How to Flip Properties With No Money Down
Myth or reality...is it possible to flip a house with no money down? When I first started educating myself on investing in real estate I thought that you needed a lot of money or at a very minimum good credit so you could get a loan from a bank. The concept of being able to buy a house (one of the most expensive things a person will ever purchase) without needing any money sounded so silly to me. That was until I met Matt.
Matt was a local property wholesaler (flipper) in Arizona that I met at a networking meeting. I knew Matt made a lot of money so I did everything I could to him to sit down and explain his business model to me. When we met the first thing he did was to teach me that there is a HUGE difference between owning real estate... and controlling real estate.
SIDE NOTE: Controlling real estate is the key to “no money down” investing!
Back to the story. Matt explained to me that he was in the business of hunting down distressed sellers or distressed properties, negotiating with them to purchase their properties at a significant discount from retail values, then quickly flipping them to cash investors that would purchase them at a discount from retail. The difference between “significant discount” and “discount” was Matts profit as the wholesaler.
The two best parts about this strategy is the fact that you end up using the back-end cash buyers money to purchase the property from the original motivated seller using one of two methods: either by assignment or by using something called a double close. Once you place a property under contract you gain what is called “equitable rights” in the property. These “equitable rights” allow you to re-market the property to another buyer even though you have not “closed” on the purchase yet!
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Let me explain the “Assignment Method” in more detail.
When wholesaling using “assignments” you simply need to put a property under contract at a significant discount and have some simple terminology in your purchase and sale agreement right after the name of the “buying entity”. The terminology is the phrase “And / Or Assignee”. By having this little phrase you are telling the seller that either you will buy their property, or whomever you “assign” the contract to will buy their property.
So at the point that you have a property under contract at a significant discount you would begin marketing the property to find a “cash buyer” willing to pay what you want to sell the deal for. Your profit will be the difference between the contract price that you negotiated with the original seller, and the purchase price you negotiated with the back-end cash buyer. Simple enough.
Once you find your cash buyer, you would need to fill out a simple one-page “Assignment Form” that allows them to step into your shoes and proceed with the purchase. When the deal closes you get paid your “Assignment Fee” out of escrow, the motivated seller gets to sell their “problem property”, and your cash buyer gets a great deal at a good discount. Win/win/win.
There are a couple more details that you need to know when using the “Assignment Method”. Good news is I explain those details in the wholesaling video I’m giving you as part of your 7 free video mini-course. Fill out the form on this page and you will quickly gain access to 7 of the best free educational videos available online. I give away such quality content because I want to help you realize just how fun and profitable real estate investing can be. Plus I know that if you implement the strategies I share with you and make some money...that you will become a “friend” for life and continually come back to me for all your real estate educational needs.
Your friend in the business,
Cody Sperber
P.S. I don’t know how much longer I plan on keeping the videos up...or how much longer I will keep giving them away for free...so take advantage of my generosity before I change my mind! ;-)
P.P.S. I also cover the “Double Close” method in detail in the 7 free video mini-course. After you watch you, will know all the details on flipping houses with no money down.
P.P.P.S. What did the farmer say when he lost his tractor? ........................Where’s my tractor. (Bad Joke Alert...now go fill out the page and start watching the videos!)
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