| I remember when I was first interested in getting | | | | Essentially this is wholesaling or flipping as people call it |
| into Real Estate 10-15 years ago and I read a bunch | | | | now. To me this is far better than owning and |
| of books I picked up at Barnes and Noble. Every | | | | renting out properties, at least in the beginning. Now |
| book I bought was about buying property cheap and | | | | why is that? Both make you money and with owning |
| looking at the rental numbers to justify the purchase | | | | at least you don't have to constantly look for new |
| price. As long as you could pay the mortgage, | | | | properties. This is true but with flipping you don't |
| insurance, taxes, maintenance, deal with occupancy | | | | have to worry about renters, damage or any of the |
| rates and still come out ahead it was a good deal. | | | | hassles of being a landlord...even if you use a |
| Come out ahead $100+ a month in rent and you | | | | management company to deal with it all for you. |
| were set, rents would raise each year and eventually | | | | Now, I know being a landlord is not a bad and you |
| you would have enough equity to borrow off your | | | | can make a lot of long-term money off it but in the |
| property to get a second home to rent. Several | | | | beginning for an investor flipping is FAR better. With |
| years later you could retire and live off the rental | | | | owning you have risk and hassle, with flipping you |
| income! Yay, financial independence... way better than | | | | can essentially have zero risk and faster profit. |
| working for the man! Or so I thought... | | | | Getting 3-4 flips in a month is not unheard of and at |
| That is always how I felt and I thought that was | | | | an average of 5-10K a flip you can make much higher |
| how I wanted to start "when I had the money" to | | | | profit. If you are unable to find a buyer, you simply |
| buy the first place. That was until I bought a book | | | | invoke an inspection clause and say your "silent" |
| by Robert Allen with creative financing and getting | | | | partner didn't approve of the sale and you get your |
| properties with nothing down that I first heard of the | | | | deposit back. What you will find though is that when |
| terms of contract assignment and the ability to | | | | you find motivated sellers, you can easily negotiate a |
| "control" a place but not purchase it. This was like a | | | | contract with no earnest money deposit, it happens |
| light bulb and suddenly I learned everything I could | | | | all the time... very nice! |
| about this new way of investing! How is it possible to | | | | It so much easier to be a landlord after you have |
| do such a thing and how could it even be legal? Trust | | | | 100-200K in the bank than it is when you first start |
| me it is and it has been happening for many years | | | | out. Flipping is the easiest, least risk way to start out |
| but now it is almost a normal way of doing things. I | | | | in this business and can generate a lot of profits |
| read more and more on it and it was exciting to hear | | | | quickly. It is more profitable than being a bird dog |
| of people finding someone getting a huge deal on a | | | | with the same risk, less risk and effort than |
| home, had NO money but still signed a contract to | | | | rehabbing and far less hassle and risk than landlording! |
| buy as if they did. Then he would simply find a buyer | | | | Plus, add in the benefit of being able to do it while still |
| for the same property at a price higher than what he | | | | having a full time job and it is the natural way to get |
| signed the contract for and during closing he would | | | | started and transition yourself away from working |
| get paid the difference... nice! | | | | for the man...amen! |