Hi, there. I'm Noel Randall. And on today's episode, we are talking about how to flip
real estate for a profit. That is the important word. You can flip all the
houses you want. But you need to make a profit. So, let's talk about how you do
that. Let's go.
So, the first thing that we're going to go over is how to find the best properties
for flipping? Because if you want to make a profit, this is going to be key. So, we're
going to talk about how to do that. We're going to go over the easy steps to find
repair and sell properties for profits. I'm going to give you the steps, the easy
steps so that you don't do stuff that you don't have to do. And you don't miss
the important things that you need to do. And then finally, I'm going to give you some
tips and tricks so that you don't get taken advantage of and so that you don't
lose money in the process. So, let's get into it.
So, when we're talking about how to buy and flip properties for a profit,
the first thing that we need to do is market, okay?
Marketing. Sending out ads, putting out flyers, whatever it may be. So, let's talk
about though who. So, it's going to be two people that have property problems. The
first thing that you want to do when you're investing in real estate and
you're trying to make a profit is you got to find what we call
motivated sellers or distressed sellers. That's probably a better word for me
than motivated. Because my motivation could be someone that wants to sell
their house, that's obviously great. What we love in our business and why I've
made so much money is finding people that are in a distressful situation.
Finding people that no longer want the house. People that are in having a big
problem. And that could be a problem in paying the mortgage. That could be a
problem in that they no longer even want to live in that house because maybe
someone lives there that they don't want to live with, okay? And I'm talking about
breakups, I'm talking about divorces, I'm talking about... Even relocations can be a
distressful situation. And I'm talking about finding people that need to sell
to get out of it. So, maybe they're behind on their payments. Maybe they're sick.
Maybe they're... You know, someone's dying. So again, distress. You're looking for
people with property problems. You're marketing to them and you're offering a
solution to take the property from them so that they don't have that problem
anymore. Okay? So, I know that sounds a little bit
complicated but I'm going to break it down for you just a little bit. Finding people
with property problems is actually pretty easy. You just want to use the
words and the language to attract them to you.
So, if for example someone is in foreclosure, ask them. "Hey, are you in
foreclosure? Are you behind on your payments? Are you losing your home?" Those
are literally the titles to our ads, okay? So, we literally just say what we're
looking for. If they inherited home that they don't want, you
literally say, "Did you inherit a house you don't want? Is the roof falling in? Do
you have foundation problems?" You literally think of what a property
problem is and ask them if they have that property and tell them that you are
the solution. So, ask them in your ads if they have that problem and you are the
solution. So again, are you behind on your payments? Are you losing your home? Are
you getting relocated? You ask them if they have that problem and then you let
them know. "We are here to help." So now that we've identified people with a
problem and a property that they want to get rid of, now we have the perfect match
for a profitable flip. This is how a profitable flip begins. Know that this is
how a profitable flip starts. It starts with a property that is below the market
value, okay? And so, why I'm telling you to target people that have a problem is
because they're probably going to be more willing to have that conversation
with you about selling the property at a discount, okay? So, whenever we're flipping
property, people say, "Oh, I want to fix and flip it. We watch those shows we see
those granite countertops and stainless steel appliances." But that's not where it
begins, okay? I'm going to be really honest with you. It begins with getting
properties at a discount. And so, how you get properties at that discount is
finding people with the property problem. Offering a solution and then in return
they're selling you the property for a discount or you're getting the property
under contract at a discount. And then there's plenty of things that we can do.
We can again, fix them flip it. Fix it up and then sell it. Or we can simply flip
that contract to another investor and make a profit. So, let's get into talking
to sellers, alright? We've identified, we put our ads out. We told
them, "Hey, do you have a property problem?" They raised their hand. They said, "Yes, I
do." So, the next thing that you have to do is have that conversation with them. And
this part is a little bit intimidating for new people but it's really not hard.
You really need just need to understand is that those people have a problem. You
are the solution. And if you speak with them professionally and you can explain
to them how you are helping them, that is the key. How you are helping them,
then you will be able to convert them. You will be able to get them to sign the
contract to sell you the property. And I'm going to give you some great videos so
how you ca.. Because people are like, "Well, what do you mean sign the
contract? What if I don't have any money and all this other stuff?" Don't worry, I
have the solution for you and there's links to that video. So, how you can
literally get the contracts and not have spent any money. I tell you how to do
that. If you have a few hundred dollars and you want to leave them a little
earnest money, you can totally do that. I teach you both ways. But don't worry
about that problem yet. That's not a problem.
What you want to do when you're talking to the sellers is focus on the
communication and that you are helping them. They don't need to know that you're
going to be fixing up their property or putting repairs to it or what you're
going to do with it. None of those things need to be discussed in the conversation.
The conversation with the seller is all about them. What they are trying to get
for the property, what their goals are, how fast they can move out of the
property, where they want to move next, what caused the issue. You really want to
connect with them on that level before you ever start worrying about what
you're going to do with the property. Because like I said, once you get that
contract at a discount price, I promise you, there's lots of things that we can
do with the property to make a profit. Let me tell you a quick story about one
of my students. Because like I said, if you get the contract and you get it at a
discount price, I assure you, there's tons of investors looking for great deals and
you won't have a big issue usually finding it. So, I literally had a student
just last week. He finally closed on his first deal that you've been trying and
we just started working together for about a couple of months. And he found
the property and it was $82,000. And so, he just starts marketing it. He starts
marketing at about 90,000, okay? So, at one point, he
was going to make about $8,000 because he got it under contract for 82,000. And
he's marketing the property for $90,000. And he found someone to buy it for
$87,000, okay? So, he negotiated with them and he got the
difference. He ended up with about $4,000 on his first deal. And
he was just so nervous that he wasn't going to be able to sell the contract or
flip the contract. And I've told him, "You got a really good deal." Even at the
$90,000, he's a little bit newer. So, that's probably... I
probably would have got the whole 90 because I know how to negotiate. But even
if you're new, there's profit there. Because he knew it was worth more than
$82,000. That's really what the key to this is. In the
case where you have the contract and maybe you don't want to do what my
student did and just wholesale the property or flip the
contract, you literally want to go all the way and do a fix and flip. So, if
that's the case, the next step once you have the contract signed by the seller
and you closed on it and they've moved out. If you're wanting to
go that route, you're going to have to get pre-qualified first. So, that's the one
thing that I would say. If you're newer in this business and
you're really thinking you want some options, always go ahead and get
pre-qualified. That way if you get contracts, you have multiple options. You
can do lots of different things. You have the financing in place or at least you
have someone that you know that can provide that financing. You have someone
that you know can provide that financing. And in many cases, these hard money
lenders are willing to lend own properties based on more of the property
than they are on you. So, when you're finding these good deals, know that the
hard money lender is going to be very interested in those deals because that's
how they make money too. So, when you profit, they profit. Additionally, it's a second
set of eyes on that property so that you can know if it's really a good deal. They
often help you so much. So, don't hesitate to get pre-qualified from your local
hard money lender or reach out to us below and you can get connected with our
funding source because we have lots of money to lend and we want to help you
with get your first deal. So, I have
that information below. You can always reach out to me and my team. We're always
looking for deals where you know got millions in our portfolio and we're
looking to grow. So, if you're wanting to do this and this is something that
you're interested in, please know that we are interested in you as well and we
would love your deals and to help you and be a resource to you. If you're
fixing and flipping and you're making the profit, the next thing that you want
to do is find contractors. You're going to need a repair estimate. Again, if
you're going all the way with this and you're going to renovate the property and
then sell it, so the next step for you would be finding contractors in your
area. But the key to this is they must be contractors that work mostly on fix and
flips. You want to be really careful with finding and googling and searching out
contractors that deal with real estate investors. And that they renovate
properties not just for people that want to renovate their bathroom or
redo their kitchen. You want those contractors that are
accustomed to working with real estate investors. And again, I give you a link to
how you find those meetings and those people. But those are the people that you
want to deal with because the next step is sell it. So, you fix it up and then on
to the next step. And last but not least when we're fixing and buying
and fixing property for a profit, the last thing that we need to do is sell
that baby. Okay, so let's talk about how to sell it and
make a profit. And I'm going to tell you some secret ways and some secret things
that I do that people don't do or most people don't do. Especially newbie
investors because I didn't do this in the beginning. You start selling the
property before you're done, okay? So, way before you're done with your flip, you
start selling it. You start bringing in people. People like, "Well, wait. No, it's not
done. They're not going to be able to see the finished product." Yes, that is true.
And so many people like first-time homebuyers and things like that, they're
not going to be able to get what you're trying to do. But most people will. And so
when I start marketing the property... So say for example I'm doing a fix and flip,
okay? Renovating the property, fix and flip. And it's 6 weeks to repair the
property. By like week 2 or week 3, I'm going to start listing the property and
showing what putting into it and also offering if
people get to me fast enough, they can pick the finish it. They can pick their
paint. They can pick the granite countertops. They can pick the cabinet
colors. Things like that. Like there's so many benefits. And it increases your
profit. Because if you can find someone while you're fixing and flipping it and
let them start putting their touches on it. It will increase the value to them
because they personalized it. Additionally, if they have to get
financing, they've worked on it. So, by the time you're done with the property, many
times it's just a week or 2 later, we've sold the property and we're out of
there. So, start listing and selling the
property before you are done with your fix and flip if you want to make a
profit. Well, okay. That wraps up today's episode. I know I gave you a lot of
information. This is probably a video you might have to watch more than once.
Totally okay with me. Because you want to make sure that you're getting all of it.
But this time, go ahead please and subscribe to my channel. Again, daily
videos just for you. I'm putting out so much content, teaching you so much so
that you can be successful. That is all I want for you. Reach out to us if you need
anything and then we have free training at Noellesfreetraining.com as well
as here or YouTube.