ENZ 096 – Are There Still Any Deals on MLS? How Can You Flip Them? with Jim Huntzicker

In this special episode of Escaping The Real Estate Newbie Zone Chris Bruce sits down with Jim Huntzicker to talk about flipping deals off the MLS. Many people have been saying there aren’t many deals on MLS anymore. In some markets this holds true especially if you’re only going after REO’s or short sales. However Jim shares with us his secret of consistently finding deals off the MLS to flip in his market. There are some opportunities and deals on MLS if you learn this one strategy he talks about on this podcast.
Websites mentioned on podcast: http://jimhuntzicker.com

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Flipping Contracts Or Flipping Houses? What’s More Profitable?

In this blog post of Escaping The Real Estate Newbie Zone, I’m going to be talking about the difference between flipping contracts and flipping homes. I’ll also be talking about in 2016  which strategy you should focus on to profit quick no matter your experience, or if you don’t have much money to invest. Believe it or not, it’s a difference between flipping contracts and flipping houses.

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When it comes to flipping houses, that typically means you’re buying the house, fixing it up and then flipping the house to a buyer. For those of you that watch HGTV you’ve probably seen this done before. It’s a lot that goes into flipping houses. You DO need money, or access to capital in order to do this successfully. You need money to buy the house, money to fix up the house, money to pay contractors to fix the house up for you, and then you may have to still wait a few weeks or even months for it to be listed and sold.

Now the profit margins will vary and will depend on a few variables.

#1 Where the property is located?  – Is this one of the most desirable areas where buyers are buying right now?

#2 How cheap did you buy the property? – If you bought it cheap, and kept costs low as you could, then that will increase your profits

#3 How are you selling the house? – You’ll need a good realtor to list the property and sell the house for you. You’ll have to pay 6% commission but it’s so worth it.

There are a few others as well that I could mention, but that would take a whole other blog post to cover everything. To keep it short I just mentioned the top 3 variables.

The downside of flipping homes is that it can take 3- 6 months before you get paid, and there are some risks involved. Potentially you could be waiting half a year to get paid a $50k check. Now let’s do some simple math real quick.

If you’re only netting $50k and it takes you 5 months from to start to finish to sell the house. If you break down the numbers you’ve made $10k a month. But you’re not seeing any of that money until the 5th month. I don’t know about you, but I don’t want to wait 5 months to get paid. As a matter of fact, I don’t think anyone can wait that long, because bills are due every month right? Also if you mess up on your numbers, a $50k profit can easily be dropped down to a $35k profit with unexpected things coming up. Example = holding costs, the appraisal not coming back with the same amount you thought, and a list of other things.

So you need to have money stashed away to cover those months you’re not having money come in, and also be very good at money management. Fixing and flipping houses has always been a good business model, and can be very profitable. However, if you’re not good steward of money, and don’t have any other income coming in, you could go broke and be out of business quick.

 

So now that you know what it all takes to be successful fixing and flipping houses, let’s talk about flipping contracts also known as wholesaling.

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This is generally the best strategy to start off when first getting into real estate. Why?

#1 You don’t need a license to do it

#2 You don’t need any prior experience

#3 You don’t need to use any money to buy the house

The biggest difference with this strategy is that you will be tying up the house with a purchase contract and you’ll later be selling that contract to another investor for a quick profit. You don’t have to worry about hiring contractors, fixing the house up, listing it on MLS, or waiting months to get paid. You literally can have a check in your hands within 30 days using this strategy. It’s also a very scalable business model. Once you’re making money, you can go from doing 1-2 deals a month, to 5-8 deals a month. You can also start to flip contracts in other virtual markets, team up with other investors, or even start to get into fixing and flipping.

This is a recession any type of market bulletproof strategy. It works in any market whether the market is good or bad.

In this training I just released, I show you how you can make $3,000 – $10,000 in the next 30 days. This is the what I used to close my first real estate deal back in 2009.

When it comes to flipping contracts, you’re more of a Marketer than a real estate investor. Your mission is to market and find good deals, put those deals under contract, and then flip them to investors to get paid.

Marketing is the lifeline of a contract flippers business.

” If you’re not marketing, you’re not making any money”

So what’s the process and how do you get paid?

#1 Do you market research – find out the hot areas where all the investor activity is happening (buying and selling)

#2 Launch your marketing campaigns to generate leads – This could be Online Ads, Direct Mail, Classified Ads, etc

#3 Sort the leads which ones are hot, mild, and cold – Put the hot ones under contract

Next you’ll be marketing the property to cash buyers – investors, rehabbers, landlords. You’ll mark up the property price a few thousand or if you get the property under contract at a very low price, you can market it up as much as you like. As long as you’re leaving some room for the buyer to make a profit.

You’ll have cash buyers begging to buy the property. You’ll get the buyers to sign a contract with you for the purchase price, and an assignment contract. A title company or licensed title agent will be able to handle the closing for you.

 

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Before you know it you’ll be leaving the title company with a FAT check. The best part about this strategy is that if you weren’t able to find a buyer for the property. You can just back out the contract via an inspection clause. You will need to use a special contract. Which I include in the training here, as well as extensive video trainings on how to get started flipping contracts.

Now that you know the difference between the two. Which one will you be focusing on in 2016?

Are You A Real Estate Investor Or  Thinking About Flipping Houses?

 

Take this free quiz to find out

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ENZ 091 – Getting Out Of Comfort Zones & Scaling His Business with Mit Smith

In this special episode of Escaping The REI Newbie Zone. I sit down to talk with a great friend of mine, real estate investor now turned rehabber Mit Smith. He talks about his journey and how he got started in real estate investing. Mit started out primary wholesaling like a lot of people do. After a while he realized how much of a comfort zone he had fell into. It wasn’t until he started hanging around like minded individuals and he had his first “aha” moment it was time to get out the comfort zone and move to the next level of real estate investing.

You’re going to love this interview, straight raw and cut information delivered on this episode.

Mia’s website = http://www.mitsmith.com

 

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ENZ 089 – Using House Hunters To Bring You Deals with Franklin Cruz

In this special episode of Escaping The Real Estate Newbie Zone Chris Bruce talks with Franklin Cruz on how he’s bringing in deals into today’s real estate market. Besides the regular marketing to sellers via direct mail, and other online marketing, he also has a unique way to get people to bring him leads for free. Well their not all the way free, they get paid on the backend when he gets paid.

There called House Hunters, and in this episode you’ll learn how he finds these house hunters and gets them to bring him deals and just cuts them a check when the deal closes.

Make sure to pull out your pens and notebook because Franklin gives away a lot of golden nuggets on this episode of Escape The REI Newbie Zone.

website mentioned on podcast:  Franklin Cruz http://www.franklincruz.com

 

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ENZ 088 – Why New Years Resolutions Don’t Work

In this special episode of Escaping The REI Newbie Zone Chris Bruce talks about why New years resolutions don’t work, and a alternative to prepare for the new year. Are you wondering how you can make 2016 your best year in business, and real estate? Well you first have to start to look at what went right and what went wrong in 2015.

Chris also talks about celebrating your small victories in 2015, and how this will help you to be more successful in 2016. It’s not enough to set new years resolutions because  most people by February forget them. This episode is filled with a bunch of golden nuggets. It’s time to plan for 2016 now while in 2015.

 

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ENZ 082 – From Dropping Out Of High School To Flipping International & Doing 300 + Deals

In this special episode of Escaping The Real Estate Newbie Zone, Chris Bruce brings on Engelo Rumora who’s flipped over 300 + Real Estate Deals despite dropping out of high school, and leaving professional soccer. Engelo is from Australia and he started his real estate journey there. He then moved on buying and selling houses in the U.S. and also has started building up his portfolio.

This interview is raw and rugged, and Engelo really breaks down what it takes to be successful in the business. He talks about some of the struggles he had and how he overcame it. Engelo is getting ready to be published on the front page in one of the top real estate magazines. You’re going to love this episode.

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ENZ 081 – How To Determine In 10 Mins If The Seller Will Accept Your Offer

In this special episode of Escaping The Real Estate Newbie Zone Chris shows the fastest way to determine if the seller will entertain your offer. More importantly if you’ll be able to put a deal based on what level of motivation the seller is in. He uses a “OPEN” concept which is a acronym for Oblivious, Pondering, Engaged, And Need to find out in the first 10 minutes of conversation if the seller will accept your offer before you offer it.

The key to making money in real estate is buying properties low. With the market shifts and now inventory being low on MLS, as investors we’re forced to do seller direct marketing.  But where are all the deals at? And more importantly where are all the motivated sellers that need to sell their house like yesterday.

Find out in this episode.

To get access to the Joint Venture Profit Course = Text the word JVPROFIT to 33444 or you can go to www.jointventureprofit.com

 

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How To Determine How “OPEN” The Seller Is To Your Offer

In this blog post of Escaping The Real Estate Newbie Zone, I’m going to talk about a “OPEN” concept I’ve been using in my business for the past few years to determine how motivated the seller is and will be to my offer. We all know that the more marketing you put out, the more chances you will have to make more offers. Out of the offers you get accepted, those deals will turn into big paydays. Those paydays turn into big smiles on your face like this.

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So how do you get to put these type of smiles on your face, and get big paydays? Well for starters you need to find the right ideal seller. When I first got started flipping houses their were deals plentiful on the MLS. I could login put a few offers in and before the end of the day I would have at least 1 offer accepted. Unfortunately those days are long and gone :-(.

Now that we have transitioned to a sellers market, meaning their are more buyers than their are real estate deals on the MLS. It has become more challenging to find good deals. The best way to find deals now, is doing seller direct marketing. We cover more on how to set up your first direct mail marketing campaign in this training here.

However I want to break down a simple concept I’ve been using to find out if the seller you’re talking to will lead to a signed contract (deal). Once you understand this concept you’ll know when to focus more time and energy on what sellers, and when not to.

I call it the “OPEN” CONCEPT

Which stand for Oblivious, Pondering, Engaged, Need

Let’s break it down for you.

Oblivious – This is the type of person that they’re in no rush to sell their home. Maybe they came across you marketing letter or postcard, but not in a rush at all to sell it. They haven’t even thought of selling their house, however since your marketing came across their mailbox or desk, they wanted to see what you’re offering. Now this person will be extremely hard to deal with. Good luck putting a deal together, because typically they’re expecting HIGHEST & BEST OFFER. So this is likely not your ideal direct seller you’re looking for.

Pondering – Now is the type that they have been thinking about possibly selling their home. The conversation of possibly selling has been talked between the household. They can’t decide if they should sell it or keep the property. But maybe they’re looking at different websites to find out what houses are selling for. Their doing a little active research to see if it would be a good time to sell it or not.

pondering

 

Engaged- These type of sellers are actively looking to sell. They’re visiting different websites weekly to see how the market it for them to sell. Their even talking to different agents, different investors and trying to see who would buy their property. Most of the time they want of course the highest price that they can get. So they will shop around a few people before they make their decision. But they have made up in their mind this a good time to sell the property, they just need the right situation.

These of type of sellers are sometimes good, however you’re not the only person their talking too. So don’t be surprised if the deal you thought was going to be yours, ends up getting taken last minute by someone else before you get the contract signed, because someone presented a better offer. This actually happened to me before. I was pissed, but this was apart of the learning process for me.

Now the best type of seller to deal with, and probably the easiest person to sell your solution to them is the…

Needs- This is the person that they need to sell their house, they have a huge problem and this is the only option for them to solve the problem. The property has major repairs, they barley have any money in the bank, let alone they can’t afford to fix the property up. They have a underlying bill that has yet been paid, and if they don’t pay it now, their going to start garnishing their wages. So they need to turn their house into quick cash.

This is the person that just evicted the 3rd tenant, and their losing a lot of money, and not to mention it’s causing a lot of stress in their life which is effecting their personal life. They’re ready to get rid of the property ASAP so they can move on in their life. This is the best group of people you need to be targeting!

Ultra Motivated Sellers

Type of sellers who have needs here

Click here to learn more 

So if in the past maybe you have done some marketing in your real estate business . And you’ve wondered why they didn’t accept your offer? You’ve done everything that the course or training you’ve learned from youtube but still haven’t got any results. I want you to start using this formula. Which part of sellers are you dealing with? If they don’t have needs then automatically you should have a trigger that goes off and say ok this isn’t my ideal seller.

It’s not enough for a homeowner to say they just want to sell their home to decide they are really motivated. It needs to be something bigger.

Hopefully you got some good insight into this post. Please leave a comment below.

ENZ 080 – From Sleeping On Air Mattress To Creating A Great Partnership & Making $56,000

In this special podcast episode of Escaping The REI Newbie Zone, Chris talks with real estate investors Darrel Kucan, and Imran Clark about their journey into real estate. They have now built up a huge business, and own a real estate investing group in San Diego, California. They first started off in short sales and their stories are very inspiring.

Darryl went from being homeless, moving in with his in laws, and sleeping on the air mattress to closing his first deal with Imran and making $56,000. Both experienced humbled beginnings but that didn’t stop their journey. And today they stand with one of the biggest investment companies in San Diego.

For more information about them and how you can get in touch with them you can go to their website www.kucanandclark.com

 

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ENZ 079 – Shortsales Are Dead? Says who with Brian Meara

In this special episode of Escaping The REI Newbie Zone Chris bring back his friend and old guest Brian Meara to discuss the state of short sales across the country. Many people remembered when the market crash, and the country was full of foreclosures their were ton of opportunities for people to make money with short sales. Now that the market is back on fire, and inventory being low on MLS, is short sales dead?

Contrary to belief Brian talks about short sales still alive and their is a new way to profit with short sales. Now you can wholesale them to your buyers. Wholesale “short sales”? How the heck do you do that.
Well Brian explains the process, and also talks about how he’s profiting from wholesaling short sales in his market and several markets across the country.

Websites mentioned: http://www.investorentourage.com

 

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