Just over a week ago I wrote a blog post talking about our big move out of San Diego, and how we’ll be spending the summer in Panama.  In that post I wrote:

It’s going to be an amazing experience that I feel very fortunate and blessed to be able to undertake.  One of the main reasons I am even able to do this big adventure is because of our real estate investing business, and the way in which we’ve structured it.

I plan to share with you in an upcoming post how we’re investing right now, what we’re doing, and why I believe that it’s the most profitable, most sustainable type of real estate investing there is.

Well, this type of investing just allowed me to pick up this check earlier today:

Now before you read any further, I want to remind you: the purpose of me posting this check is:

  1. To show you that I’m actually DOING DEALS right now (check the date on the check)
  2. To prove to you that when I offer advice, I actually do know what I’m talking about
  3. That this check came from what I wrote about above (the most profitable, most sustainable type of real estate investing there is.)

It all comes down to buying undervalued, old homes, fixing them up, and flipping them for a profit!  This model represents the majority of the deals that we’re doing today, and we love these deals because:

  • People (the buyers and the neighbors) see us as “heroes” because we’re taking dumpy old homes and turning them into beautiful new projects
  • We sell these houses QUICKLY.  The reason is that we price them well, and the homeowner knows that they can “move in” and not have to spend weeks or months “fixing up” their new home
  • Wholesalers like to bring deals to US (instead of having to try and find a buyer for a wholesale deal and only make a couple of thousand dollars)
  • The profit margins on these are the biggest (much bigger than wholesaling, or any other strategy)
  • As long as we live in houses, there are people who are always going to let property become run down, and ignore them.  There’s homes like this everywhere…you just need to look for them (or have other people bring them to you).

How To Start Closing Deals Like This

So what do you need to start doing these types of deals?  Well, we’re all different (in terms of our investing experience and knowledge), but when you boil it down, to successfully buy, fix and flip you really need two main things.

The first is a knowledge of home repair, general contractors, etc.  You need to be able to quickly walk into a property, know how much it’s going to cost to fix it up, what the ARV (After Repair Value) is, and then estimate your profits.  While I’m terrible at most of these things, my business partner Miguel, fortunately, is excellent at them.

The second thing you need is the money to do the deals!  The best way to structure these types of deals is to buy them using private money.  Private money is NOT hard money, but instead is a private loan from an individual looking to lend money.  That, and you need the ability to be a good negotiator.  Fortunately, raising private money and negotiation are two of my strong suits, so my business partner Miguel and I literally do make a really good team.

Hopefully the check in this post inspires you.  Now granted, not all of that is mine.  Half of the net profit belongs to Miguel, and there’s about another $10,000 or so in costs no associated with that.  But we’ve each made more than $70,000 on this deal.

My Advice To You Moving Forward

If you’re interested in picking up big checks in real estate, you’re going to have to work on a couple of things.  The first is to find someone you can partner with who can help with the renovation work.  If that’s you, then congratulations, you’re one step ahead of everyone else.  But if that’s not you, I would encourage you to find a business partner who IS good at that.  It could be as easy as finding a handy man or a contractor who’s interested in doing deals as well.

The next thing you’ll need to do is to start raising private money.  This is completely correlated to networking and hustling, which is something that ANYONE can do.  If you’re looking for some ideas, I’m actually hosting a webinar about raising private money this Thursday, April 19th at 6pm PST/9pm EST.  I’m not doing the teaching, but a friend of mine is.  You can register for this free training here: https://www2.gotomeeting.com/register/476024930

Hopefully you’ll join us on the webinar Thursday.  Even if you can’t make, I hope that this post inspires you.  There are PLENTY of great deals to be had, even in a market as competitive as San Diego.

While I will be enjoying spending my time in Panama this summer, I hope to be able to blog more, tell you about more of our deals, and keep sharing tips and success stories with you along the way.  Until the next post, get ready to get out there and start raising more money, and finding a partner to help you buy, fix and flip those deals!

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