Any pro flippers here willing to share…
- How you started…
- Who you learned from…
- What you recommend doing, if you had to start from scratch…
I started out learning to manage our family’s portfolio in Northern and Southern California. I took seminars on options from a guy in Florida, Nothing Down strategies from Robert Allen, and creative financing offers from Barney Zick. I also read a TON of books on creative finance.
Housing market was booming and I wanted in. I started out by seeking out a coach (not a shameless plug, but honest recant). I hired a guy who was flipping tons of houses each month in my city. Absolutely could NOT have done it without him. 7 years later, I’m making 5 times what I was making in my day job, and working less than half the hours.
My advice, do the same as me. Seek out a mentor. Pay the person (it’s an investment, not a cost). Learn the right strategies and cut your learning curve 90%. Be dedicated and determined and put in the hours necessary to make it happen. Enjoy the fruits of your labor.
A mentor is the only way to go if you are just starting in the business. I went to seminars where they were selling snake oil and not one single snake oil seller would take you buy the hand and show how to buy with no money down.
I can believe that. But there’s a difference between “no money down” and “having no money.”
When you say “hired,” what were you paying him, or doing, in return for the help and guidance? Is there one strategy that, along with the hours and determination you applied, you would recommend?
Great posts.
javipa I thought it was pass your bed time? :banghead
I scratched a check and split my profits 50/50. Today’s coaching programs are a bit more structured and often involves different levels. In those days, though, it was kind of crude. And my mentor wasn’t even a mentor… till I came along.
It is still crude out there. We see so many new comers that will read one book and think they are ready to make a ton of money and if you ask them how much money are you bringing to the table to get started they look at you and say the book i read say I don’t need any money.
Although I don’t do 3 flips/month … I started out by reading a few books and then jumping in with both feet. My first deal I searched for 4 months until finding a townhouse that had been condemned due to a fire in the townhouse next door. I contacted the owner via tax records and leaving letters on the door. I bought at 55% of ARV and spent $15K in materials and 5 months of my own labor rehabbing the property into very nice shape. I have kept this property as my first long term rental. After rehab I had about $70k in equity in the property and get about a 9% COC return as a rental. I’ve had it for over six years now and have no plans to sell. I’ve picked up 2 other properties for long term rental and flipped a third property since then.
Great tip maestro! I wish I would’ve spent the money on a mentor early on. Instead I tried learning everything on my own. It worked out in the end but would have been a lot easier and I would’ve been flipping a lot quicker if I would’ve seeked out a mentor first. But now I’m the mentor.
Everything is before my bedtime!!!
:biggrin :biggrin :biggrin
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when I was still in the us army
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mr legrand
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don’t waist as much time dealing with unmotivated people, and never try to rehab a house your self, even if its just 1 room. lol. :biggrin
Ron Legrand’s training is very solid and effective. :biggrin
Use automated systems that do the grunt work for you. It wasn’t until I found software that let me find buyers & sellers quickly did my wholesaling & flipping strategies really start to make me money. I realized early that every aspect of my real estate business that I could automate or outsource ran more efficient and more effectively without me.
I make it easy on myself and let a Realtor do all my work. A Realtor will find us deals before they hit the MLS and at a very good discount. Next week we are getting 100 SFR that was Indy mac properties, and 50 SFR from Bank of American…
Great point Rei Guru! To automate my wholesale business, I have hired unpaid interns to flip houses for me. I just teach them how and manage them. Now, I’m working with over 20 interns across the country and I don’t even need to flip houses myself anymore. It’s great!
Correct me if I am wrong. So you hire a intern to flip houses and you make a profit and the intern go home empty handed.
I teach the interns how to flip houses. When they flip one, we split the profits so both parties are happy.
I’ve spent a boat load of money on programs and seminars. I love to learn. What I’ve seen lately is everyone thinks they are coaches. They dangle alittle cheese infront of you and get you to buy thier crap that really don’t teach you crap. There are a few out there that don’t charge hardly anything and have some really good information, then there are some that charge a ton of money.
My opinion is just find the person in your city that is doing really well and see if they will teach you for a split. Most will. If you do all the work and all they have to do is advise you for half of the deal, man I would do that all day long. Plus you’ll be able to get in on his investors so once your on your own you’ll know who is buying.
“MAN I just had a great idea” I need to be a coach…LOL
That’s a great point. However, I don’t think it’s so much that there are a lot of bad programs out there that don’t teach you anything. It’s more a problem of the student no doing anything. There is no such thing as a “push button” coaching program that will guarantee you success. YOU have to use the information and go to work yourself. YOU have actually learn the materials they are giving you and take action. You can’t just buy a program and wait for something to happen.