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Want to learn how to start flipping houses? This edition will enlighten you on not just how to start, but also on what it takes to rise in to the top 3% success stories in the game of flipping houses.
There are 2 types of business model in flipping houses.
1. Real Estate Wholesaling
2. Real Estate Fix and Flips
They go hand in hand together to create the ecosystem of the real estate investing business.
For this lesson, I want to focus on the real estate wholesaling model because it is typically how most people started in the business.
As a real estate wholesaler, your job is to find and identify deals for the investors who do the fix and flips.
NO CASH and NO CREDIT in flipping houses starting with this strategy.
What do we consider a deal as real estate wholesaler?
An offer that was accepted at 65% of the After Repair Value (ARV) of the property MINUS the estimated cost of repair is considered a deal.
All you have to do is put it under contract; by doing so, you've acquired an equitable interest or rights that you can assign or FLIP to a fix and flip investor or end buyer for a fee.
For example, if a property is worth $100,000 after repair and it would cost $12,000 to repair, you maximum allowable offer (MAO) on the property is [($100,000 x 65%) - $12,000] = $53,000.
Have the motivated seller sign a purchase contract agreeing to sell you the home at $53,000, then sell the rights to this contract for $10,000 to an end buyer.
An end buyer then pay $63,000 for a $100,000 home, spend $12,000 on repair making cost a total $75,000. They can potentially sell at $100,000 minus closing cost.
Flipping houses is an all round profitable business model that benefits all parties including the motivated seller.
WATCH ME IN ACTION AS I HUNT FOR THIS DEALS IN THE VIDEO.
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ABOUT YOUR HOST ::::|
Ola "Tux" Abitogun is the Creator of myEmpirePRO. He became a FULL TIME entrepreneur in October 2006.
He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents. He considers himself a proud Nigerian American.
Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur. Most importantly, he is husband and father to their 2 Boys. The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.
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