Wholesale Flipping - Real Estate Investor or Employee? - Posted by Doug Pretorius

Real Estate Investing
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Posted by Stacy (AZ) on April 05, 2000 at 12:12:18:

Hi Tyrone-

There are two articles by Jackie Lange in the how-to section of this site. These will give you an idea of the process. Also, there are some courses that get deep into wholesale flipping. I would recommend that you get one of them. I started with Scott Britton’s “Sure Fire Quick Start” course, and I also have Ron LeGrand’s wholesale course. There may be others. You should also search the archives and read everything Steve Cook has posted. I’ve never heard of anyone more successful at flipping than Steve, although I think he now does many other types of deals. If you email him, maybe he would give you his suggestions as well.

Good luck-

Stacy

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Wholesale Flipping - Real Estate Investor or Employee? - Posted by Doug Pretorius

Posted by Doug Pretorius on April 04, 2000 at 22:35:28:

Just thought I’d post something to argue about.

I’m sure flipping wholesale is a good thing while you are short of cash in the beginning, and turning those quick profits into long-term cashflow (like notes and rentals.)

But what if you just keep right on flipping, spending, flipping, spending. Aren’t you then a real estate employee rather than an investor?

I’ve seen a few posts from individuals who talk about flipping until they can consistantly pay their bills (with flips.) But there’s no difference between that and getting a raise, or a higher-paying job (and that usually ends badly.)

I just think that the fact that another investor is going to make a profit (perhaps the lions share) should make you wonder: “Why am I giving all that profit away?”

Thanks for listening :wink:

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Real Estate Investor or Employee? - Posted by Tim

Posted by Tim on April 07, 2000 at 11:17:33:

Doug,
I came to the same conlcusion. I am currently self employed as a music teacher. The problem is, once the school year ends, so does my income. I’m am trying to learn everything I can now about flipping to pay the bills in the summertime. Another consideration for me is to aquire rental properties and use the income from those as an investment fund (stocks, mutual funds, etc.), while continuing to flip properties for cash. That way, I can be both an employee of real estate, and an investor who is benefitting from it.
Tim

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Re: Wholesale Flipping - Real Estate Investor or Employee? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on April 05, 2000 at 01:39:25:

Doug, nice debate topic.

Flipping wholesale is how I got started, and got my feet wet in the biz. But, with my feet soaking wet, I realized I COULD be successful. As Ed Garcia says, the street is the best instructor. With the basic knowledge of how closings work, how to attract sellers, how to romance a seller, how to attract buyers, the recorder’s office, estimating repair expenses, how to make money on the BUY, contracts, taxes, etc, etc, I was ready to branch-out into a different avenue. After I achieved competence in that avenue, I was ready to add another. The ultimate goal…transaction engineer, able to make deals in several ways.

So, flipping is a stepping stone in my mind, although my last deal was a wholesale flip. I can always make a few quick bucks if a flip opportunity presents itself, even though I am currently pursuing rentals, or L/Os, or notes, or wraps.

In my opinion, it’s the best place for a new investor to start. I think in the Cash-Flow Quadrant Kiyosaki would classify you in the “S” self-employed quadrant, or the “B” business owner quadrant if you were very successful at flipping properties. Not necessarily in the “E” employee quadrant.

My goal, of couse, is the “I” investor quadrant. Everything, in it’s time.

Stacy

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Re: Real Estate Investor or Employee? - Posted by Doug Pretorius

Posted by Doug Pretorius on April 07, 2000 at 12:08:46:

That sounds like a good plan. Just be sure to invest most of your flip profits into IGAs (Income-Generating Assets) so that soon you will be free to work or not to work (is that the question?) at your music job, or your RE flipping job.

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Re: Wholesale Flipping - Real Estate Investor or Employee? - Posted by CurtNY

Posted by CurtNY on April 05, 2000 at 12:09:15:

Stacy & Doug,
What is this “S”, “B”, “E”, “I” all about. Can you clue me in. Sorry if this is a dumb question.

Thanks
Curt

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Re: Wholesale Flipping - Real Estate Investor or Employee? - Posted by Doug Pretorius

Posted by Doug Pretorius on April 05, 2000 at 08:35:15:

That’s a good point. I wasn’t thinking of it from the cashflow quadrant perspective. I guess a ‘flipper’ would be an ‘S’, but a ‘B’? Unless you have people who find the sellers, the buyers, make all the arrangements and you just sign on the dotted line… I’d hardly say you’d fit Robert’s description of a business owner.

As for you personally, hey! I figure if you’ve got even one note or rental you can consider yourself an investor :slight_smile: As long as your focus is on ROI.

Thanks for your reply!

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Re: Wholesale Flipping - Real Estate Investor or Employee? - Posted by Tyrone(NY)

Posted by Tyrone(NY) on April 05, 2000 at 03:50:18:

Stacy,

I am currently looking to get started “flipping”. i am also looking for a way to make some quick cash for myself at first.How do you suggest i get started.any info would help.thx

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E S B I - Posted by Doug Pretorius

Posted by Doug Pretorius on April 05, 2000 at 12:55:30:

It’s from Robert Kiyosaki’s book Cashflow Quadrant.

E = Employee
S = Self-Employed
B = Business Owner
I = Investor

Robert explains that these are the 4 types of people in the world, and talks about their mentalities.

An employee says things like: “I want a nice safe job.”

A self-employed person says: “I charge $100/hour.” or “I charge 6% commission.”

A business owner as opposed to a self-employed individual, can leave their business for a period of time and come back to a stronger company, rather than it falling apart because they aren’t there.

An finally an investor is interested in just one thing: Return on investment. “How fast am I going to get my money back?”

Hope this helps!