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Anyone interested in a BH Real Estate guide?

Discussion in 'Making Money' started by hotstox, Sep 23, 2008.

  1. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    I figured this was the best place to post this (mods sorry and please move if it is not). I have tossed this idea around for over a year now, and have brought it up with a few friends/partners from this very site a few times and the interest seems to be pretty high from them.

    As a few people here know I love real estate. I am not an agent/broker, and I have NEVER closed on a house that I have made an offer on. What I do (and what I love) is flipping the contract. Finding ugly beat up houses, making lowball offers, and once accepted flipping my interest in the contract over to someone who wants to actually close on the house and flip it to a retail buyer. This is also referred to as Wholesaling/Assigning in the REI world. Steve Wynn (think Golden Nugget casino in Vegas) supposedly got his start by flipping the contract on a parcel in Vegas for a cool million in profit.

    What makes this Blackhat? Flipping a contract is NOT Blackhat. It's perfectly legal, and is only a creative way to make money from literally nothing. Most investors however fail to take advantage of loopholes and weasel clauses to bring there exposure on a deal/offer to ZERO. Most investors have no idea how to flip the contract on a foreclosure/bank owned property. They require you use their contract typically, which has a clause preventing you from using the traditional and/or assigns method. Most investors have no idea how to use "weasel clauses" to prevent them from having to close on a house in the event they cannot find an Investor/Buyer.

    Today I had an offer accepted on a house for $79.5k. I made the offer without ever looking at the property (I know the area very well), and I already have an investor willing to pay $83k cash. By locking up the property up with a contract I force the buyer to go through me, and I get to keep what's in the middle as my assignment fee. It may not be much, but I have maybe 3 hours invested in the deal and NO MONEY OR EXPOSURE and I never left my home to work on the deal.

    I am not a guru (most gurus have no idea what is going on in todays REI world anyway). This is just something I love doing and love talking about.


    What I am looking for in this thread is a general interest check, suggestions on pricing and materials offered, etc. I will probably end up writing a guide either way, but it would be nice to know WHAT potential buyers would like included. I would likely want to pair it with coaching through the phone/IM so I would keep the availability small. Here is a small list of what I am sure I would want to include in the guide.

    The Mechanics of Flipping a Contract (Everything from Offer to Closing explained)

    How Much to Offer
    (formulas, strategy, etc.)
    Where to Find Deals
    Cover Your Ass (various weasel clauses and methods for limiting exposure)

    How to Find Buyers (someone has to close on that contract)
    Marketing (everything from direct mail to more balla on a budget type forms of getting sellers to call you)
    How to Flip Bank Owned Foreclosures (how to beat "unflippable" contracts)
    Negotiating (how to extract the most money from the buyer and the seller)

    One thing you have to understand is virtually ANY contract can be flipped. This covers everything from beat up trailers to ginormous apartment complexes. Your job is to find a good deal, and wedge in enough room for you to make a modest profit while still keeping the price reasonable for the Investor/Buyer to profit.

    I have read countless Real Estate books. I have bought books/courses specific to flipping contracts, and until I actually started doing my own research and gaining experience/mentors I was overwhelmed and confused. This book will be have no fluff, no up-selling, easy to understand and apply techniques. My goal is to have you comfortable enough by the end of the guide to go make an offer on at least one property that day(though one thing I can't sell you is balls, some people just CAN'T make a lowball offer, and some can make hundreds a day). EVERY guide/course I have ever bought/read really just left me with more questions (that oddly enough could be found in their next book lol).

    I realize this is not SEO, or IM at all, but I have had plenty of balling blackhat guys ask me about this. It is never a bad idea to have an offline source of income (that you can do from home as well).

    As I said nothing is set in stone (and I am pretty busy right now) but if there is enough interest I would really love to make a guide on this.
     
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  2. deth_by_uv

    deth_by_uv Power Member

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    I have an uncle who had me looking on rapidshare for some steve wynn and wholesaling, he even took a $3k investment class to learn all the stuff...

    I'd be interested!...
     
  3. themagician

    themagician Regular Member

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    '..I sold real estate in Marbella and the Canary Islands for almost twenty years and I am about to go back into marketing and selling luxury properties in Thailand. (High-end $1million + properties are selling well here)...so this could be of interest to me, however, the rules of the game will certainly be different in Europe and Asia to the U.S.

    I am not sure you will find a big interest here, but who knows?

    Real Estate is a niche many overlook and could be an especially good earner in the next few months if there is to be a property crash.

    When selling my property in the Canary Islands before moving to Thailand I was incensed by the lethargy of the agents and so sold the property myself.

    This gave me the idea to write an eBook on selling your own property but so far I have not had the time.

    Let me know if you decide to go ahead with this'.

    themagician
     
  4. laptopdiva

    laptopdiva Junior Member

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    Sounds interesting. I've always been fascinated with the flipping method
    but don't know enough, and don't know where to find the information.

    I always thought you had to buy, fix and sell. I'd be interested.
     
  5. Free_Ebook

    Free_Ebook Registered Member

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    Real Estate need a lot of investment of $$$$$.

    There is a game called Cashflow, it's all about passive income. Maybe you can try it.
     
  6. areyouserious

    areyouserious Registered Member

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    Go Cubs...

    I mean, yes I would be highly interested in your guide.

    Seriously
     
  7. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    I really think you missed the point of the entire first post. You can do this with no cash, credit, etc. Glad to see at least a small interest. People who said they would be interested would you be more interested in just an ebook, or a product that paired an extensive guide with coaching and a forum or something.

    And yes GO CUBSSS
     
  8. scubaslick

    scubaslick Regular Member

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    That's why when you flip a contract you flip it somone who... wait for it... HAS A LOT OF INVESTMENT MONEY. [tadaaaaa!]

    That's why they're called investors.

    Cashflow is a fun game, but that's not really the point of this thread.

    OP - No interest in the flipping thing for me, too many other projects on the plate, but I've made a few bucks in other times doing this. It can be very easy, it can also be a monumental waste of time when the economy gets very bad (as it is getting now) because investors have lots of people bird dogging for them.

    If you can show people where to find desperate sellers and how to actually convince them to sign with you, and where to find investors to take the properties off your hands, then you might have a goldmine on your hands here.

    If it's just "First you find a desperate buyer, then...." and contract information, you're going to have a lot of pissed off people on your hands.

    The hard part isn't the contracts, it's the contacts.
     
  9. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    Scuba you are spot on with your post. That is why I am interested in doing this project. Every course/book pretty much says that, and it really pissed me off. This would be more in depth (where to find sellers/deals, how to find buyers that close fast, etc). Methods and techniques I have picked up from veteran investors, and just over time. You wont find these methods in a book.

    Also right now is a great time to get in on flipping bank owned property contracts. Not alot of people know how to, and banks are always eager to get that bad debt off their books. Im working on flipping this short sale right now that is actually a property in another state, that I have never seen (never even been to that state). I have an investor ready to buy out the contract for 10k, and I am just waiting on the loss mitigation guy from the bank to get the green light.
     
  10. wiredmom

    wiredmom Executive VIP Premium Member

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    ohh memememememe! Interested in either ebook or the other more intensive one. I love real estate.
     
  11. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    Biggest problem I would have is pricing it wired. Writing it, coaching and all that is easy. Some courses sell for 20k, some gurus offer private coaching for 50k, some books sell for 20 bucks. Since I plan to keep it small if I go the coaching route I don't want to sell myself short, but want to keep the pricing reasonable.
     
  12. mrwho

    mrwho Junior Member

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    I'd be interested in this if you decide to go through with this....Always wanted to learn the real estate game
     
  13. Florida Dish

    Florida Dish Newbie

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    Count me in if you come up with a guide.

    This is certainly an interesting field with lots of opportunity these days.
     
  14. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    Thanks for the input so far guys - help on pricing would be greatly appreciated.
     
  15. whynot

    whynot Registered Member

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    Couldn't you price an ebook at $97 that has everything including a "real life" example of what you do from start to finish. Tell it like "this is what i did" rather than "this is what you do". A proper walkthrough of one of your transactions.

    Then have a membership club/forum $297 p/m that offers live support and help with live databases of potential sellers/buyers.

    If you had this i'd be interested.
     
  16. hotstox

    hotstox Jr. VIP Jr. VIP Premium Member

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    Everything you said is very possible, however there is no way I could provide you with leads for houses. A) They move fast, B) If I had leads in your area I would be flipping them myself to investors in your area.
     
  17. AnImALmoTheR

    AnImALmoTheR Junior Member

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    i worked as a real estate broker for 2 years and also worked in government owned real estate companies.

    i actually went on a 1 week course in Marbella on selling property in spain. (never worked there) i have some family around that area and my best friend have a bar in Fuengirola. So i go there from time to time.

    it seems like we share alot of interest mr magic man, we should maybe change some idea's and thoughts :)

    R!
     
  18. siberia77

    siberia77 Registered Member

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    I'd love to read such a guide. In the long term, nothing beats property as they just aint making any more land folks!
     
  19. cparainmaker

    cparainmaker BANNED BANNED

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    I would be pretty interested, sounds good.
     
  20. wtfdididonow

    wtfdididonow Newbie

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    Me too!! Very interested!!!!!!!!!!!!!