April 16, 2014
April 9, 2014
If there is a question that I get more often is “How do I flip houses without money?”
TV shows make it look like it’s very easy to flip houses without money but in reality it is not. While it is not easy, you can learn how to do it. I do it all the time. In fact, I hardly ever invest any of my money in most of my house flipping deals.
It is definitely much easier to flip houses when you have your own money especially if you are a beginner. But there are many ways that you can find funding sources to give you money for flipping houses.
Which Comes First? The Money Or The Deal?
There isn’t a wrong or right answer to this question. If you get the money before you get the deal, you have to look for a deal very fast. Similarly, if you get a good deal with no money, you will need to work fast to get the money.
It’s a very tricky situation. If you say you cannot do a deal because you do not have money, then you will never do the deal. If you say you cannot get [click to continue…]
April 2, 2014
There’s much to learn for house flipping beginners especially about making a profit in their deals.
Contrary to what many people would have you think, house flipping is not easy. Reality TV shows on house flipping make it seem like it’s easy but I can guarantee you that you cannot learn how to do it in a single day or by reading one blog.
The best way for house flipping beginners to learn the business is by doing it on their own. They will make mistakes along the way but experience is the best teacher.
Thankfully, you can shorten the learning curve by learning these six crucial profit making steps for house flipping beginners.
House Flipping Has Many Definitions
Before we get to the crucial steps, you first need to understand what house flipping is.
When people refer to house flipping, they immediately think of [click to continue…]
March 28, 2014
Many people have had terrible experiences with wholesalers in house flips but are they all the same?
I have to confess that in the many years I have been flipping houses, I have purchased properties from wholesalers. Some of my best deals were sourced from wholesalers. Up to date I still use wholesalers.
When I first started out, I had a hard time differentiating between the good wholesalers and the bad ones. I made my fair share of mistakes and I believed that a majority of the wholesalers were honest people. I wasn’t naïve; I just gave people the benefit of the doubt.
I have met many wholesalers who I wouldn’t think twice about doing business with them. After being in the industry for a while, you get to know who is who in the industry.
Are Wholesalers Simply Misunderstood?
I can tell you for a fact that if you do not have enough money, wholesaling is a great way to get [click to continue…]
March 26, 2014
I loved playing in the dirt when I was a kid. My mom would swing open the door and I would rush out straight to the sandbox. Since I loved playing in the dirt so much, my favorite cartoon character had to be “Pig-pen” from peanuts.
I still love getting dirty today but I love getting dirty when flipping houses. Getting dirty while making money is much more fun.
How To Flip Houses Getting Dirty
Perhaps you’ve wanted to start flipping houses for a while now but many things have discouraged you. Perhaps you lost some money the first time you tried, or you don’t have enough money to fund your flip or you just do not know how to find a house to flip.
Right now you have to put all that behind you and learn from your mistakes. This is the time to get dirty and start flipping houses.
Research Houses To Flip
It takes a lot of research to find that first house you can flip. Unfortunately, this is the stage where many people get stuck. They uncover a great house but never take any action.
Doing research helps you cover your bases but you have to also get out there. Googling on your computer all day will help you find a nice house to flip but [click to continue…]
March 19, 2014
My kids love showing me “Epic Fail” videos on YouTube. They are the most viewed videos on YouTube simply because people love seeing other people failing at something they are doing.
The videos range from wardrobe malfunctions to the Brazilian soccer goalie that kicks the ball in the opposite direction. These “Epic Fail” videos are even more popular maybe because people watch and say “thank goodness that wasn’t me”.
I hope people watch those videos because they want to learn from other people’s mistakes and not just for amusement. Humans typically learn more from failure than from success and the same case applies to real estate investing.
It’s not possible to hit a home run on every house flip and you are bound to mess up in one deal or another. When one house flip fails, you just have to pick yourself up and learn from your mistakes.
The Importance Of Not Breaking House Flip Rules
I have to admit that I do not follow my own advice sometimes. One of the rules I have broken is the one that says [click to continue…]
March 12, 2014
I received an email from someone who wanted to know how to overcome the fear of flipping houses. He wanted to know which house flipping rules you should never break.
I was tempted to refer him to the three secret steps to real estate investing success but I decided to give him the block and tackle stuff.
I still get questions such as Hey Mike, can I break the rules this one time? My usual answer is NO.
I understand why many people prefer to break the rules but when it comes to house flipping, following the rules is not an option but a necessity. Not only do they keep you out of trouble but they can help you analyze hundreds of deals.
I like to stick by two simple house flipping rules not because they can solve the Middle East crisis, unlock the secrets of the universe or help further unravel the human genome but because they can help me stay in the money with my flips.
Is House Flipping A Numbers Game?
When it comes to flipping houses it is not just all about numbers. After a few years experience, when you have done dozens of house flipping deals, you’ll start to understand when you can and cannot [click to continue…]
March 5, 2014
In this post I will share with you three secrets of real estate investing that you probably did not know about.
It all started a few years back when a movie called “The Secret” came out. Everyone was talking about it including Oprah. I poked fun at the movie because I thought it was a load of hogwash and had all this touchy-feely stuff from a crazy Aussie woman named Rhonda Byrne.
But then my wife decided to get me an audio book for the movie. Since I didn’t want her to keep bugging me about it, one day I decided to listen to it while working as a flooring installer.
It was a time when I was still deciding which direction my career should take. Working as a floor installer was lucrative but I wanted to pursue real estate investing because that’s where my passion was.
Listening to the audio helped me pursue my passion and I haven’t looked back ever since.
Mind Control Is Very Important
When coaching new students, the first thing I tell them is [click to continue…]
February 26, 2014
A solid cost projection is one of the most important things that you have to establish if you want your house flipping deals to succeed.
One of the biggest costs you will incur for the entire project, other than purchasing the property, would be expenses. If you become too casual in how you handle your financial projections, you will land yourself in big trouble.
Murphy’s law states that “whatever can go wrong, will go wrong.”
Murphy’s law applies not only to many areas of our lives but it also applies to house flipping. You can handle Murphy’s law by expecting, anticipating and planning.
Time Is Not Your Friend
When flipping houses, you should try as much as possible to [click to continue…]
February 19, 2014
Have you ever gotten emails from real estate investing “experts” claiming they can help you make a huge profit on one house flip?
I have and I can tell you that they are nothing but hype-filled emails. What I’m about to tell you is not hype but a fact.
I made $56, 135 in one house flip.
I too couldn’t believe it but I can tell you for sure that it’s possible to make such a huge profit and even more from one house flip.
Sick And Tired Of Over-Hyped Headlines?
I’m tired of gurus who over-hype their messages and claim to know the secret to reaping huge profits from real estate. I won’t dwell so much on this topic but just to be clear, I don’t usually make $56, 135 on single house flips all the time.
Typically, I make around $20-30, 000 which is not a bad figure at all. 14 months before I made my $56, 135, I’d made a profit of [click to continue…]
I was curious about what really fuels the fear of real estate investing so I did a little survey on real estate investors.
I’ve done lots of survey and talked to lots of new investors about what prevents them from getting started investing in real estate and house flipping in particular.
So at the last few House Flipping School MeetUps, I’ve been asking new investors what’s holding them back.
I expected that some of the answers I would get would include:
- I’m too broke to start
- Deals are hard to come by
- I don’t know how to rehab a house
- I can’t tell whether I have a good deal or not
The answer I got completely took me by surprise; people actually were afraid of getting into real estate.
[click to continue…]