Posted by Houserookie on August 16, 2002 at 01:58:06:
I used to attend the ones held by Delta. I stop going after hearing the veterans (old folks ) talk about strategies and techniques from last century.
For you big-time flippers: - Posted by Justin (MN)
Posted by Justin (MN) on August 13, 2002 at 21:59:06:
I’m seeing this 75 figure for flips a year. I need to know how this is possible! I have my 10 year financial goals just set - included is 10 flips a year. I’d like to readjust! Almost 2 per week? Good gravy! It’s just a little hard for me to fathom.
Justin
How about partners? - Posted by Justin (MN)
Posted by Justin (MN) on August 14, 2002 at 13:17:20:
Just out of curiosity, how many of you use them? Did you start out with one? I know eventually, I would like to have a few - someone to run out to the hardware store when I’m too busy, or to call the lawyer about a question on property #12, etc. The only partner book I have is the one Sheets put out. Any good books out there? Maybe one that Bruss gave 12 stars to? laugh
Re: For you big-time flippers: - Posted by Houserookie
Posted by Houserookie on August 14, 2002 at 09:29:36:
Hi Justin,
I close about 2 deals a month with average profit around $19,000 but never lower than $7K.
100% of my deals are in retail flipping so I can’t speak for rehabbers, l/os, wholesale flippers, etc…
I don’t ask what peole want for their homes, in fact, I don’t really care what they want. They’re not buying it.
In the old days ( …about three years ago ) I used to get very excited about making offers and too confrontational over why sellers want as much as they do. And then something happened that totally changed my life. I’m starting to sound like an infomerical now. : )
I realized that most sellers never get close to what they want.
So I learned how to make conditional offers…that’s when I use a declining scale.
For example, I’ll offer $250K for property A if an agreement can be made by 8/15. $240K by 9/01. $230K by 9/15, I’ll take over payments and pay off your loan for you if after 10/01, etc., etc…
I don’t mess with sellers under the 200K range. My experience has been that they tend to over-analye the pennies and overlook the big $$$$$.
I’ll let them wait six months for a sale ( maybe ).
When they are ready, they’ll call me, but at least my offers are on the table.
Austin
it’s quality, not quantity - Posted by michaela-ATL
Posted by michaela-ATL on August 14, 2002 at 07:12:49:
you have just as much work doing a deal for 2k profit as for 20k profit. i personally look for major rehabs with profit margin of 80-100k. (the house i live in now has about 175k profit, but a lot is still stuck in it 
)others may do 5 or 6 small rehabs to see the same 100k, they may stress out more, but they have faster cash turn-over. it’s all perspective
just my thoughts
michaela
Re: For you big-time flippers: - Posted by JoeS
Posted by JoeS on August 14, 2002 at 06:18:13:
When I first started out 8 years ago I tried to buy and sell everything I could get my hands on! I had rehabbers, wholesalers and retail buyers lined up (very important to do!) and could buy a property in the morning and sell it by the afternoon. Very profitable, or so I thought.
Now I do 1 rehab a month and I try to do 1 or 2 assignment deals also. This way I no longer feel so stressed. My proit per deal has gone up greatly thus allowing me to do fewer deals, giving me more free time to enjoy the money I want to spend.
BUT…do what fits your needs. Never compare yourself to other investors.
Re: For you big-time flippers: - Posted by Kristine-CA
Posted by Kristine-CA on August 13, 2002 at 23:43:05:
Well, I’m not big-time anything (except broke) and I’m hoping to finish 15 this year and I’m only a third of the way there. I don’t know how Steve Cook does it (I think an urban housing market might help–lots more to work with than where I am). Besides, 75 flips would mean that you would be passing on some really good deals that you could make real money on by doing the rehab.
Why not take it one step at a time and do ten and see if you still want to do them?
Sincerely, Kristine
75 flips is not for eveyone… - Posted by JT-IN
Posted by JT-IN on August 13, 2002 at 23:05:15:
Nor for many, to be honest. This is major league moving some properties, and one would have to have either a very organized machine for controls, or the desire to work lots harder than most of us want to… in order to flip 75 deals per year.
I think that your aspirations are a lot more attainable and sustainable, for the avg investor, than 75 deals per yr… Besides, what is more important… doing more deals, or making more money…? Personally, I would rather do 10 highly profitable deals, than a 75 small to middle roaders, while having higher overhead… you can make just as much, or nearly as much on 10 or 20 really nice deals, as opposed to the higher number count of deals…
Do what works for you, not someone elses goal.
Just the way that I view things…
JT-IN
Re: For you big-time flippers: - Posted by george
Posted by george on August 14, 2002 at 14:52:04:
You’re my new role model!! Are these all cash deals, subjects, L/O??? Your declining scale is genius. Do you tell your sellers what you’re doing–assigning/flipping, and what are they’re objections, how do you handle it from there.
Tanx!
Re: For you big-time flippers: - Posted by Stan
Posted by Stan on August 14, 2002 at 11:37:07:
Just curious… On these higher priced home (at least they are higher priced in my area; I normally stay around the $100k to $135k) how long on average does it take you to sell them? How much holding cost do you incur in holding these homes?
Thanks
Btw…PLEASE, don’t flatter me… - Posted by Houserookie
Posted by Houserookie on August 15, 2002 at 24:29:04:
Just last week someone here called me one “cocky” S-O-B. And I don’t think that person was referring to sun tanning on the beach either.
Unfortunately, the declining scale idea was not mine so i can’t take credit for it. I learned it from another young cocky SOB that is very successful in the RE flipping business. Met him a few years ago at a local RE investor workshop. I believe he’s a year older than me and makes about $100K a month flipping RE.
I have no way of proving it, but based on my own result, I can see how he can do much better.
In my book he’s the greatest RE flipper of all time and never spends more than $1 on any RE deal.
Who he is and what he does I’d like to keep to myself for now.
Austin
Re: For you big-time flippers: - Posted by Houserookie
Posted by Houserookie on August 14, 2002 at 15:27:45:
I would say 7 out of 10 are cash deals. If I have to hold a few seconds no problem. I’m a softy when it comes to collecting house payments as a lender rather than landlord.
The minute you use words like flippin, options, or assigning contracts, you lose them.
Talk to people as if they are 14 years old.
I say, “I’ll let you know in 15 days if I decide
to sell to someone else, or rent it ( which I never do ).”
I tell them that I need to hold one major open house to determine what I will do.
Most deals work, some don’t but who cares. It’s just like a marriage. You date enough women you’re bound to marry one.
Austin
Re: For you big-time flippers: - Posted by HOuserookie
Posted by HOuserookie on August 14, 2002 at 13:30:19:
I’ve never held onto any property longer than two weeks. I have zero holding cost with the exception of about 400 in ad money.
How do you tie it up? - Posted by drew
Posted by drew on August 15, 2002 at 14:11:57:
Austin,
Thanks for sharing your methods. I’m unclear as to how you are tying up the property. From your other posts it sounds as if you are agreeing to purchase the property for cash into a land trust. While you’ve got it under contract you do an open house (using nodiscount.com method) and set up a double closing from your Seller to your Land Trust to your Buyer.
Is that the gist? What am I missing here?
Thanks for your help!
-Drew
Re: For you big-time flippers: - Posted by Stan (Ga)
Posted by Stan (Ga) on August 14, 2002 at 13:46:46:
Not bad. Do you have a buyers list that you cultivate very regularly? Are your ‘buys’ structured as options? Are your sells structured for cash (or new mortgage), L/O?
Re: How do you tie it up? - Posted by Houserookie
Posted by Houserookie on August 15, 2002 at 15:07:11:
It really makes little difference how you tie up the property as long as you can walk out with the same$$. The holding time is short so I’m not too concerned about the little details. I am also not concerned about buyers going behind my back or that the sellers will $crough ( spelling? ) me over.
If you’re familiar with the nodiscount sytem you know already that there are 10-14 buyers on reserve.
You’re not missing out on anything. Just go out there and do it.
Austin
Re: For you big-time flippers: - Posted by Houserookie
Posted by Houserookie on August 14, 2002 at 15:02:38:
I dont cultivate buyer’s list because I don’t know where my next house will come from or where you want to live.
I use a unique system of selling that cultivates all the buyers I’ll ever need when i find the property.
I dont’ do l/o. If I take over payments it’s because it’s a heck of a bargain. Otherwise, no l/o, no rehab, and no headaches.
I ask for all cash. If not I hold onto seconds.
Austin
Re: For you big-time flippers: - Posted by Dave (MI)
Posted by Dave (MI) on August 14, 2002 at 15:49:20:
Austin-
Do you option the houses you acquire or sign a purchase agreement and then double close?
Also, do you work with local mortgage brokers to help qualify your prospects.
Thanks
Dave (MI)
Re: For you big-time flippers: - Posted by Houserookie
Posted by Houserookie on August 15, 2002 at 24:10:05:
I prefer land trusts with payment as trustee when and if the property sells in about two weeks.
I have tried options and p/as too and they work just as well. I have a bad habit I like land trusts.
If you can sell quickly it is irrelevent whether you use an option or purchase agreement. I’m not sure about your area, but in Minneapolis I can do double closings all day long. I prefer l. trusts, but you can use options or p/as. Either one will grant you interest in the property and gives you the right to sell, show, buy, flip, or trade.
I can work with any funding source that can close. They can get their own but I need a preapproval letter in 72 hours. After 72 hrs I step in and help find financing. Try something like lendingtree.com. You fill out one application they send it to three lenders and/or brokers. They do all that in 3-4 hours.
Austin
Re: For you big-time flippers: - Posted by Justin (MN)
Posted by Justin (MN) on August 15, 2002 at 23:07:00:
Austin, are you with any of the REI clubs in Minneapolis area?