those with success flipping properties: please help me get started!! - Posted by leslie mathis

Real Estate Investing
1

Posted by Stacy (AZ) on June 19, 1999 at 01:00:46:

Leslie-

As the title says, don’t get discouraged by what I’m going to say. I want to help.

You need to get a course before you try this. I can tell by your questions that at this point you “don’t know what you don’t know”. That’s OK! Just learn about it before you do it, and you’ll be set. All of your questions will be answered, plus several others you haven’t asked, if you educate yourself.

Scott Britton’s “Sure Fire” course is where I got started. Six weeks after completing his course, I completed my first wholesale deal and netted over 20 times the cost of the course. Ron LeGrand’s wholesaling course is good, as well.

I was where you are a little over a year ago. My advice is to learn before you burn. I know you can do it.

Stacy

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those with success flipping properties: please help me get started!! - Posted by leslie mathis

Posted by leslie mathis on June 18, 1999 at 23:02:14:

i am just starting and need to flip/wholesale to other investors to build my cash flow. i have no cash/credit to get started. i know this is a obstacle, but not a reason to say i can’t do this.

i do understand the process to a degree, but need some help.

i have questions that i need answered to help me get started…

  1. how did you find your hard money lenders? did they check your credit? do they make you put your own money in?

  2. how did you go about finding an attorney to work for you that understands real estate investing?

  3. do you have access to MLS? if so, how? do i have to go through an agent who will then expect commission upon my buying or flipping? if so, should i do this to get started?

  4. how do i find other investors to wholesale properties to?

  5. what realistic time frame should i look at from the time my contract is accepted until i can go to close when i flip to another investor (assuming i am not stalling with my responsibilities re: the deal)?

please reply ASAP, so i can get myself going…and thanks in advance for sharing!

leslie mathis

3

Re: those with success flipping properties: please help me get started!! - Posted by SCook85

Posted by SCook85 on June 19, 1999 at 15:52:32:

Leslie,
I answered these questions in my email but will answer them on the board for all to see.

First, Hard money lenders can be located by asking around. They are generally individual people, not banks or institutions. Ask other investors, ask attorneys, place ads in the paper looking for them. As I stated they are almost all individuals and there is not set way that they do loans. Some will check credit, some will want you to put money down, some will want appraisals, and some will want none of that, just value in the property.

Finding and attorney is easy, ask other investors or just call from the yellow pages and interview them. They will talk to you, they all want the business.

Yes you need a realtor to have access to the MLS. The comission is not your worry. When a property is listed the seller is the one who agrees to pay the comission out of the proceeds of the sale. This is an area that always concerns me when beginners feel that a realtor shouldn’t get paid. That is why they became realtors. They don’t get paid any other way but comissions. If they do these deals for you for free do you think they are going to keep doing them for you. The key to this whole business is relationships and if everyone that you work with is making money then you can bet they will all continue to work for you and grow with you.

You can find other investors by placing ads in the paper with properties for sale, by calling “I buy houses” ads, by going to investment club meetings, or going to auctions is one that I like. While with groups of other investors, don’t be shy, intorduce yourself and let them know who you are, ask how you can make money together. You will be pleasantly surprised most will be happy to talk to you.

Time frames for settlement will vary depending upon where you are located. It is feasible to settle in 24 hours in a perfect world but we all know the world is not perfect. In my area it takes 5 weeks in the city right now to settle because of lien sheets that have to be ordered and the city is backed up. In the county I can settle in about 2 weeks.

Hope this helps.

SCook85

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Re: those with success flipping properties: please help me get started!! - Posted by Tyler

Posted by Tyler on June 19, 1999 at 15:43:55:

Leslie,

I agree with what Stacy said about getting a course. I spent a long time trying to “piece together” all the info I got from here and there. Ultimately, it was a course that helped tie up all the loose ends of confusion. I strongly suggest you get one. However, here are the answers to your questions:

  1. how did you find your hard money lenders? did they check your credit? do they make you put your own money in?

Start by looking in the yellow pages, and in the classifeds of the local newspaper, as well as the thrifties. Most hard money lenders lend money on the house, not the borrower. They will typically lend between 50-70% LTV so that their loan is safe. Hence, most don’t care about credit…but I’ve found it always helps if you have GOOD credit. Some will want you to have your own money in it, but most won’t care. Again, it is the property they are most concerned with.

  1. how did you go about finding an attorney to work for you that understands real estate investing?

Referrals from other investors you talk to would be your best bet, otherwise just let your fingers do the walking.

  1. do you have access to MLS? if so, how? do i have to go through an agent who will then expect commission upon my buying or flipping? if so, should i do this to get started?

If you are focusing on MLS properties, then you will most likely have to find a good REALTOR to work with who will either give you info from the database, or allow you to access their computer. More than likely, especially in the early stages, it will be the first.
The agent will get paid a commission, but that will be built in to your sales price (seller pays them out of the proceeds).

If you are focusing on FSBO properties, then this won’t be an issue.

  1. how do i find other investors to wholesale properties to?

look for I BUY HOUSES ads in the papers. Place your own ad:

FIXER UPPER
Cheap, need all cash.
Serious calls only.
555-1234

This will flood your database with investors looking for the types of properties you will be flipping.

  1. what realistic time frame should i look at from the time my contract is accepted until i can go to close when i flip to another investor (assuming i am not stalling with my responsibilities re: the deal)?

It all depends on how long it takes you to find a buyer for the property. I’ve closed one in less than 24 hours.

Hope this helps. Read some of the articles in the “HOW TO” section of this site. Then order a course. THEN…go get rich.

Best of luck,

NT

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Re: those with success flipping properties: please help me get started!! - Posted by JohnB_NJ

Posted by JohnB_NJ on June 19, 1999 at 12:15:43:

Leslie,

I agree with Stacy. You need to educate yourself first. I found this website almost year ago. I read everything! The How to Articles will give you ideas and a desire to learn more.
I quickly knew what I needed to do first and that was generate cash NOW. And wholesale flipping is one of the easier ways to generate cash.
I started my education with Ron LeGrands “Fast Cash with Quick Turn Real Estate” course. It was well worth the money. After reading it, I got a bank REO tied up in contract and I also successfully negotiated a sandwich Lease Option on a FSBO. The REO property I flipped to a rehabber for a profit of just over $14000. The L/O deal provided me 3k up front, $100 per month cash flow and a $17,000 back end in one year when I sell them the property.
Wanna know the best part, I didn’t need credit or cash for either deal (ok i needed $500 bucks earnest money to tie up the REO under contract, but I borrowed that from my family). I acted confident and talked like I knew what I was doing (because I educated myself first), therefore the RE agent never asked for verification of funds on my CASH offer. And the FSBO never asked for any money either for the Lease Option.
OK, now I had 30 days to find a buyer for my REO deal. The very next day I ran this ad: LOOK (in large letters) Handyman special, 3bdrm, 1.5 bath, 1 car, Cheap, Cash, Won’t last, CALL
xxx-xxxx NOW! I recieved over 25 calls. Ok, some where tire kickers and looky loos, and some where seminar grads that wanted to flip my deal. I just qualified the person and I required them to put up 2k in Non refundable earnest money to make sure they were real. Well, i found 5 real player and I took the best deal. Now, Leslie, don’t throw away those others, because you can call on them again when you have another property. Always build you buyers list.

So, my main point is, you don’t need cash and you don’t need credit. Yes, if you have both, it gives you an edge but you can still find good deals without either. My second point is educate yourself.

And if you find a deal, post the numbers here and ask questions.

Good luck and the best of REI success to you.

John