Category Archives for Funding the Flip

How to Buy Bank Owned Property | make an offer that STICKS

how to buy bank owned propertyLearning how to buy bank owned property is a sure-fire way to increase your odds of wholesaling and house flipping success. Entire books and courses have been developed around this topic, so to keep this post simple, I will focus on the keys to making a successful offer that sticks.

The "Low-Down" on How to Buy Bank Owned Property

  • When making an offer on a bank owned property, the first step is typically to place all offers in the name of a trust. In this instance, the trust is the buyer of the property. You the investor are the trustee, and you will execute all necessary contracts and documents. This is important to understand because here at House Flipping School we preach using OPM, or other people's money to fund your deals.

If you need a refresher on why and how to use OPM, click here.

  • Once the purchase and sale agreement (P & S) has been fully executed and earnest monies accepted, the trust will have an equitable interest in the property. You will want to add your buyer to the fully executed purchase and sale agreement via an addendum. You can add your buyer as an additional trustee and/or as a beneficiary. As an investor, you have the ability to resign as a trustee and relinquish your beneficial interest. Of course all of these documents and your fee, can be held in escrow by your attorney until closing.

Are you confused yet? LOL Believe me I was the first time I read about how to buy bank owned property. Yet as with anything in life, the more times you go through this process, the more comfortable it becomes. Here at HFS.com we have a specific plan in the works for showing you exactly how to learn this sort of thing. Stay tuned this spring for some major changes here on the blog that are going to knock your socks your off.

Continue reading

How to Get Financing Flipping Commercial Real Estate

When flipping commercial real estate: how do you get financing?

Flipping Commercial Real Estate:

When we talk about flipping houses, usually we are talking about flipping residential properties. However, with the growth of the house flipping market, we've gotten more and more questions about commercial real estate flipping and especially how you would go about financing an acquisition that size.

In fact, a recent post over at Bigger Pockets has gotten us thinking that we should start getting into the commercial real estate flipping market.

When you make over $800,000 on a commercial real estate flip…we here at House Flipping School certainly take notice!

Special kudos to Brian Burke at www.praxcap.com for his awesome work - his post is a must read for any would be house flipper.

Traditional Bank Financing Pros and Cons When Flipping

Although we primarily advocate the use of other people's money (or OPM for short) to flip houses with no money, If you can get a traditional loan from a bank at a good rate and end up profiting on your house flip, you should definitely go that route first. However, with tighter lending restrictions now on residential mortgages, this can be a challenge. However, we do advocate going this route to start.

What we end up finding is that in most cases, it's just plain easier to Continue reading

2 Rules Everyone Must Know When Flipping Houses

If you're first learning how to get into flipping houses, you'll need to know these 2 critical rules...

how to get into flipping houses 2 rules

It seems like every week, I get a call from a former house flipping coaching student on deals they are looking to flip or buy, fix up and hold.

And on nearly every call, they are simply asking me if in just this one case, can they break the rules.

I end up giving them the same advice I gave them when I was coaching them on how to get into flipping houses.

No.

The house flipping rules they always want to break are not complex. In fact, they’re just simple set of rules that if you stick to them, they will keep you out of trouble. And I’ve used them time and time again on all of my house flips.

So for anyone learning how to get into flipping houses, if you stick to these two rules, you’ll Continue reading

How to Flip Houses Trading “Dimes for Dollars”

There’s no secret that I am launching my first House Flipping School coaching program in just a matter of days.

The truth is that when I started House Flipping School, I didn’t start it to make money.

In fact, I really wasn’t quite sure where it would lead.

I really just wanted to help people get into the house flipping and real estate investing business because I love it so much!

And quite frankly, I really just wanted to see where the whole website thing went.

I've made it no secret that I do one-on-one personalized paid coaching for local real estate investors - so in the back of my mind, I always wondered if there were others out there in the U.S and even internationally who I could help teach how to flip houses as well.

Five short months later and with 17,618 unique visitors (just checked it now  🙂 ), it seems kinda obvious that Continue reading

How to Flip Houses (Even When Your Market Is Too Expensive)

how to flip houses taj mahalI've  recently had a ton of questions from readers of this blog on how to flip houses when the 70% Rule may not apply to their market.

It may not apply exactly...but it does apply...even in expensive markets.

As you may recall, the 70% Rule is a standard benchmark used to determine how to do our house flipping math.

So let's get right into it and see if we can answer these questions...

How to Flip Houses: The 70% Rule Review

As you may recall, the 70% rule keeps you out of trouble when you're flipping houses. It also prevents you from doing "eraser math" when you're evaluating how to flip houses. I see lots of different ways to evaluate a property, but the 70% rule is the rule that I've always stuck with because although it does not exactly apply in every circumstance, it is an excellent benchmark to use to keep you honest and ensure a good profit on the property.

So for example, you've determined Continue reading

The #1 Secret to Flipping Houses for Profit

flipping houses for profit

Image courtesy of FreeDigitalPhotos.net

Establishing accurate projections is an integral component to flipping houses for profit.  If you become too confident with your projections or fail to run accurate numbers, then you risk not making a profit when the home is ultimately sold.

I really cannot overemphasize how important accurate projections are to my house flipping business, and I urge you to consider the impact that projections can have on your own house flipping business.

So without sounding too repetitive here, absolutely pay close attention to your projections-in particular pay close attention to the amount of time you are projecting to hold onto a certain property.

This is an essential variable to include in your overall cost analysis.

Occasionally I will hear about folks who claim they are flipping houses in 3 months (sometimes less!) and really flying through properties.  It goes without saying that this would be an awesome situation to find yourself in.

Yet how truthful are these claims and how feasible would it be for you to flip a house in 3 months or less?

Well lets have a look...

Continue reading

Partnerships and Flipping Houses

house flip

One thing that you'll notice right away in this business is that every deal is different.  The way you work your first house flip deal will most likely be very different from how you work your second house flip deal and so on.

For me this helps to keep this business exciting.  For you, deal making flexibility is important because it is possible (as we talk about a lot here on the blog) to flip houses without using your own money.

Instead of using your own money to fund a deal, you use other people's money - which we refer to as OPM.  Why would you use someone else's money you ask?  Well the most likely scenario is that you don't have enough money of your own to fund a house flip deal, which is of course A-OK.

Often times the best house flip deals appear and disappear very quickly.  If you have identified a good deal on a property using ARV, MOA and the 70% Rule, then the next step to take is action.

Continue reading

How to Secure Funding for your First House Flip Deal

If you've been following this blog for a little while then you probably understand that learning how to flip a house is not for everyone.  You really need to have the right kind of motivation, mindset and passion to get into this business.

As with anything there are many challenges and hurdles to overcome when you are new to the real estate investing business.  Believe me when I say that these challenges are very conquerable, yet they are challenges nonetheless.

One of the most daunting tasks for many newbie house flippers who want to learn how to flip a house is getting that very first deal together.  Quite a bit of work and preparation goes into making that first deal happen.  I should know, it was not that long ago that I myself was sweating over my very first house flip deal!

An important part of any deal is funding.  This is especially true when you are just starting out, because often times you may not have enough money of your own to fund a deal so they need to learn how to flip a house with no money. Many new to the business house flippers struggle with how to approach an investor and ask for money, when they really have no experience and lack a long track history of successful house flips.

Which leads to the question...should you fake it until you make it?

Continue reading

How to Flip Houses With No Money Down Exposing Yourself

how to flip houses with no money down exposing yourselfOne of the questions that I continually get asked is: “how to flip houses with no money down?"

I think it's because people see all the TV shows that show people how to flip houses with no money down and they really want to know if it actually can be done!

The problem is that they make it all seem so easy.

They say that anyone can do this, it doesn't matter if you have no credit, have bad credit or no money. They say anyone can do it.

Sounds like a lot of hype right?

How to Flip Houses With No Money Down...The Naked Truth

The bottom line is, you can learn how to flip houses with no money down...so the gurus and the TV shows have it half right.

Is it easier to flip houses if you have money? Continue reading

How to Flip Real Estate Using The 1 Secret Nobody Will Tell You About…

flip real estateWhen you first learn how to flip real estate, sometimes what you think will work and what actually works are not the same thing.

Sometimes when first learning house flipping, your gut instinct is oftentimes wrong.

This is why you need a house flipping team to rely on – a team that will help you work through some of the more confusing aspects of house flipping.

This team can help you with this because they have something you don't have...yet.

How to Flip Real Estate With "OPM"

Previously, we've talked about how to flip houses with no money using other people's money or "OPM" for short. In the same way,you can use other people's experience (OPE?) in order to help you to learn how to flip real estate – while minimizing your downside risk.

One of the most exciting parts of learning how to real estate is when you first get to sell the property. Finally, after months of Continue reading