real estate investing roadmap - freedombyflipping
TRANSCRIPT
Seed Flip
1. Build reserves and learn how to find/analyze deals
Birddog Leads Wholesale Deals 2. Put money back into marketing and do more deals (repeat Step 1) 3. Start rehabbing (fix and flipping)
Getting Leads
Marketing
Direct Mail
Probates Driving For Dollars Delinquent Taxes Absentee Owners Evictions Divorce Pre-Foreclosure Code Compliance Complaints Expired Listings
Signage
Bandit Signs Billboards Magnetic Signs Banners Internet
House Buying Website Free Classified Ads
Facebook Pinterest Twitter Classifieds
Small Local Papers Large Local Newspaper Thrifty Nickel Pennysaver Handouts
Business Cards Flyers Doorhangers Referral Program
REOs (Foreclosures) Estates Fixer Uppers HUD Homes Internet
Craigslist.org Realtor.com HudHomeStore.com Classifieds
FSBOs (For Sale By Owner)
Building Your Team
Start looking for investor-friendly title company
Check with other investors Call title companies and ask for closer that works with residential real estate investors Start looking for serious cash buyers
At Real Estate Investor Association meetings At foreclosure auctions Have real estate agent find properties sold for cash recently Call their 'we buy houses' marketing Market for them yourself
Craigslist.org
Calling For Rent signs in areas you are investing in Create VIP Buyers list for best buyers Start looking for investor-friendly real estate agent
Check with other investors At Real Estate Investor Association meetings Call offices and ask for agent working with real estate investors Start looking for an investor-friendly contractor
Check with other investors Drive areas looking for rehabs taking place Check small local classifieds and craigslist Make sure has insurance Check references
Determine Your Farm Area
Find part of town to focus on Where active rehabs and other investor activity Usually best is working class neighborhoods and around median price for area Areas with houses old enough to have equity and/or needing repairs
Talking With Sellers
15 Important Questions To Ask
Who am I speaking with? What is the address of the house you'd like to sell? How many bedrooms and bathrooms does it have? Does it have a garage, basement, or pool? What repairs or updating does it need? Why are you selling the house? How much is owed on the house? Is the house behind on payments? Do you have an asking price in mind? What did you base that on? How soon were you wanting to have it sold? If I paid cash and close quickly, what's the least you would take? When can I come by to see the house? How did you hear about me? What is the best way to contact you?
Managing Leads
FREE Online Lead Manager
http://www.flippingjunkie.com/free-real-estate-investing-lead-manager-software/ Keep Track of Lead Details Set Follow Up Reminders Keep Track of Lead Sources
Analyzing Leads
Birddog Lead See Also:Birddog Lead (see above), Birddogging
View The House
Build Rapport With Seller
Listen, Listen, Listen Determine Repairs Needed
Use experienced investor for help if needed
Use investor-friendly contractor for help if needed You are not going to be living there Gain experience in determining repairs Calculate Max Offer Make Offer
BEST: In person after viewing the house OK: Get help from investor then call and make offer BAD: Never making an offer Offer Rejected
Counter-offer
DO NOT offer more than your Maximum Allowable Offer Follow Up
Several days later call and see if they have thought about your offer Call every week to two weeks and follow up Birddog Lead (see above) See Also:Birddog Lead
Offer Accepted
Put Deal Under Contract See Also:Putting A Deal Under Contract
Rehabbing
Write up scope of work
Find Contractor Get a bid from contractor
Negotiate
Sign independent contractor agreement
Manage rehab
Check on often When doesn't look good, say something Do NOT pay money upfront with new contractor Make sure you only pay for work that has already been done Have penalty for being late Make sure change order approved in writing before being done Do NOT worry about being their 'friend'
Closing the Deal
See Also:Close on the purchase
If owning house make sure to:
Check for code compliance complaints Get insurance (builder's risk policy if vacant) Make sure vacant before closing (if supposed to be) Title company:
Does title search Prepares HUD statement Handles the closing Distributes the money
Finding A Buyer For Your Wholesale Deal
See Also:Find A Buyer, Find a buyer
Call VIP buyers
Give one by one exclusive 12-24 hour chance at the deal Call and/or email other buyers on buyers list Market the deal to build buyers list and find buyer
Wholesaling
Find A Buyer
See Also:Finding A Buyer For Your Wholesale Deal
Assign Your Contract
Sign Assignment of Contract form with your buyer
Your buyer closes the deal
You get paid at closing Double-Closing
Sign purchase and sale agreement with your new buyer (you as seller)
Close both sides
Money proceeds from B transaction fund A transaction Close Then Sell
Close on the purchase
See Also:Closing the Deal
Find a buyer
See Also:Finding A Buyer For Your Wholesale Deal
Sign contract with you as seller
Putting A Deal Under Contract
See Also:Put Deal Under Contract
Sign purchase and sale agreement
Receipt at title company with your earnest money
Birddogging
See Also:Birddog Lead
Let experienced investor work the lead
Needs to be someone you feel you can trust Tell them how much you want for the lead if they close Give details of the lead to the investor $$$ Get Paid When They Close $$$
Put back into more marketing If they don't get deal, check with seller to make sure
consider birddoggin the lead to another investor