While it might seem light complete taboo, literally anyone can find a great deal, flip a house, and make a massive profit. I personally know real estate investors who are retirees, college students, realtors, mortgage professionals, and 9-5’ers flipping as a side hustle. It’s even possible, (though not always typical) to profit 6 figures in one of those deals, and it can be done in any type of market, so I figured I would show you how I’ve done it!
Flipping is not as difficult as most may think, BUT there is a system that must be followed and executed on at a high level if you want to win big. In this system, the first, and most critical step is “finding the deal.”
Without a great deal that has plenty of margin in it, you won’t have an actual opportunity to cash in on the profits you’re hoping to make. This is why finding sellers who have a big problem or a high level of motivation is the lead domino for having a successful flipping experience. If you can consistently do this by generating consistent leads (a whole other discussion) that allow you to buy heavily discounted properties, you will be cashing in on a 6 figure payday more frequently than you might imagine.
(I teach and train a detailed flipping system in my 6-figure flipper group on how to find these kinds of deals I am referring to here. Check out the link below to tap into the free intro webinar if your interested in learning more)
My guess it you want to know the secret sauce to actually making this happen, and I must tell you that there are many ingredients that go into this recipe for success. Let’s take a quick moment and briefly look at what some of those are:
- Lead Source – There are tons of ways to find off-market properties. Keep in mind that to get a deeply discounted deal, you will have to avoid the competition or get to the source first. This will require you to find a strategy that will put you in direct contact with the seller and not a go-between like a realtor or wholesaler if possible. These professionals may play a part in some of your future deals, but most likely not in a 6-figure deal as they will take a bite out of the profit before it ends up in your hands) The objective is to get face to face with the decision maker and negotiate the best win-win deal.
- Motivation – The seller must have a high level of motivation. If you can identify someone who has a big problem you can solve by purchasing their property, they are going to sell at the price you’re looking to pay. Make sure you ask your seller a lot of questions and understand what their true pain points are. Why are they selling and in what time frame do they want this accomplished. Finding the sellers motivation is a key part of negotiating with integrity. When their motivation meets your price, it’s a win-win all around.
- Purchase – What is the purchase price? We discussed the importance of finding a discounted deal and part of knowing whether or not it’s actually a good deal is by running the numbers using the Max Allowable Offer formula or a simple flip calculation spreadsheet. Make sure you analyze the deal correct and get it for the price you’re looking for. I always say, “you make your money when you buy, and you realize that profit when you sell” so make sure your analysis is correct so you start off the project on the right foot.
- Funding – You have most likely heard, “find the deal and the money will follow.” If you don’t have a ton of money, I am a huge fan of using OPM (other people’s money.) If you have run the numbers, and it’s a good deal, you can most likely find hard money lenders or private money lenders that you will pay interest and points while using their money to finance your deal. There are many ways to structure the deal where one covers the majority of the purchase and rehab, and someone else’s money can be used for the downpayment and holding costs which is how I’ve structured over 150 of my own personal flips using none of my own money (I talk about this in my free webinar).
- Rehab – What is the budget you need to stick to in order to get the house in a condition you can confidently sell for top dollar? This will be determined by walking through the property and putting together your scope of work so you know exactly what needs to be done and accounted for in your analysis to maximize the value of the property. This is a critical part of the process and I recommend utilizing the expertise of a professional, licensed contractor.
- Sale/Profit – The end game!! What is the sale price and the profit? Determine what the comps are for similar properties in the area that are selling for top dollar and make sure you put out a product that mirrors those to maximize your profits. If your flip is superior to the high end of those comps, you can feel confident pricing it there. Then, it comes down to marketing it properly and securing a buyer who’s ready to buy it at that price.
I have outlined these steps in much more detail in this video on my Youtube Channel:
In this video I highlight one of the properties I made a 6-figure profit on and show you the awesome before and after transformation too. What do I hope you take away from this information? That I’m no one special and you can do this too!
If you want even more in-depth training on how I went from being a broke college student living at home with maxed out credit cards to building a multi-million dollar flip business and rental portfolio, sign up for my free webinar training here.
In this training you will learn how I made 6 figures flipping my very first house using none of my own money. Additionally, I will show you definitive techniques to master real estate investing that took me years to acquire from finding these kinds of deals, how to analyze them, how to fix them up and sell them for massive profits!
Don’t forget to drop any questions you have below and let me know what other real estate investing topics you’d like to learn more about.
Until next time, I’ll see you on the flip side!