I did everything myself in here that is not how he do
and that right there is a house that I have already flipped as well
as well. And I already know that I can flip this house to a buyer on my buyers list
cause I got strong buyers list in this area
Hey what's up guys john cochran here and today is system saturday the day that I bring your
system that I use my business that you can rip off duplicate using your own local
market now
today is special because I have a special question for you
and that question is this if you had five hundred thousand dollars of your
own money would you use it to flip properties
duhh! I mean here's a true to his guys you can say
a ton of money if you build up and if I show you a business to work
you made five hundred thousand dollars and you have that right in your own bank
account you can literally be the bank guys in you
um you can save so much money because you're not gonna have any fees
to any private lenders or anything like that you don't even go in that and look for any
lenders again because
look at the time that takes to do I'll and look at the confidence
now you have the confidence you have five hundred thousand dollars to go after
and make
offers and know that you have the money seating in your bank account to close in a today
if make they can do title that passed that's what it's all about
and guys if you have that much money in your bank
you can earn way more then 10 percent on your money
of what you've be pay now to a lender you can earn way more bigger
interest in what they can get any=d you know it secured it's your money
secured you're the lender in your the borrower or so what you gonna do
fill out loan apps to yourself no know that stuff you know that a security
you get your going into this deal and you know that is gonna be legit
so guys you just gonna be the bank you're gonna be the bank that's the ultimate goal of
everybody its just is just to be absolute the bank
three years ago guys I was 500,000 liquid right into my bank account
and I would BROKE 500,000 liquid in my bank account
and I would dead ass broke now
many people are just saying gou's John is that a that's impossible how in the
world did you have five hundred thousand dollars in the bank
and you are broke five hundred thousand dollars is a lot of money
well John did you just feel broke or you
really broke, guy's I was dead as broke
I did have any money and I have five hundred thousand dollars in my bank
account
let me explain with five hundred thousand dollars in the bank
let's just say that you go out and you buy
3 properties, okay so go out buy three properties and each
one of those properties is one hundred thousand dollars a piece
okay which means that you're gonna have three hundred thousand dollars out
of your five hundred thousand dollars but you still have two hundred thousand
dollars left into the bank
that doesn't suck each property you're gonna fix them up so you by these
properties in your gonna fix it up
in each property needs twenty thousand dollars and
rehab and repairs okay now that's gonna be sixty thousand dollars 20,000 times
three is sixty thousand dollars in repairs
well guys you still have a hundred forty thousand hours left right in your bank
account
that's still pretty good cushion for having five hundred dollars in the bank
you go and invest in three properties you're buying for a hundred thousand a piece
you're all gonna rehab them and you're going to have
sixty thousand dollars now on rehab guy's you got $140,000 or it's left
that doesn't suck, well guys here is the truth
most people that have five hundred thousand dollars into the bank
they have a little bit overhead they have a business that they're building
they have built up to five hundred dollars in the bank and now they have a
little bit overhead
so in typically anybody with this much
like a liquid in the bank they're going to be anywhere between twenty to
twenty-five thousand dollars in debt
every single month meaning that may have to make 20
to 25,000 hours a month to just stay afloat
okay but they're making a lot more money on their money okay so that's really
nothing when it comes to that aspect but that's the truth
okay because they have to pay their employees
as they gotta pay their own salary they gotta pay marketing out there to keep on
making more money
they have to pay their health insurance they have to pay utilities they have to
pay
of this rent they have to pay all that stuff but here's the deal
here's the deal with all this when you go out and buy three properties
you don't get your return or your profit back
immediately because you're gonna be fixing these properties up, okay
do any rehab anyway rehab that you do into your own
market it's gonna take you in average of six months
to make your profit sometimes it's faster sometimes it a lot longer but the
average that you're gonna have your money out up when you buy the property
you fix it up
and you get ti sold and you get to the closing table get your check
is gonna be be six months okay that's the average
now watch how I was broke so don't make the same exact mistake
whenever
I put you into the situation I bought three properties at a hundred thousand
dollars a piece
twenty thousand dollars on rehab on 3 homes to sixty thousand dollars out
meaning that I have 360,000 always deployed I had three hundred fifty thousand
dollars out in the market working for me
but it's gonna grow to four hundred thirty five thousand dollars
giving you five hundred seventy-five thousand dollars in the bank because
you're gonna make a
money you're gonna make an average a twenty-five dollars on
ever seen single one of this okay so it's going to grow to 435,000 that you have
deployed
which is gonna give you a total of five hundred seventy-five thousand
dollars
into the bank these three properties you're gonna make 25
this putting 575,000 on the bank right well again
it takes an average just six months to get your money back
and for you to profit your monthly overhead guys it doesn't stop your
monthly
overhead it does not stop so $25,000/month
that it's going to uh you know take out your monthly expenses
is uh for six months is hundred fifty thousand dollars think about that so
$25,000 a month overhead for six months 250,000 cause it's gonna take you
that
to for profit that you got five $500,000 a liquid
you got three hundred sixty thousand dollars deployed and you have a hundred
and fifty thousand dollars
in bills the $25,000 a month over that six-month time frame
means that guy's you have negative 10 thousand dollars in the bank
you started with 500,000 and now you have negative
10 thousand dollars into the bank so
on month 5 you get your property you buy your property and fix that property up
then you put up on the market you're waiting for a buyer you're right around
that
six-month time prime so on month
you have all your properties up on the market
and what happened is your mind set it's going to change a lot because now
you change from okay you your precum for we have five hundred dollars in the bank
now you on month 5 you invest all of you're money now you're in survival mode
so your mindset will change a lot and here's what anybody including myself did
and what you would do got all three properties up wanna market for 149
so every single one of them were up to 149 I'm meaning that you got a total
amount in about 120,000 so you bought for 100 and each one you put twenty
thousand dollars in repairs and that's not much
so you got a hundred twenty thousand on you put them up on the market for 149
giving you total up 299 of a profit month 5
again you're in survival mode you need to get your money back
so you cannot wait on that profit you cannot wait on that property gotta start
liquidating some assets
so that you can comfortable again, okay so you lower the price is so from the
149
you just lower the prices to get your money back but you're still going to make a
profit on these deals
so what you do is you lower the profit from 149
down 139 okay so
and what you do is you sell your property because you get that price reduction
okay
and you gonna close on in 30 days keep in mind your own month number 5
you this price reduction down to 139,900
and you end up selling it meaning that you're buyer just gonna buy at you
they're going to are close you out within 30 days
Month 6 comes because this is one you're gonna close on all your deal
right you're borrowing money now to start paying your employees acceptra
but all three homes close so now month 6 comes
borrowing all these money to pay employees your insurance and all this
other stuff
but good now you're your house is close and now you're going get all your
money back, right
so you net a $132,000 meaning
that that 139,900 you gonna have to pay a realtor your gonna little bit of these
of it meaning that you
net a hundred and thirty-two thousand dollars on every single one
of those three properties on that months 6 okay
so you're gonna make an average of twelve thousand dollars a piece the 132
minus the 120 you make an average of twelve thousand apiece
you're still in the green you're still on green so congratulations so they
take a 132,000 that you net on every single property
x to buy three properties you get 396
thousand dollars, but you had
$500,000, my friend
you just lost a hundred and four thousand dollars
using your own money flipping deals
using your own money
is toxic and this is what I found out
and I went through the cycle if you wanna know how I won six hundred
thousand and dept
I was very very liquid and I went into debt
because I want to let same exact cycle about 8 times where I thought that I was
saving myself money
but at the end of the day I was costing myself so much money
and I was losing money hand over fist using your own money is toxic so guys
what I did last year there's a huge shift
there's a huge shift the 2015-2016
real estate shift is big so what I did last year
in 2014 was I started liquidating all my assets
meaning that everything that I own three in clear all properties that I own
three in clear I started liquidating them all except for my own personal residence
now
there's only
property that I own free and clear in its gonna be closing at the end
of this month so now some time do you need me
really thinking about this because this shift it is no joke in most real estate
investors it's a fog
to them and then literally you're going right into that fault you're gonna hit
that iceberg
and that ship was gonna go down it's that simple so guys I
urge you right now if you ever get into situations where you can buy realistic
and you can pay cash for it out of your own pocket
do not do it and the reason I'm telling you not to do that is you can rewind
this video you can watch it again
and look for all those examples that I gave you because it is after
through okay so we literally just a couple days ago we got on webinars
right showed everybody the ship the real estate ship that was gonna happen
and I gave away over 60s right at
sixty of $500,000 I want a credit to the you'll run into
any of this stuff okay so guys I had a shot at now I haven't completely shut it
down
so guys what we have done is this is we are not open for 500,000 I want to
credit anymore
so if you need to if we ever open up back into the
into the future guy's you can go to Ineed 500K.com it's right on your screen
right now go to Ineed500K.com sign up for the waiting list so that you
never have to go through that cycle
and you can know exactly real estate shift and you can have 5$00,000 in a line of
credit
to do it well so guys this is a huge tip do not go into this
do not go into that don't use your own money cause it's toxic
I would put all my assets and you should too so guys
hopefully you absolutely get a lot out these because
it is very very powerful guys subscribe to our YouTube channel like us on
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I'm out, see you guy's.