The Best Way to Get Started in Real Estate?
Flipping houses, aka wholesaling real estate, is by FAR the fastest, easiest and sexiest way to get started in Real Estate (AND quit a crappy job, AND achieve financial freedom, but we’ll get back to that in a sec). It’s a real estate investing technique that allows you to buy and quickly resell houses, even if you’re dead broke (we’re talking NO cash and BAD credit).
How much money can you make flipping houses?
A lot. That’s the short answer. But quite honestly, there isn’t an “average wholesale deal” or an “average” profit. As a wholesaler, you shoot for as much as you can. This will depend on the type of discounts you can find, and the demand in your market. Deals can be as small as $5,000 or as large as $100,00 (I personally haven’t hit $100k on a single deal yet, but I know someone who has). If you’re gonna force a number out of me, $10,000 is a good place to start.
Wait, wait wait…. So I can make 10 G’s without having or spending anything? What’s the Catch???
My mom used to say if something is too good to be true, it usually is. Those words often served me well (except for the $3 million dollars I could have made if I just sent that Nigerian prince my bank account number….dang it). But the advice also created a level of skepticism that kept me in the “go to school, get a degree, get a job, work a 9-5, live paycheck to paycheck, retire at 65, start living and then die” mentality.
The truth is, if you keep an open mind and actually learn, there are ways to get very wealthy, very fast (NOBODY in the history of the world has gotten wealthy by working a 9-5). You don’t need money, you don’t need a formal education, you don’t a real estate license and you definitely don’t need to be smart (ask me how I know that). Bottom line, wholesaling works, period. Here’s how – Put a property (normally a distressed property) under contract and assign or resell it to another investor who is paying with cash, lines of credit, or hard money loans. You’re a glorified middle man. Let’s use an example:
1. Find a house Worth $100,000
2. Agree to buy it for $65,000 (the seller has to be motivated to sell it fast)
3. Find a cash buyer who will buy it for $75,000 (they still get a great deal).
4. Use the end buyers money to pay the $65k to the seller, and keep the extra $10k as your fee
Sound like a scam….your grocery store does it everyday!
Okay, Okay, I got the concept, but tell me about the process…what are the steps? Thought you’d never ask. Click Here to watch an excerpt from my VIP training program that walks you through the step-by-step process.