I’ve been getting these offers on my email lately, so today it was a quiet Sunday morning and I finally opened it up and listened to the whole Schimel. It says this company will buy houses to flip at full value and they will split the 10% they make with you. No more looking for hard to find 65% of value distressed fixers and you will eliminate all the competition.
I was very curious how it all works. OK, this is how it goes, you find the properties online, they only want FSBO’s (for sale by owners). You turn over the address and contact info, this company does the negotiating for the lowest price possible, they furnish contracts and you have to meet with sellers and get the contract signed and meet again with buyer(s) at property.
They only want higher end homes so a 10% selling price over what seller is asking can be substantial.
It was a long presentation but finally they got down to coughing up the details and costs, if you want a lifetime membership and a successful high end house flipping business it will only cost you $2,000 upfront, or you can use their easy payment plan of 88 buks a month with a good down or take the $250 a month plan, this jumps the price to $2,500.
Now I’ve never been the smartest bonehead on the block, but this concept sounds like it will work, especially now cuz we got shortages of houses for sale in my area and prob most areas cuz construction starts have never been going full steam like back in the early 2000’s b4 the SHTF. The population is growing fast.
However I’m thinking, we can take this method and do it on our own without lining the guru’s pockets for his hyped up shitspa.
Now I cud scrape up 2 grand, but it wud be a kick in the gonads especially after I realized its all basic stuff.
So this is what I’m thinking… Find higher end homes in good condition that are FSBO’s, negotiate with seller and find a qualified retail buyer. It sounds easy as can be.
I’ve previously only wholesaled fixers with motivated sellers. Has anybody used this method? It seems very viable.
I need some feedback
Fearing becoming “Mr. Professor” here, the basic strategy of ‘buy high and sell higher’ is workable, but it normally requires EZ PZ terms on both the entrance and the exit. And when I say ‘EZ PZ terms’ I mean no conventional financing involved and very low-cost of entry. Never mind that higher-than-retail exit strategies nearly always require some sort of seller carry-back.
From what you described, I can only guess that these ‘partners’ are negotiating sub2 financing, and then reselling on terms, and splitting the buyer’s down payments with you.
You could do this yourself, but frankly, this is a hard-sell if you are focusing on FSBO’s.
I do these deals, and frankly, FSBO’s are not my most profitable, motivated clients. They’re confident about selling themselves. They think they’ve got options. They know they’re saving a commission by selling themselves …which makes them greedy for ALL their equity. Did I mention that all FSBO’s are liars? They lie and lie and lie. And they’re greedy.
I focus on listed deals instead, and work them down to FSBO’s …in a way that all the selling details are taken care of by ME, instead of them. Did I mention my one-page purchase agreement?
Another thing too, if the seller is carrying back any financing, there’s a whole specific way of asking for financing, that you’re not gonna discover without some experience (and/or training).
It took me forever to figure out how to get creative financing offers accepted. Most of it involved NOT pitching unmotivated sellers. However, the bruises and insults I got from the rest were worth it. Did I mention that all seller’s are liars …and it’s great catching them telling one, and frequently profitable?
I got a buddy named David H, he resides in Visalia Ca, he’s an experienced investor, now he just goes fishing and teaches fly fishing. Cuz he dont have to work… This is what he had to say.
Randy:
You are right you don’t need this guy/company. You already have all the skills and contacts.
Lot of hooks in the program, all the things a want-to-be-flipper lacks:
Full price easy deals.
No more 65% deals.
No more flaky deals.
Eliminate competition.
Only need internet deals, can work in pj’s.
They do all the work.
Furnish all contracts.
On and on, etc.
Last year (or 2-3yrs) I sent you a couple of brief summaries of where I did some higher end quick flip deals. I got $40K-75K or more per deal with little work/hassle and no re-negotiating the price at the last minute. Everybody was happy.
This crafty flipper guy/company is making most of his money on the upfront and monthly fee. Most want-to-be flippers that cough up the fee will never perform so it is free money he doesn’t have to follow through on a deal. PLUS, you are giving him all the local FSBO’s for free, running around doing showings, etc., so he doesn’t have to. IF it blows up because it is at or above retail, he can blame you. Cool program.
Forward the email or contact info, I’d like to hear/read his pitch. I probably have the same email in my junk folder if I haven’t already deleted it.
David.
Yes you can do exactly this and what javipa states #1 sellers lie lie lie and lie and #2 motivated
Maybe probate sfh would be better because more motivation.
Yes you can without the guy who sent the flyer to you. Good luck!