I need help getting started flipping... - Posted by Misty

Posted by Michael Morrongiello on June 03, 2000 at 23:21:12:

Realtors have been accusing creative entrenpeneurs or investors with indiffernce for years, so what else is new?

There is nothing wrong with making a profit and using your know how to move property because a realtor has become myopic in deteriming the best way to move a property for their client.

I would not worry about what they think. Concern yourself with how you can assist a motivated & flexible seller and also help yourself.

To your success,

Michael Morrongiello

I need help getting started flipping… - Posted by Misty

Posted by Misty on May 16, 2000 at 10:53:07:

I have found several properties that would be perfect for flipping, however, I do not know who to contact about buying the contract. I need someone to help me through the process in depth. Also, is optioning the property for one price then selling the option rights the same as flipping. I don’t necessarily want to go to the title company and have to have the property put in my name, etc. The easiest way is the way I’d like to start, I just need a little direction and guidance until I am comfortable. I am ready to start, yesterday!! Also, I need to find who to contact around the NorthEast Texas area who would buy these contracts. Oh, one more question, I don’t need to have a title search or any other things done, correct?

Re: I need help getting started flipping… - Posted by B. Wade

Posted by B. Wade on May 19, 2000 at 21:20:53:

Sorry I dont have an answer to your question. I am also in the same area(TYLER TX.)Where are you.

Simple A,B, C, Steps to consider - “flipping” owner financed paper, - Posted by Michael Morrongiello

Posted by Michael Morrongiello on May 16, 2000 at 12:11:20:

Are you looking to “flip” real estate or paper?

Although there is some interelationship they are approach sligthly differently.

As for Brokering or Flipping Owner financed paper that is VERY feasible. Here are some steps to consider:

A) Find MOTIVATED and FLEXIBLE sellers who have equity in their home, (the more the better)and would rather have a fast sale take place for their home for CASH rather than a long protracted drawn out, listing it with a Realtor, waiting for a qualified buyer to come long,etc. scenario to unfold.

B) Find out what their Bottom line is for CASH if they can get it at closing?

C) Explain to them that you have a different, very effective and agressive way for them to sell their home for TOP DOLLAR by offering financing to the potential buyers. By offering financing they EXPAND the potential pool of buyers out there.

The perception among the buyers is equally favorable as well where many buyers simply do not want to deal with being put under a lenders “microscope”…

D) Right about this time - the sellers will tell you they “don’t want to hold financing, they want CASH”…

Here is where you patiently explain to them that you can pre-arrange to have their “financing” converted into immediate CASH, virtually at the same time that they sell their property. In fact if the #'s work out correctly, they will get the EXACT same amount of cash they might accept from an all cash buyer who comes along. The only difference is that by offering “terms or financing” they have accelerated the sales and marketing process dramatically in taking an Agressive aproach to selling their home.

The more traditonal way of listing their property with a Real Estate outfit, putting it in MLS, holding weekend open houses, running “cutesy” worded ads, etc. takes more time and often does NOT produce any more $$$ to them as sellers.

Your offering an alternative; You have funders or investors that will purchase there owner financed paper for CASH.

E) When a suitable buyer is found, with acceptable cash down, acceptable credit profile and credit scores, employment stability, etc. you finalize the sales details and obtain a “price” from your note funder for the owner financed paper. You then present a lower funding amount to the property sellers so that the amount of CASH they will get at closing from the sale of the owner financed note PLUS the buyers cash down payment is the CASH amount they indicated they wanted as a “bottom line” amount for selling.

F) At the time of closing the sellers deed’s to the buyer the property. The Buyer(s) execute a purchase money mortgage (deed of trust, contract, etc.) in favor of the sellers, and then the dust settles from this portion of the closing. The SECOND portion of the closing then takes place where the sellers execute an Assignment of their rights in that purchase money instrument to the note funder who funds them the amount of cash agreed to.

Your “FEE” for putting this together is the difference between what the note funder pays for the note minus what the sellers are willing to accept as a cash amount. This is often called your “spread”.

You have NO cash invested, you are NOT taking title to the property, you are NOT legally liable to close, Your fee is NOT disclosed (since this is a Non RESPA secondary market transaction) to the sellers, and you earn a profit for orchestrating the transaction.

In its simplistic presentation, this is Exactly what a good reliable, creative, note funder can do with you.

As we all know, there are plenty of property owners who simply want to move on with their lives, IF and only IF they could sell their properties FAST for cash. You now have one means to accomplish just that for those individuals. Happy Hunting!!

To your success,

Michael Morrongiello

Re: Simple A,B, C, Steps to consider - “flipping” owner financed paper, - Posted by Mike Reilly

Posted by Mike Reilly on June 03, 2000 at 19:33:30:

Would realtors reasonably accuse Misty (or me if I were to use this method) of helping an owner sell their property to a third party; thereby performing the services of a real estate broker?
She wouldn’t be a formal agent of the seller, but wouldn’t she be performing that service?

If this is legal, it sounds intriguing.

Re: Simple A,B, C, Steps to consider - “flipping” owner financed paper, - Posted by Craig

Posted by Craig on May 23, 2000 at 17:14:24:

That is the absolute best and most truthful description of what a simutaneous closing can do that I have ever read or heard. Most of the time I hear note brokers talking about it offering “easier financing” than is available through traditional subprime sources. This is also the way it ought to be explained to mortgage brokers and realtors if ever trying to work with them. Thanks Michael.