How to Get Started Flipping Houses [$10K – $20K Per Deal]

all right all right all right all right
let’s have some fun today today we are going to be diving in a little bit
deeper into how to get started flipping houses making 10 to 20 thousand dollars
per month per deal however we are essentially spa deal okay
and if you can increase the frequency of how you close deals and it can be four
months or multiple times a month if you want if you can figure out how to
increase the frequency because frequency is everything when it comes to the game
of entrepreneurship you don’t get paid per hour you get paid for every single
time you close a deal right every time you create results so my name is Ola I’m
Rico fine I’m the founder here my Empire Pro calm and we’re gonna have some fun
today I do want to cover some some basics some details today the goal of
today is I’m not just gonna show you how to get started flipping houses I’m going
to show you how I’m gonna share the story of our gas started with you okay
and after that we’re gonna dive into some of the other videos on this topic
that are ranking and we’re gonna look at some of the comments and questions in
the in the comment area and see if we can learn some more stuff here okay so
today I’ll be hanging out with you for another 28 minutes or maybe a little bit
more depending on on the energy here so are if you’re here you’re brand new here
I want you to do me a favor make sure you subscribe to the channel because I
will be here talking about this stuff all the time also if you’re completely
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see a link okay you’ll be able to see a link to one second here you see a link
on the description box okay that can take you to where you can literally
download there you go so this is this is the free stuff that I’m giving away
today I’m giving away a free book called Empire lifestyle secret it’s a break now
step-by-step of exactly how I run my business today I’ve been through a lot
of ups down in the game of real estate
entrepreneurship and marketing and I want to share everything I know with you
in 200 pages Empire lifestyle secrets you can go ahead and download it
absolutely for free in addition to that as a bonus you’re gonna have access to
this seven days course video course which is about smart business empire
actually that’s the title smart business empire okay so you want to go ahead and
and and all and get access to the book and me to automatically give you access
to this okay now if you’re here and you don’t know
what to find motivated seller we’re gonna talk about motivated seller write
this down right now my empire procom slashing red X that’s essentially where
you’re gonna find it so like I said today I want to share with you my story
okay or exactly how I got started in real estate and then after that I’m
gonna share with you this I’m gonna place a quick very quickly through this
five steps right here if you want details of these five steps my previous
video or that I did before just before this video let me see if I can tell you
exactly what is called let’s see here I’m telling you exactly what that video
is called so you can search for it that video or you want to search what it’s
tied to and then put all our my name next to it so the name of that video is
what is wholesale house flipping so all you have to do is type in what is
wholesale house flipping Ola and that video should come up and I can show you
actually that right now in an example let’s go to alright so this is us live right now
alright so so if you go to what is wholesale real estate you know real
warrants will wholesale house flipping Ola
so put my name right next to it this video right here will share in details
these five steps that I will kind of like summarized here today and but you
can watch this video for exactly the details okay or you can simply you can
also go true if you want you can also go through my Empire procom slash blog and
you can search for that title I should let’s see is a search box here
this is the you know depending on where you’re watching this video of course but
once you’re at you click the first post that you see and if it wasn’t the first
post you simply want to type in what is wholesale house flipping does give you
multiple ways to get to this same video also search for any video on our
platform for that matter in the topic when it regards to your marketing and
real estate investing real estate professional this is what you want to
find it okay so when you search here when I click search right here it should
bring up this video this video right here alright so you can see the details
from 1 to 5 of the breakdown of that content right there okay so that’s that
so with that being said let me switch screens back to my face while I tell you
the story of exactly how I got started in the game so it was I went to my
college years my college years was between essentially between 1998 which
was mostly wasted time you know an hour an hour you know studying engineering
science at the Community College called Middlesex County College in New Jersey
and I spent about three semesters there and I only gained about eighteen credits
so I transferred those eighteen credits which I did more than listing credits
but I only was able to transfer eighteen credit to NJIT where I studied
engineering Computer Engineering and I went all the way through
master’s degree into engineering management focus on project management
which I did up till 2005 so in 2005 by 2004 when I graduated college I had kind
of known that I had been exposed to to the possibilities and in the
Entrepreneurship business world I’ve always been a self-starter since I can
remember I’ve always been that kid that’s always trying to create something
in the backyard with whatever was available in other words I was very my
brain was always it was more oriented toward being more resourceful than
always asking for others to give me resources
that’s just my the way my brain is oriented so since I’ve been a kid I was
raised in Africa I was born here raised in Africa and all through that process
when I finished high school in Africa I even went back to my school to create a
concert you know these are things that I’m now thinking back that I’m saying
you know because I hear everybody talk about their story when entrepreneurship
started and I I I noticed something that’s very common among all of them
they all didn’t start now or start within last feed he started as kids it’s
always like a little bit of a sign in them that they were meant to be
entrepreneurs and for me it was kind of like the same thing you know again I’m
just thinking back now even in the past one or two years I started thinking by
like maybe I’ve always added me so the truth is I’ve always added in me to
collect things around me and use it to create something brand new right and
that has always been my style okay so again what I’m doing right here
is I’m telling you I’m telling you my story of how I got started you know in
real estate in uh in flipping houses okay so so yeah I went through college
the reason why I went to college was just it’s just what you do when you’re
when you are in Nigerian and you’re born to Nigerian parents or that’s just what
you do like this you know how we go to the bathroom to go poop
every day like that’s just what you do that’s what you do going to college is
what you do right and studying engineering was what you do you know
studying becoming studied to become a doctor is what you do to become a lawyer
is what you do you don’t go to study psychology okay nothing against that I’m
just telling you what it is okay nothing in psychology because frankly honestly
today I feel like psychology would be a lot more valuable for what I do then
probably engineering I would say that last year today I believe everything
I’ve done up to now has made up who I am so again I went through college I
finished college in 2005 with the master’s degree but I graduated with a
with with a bachelor degree in 2004 and as soon as I graduated I started to
think like okay I missed out on internship I never did any type of
internship and this specific reason why I didn’t do internship was I couldn’t
really make any sense out of it right you want me to do college because that’s
just what you do let’s just do college and finish it so if there’s a way to get
around any type of class or any type of a responsibility in college I would get
around it just so I can get by and just get the freakin degree this certificate
and get away and and get on with my life that was essentially why I went through
college so I didn’t do any kind of co-op or internship or anything that could
prepare me for the job market when I was done so when I was done with this degree
I had this document that I was given you know and um I didn’t exactly know what
to do with it you know and then I started to for the first time visited
the what they call it the job placement office at NJIT my school my alma mater
right and I started to visit that office and I would I would just be lost how I
just noticed that I’m just lost and you know trying to figure it’s just not
something I was of interest to me so um you know so that was why I picked up my
master’s degree right away they told me hey they got me two credits from a
graduate class that I took in my last year in uh under my undergraduate and
they said I just need a couple more classes or something like that then I’ll
get a master’s degree so I took the next two semesters full time full time
and got my master’s degree and to be honest with with you my GPA in my first
degree was horrible it was really bad you know I just barely
got enough to graduate right so I also used the master’s degree to
prove to myself that I can get a 4.0 okay so I think I don’t think I got a
4.0 I think I probably got a 3.8 or something like that in my master with my
master’s degree we just a way for me to prove to myself that I still got it
because throughout my elementary which we call primary in Nigeria throughout my
secondary high school right I’ve always been at the top of the class
I’ve always competed very hard to be at the top of the class and I’ve always
done very well you know distinctions if you know if you don’t know what that
means you could google it right that just means straight A’s right until I
got to that Community College and it just it just wasn’t you know you know
with the fact that I had to work and I had to you know I wasn’t quite focused
and everything started to go wrong so all the way through my first degree I
just did just enough just enough so I can get by and I and frankly I didn’t
know the importance of GPAs I didn’t care for it right and you know I just I
just just get by and just get back just get back right so that’s how I finished
college and I finished master’s degree so by Tom I was finishing master’s
degree I went through this other class on you know trying to learn some
programming at the time this is 2005 2004 such as now five Mugu phones were
not really that hot right like smart phones not mobile phones smart phones
were not hot right so there were a new program is there were people trying to
design smart phone smart apps and things like that
and I wanted to pick that up and really learn it but again I wasn’t focused it
just wasn’t what I wanted to do right so one day my pastor’s wife very randomly
mentioned why don’t you get into you know into into flipping real estate and
something like that and I’m like real estate like yeah you could buy and sell
real estate then you could make a lot of money doing that
huh sounds for some reason just click you know and I called one of my friends
at the time and I said hey if you ever talk because I know I know at the time
that his mother and himself were buying houses to hold and to rent out to people
as a matter of fact we used to practice music as we had a band that we used to
go into one of the houses and just practice there and that’s what we used
to do back in 2003 4 & 5 for leisure and but anyway by the time I called him and
I said listen I’m good then he then he recommended some other class first-time
homebuyers class in East Orange New Jersey the name of the place was night
as something like that in Eastern in New Jersey where we could attend the
first-time homebuyers class they were tied to companies there there were
mortgage companies there they were you know real tours there you know and it
was this real tour that was like yeah I can get you qualified you know they all
say that they can get everybody qualified it’s like you go to that
dealership where everybody say everyone drives right but he said that I’m like
you get me qualified I knew that my credit wasn’t the best so because I had
messed up my car with a $300 Macy’s card long before that so I knew but he said
no that’s not a problem that’s not really credit I can get you qualified
I’m sorry yeah you can so before I knew it I looked at a couple of houses I even
met another lady that I met at some other program and because I’ve been
digging up and trying to see what I could do I I think I encountered some
internet marketing stuff as well to some classes where I could learn how to drop
ship and things like that right a couple of things that I looked at before I set
it in for real estate right so in 2004 December I was watching late night TV
from our shows because I saw quite a few of them that were advertising on
infomercials nowadays you don’t see the money for marshes anymore because it’s
overpriced you know and ridiculously a dinosaur way of advertising these days
you see them on the internet do all the Guru’s are on the Internet today right
so at the time was infomercials late night you order some CDs you order some
tapes you’re some materials they send it to you for free and that was
how that worked so and well anyway I I I saw one and then I turn in the class and
then I think I paid $200 or something like that I came up with a big pack of
folders on how to get money grants from the government and how to use that to
start a business and thing and you know and then you know and then the next
thing there was a lady that I met there one of the classes and the next thing
she’s also the route or because I called I check online I check some houses a
realtor came to show me a house in Belleville New Jersey lo and behold as
the same lady that I saw in the class and we started to talk a little bit more
and then I think I may have ended up in some other class with Primerica which is
another company in network marketing and saw her there you know I just noticed
I’m saying same faces pretty much you know but I ended up in another program
okay where it was completely free and at the end of it they saw me – so at this
time I was determined that I have to narrow down on one thing you know I
can’t be all over the place I can’t be trying to do so I quit my class that I
was taking and some of Somerset New Jersey for how to program mobile phones
right how to design apps and things like that I just told the guy I said I’m not
interested anymore I just I just quit I used to drive down there every afternoon
and buy lunch and you know it’s coming back to me right now as I’m sharing it
with you right so I quit that one so I went through this class $200 they said
they would teach me everything I need to know $200 in three days
by the time I spent the three days I was soaked in and I knew that this is what I
wanted to do and but then you know you know when you just know that this is
what you want to do and and but yet they are offering you to make it easier for
you another class or two weeks or extended program mentoring program for
$3,000 $3,000 right so I called the same friend that I called before – let’s
partner up together my friend that that that was already buying houses with his
mother and I said listen I don’t have the money
can you let me use your credit card and then you know when I use your credit
card I’ll give you the money back in two three months or something like that
I’ll give it money back I’ll pay you back which I did pay back you know but I
use his credit card and I in exchange for him becoming my partner okay
so sadly up to now I think we were partners sometimes you know on some
projects but up to now we’ve never really partnered together on anything to
make money together you know but you know he was my partner on paper for that
program and I went through the program and it was essentially the mentorship
was like an email if I have any questions they sent me a bunch of
materials and things like that and I took that I think also before all of
this had already taking classes with even invested tools to learn how to
create stocks and and stock options you know I mean you can look at all of this
and you just know that I’ve always had it in me that I had to build my own
business and build my own destiny okay and maybe you feel the same way maybe
that maybe you can dig in deeper and you can see that is always been there
because sometimes if you don’t have purpose if you don’t have motivation
motivation could just be as you you are right for me it’s just who I am right my
motivation has evolved since then to you know I got a family I got my kids I have
to take care of I got a family extended family my parents my parents
parents-in-law that I would love to take it off right and those are some of my
moods biggest motivation today so the motivation constantly evolved but
originally there was a motivation there and it’s the fact that this is just who
I am alright so that class there was one that
$3,000 program there was only one tick that I collected out of it the only one
tip and that tip was essentially that I needed to join a local real estate
association okay a local real estate investors association we call them the
VA loco Rea REI a real estate investment real estate real estate investment
Association all right and the first one that I found was a was a platform at the
time called instead real estate investment decision
GS RIA was what we call the back then and he used to be conducted this was a
game back in two thousand five six and these were conducted at the Sheraton now
they call it the Renaissance in Woodbridge New Jersey and we used to go
pay $25 at the door for the first day and then you become a member for like
$200 for the year you never have to pay anymore and on the
first I remember on the first day the first day there was a gentleman I was
making a presentation about the strategy called short sales and his name was
Richard Douglas yes Richard Douglas he called himself at a time the short
sale King and it was selling his course at the end of the night for $300 and
here’s what you would notice about any presentation you’re soaking in a lot a
lot is not like you understand this step-by-step what is making sense to you
you see a lot of testimonials right and then at the end of the night they
present the even offer right that I’ll show you how to do everything I give you
all the material and that was essentially exactly how I went down just
another course okay $300 I paid that day out of my own pocket and and I got
started but at the on the outside of the room after I paid for the course that
day I met a gentleman called Bob his name is Bob still my mortgage banker
today okay and he said let me introduce you to one guy and introduced me to a
person that will be my mentor for the next two years after that his name was
Anthony and and then I met I met Anthony who say hey yeah let’s talk you know
blah blah blah you know and then we started he’d say listen if you find
deals bring it we do business together we’ll split the money 5050 hmm that
makes sense you know so and I found my first I started marketing from what I
learned from Richard Douglas cause I started marketing and then and then I
even remember at the time I started marketing in the in a place where he
identified as his zone it was Camden New Jersey and he didn’t like the fact that
I was marketing and having some of his leads calling me – that was our
aggressive I went okay I had literally dominated everywhere with my
I was doing direct mailing to pre-foreclosures okay which is Silla
strategy the worst considering that you don’t quit on yourself too early okay
because the numbers are not the same but if you if you understand that is a
perpetual game then you can still win absolutely you know so but anyway I
started marketing and I got my first four leads
I stopped marketing campaign because it was too far anyway I made the first
leads that called me was completely situation that was just a deadbeat that
was dead and and I and I drove all the way out there with my Chrysler Cirrus at
the time and my girlfriend at the time who is my wife today actually went with
me and I would drove about two hours to go see it meet you know to go see if I
was just you know it was just a learning process because obviously today I don’t
I don’t drive to go see a house that’s not completely locked and already right
but anyway we drove down there was good learning experience I knew that I didn’t
want to work in Compton so was a learning experience right so but we came
back and then I started marketing in Newark East Orange Aventine primarily
okay and and then I picked up my first four leads okay and I shared it with
Anthony was again my new mentor and his job was to pretty much work it these are
leads that were underwater in other words they were only much more than the
house is worth and he actually came to the appointments with me okay so he will
come to the appointment with me he would drive his BMW at the time was very nice
car right I was driving my Chrysler Cirrus right my I think was several
years old at the time that would literally die every my life I drove you
know but anyway gone are those days so the next thing for for leads right
what’s in the works it was working on it and then there was a lead that came in
and the guy was earning less than what he was oil less than the value of the
property there was equity in the property so I was like this doesn’t need
any shots here let me see if I can work it myself Wow
Anthony my mentor was working on the other four leads right this was 2005
do it again masters degree in May right I started the course that I purchased
the three thousand dollars was purchased in December of 2004 so I didn’t really
get busy onto a mid on till after I graduated with my master’s degree
because I was doing classes and all those kind of things
the next six months after that I started pounding and got my first four leads
right into the system first four leads into the system and um let me see so the
next thing is I have this fifty lead that had equity in it and what I did was
that I marked it up twenty thousand dollars I took an option okay an option
to buy which is essentially a contract that say I give you the right is to give
you the right to purchase this property within a certain period of time at the
certain a prize amount right so anytime you see somebody say a contract a
contract for a contract with an assign or that means an a contract that you can
assign it to another person you put our house under contract for 120 thousand
dollars right and the property is worth $200,000 you put an under contract for
120 thousand dollars and that contract was accepted it’s basically an option to
purchase the property at 120 because anything can happen that you may not be
able to close okay so I see people ask all the time how do you get out if you
couldn’t close you just get out and okay was just an option you don’t close until
you close there’s a reason why they say closing okay because that’s why you seal
everything there’s no money there’s no closing there’s no there’s no really
valid contract in reality there’s no money okay but that’s an option okay
it’s a sign that there’s an open like I’ll let you take this house away from
me because this house is a liability and that was essentially what that deal was
okay so I forgot what the number was exactly but I knew that I marked it up
twenty thousand dollars and I found a buyer and when I found a buyer there was
a lot of buyers and straw buyers and things like that around we leaked oh by
the way but there were people that were recommending buyers okay
and what I did was that I found a buyer and uh and the buyer was willing to pay
the price and we went into a closing and I didn’t even have to find a lawyer this
is how I know that if it’s meant to be is meant to be all you
have to do is just be good at marketing that’s what I teach you here all you
have to be good is good at marketing everything else will fall in place if
you market to the right people and the right people pick up your offer okay
your offer is I’m gonna help you get rid of this house if the right people up
your offer everything else will work out okay so but anyway when I marked it up
twenty thousand dollars and we had a closing and the twenty thousand dollars
was marked into the closing sheet into the closing hard statement
okay the twenty thousand dollars was right there and they showed that I will
be making that money and the seller saw that money and he he was it was it was
like no he’s not gonna close and he said I’m making too much money from his house
and I’m like okay I’m making too much money from your husband I don’t know
what you mean had too much money you know to me is not too much money is
money that I’m making for helping you get rid of your house and he was like
nope so what I had to do was again I had to show my entrepreneurial skill nobody
trained me this right remember I had this other four leads that was supposed
to be the first four and you’re still in the short sale process so I haven’t
closed any deal ever before this was December 2005 and um and I said you know
what I’ll give you ten thousand dollars more so I split that my fee to way and I
gave him and I said okay and then we closed and I made my first ten thousand
dollars ever December 2005 just before Christmas I took five thousand dollars
out of it and I and I went and bought a Chrysler Concorde I was using the Cirrus
right that was almost dead and I bought a Chrysler Concorde for from new from
Jersey City the game my girlfriend at the time now my wife today of ten years
eleven years son followed me to go buy that car so that was how I got started
and real estate okay and the lesson I want you to take away from there is that
99% of things that you hear about in flipping real estate flipping houses
nightlife they present other things you’re gonna get from the Guru you’re
not gonna need okay you’re gonna be very good at one thing
you’re gonna find out one thing okay and you only wait to find out one thing is
to really get started from wherever you are right and but I think that one thing
for most people that are really good at flipping houses and wholesaling and
things like that that want in is marketing just knowing how to promote
promote promote promote promote okay if you know how to do that everything else
is not really your responsibility how to look up tie to work it’s not your
responsibility how to make sure that you’re doing everything legal outside of
no cheating no stealing online is not your responsibility
right how to make sure that the mortgage is qualified is not your responsibility
your responsibility is primarily marketing that’s the message I want you
to take away from this so I cost my first deal you know there were elements
of things I learned from my mentor but I didn’t really close my first deal with
him right I closed my first deal the first week but the first course is from
I didn’t really close with them either it’s something I want you to pick out of
that because a lot of people think they must follow everything to the books to
to close their first deal there’s a very very high chance that if you follow
everything to the books in any guru course you purchase you are going to
miss the boat and you’re not gonna close your first deal so what I always advise
people is to try to understand the concept understand the concept so you
can execute because any when you understand the concept you can execute
in any way that makes sense to you and it doesn’t have to be according to the
books as long as again you’re not cheating stealing online okay so with
that being said I want to share with you I want to do a summary again the best
video to watch for this is the previous video that I showed you how to how to
search just search for what is wholesale house flipping Cola on YouTube you see
that video that will go into details of this okay and but let me let me do a
quick summary of everything you need to master that you need to know okay
everything only thing you really need to know in this game is number one your
responsibility is to market to find deals and put those deals on the
contract okay what kind of deal what does it do you need imbued equity you
need imbued equity but sometimes the equity is not there and you have to
create that equity with the exit strategy we call
short sales again you don’t have to know how to do short sales you just need to
know that it exists and if you find deals that’s underwater underwater means
that they all much more than the house is worth then you say that’s not a
problem are you willing to walk away from this
property as long as we take care of this your obligation if they say yes you put
it on the contract and then you take our authorization to release and then you
take the bank statement for the mortgage and then you give it to a person that
knows how to work a short sale and will do the magic
okay the bank would let go of the house at the discounted rate and now you
create an in Butte equity okay and then the most responsibility is to sell it
okay the next responsibility after that is to sell sell sell again it comes now
you can’t sell unless you promote so yet now you have this house with equity in
it okay anything anything equity 80% of the actual value and down
right then you can absolutely sell to the marketplace okay but number four
your title is a marketer you are a marketer you’re marketing to a list of
sellers and a list of buyers that’s your responsibility as a house flipper okay
if you are fixing flipper obviously you have to fix the property if that’s what
you are but I’m saying this is still your responsibility to learn how to
market to sellers and to learn how to market the buyers alike but you but I
like I like the v concept here is list building okay you can only really do
list building on the internet for buyers your sellers there’s at least existing
for that already and you can check it out at slash red X you can find
a ton of people in pre foreclosure a ton of people that are already trying to
sell their house for sale by owner for rents by owner which is typically tired
landlords right all you have to do is ask them if they will consider selling
their house pre foreclosures people that are three months or late on their
mortgage is already then many of them need to get rid of their house all you
need to do is ask so the list already exists the way we ask we ask with the
letter or you can call them if you don’t have money for letters okay
also you can also you can also do armed SEO you can also
do such engine optimization with videos for your local area for people that are
looking to sell people that are looking to get rid of a property motivated
sellers distressed properties okay you all you have to do is just become very
good at marketing everything else is not really your responsibility I know the
other gurus try to teach you everything there is they try to teach you what type
of contracts to use the contract doesn’t matter you can download contracts from
the internet anywhere and you can read it if it makes sense to you
based on what you’re trying to do you do it or you can simply go to your local
real estate Association club and ask someone to please send you a copy of a
real estate contract you can also find this easily on the state websites the
standard ones and some people say don’t use the standard ones I beg to differ
it really doesn’t matter as long as you’re dealing with motivated sellers
the right want to use you will figure that out when the time is right okay
list building of buyers is paramount if you want this business to become a
business for you if you don’t want it to be just a hobby something that I was
very very good at that got very good at between 2005 and 9 something that I got
very very good at was building the list of buyers because I promise you the old
idea of cash buyers and somebody’s just gonna cash buy a house because the deal
make so much sense you’re gonna very find very slim to none
possibilities okay very slim to none the way you’re gonna find buyers is you’re
gonna treat everybody equally and you’re gonna find people that are interested in
investing in real estate and it could come from anywhere it could be their
first home ever to buy and it could be the number one thousand to one to buy
it doesn’t matter as long as they are real buyer and it doesn’t matter what
kind of funding they’re gonna use if they have the cash and we want to do
that great for them cool for them but if they want to use mortgage there are ways
to structure that all you have to do consult with a good investment investor
friendly lawyer in your area the only the best way to find them is again at
the local real estate investment Association okay investment for investor
friendly lawyers attorneys right and they will show you how to structure that
but you’re biased the point I’m making here is that your friend or family or
that day that seems like it has all the money that is
promise you that is looking for something to buy that’s a very high
chance it will never buy from you so I’m telling you don’t put anybody on the
pedals to put everybody into your buyers list and treat them equally and give
them some kind of value to keep them following you until you have your next
deal and eventually you want to have deals flowing through your list and you
want to send them deals not only your own deals by the way okay you can also
send them deals that up by that were created by other people in the business
and the industry right or the wholesalers may have deals but if you
have a list of buyers you can bring them buyers and you can make money 50/50 just
from bringing them buyers because there’s one thing that’s missing that’s
one thing that most people are missing in this game okay
including your savvy investor including the savvy fix and flip a rehabber
including the realtor there’s one thing that all of them are looking for this
one pressing that pays all of them and that’s a buyer okay so guess what
happens if you become the expert that’s been at building a list of buyers that
means you have food on your table all the time so how do you build a list of
buyers something I cover extensively in my Empire Pro dot-com sorry I did when
you download the book Empire lifestyle secrets at my Empire procom that’s what
I cover I strongly advise you to stop trying to say online or offline there’s
no such thing as offline anymore everybody’s online you’re watching me
online right now when you leave wherever you are right now and you’re going right
now you can get to where you’re going by using online to use the GPS the Edit
everything is online okay there’s no such thing as offline so the best way to
build a list of buyers some people say is go to your go to your local real
estate Association Club no no I beg to differ now that’s a good way okay you
could had you could you get you know that’s a good way to start you can add
everybody’s business card information to your list right when you go there
collect business cards get into the business of collecting business cards
don’t worry about giving your business cards because you’re trying to build a
list of buyers that’s what you’re trying to do so when
everybody is trying to market their houses their wholesale houses you can be
the person bringing by you can not your buyers you can
mental bias and he can bring buyers to the table like that okay and when you
bring buyers at the table for other investors other wholesalers or Realtors
in the game right you make money okay you keep food on the table and then you
know some people say do I need uh do I need to have a dining to have a license
do I need to have a line sense in order to do this no it’s not really required
if you’re operating from an equitable interest standpoint but I I but I
suggest to just get the license just get the line sense it gives you an edge over
everybody else in the marketplace if you’re gonna be a professional and real
estate you might as well just go all-in anything you go as fast in you’re gonna
miss out big-time and you’re gonna make life harder for yourself it takes what I
don’t know two three weeks to finish a course and and get the license get the
license you’re not going in there to just go and be a row tour but you have
the line sense in case somebody says you’re trying to broker without having
the Alliance and you say no I have a license and there’s no day and trust me
it doesn’t block any deals when you tell people that you know I’m my sister okay
I want to put your house on the contract but just so you know I’m a licensed
agent all all that’s required of you is full disclosure okay that’s all that
they need to know they me they need you to disclose to people that you are a
full-time not that you are in fact the licensed agents that’s the only
requirement okay so that’s that’s that right there that’s something I wanted to
share with you if you want again for more details this was a summary that I
gave you go through the book my empire procom that’s where you want to go and
download the book Empire lifestyle secret to learn how to build a list okay
you learn how to build a list on the internet okay now is that that’s really
what you want to get good at okay and that’s what I’m teaching and that’s what
real estate wholesaling that’s what smart real estate wholesaling is that’s
what smart house flipping is okay and that’s why I’m giving you the the course
the free course smart business empire okay so with that being said let’s let’s
go ahead and look at are some questions that may come up on YouTube and see if
we can spend another few minutes here hanging out with you and see if there’s
any other questions so what I did is I searched for how to get started
houses and and I’m going to the top videos here this video was clearly this
video was clearly an ad okay it’s an ad it has six million views
heater was an ad right and let’s see there’s no comment on it so yep so
that’s not what we’re looking for this one is more of a video investing for
beginners there you go alright so what I like to do is I like
to go in the in the comment area and see what people are saying and and then we
kind of like dissect it together for the last few minutes and then now we’ll take
you from that let’s see any comments come on ego so here but where do you get
the 32 thousand dollars to buy the house from alright so I’m sure some people
have answered already easy money Smurfs sniper he never paid 32k from what I
understood he just said he will pay 32k to the original seller and then found a
second buyer to buy that house and use this money to pay the original seller
that’s exactly correct okay so essentially you put a house on the
contract for thirty two thousand dollars okay and you find a buyer that thirty
two thousand dollars it was paid for a house that was probably worth about
fifty five thousand dollars okay fifty fifty five thousand dollars
alright and do you find a buyer that’s gonna that would take away that contract
you put the house on that contract that you now own the contract you now own the
right to purchase the property at 32k are you turn around you find an end
buyer okay and end buyer somebody that they say hey I’ll pay you $5,000 to give
me that contract I know you have a contract to purchase this property or
give me let me give you five thousand dollars or let me give you eight
thousand dollars right and now I’m paying eight thousand plus thirty-two
that’s eight that’s forty thousand dollars so the end buyer ended up paying
$40,000 for the house but it’s still a good deal for them because that property
is worth fifty five sixty thousand dollars right so that’s why so now the
person in the middle get paid $8,000 for just finding the deal
that’s what I told you that all you have to do is become a good marketer learn
how to find and identify deals okay so that’s absolutely correct payday loan
easy so the person saying payday loan does not understand what the guy was
saying the video most likely not this is just super I’ve been trying to find out
about real estate mind groups but why not I think this is okay so that’s not a
question let’s see here so that was a question that’s a good question right
there okay Wow I’ve watched countless amounts of
videos and this is by far the most understanding video same video thanks a
lot okay that’s not a question okay I’m new in the real estate information and
my question to you is how do you get people to even set up a contract with
you in the beginning without having any money to at least make downpayment good
question good question now if you were in the regular market right with the
realtor and you want to put an offer in on a property of course that we asked
you for three things it will ask you for a down payment
usually $1,000 earnest deposit money if you’re in New Jersey they will ask you
for a proof of funds for that shows that you can make the fool down payment plus
closing cost okay that means a bank account or something like that that
shows that you know that you have the money to make it down payment plus
closing cost and then you put in a contract that’s signed by you for the
amount of money you want to pay okay a proof of funds or pre-qualification from
a bank saying that will lend you the total full money okay so for example if
you’re buying a property for $32,000 you put a you put a downpayment oh sorry the
irony is deposit money okay some people call the EDM okay $1,000 and then a
proof of funds that shows that you have to rest of the $31,000 it could be a
proof of funds in the bank or it could be a pre-qualification or pre-approval
from a bank that they will lend you the money plus the contract of $32,000
so that’s in a conventional market if you’re dealing with the realtor real
estate agent and things like that but how do you avoid that is the question
that this person is asking how do you avoid having
to put down owners deposit money I’ve personally closed over 40 deals
okay and I’ve never had to put any money down ever not a dime some people say if
they ask you can give them $10 but I’ve never put a dime down okay why because
I’m dealing with motivated sellers I’m dealing with distressed property owners
okay people that absolutely need to get rid of our property they don’t care
about walking with money they don’t care what the rules are even though that’s
not really a rule okay they don’t care they just want to get rid of a property
and you’re dead to solve that problem okay you’re not there to follow rules
that are not really rules you’re not there to be you know because they don’t
want to be in or either you’re there to say this is your problem
I got you I’m dead I’m here to help you solve that you want to get rid of this
property I’m here to help you get rid of this property and that’s the
conversation in in other words you’re dead to solve a problem and they’re very
clear on that now if you’re dealing with the conventional seller of course they
will want and earners deposit money they want to take you through a real tour and
in other words there’s no room for creativity okay so the reason this
question says how do you get people to even set up a contract with you in the
beginning because you’re there and you say I’m putting I like your house you
owe how much okay um okay what do you think is what what $60,000 yeah but I
need to get rid of it I don’t care what it’s worth and you do your math is
absolutely what 60 and they’re willing to walk away with 32,000 I say you know
what I want to put on a contract right now we’re close in five to seven days
okay if everything goes well the inspection my partner’s if they’re happy
right and but I want you can you give me a contract right now what’s the decision
maker alright your sign here that you’re willing to sell me the house for 32k
they’re willing to sign because they are motivated to sell some people say that
yeah we’re moving to Florida when we’re very motivated no that’s not motivation
you want to sell it’s not enough motivation in the game of finding and
identifying deals for real wholesaling and house flipping okay
because because you want to sell your house doesn’t mean you’re motivated okay
you absolutely must get rid of the house and stuff yesterday is motivation
because you owe too much money to the bank because you’re in divorce and
because you already moved and you’re paying two mortgages because you
inherited a property that you don’t really want and you have to pay $300 and
taxes every month those are the reasons why people absolutely want to get rid of
her property and that’s all those are the only people you’re dealing with
okay all right person says I love this video but what happens if you can’t find
a cash buyer so good question if you remember based on what I just
taught you you want to get good at building a list of buyers okay the idea
that you can find a buyer is not really a real problem okay it’s not a real
problem there are multiple maybe two or three reasons why you may not find a
buyer okay I don’t care about cash buyer all the money mortgage hard money or
that discussion at the end of the day becomes cash in the bank okay but the
idea that somebody’s gonna come and dump cash on your house the chances are slim
to mostly none okay especially if you’re a beginner okay yeah probably she’s not
gonna find a good enough deal they’re gonna give you excuses that it’s not a
good enough deal it could be because they have other projects going on
there’s very limited amount of real cash buyers in the marketplace and that’s a
fact people that are getting started always argue with me because they’ve
drank the kool-aid of the Guru’s and the Guru’s told them there’s unlimited cash
buyers the fact that the matter is that this unlimited cash but they come from
the bank usually okay they come from lenders okay so so what happens if you
don’t find a cash buyer well if you don’t find a cash buyer it means that
you need to go back to the negotiating table and the deal that you secured was
wrong okay so if you secure the property at thirty-two thousand dollars you
couldn’t find a cash buyer for that or not cash buyer so you couldn’t find a
buyer at all in that market for that chances are you you negotiated a bad
deal and this absolutely nothing wrong to say listen the inspections the market
my partners are coming back saying our numbers are pretty bad are
you open to renegotiation if they say no sir yeah I mean let me know let me know
how things were and you can just walk away that’s it there’s no you know all
they could sue you sue you for what because you didn’t purchase the property
you know you know they can’t they people don’t have time for that then just tell
you they’d rather most people rather move on if the number was completely
just wrong for them they’ll move on you know so as far as lawsuits and things
like that there are multiple ways and multiple clauses in the contract in a
typical contract to get you out of the deal okay if they decide they want to be
some type of asshole or something like that if they decide I want to be that
which is very like more I’ve never seen it I’ve never heard such story people
are typically good people that are open to for negotiations okay you’re there to
help them solve a problem and then you came up with a deal a number that just
didn’t work but now you’re ready to move on okay all right so let’s go back here
all right so this person say I’m a skeptic this seems too easy
and kind of sketchy he’s absolutely right okay so it’s like every four days
those who think they can and those who think they can’t are both usually right
you know I’m sure if somebody is skeptical like this or we don’t worry
about that we let them keep it moving you can go back to whatever they’re not
skeptical about because if you’re skeptical gonna affect your production
right but what we’re talking about here is real estate is buying and selling
real estate you be the middleman to help connect buyers to sellers from an equity
equity security standpoint you make a lot of money doing that okay and you
could visit any real estate office in your local Township and they’ll tell you
that yeah we sell houses for hundred two hundred two million dollars that’s
thirteen million dollars all the time okay so I don’t know what to be
skeptical about but let’s see here’s person what would
happen if you find a cash buyer on time if you don’t find a cash back I think we
answer that and how do you find them you build a list of buyers online okay so I
build a list of buyers online the way I do it is I have a separate website where
I offer knowledge on how to buy real estate the numbers to look for in
exchange for people’s contact information that’s how I do it and when
I have a property to sell I also advertise that on Craigslist and when
people want more photos and things like that I tell them to opt-in to a simple
form so they can get more more photos more details and more and the financial
statement of the property when people opt-in for that I’m building my list
that’s it so how do you have a ties on Facebook are you advertise on Google to
get people looking at this property to build our followership of people that
want to buy investment properties how do you do that that’s something I cover in
the book but that’s essentially what you need to do okay you build a followership
of people looking to buy investment properties or looking for more knowledge
about it okay it’s il DT you invest in more knowledge you’re learning it you’re
teaching it and you’re doing it by having houses to offer people on that
list from time to time il DT that’s the formula right there
okay so so that’s that’s how we do it okay
also with what if cash buyers want to close the deal with the original seller
and take you out of the agreement then then then then if that ever happened to
you okay it’s typically because you’re dealing
with the one-off in every 1 million people okay most people are good people
that would not do something crazy like that what’s kissing area is the story I
gave you earlier where the guy said listen I’m not gonna close because
you’re making too much money off of me and what I did is I renegotiated I could
have just given him $5,000 and make 15 but I offered him 10 because you know I
was desperate and I wanted to close my first deal 10 grand right I was supposed
to 20 grand but it’s now 10 grand it was still a good payday
okay and since that moment I will never go back to just me no 95 worker ever
again okay so um so if somebody just want to like
outrightly take you out and deal with the like first of all all the paper
walls you’ve been signing since the beginning of the contract would not
allow for that because usually you’re at a closing before they meet the other
party and at that point in time is there everybody is ready for closing they’re
not thinking about how to be be bad they’re not thinking about how to take
people out you know they’re not they’re just thinking about what usually you’re
dealing with a motivated seller that needs to be out of the house and in this
in the case of short sales and you know you’re giving them a thousand two
thousand dollars for purchase of a couch behind their house just so they can have
some money for moving right the bank doesn’t even want them to work with
anything to walk with anything because the bank is taking a huge loss right so
these are issues that you never have to worry about you only have to worry about
that if you are living in a place where a hundred percent or ninety nine percent
of the people are just bad and they’re looking to kill the next people next
door every day my point is that most people are good people okay that’s my
point okay all right so let’s go down here
actual buyers do ask to check the property up side now how did you manage
this inspection if you were not the owner yet actual buyers did yeah well
you know again you deal with numbers in most cases and as far as actual buyers
check the property upside down like I said earlier in wholesaling and house
flipping that’s not really your responsibility that’s the responsibility
of our inspector home home inspection okay and maybe a contractor if you’re
trying to fix and flip then you need to bring in a contractor to give you
estimates on how to fix and typically I should do that and you do that over and
over you’re learning too as well so your ability to be able to make estimates
even without the textbook bring three contractors kind of craziness right
increases over time do your ability like you you become very good at this over
time because you are around it right so the actual buyers thing is a
skeptical phrase okay so says freeze coming out of skepticism
and then somebody still deciding to call you a non actual buyer you are an actual
buyer if you are real estate wholesaler and a flipper okay you just have
partners okay you have partners that will actually be the end buyer okay so
there’s no session as actual and non actual buyers okay it’s not no such
thing if there was then all this would be legal right and like I said there’s a
real trade off there’s a real trading going on and willing parties that are
open to the idea of doing the trading and somebody’s problem is being solved
somebody is giving the house that it can fix and flip for a profit somebody’s
getting a really somebody’s getting rid of a house that they don’t want right
and you are also getting paid for facilitating the transaction okay
everybody are actually actual buyers as set the seller okay and by the way this
is a this this business model can help a lot of Realtors that know how to finding
deals for investors like this so this is not in any way taking away business from
Realtors if anything they had more transactions into the marketplace as
comps and even as a real business that it can make Commission’s from okay how
do I find the home buyers list in my area home buyers list is something you
build that’s what you learn when you download my book Empire lifestyle
secrets at my Empire you build that and
that’s why I think that’s why I think you have a lot of lucrative opportunity
okay so like for example this evening I’m actually going out to meet some
potential partners that I want to negotiate with so I can help them get
rid of their properties okay very simple all right um let’s see but why doesn’t
the cash bar I just buy direct from the seller I cut you out because it’s called
a marketplace and you know do you have access to the rest of the seven billion
people in this world no you don’t okay so if I have access to three people out
of those seven billion people and your buyers within those three people I can
get paid for connecting you with them it’s called connection you get paid for
connection for connecting the transaction together okay so the person
that’s gonna buy your next house it’s not necessarily within your existing
circle of influence if somebody helps you link that together
you make money okay you go you make money by selling your property and you
pay them a little bit of fee for helping you find that person okay if it was a
real toy you paid him a fee for listing it into the market if you was a equity
real estate wholesaler you paid him for helping you find that buyer in their
network they bring a pot their partner to the table to buy your property why
would they want to cut you out you’re getting the exact solution that you
bargain for right so again that’s skeptical questions that’s normal I get
those questions all the time where do you get the agreement documents go to
your local real estate decision and just chitchat with people okay I’ll google it
you’ll find some okay you find some that will actually make sense you find a
couple and they look alike that’s probably what you’re looking for okay so
one last question so basically you find a house and buy below market value if
they say yes absolutely correct and immediately after way you find some
investor and tell them your business plan and borrow money from them and
close the deal no you find an investor that actually wants the deal and they
take the deal the contract that you signed away from your hands for a fee
and they’re happy to do that all day long okay so that’s what I have for you
today or hopefully you enjoy that again go through this channel subscribe to
this channel or share this video with somebody you think may like it if you
can’t think of any one just click the share button below and to share to your
social media platform do your favor I want and everyone can see this video
I ain’t uh if you if you like anything I’ve said so far that makes sense please
give me a thumbs up I really really appreciate that the most important part
of all of this is list building of your buyers you list you’re gonna start
making money right away learn how to build a buyer’s list learn how to bring
buyers to the marketplace that’s what I’m teaching here learning how to bring
bias to the market please build a list of buyers how do you do that how do you
nurture them how do you build an offer around it how do you make money before
somebody even buy a property how’s that right that’s what I’m that’s
what I’m calling smart house flipping smart will
state wholesaling that’s something you’re gonna learn on the inside with
the smart business empire 70 course at my empire procom and also in the book
empire lifestyle secrets hopefully you’ve been enlightened and educated and
I will see you on the next one and this

One comment on “How to Get Started Flipping Houses [$10K – $20K Per Deal]”

  1. Kyle W says:

    You have great information you really break things down and simplify them I'm in the process of getting red x what list do you think is the best one to get my first deal ASAP and do you think I should get a triple dialer or just a single

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