Hey, what's up friend. Kris Krohn here and today we're talking about how you can
get paid to flip deals without actually fixing them up. And I'm bringing on
resident expert, nationwide, awesome kingpin of awesome foreclosure earnest,
Jerry Norton back in the house. Dude, hey, welcome back. -Thank you for having me.
good to be here. -And friends, we're going to share with you today how you can
actually flip and make a crazy amount of money in real estate without ever doing
any of the fix-up work.
Okay. So, for today's video, let's jump on in it. It really comes down to this question:
"Which type of flipper are you?" Because you might be thinking, "Well, there's only
one, right?" But Jerry, there's actually two? -Yeah, that's right. There's 2. Most
people are familiar with the fix and flipper. We're going to call that an
investor. It doesn't have to be a fix and flipper. Could be a landlord that's doing
a buy and hold. It's your investor that's going to take that deal and do something
with the deal. Physically do something. Fix it up and sell it, rent it, whatever.
-They're the one that's actually executing on all of the work and they
actually become the owner of the property. -That's right. They take title of
some kind. They are the investor. -Most people think that that's probably the
only real flipper. But what is the other flipper? -Well, you can actually be a
finder who just flips paper. Flips the contract. You don't actually own it,
manage it, you don't actually do any of the investing side. You're more of just a
deal finder getting paid to bring those people deals. -So, basically you are either
flipping contracts or paper or you're flipping houses. -That's right. -And there's
a big difference like, what's the difference between these two people?
-Well, there's a huge difference. I mean, first of all, the investor here is taking
on all the risk, right? Because they're going to own it, they're going to take title.
They're going to bring money in. However they do that. -They got a vision for what
they're going to do it. -They've got an endgame of what they're going to do with
that property. Even, if they're going to flip it retail and sell it eventually, they
still are taking on all of that risk and all of that work. -Okay, but the finder?
-This person is saying, "You know what? I don't want any part of that. I want
nothing to do with that. I don't want to hit, take on the the risk. I don't want worry
about getting the money for it, managing contractors, dealing with
tenants, none of that. I just want to get paid for bringing somebody that does
want to do all of that a deal." -So, think about it this way for just a moment,
imagine that this pie represented 100% of the profit. The finder is
going to get some of the profit, the investor is going to get some of that
profit and I want to show you kind of an interesting overlay here. First of all,
Jerry, in your opinion, who makes more money generally? Is if the investor or
the finder? -Well, it better be the investor. -Why? -Because they're doing the
lion's share of the work. -So, they're going to put in all the time, all the effort
and they're going to all the risk. So they're going to make most
of the money? -That's right. So, let's just say for a moment that there was
$50,000 of potential profit. In a normal situation, how much might go to
the finder? How much to the investor? -I mean, if you carved out of that.
10%, you know. -So if you had $5,000 that went here to the
finder. And then if we had $45,000 go here to the investor,
you would say that that sounds pretty fair? -Yeah. I mean, it will not work if you
don't leave enough meat on the bone for the investor. Because if he can't make
money... -He won't buy it? -He's not going to do it. -Yeah. What's the most you've ever made
as a finder? -Well, you know what? It's all about the margins, right? So, in this case
we use 50,000 but there is no limit on what you... I mean, you can
wholesale a house and make 25,000 , 30,000. Even more depending on how much you're
leaving the investor. -So, if you are leaving the investor, let's say
$200,000 and they would be satisfied with a $100,000, is
it possible that... -You could. -You could make a hundred as the finder? And they could
make a hundred? -Yeah. You definitely could. -Alright. So friends, I want you to
understand that when we have this question, it's like, "How do I flip without
fixing?" What we're really talking about is you being a finder and another name
for that as a wholesaler. That's the person that says, "Listen, I'm going to find
the deal and then I'm going to give it to somebody else that is going to
execute the remainder of the deal." That's the investor that is going to long term
hold it, fix and flip it, rent it out or do whatever they're going to do with the
property. And so, I guess in this video, I just wanted to ask you this question. Is
it possible to make a lot of money in real estate without actually fixing it
up? -Well, some people might be thinking, "Well, 5,000, you know, that's
sounds great and everything. But I'm not going to get rich doing that." But here's the
thing I want you to think about, all of the time energy and effort on the deal
is right here. Not with you. What that does is it frees you up to then turn out
and do another deal, another deal. -So what if you did four of these in a month and
you made five grand on each contract? -You could literally in a fraction of the
time, it takes this guy to do one deal, you could have turned four or five deals.
-But not necessarily have the risk? -And not have any of the risk. -Now, you need to
understand this. We're not saying that this or that are better than each other.
In fact, I would put three things on the board here.
One is I love to do long-term buy-and-hold. Then you have some of those
just flipping a property. And you've got someone else that's actually just finding
the deal. In real estate, there's room for all of us. And you have to ask
yourself, "What am i doing?" I'm right now investigating a brand new market where
I'm able to buy homes for 50 to 60 grand. That's their total value. But I'm renting
them out and making 5, 6 hundred dollars a cash-flow on each one of them.
It is an extraordinary high cash flow. I'm not interested in wholesaling in
that market. I'm not interested in flipping in that market. In that market,
I'm interested in cash flowing. But if I go into another market or another area
of real estate where there's really high margins, flipping could be the game or I
could become an expert at finding. And will probably debate with each other all
day long which is better. But I think it comes down to the person, I think it
comes down to your lifestyle, I think it comes down to what you enjoy doing. -And
you know what I find is a lot of people who are highly dissatisfied with their
job. Wholesaling is often a great way to get in the game because if you figure
out, "You know what? I only need to do one deal a month or two deals a month and I
could replace my job. Now that gets me full time in the big game. Now, I could
start thinking about some long-term wealth building things."
So, wholesaling is a really great way to get into the real estate game. -You
might want to consider becoming what we call a premium wholesaler. A premium
wholesaler, someone that learns how to do their job well enough that they're not
getting paid 5 grand or 3 grand. They're actually paid $10,000. Now, just for a
moment, imagine, if you were a premium wholesaler getting paid $10,000
on every single deal. Well, for you to become a premium wholesaler, you
need to find the buyers out there that view your value at a premium level and
are willing to pay you $10,000. So, Jerry is just one of many out there that are
actually willing to pay you $10,000 every time you find the right kind of
deal. And if you'd like to learn more, click the link in the description below
and Jerry will actually give you access to his free online automated system
where you plug in your zip code, it'll pull up the deals. You can number crunch.
You'll get training on how to do that. If you find a good deal, you can upload it
right to Jerry's website and then an exchange, if it meets this criteria, he
selects it, he'll give you $10,000 as a premium
wholesaler. Now, I don't know about you but to me, that sounds like a mighty fine
way to get in the game of real estate without needing money or credit when
it's time to get in the game. -That's right. You don't even need to find the
buyers because I'll be your buyer.