Posted by Jason-DTX on December 02, 1998 at 24:17:24:
In your example of a $55k house you would need to get it under contract for 15-20K and then sell it to another investor for around $25K and let the other investor do the work. That is more in line of what Legrand is talking about. You need to buy his course (or someones) before you go and buy a junky $55k house for $40k. Once you get the basics down from a good course then a title company will take you through a simultaneous closing.
You have the right way thinking - flips before renatls when you start out. Keep trying to learn as much as possible. Legrand’s material is excellent, it boosted my REI business tremendously.
Jason
I own one 4-family property but am starting to believe these guys when they say ‘tend to your cash flow first’, as in flipping properties. I just submitted my first ad for this coming Sunday, it reads, ‘AS-IS PROPERTY WANTED fast close, cash call…’, it will compete against about 10 other ads in the paper saying the same thing but Ron Legrand says we should all get calls… we’ll see.
Anyway, my question is… IF I find a home worth $55k after $3k fix-up, and IF I can buy it for $40k with 5% down ($2k), and IF I can sell it for $50k with 5% down ($2.5k), how does this transaction take place assuming that I have found a buyer before my original close date comes up? Do I take both contracts to a title company? Do I tell them not to worry that I don’t have the $2k, the buyer will give it to me?
I seem to be missing the magical step that actually constitutes a ‘flip’ or ‘simultaneous closing’. Sorry for the negative overtones, but my glass is usually half empty until I have seen the light!