while still maintaining an excellent profit for your buyer.

Keys to Successful Wholesaling

There are several things that you can do to ensure a successful and profitable wholesaling business. We will discuss those now.

1. Consistent source of properties – Earlier in the program, we discussed several ways that you can locate properties. If you want to make wholesaling your main business, you will need to make sure you have a consistent source of properties. For instance, you may develop a relationship with a probate or divorce attorney, who knows a continuous stream of people with houses to get rid of. You may even develop a relationship with someone at a bank that works in the REO (real estate owned) department. These are the properties that the bank has had to take back due to foreclosure. However, you decide to find them, you need to make sure that you have a consistent source.
2. Your buyers list – If you decide to wholesale, you must develop a strong buyers list. This will allow you to locate properties with the assurance that you can move them. Even if you only wholesale properties occasionally, it is highly recommended that you have a buyers list built up. As we previously discussed, there are several ways that you can market to build up your buyers list. Two of the easiest ways to do this are to place ads in the paper and to advertise at REIA’s. You may even put out roadside signs to attract buyers. You should think of your buyers list as money in the bank. A good list will make it a lot easier for you to move properties. You will also feel more confident getting the properties, knowing that there are people ready to purchase them from you.
3. Good properties at good prices – Again, we are building on what we learned earlier in the program. You want to make wise choices when you look at investment properties, including when you wholesale. Even though you are not going to keep the house, you still need to make sure that it is a good house in a good area at a good price. You can get 2BR 1BA houses at cheap prices all day long, but do you really want to? We would say no, unless the house is so cheap that your buyer could add an extra bedroom with little trouble. But even then, we wouldn’t recommend it. You always want to go the path of least resistance. Don’t get the houses with the weird floor plans. They shouldn’t be too small or have any type of structural damage. Most investors do not want to take on rehab projects of more than $15,000 – $20,000, especially if they are just starting out. If you find a good deal that requires an intense rehab, you will probably want to save that one for yourself or pass on it altogether. And again, you need to make sure that the price is right. There should be enough room in the deal for your profit, your buyer’s profit and the rehab funds. Your profit will vary depending on the deal, however, to make it worth your time, you should shoot for a minimum of $5,000 per deal. Of course, this will vary by property. Review your buying formulas for wholesaling properties. Remember – wholesaling is not illegal flipping. You never want to artificially inflate the value of a property.
4. Relationship with your closing attorney – Typically, your lender will choose the closing attorney. However, this does not stop you from developing a relationship with them as well. In fact, if you work with the same lender a lot (for your purchases or your buyer’s), you will find yourself in that closing attorney’s office quite a bit of the time. Learn the culture of the office. How does it run? What are the personalities of the staff? What are their names? How do they like to do things? You will find that all closing attorneys are different. Some are more laid back while others are more uptight. Some will accept documents and requests faxed from you, while others want them directly from your buyer and/or your lender. The key is to find out how to best work with them so that your deals run smoothly. Find out what you can do to make things easier on the staff to bank some goodwill, you might need it on a bumpy deal!
5. Relationship with your contractors – Although they tend to get a bad rap, it is entirely possible to find a good contractor and to develop a relationship with him. You may have to go through several contractors to do this, but it is possible. Your relationship with your contractor is important, because you need to be able to count on the quality of the work and the prices at which it can be done. Even if your buyer uses their own contractor, you should have someone that you can bid the jobs and that you can recommend. Their prices should be in-line with those that you have found to be fair and reasonable in the market place and their quality should be the same. If you are recommending your contractor out, do your best to make sure that this person is reputable, fair and does quality work. There is no guarantee in this, we have come across some duds ourselves! But always do your due diligence. Check with references and view jobs that they have already completed. And always be on the look out for more contractors. You can never have too many good ones!
6. Relationship with your appraiser – Your appraiser will also be one that is approved by the lender. This is good for both you and your buyer. You always want to make sure that your values are as accurate as possible. The appraiser will make sure of that. Again, it is worth your time to develop a relationship with the appraiser. When you do this, you will be able to get them to verify values for you. This is important if you are unsure about an area and need to make a quick decision. A lot of the knowledgeable appraisers can tell you values off of the top of their heads. This is very valuable for you. You also want an appraiser that will get the appraisals completed quickly. There is really no reason to wait more than 3 or 4 days for an appraisal. If an appraiser has you waiting longer than a week, you need to look for someone else. Most lenders are amenable to trying out new appraisers, if there is justification. If you are having problems with them, they probably are too. The good thing is, there are a lot of appraisers out their with experience appraising investment properties.
7. Relationship with your private lender – this is of paramount importance, for both your purchases and those of your buyers. One of the most important things that we have learned with wholesaling is – You must approve your buyer’s lender. If possible, you should require that your buyer use only lenders that you approve. This is important because the lender can literally make or break your deal. You need to know what areas the lender likes, what types of houses, how much money they have and how quickly they can close. It is not heard of for a lender to approve a house sight unseen and then change their mind when they go to see it the morning of closing. Lenders can run out of money. They can have as many stipulations as a conventional bank. We have seen all of this happen before and it is not fun. You need to control this part of the process. Then, you can be assured that the deal will close when it is supposed to. You should work with a lender who appreciates your business and makes you a priority.
8. Know your closing requirements – These requirements typically depend on the lender, but you should know what you need ahead of time. This will allow you to close quickly and easily. You may begin securing some of the documents as soon as you lock down the house. Some typical requirements are: appraisal, title insurance, survey, and builder’s risk policy.
9. Marketing – The entire last lesson was devoted to marketing. That’s how important this is. Market, market, market!
10. Integrity – In business, as in life, it is so important to have integrity. Simply put, you need to do what you say you are going to do. Everyone that you work with should be able to count on the fact that you are good to your word. In wholesaling, there are a lot of things that are out of your control – which it why it is so important to be careful of who you decide to do business with. But, always do what you can and people will want to do business with you. Remember, good news travels fast, but bad news travels faster.

Whether you decide to make wholesaling your main business or a part of your business, it is a good option for you!

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!

 

Wholesaling Houses: A Strategy For Real Estate Investors

Wholesaling: A strategy for investors that want to make $10,000+ every month!

Your exit strategy is an extremely important part of your real estate investing business. In fact, it is one of the most important parts. Sometimes investors get excited because they learn how to buy properties, they find them and they have the money lined up to purchase them, and they do, But when they get them, they have no idea what they plan to do with them.

You must know your exit strategy when you buy. What do you plan to do with the property? Knowing this allows you to make all types of decisions, from how much to offer, to what kind of financing to us, and more.

What is Wholesaling? 

It is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $15,000 on each house. In some cases it will be higher than $15,000 and on some deals your profit may be a little lower than $5,000.

Why wholesale?

Real estate investors choose to wholesale properties for a few reasons. They could be:

1. Quick cash – it is possible to turn a property around anywhere from 7 to 45 days and get cash in your pocket. If you need to get your hands on some cash quickly, this would be a reason to wholesale. Or, you may not need the cash immediately. You might just want to build your cash reserves. Wholesaling is a good way to do this quickly.
2. Too many houses – maybe you’re good at finding houses, but you find more than you need or can use at any given time. If this is the case, wholesaling is a smart move for you. You can still profit from your locating skills, even if you aren’t going to keep the property for your personal portfolio.
3. Flexibility – at any given time, you can determine whether you want to keep a property or sell it. This gives you flexibility as you locate and purchase properties.

Learn How To Wholesale Houses Like A Pro With Our COACHING PROGRAM HERE!