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How to Flip a House in 5 Simple Steps 2012Networknot good business, so be honest when you aretalking with people.The number one way to improve your houseflipping strategy and find profitable propertiesis through networking. Not only will it help youcraft your house flip team, but it will also putyou in contact with people who couldpotentially help you find and then purchaseyour very first house flip.The fastest way to get your foot in the doorflipping houses is to get to know other realestate investors in your own area. When youare first starting, it’s important to know whatyou know, but even more important to knowpeople who know – if that makes sense!I highly recommend that you immediately startnetworking and marketing yourself. Dive rightin and don’t worry about not having anyexperience. In fact, the less experience youhave, oftentimes the better. When you are anovice, pretending to be anything but is justOne of the fastest ways to get your foot in thedoor is to get to know other real estateinvestors in your own area. Ask questions, benice and learn to enjoy meeting new peopleand establishing new relationships.I highly recommend checking out How to WinFriends and Influence People by DaleCarnegie. If you read this book and implementits strategies, you will be able to networkyourself to success in real estate.To sum it all up, the formula is actually quitesimple. Get out there. Get out of your office.www.HouseFlippingSchool.com13 P a g e

How to Flip a House in 5 Simple Steps 2012Make yourself known. Take some chances.Good things will come from it.your local group meets. Next simply sign upand attend the next meeting.“Progress always involves risk; you can’t stealsecond base and keep your foot on first.”At these meetings you will meet otherinvestors at many different stages of realestate investing. Some will be beginners whileothers have done hundreds of deals. There arerehabbers, wholesalers, realtors, contractors,attorneys, mortgage brokers, hard moneylenders, short sale experts and many others.These are exactly the kind of people youshould be meeting in order to launch yourhouse flipping career.-Frederick WilcoxInstead of spending all your time at home atnight studying how to flip and grow rich, mixup your study time with networking time. Getout there and meet people a few nights perweek. Study and research has its place and isimportant, however it is very common forpeople to spend too much time studying whatto do and not enough time doing what youneed to do.The Best Places to NetworkThere is no better place to begin networkingthan at your local REIA (Real Estate InvestorsAssociation). No matter where you live, there’sone in your area. Click this link to find whereREIAs usually have monthly speakers as well.Many are local experts and others are nationalspeakers and educators. It is a great placewhere like-minded investors can share ideas,contacts, and invaluable information with eachother.So make up some free business cards atVistaprint and join your local REIA.www.HouseFlippingSchool.com14 P a g e

How to Flip a House in 5 Simple Steps 2012Here are a few other ideas on how to getstarted networking: Look up other real estate investors andhouse flipping professionals atMeetup.comyou to form your own house flipping team,which is the subject of the next section.Formulating Your Team Join your local Chamber of Commerce Join your local Business NetworkingInternational chapter Get involved in your local community Volunteer at a local charity Form your own local house flipping / realestate investors associationThe point is this: the more people you meetface-to-face, the greater the likelihood thatyou will find people who have properties to flipthat are good for you. Additionally, the morelike-minded individuals you meet can also helpMany house flippers get into house flippingthinking that it’s a solitary process; just youagainst the world, making money hand overfist nothing could be farther from the truth.www.HouseFlippingSchool.com15 P a g e

How to Flip a House in 5 Simple Steps 2012When people ask me how to get startedflipping houses, one of the first things I tellthem is that flipping houses is a TEAM sport,not a solitary venture.who knows real estate law. Think of it as a wiseinvestment instead of a cost; like car insurance.You certainly don’t like paying the premium,but when you get into that fender bender, youare sure glad you did.Assembling your house flipping team is one ofthe most important steps you need to take inorder to get started flipping houses. In fact,second to mindset, it is the most important.Although you will eventually need to assemblemore than five team members, it is importantto first focus on finding an expert professionalinvolved in each of the following areas.An attorney may appear expensive at first(especially after you get your first bill) – andespecially if the attorney charges a retainer totake you on as a client, but in the end it willcost you a lot more if you hire an incompetentattorney or try using one of those otherservices.1. Real Estate Attorney2. CPA (Certified Public Accountant)Many new house flippers make the fatalmistake of refusing to hire an attorney. Theyknow they need an attorney but decide insteadto “go it alone” or hire some second rateinternet based legal service.Like an attorney, hiring the right CPA can saveyou a lot of money whereas hiring the wrongCPA can cost you a lot of money. In the processof finding a top notch CPA, it may befrustrating to hear so many different kinds ofanswers regarding real estate and houseflipping accounting issues. This is notuncommon as the U.S real estate tax code canbe interpreted in many different ways.The bottom line is when it comes to finding anattorney; you get what you pay for. Don’tskimp here. Hire a qualified expert attorneywww.HouseFlippingSchool.com16 P a g e

How to Flip a House in 5 Simple Steps 2012Finding an accountant who is extremelyfamiliar with U.S. tax laws for house flippingand real estate investing is best. But thebottom line is you want a CPA who mesheswith your personality, works hard for you, anddoes all he or she can to legally apply strategicand ethical accounting strategies-to keep yourtaxes as low as possible without throwing upany red flags to the IRS.Your CPA should also be involved with yourbusiness structure from a tax advantagestandpoint.I would recommend youraccountant consult with your attorney to makesure everyone is on the same page.3. Insurance AgentHow you handle your insurance largelydepends on how you set up your businessstructure. Make sure you hire an insuranceagent that understands your business and cangive you good advice on how to insuredifferent types of properties.Different kinds of house flips require differenttypes of insurance, so make sure you ask himor her about homeowners, builder’s risk,liability or even flood insurance. Your houseflipping insurance agent should be a one stopshop for you here.4. ContractorsThere are a couple of different ways you canhandle how to do the renovations on yourproperties. Here, when you are just startingout, we advocate using general contractors tooversee your house flip rehab. Thecompetency of your general contractor canmake or break any house flip deal; so it is veryimportant that you hire the best ones you can.It’s also extremely important that you havetrust in your contractors and the work they do.A general contractor is a singular company whoruns the entire project; they are responsiblefor hiring all the various subcontractors on thewww.HouseFlippingSchool.com17 P a g e

How to Flip a House in 5 Simple Steps 2012job. The subcontractors are tradesman likeplumbers, electricians and carpenters.someone with this specialty is invaluable inhelping you source new deals.If you can find a general contractor who canwork within the budget you set forth for aproject, then you are certainly on the righttrack. Finding a reliable, trustworthy contractorwho sticks to his cost estimates will help youdramatically, especially if you are just startingout.There are also real estate agents that specializein short sales. A short sale is a sale of realestate in which the proceeds from selling theproperty will "fall short." of the balance of thedebts against the property. These are agentswho work with banks to sell a property for theseller before it goes to foreclosure.5. Real Estate AgentNo matter which kind of real estate agent youchoose, or even if you have one of each kind,this team member is vitally important for yourdeal flow.When it comes to real estate agents, you cansearch out an agent with experience whoalready is familiar with house flipping, or youcan train an agent yourself. You may eventuallyend up working with a few agents in differentterritories-each specializing in a particulararea.Also, there are a number of REO (real estateowned) agents. These are agents thatspecialize in selling bank foreclosures – havingWhen you are first learning how to get startedflipping houses, you may not choose the rightteam member the first time around, but that’sactually okay.The more experience you get flipping, themore you’ll be able to discern which teammembers stay for good and which ones youmay want to cordially part ways with.www.HouseFlippingSchool.com18 P a g e

How to Flip a House in 5 Simple Steps 2012Find Houses to FlipSo here are a few ways how you can find goodhouses to flip.1. Real Estate AgentsWithout a doubt real estate agents are one ofthe best means by which to locate houses toflip. On the flipside, you can get into sometrouble here as well, so caution isrecommended.We’ve touched on many of the criticalelements to house flipping success in previousposts, but if you don’t ever find a house thatcan be flipped for a profit, or a house to flip forno money down-your real estate investingcareer will never take off.As a house flipper looking to control expensesto maximize your profits, real estate agents arein the business of making money from sellinghigh, so you need to be careful. You also wantto make sure that you respect their time aswell. Real estate agents want to make money,and the last thing in the world you should bedoing is running them around findingproperties without making any offers.In many cases, you may need to educate yourreal estate agents on the process of houseflipping so expectations are set early on. Talkwww.HouseFlippingSchool.com19 P a g e

How to Flip a House in 5 Simple Steps 2012to them about your plan to buy properties,what you are looking for, and where you hopeto find it. The more upfront you are with them,the better it will be for both of you.It is important to refer back to the importanceof both building a solid house flipping team, aswell as the power of relationships. This is whyit’s so critically important to find the right kindsof people for your team – which means thatyou may need to go through a few of thembefore you settle on a real estate agent whoyou are on the same page with.One of the most important reasons to team upwith a real estate agent is because they haveaccess to MLS (multiple listing service). MLS isan online listing service that includes all realestate for sale in the US and Canada. This is anessential tool for finding properties and makingoffers.Oftentimes the real estate agent will runcomps for you at your request. But better yet,if you can establish a great relationship withyour agent, they may give you access to theirMLS database so you can do it on your own.In so doing, you can run comps so you knowwhat the potential value play would be on apotential house flip. Tell them granting youaccess will save them time and also allow agreater pool of potential house flips to target.2. WholesalersA wholesaler is a person who signs a purchasecontract or an option contract with a propertyowner at specific price and then sells or assignsthat contract to an "end buyer" at a differentprice.You’ll want to be careful with wholesalers asmany new real estate investors start offwholesaling due to the fact that they don’tneed money to make money on the houseflipping deal.You will want to make sure that any wholesaleryou deal with is qualified to handle thewww.HouseFlippingSchool.com20 P a g e

How to Flip a House in 5 Simple Steps 2012transaction correctly, or things can go wrong atany point in the transaction.Additionally, there are plenty of seasonedwholesalers out there as well. These kinds ofwholesalers most likely have money and mayend up taking the better deals for themselvesand leave the less lucrative deals to other realestate investors. The really good and respectedwholesalers spread it out so everyone benefitsin the end.You can find wholesale sources just abouteverywhere these days. These are the “I buyhouses” and “we pay cash for houses” signsyou may see around town.Despite reservations house flippers might haveon wholesalers, if the numbers make sense,then it’s worth it for both of you. They makemoney and you make money, so everyonewins.You can also meet wholesalers at REIAmeetings, through a quick Google search, bycalling the numbers on those signs as well asgetting your local newspaper and looking inthe classifieds columns. Once you contactthem, build the relationship and see whathappens. You have no obligation to do a houseflip with them, but they may be a great sourceof new house flips for you.3. REO SpecialistsWith these companies, you may be able to doa quicker than normal flip. Although thepayout will more than likely be lower,especially if you have not developed strongnegotiation skills yet. If you are a goodnegotiator, you might actually enjoy this styleof price haggling.An REO specialist has been trained and isexperienced in handling real estate owned (or“REO”) transactions. Real estate owned or REOis a class of property owned by a lender,usually a bank, but it could be other agenciesas well, after the property has beenunsuccessfully sold at a foreclosure auction.www.HouseFlippingSchool.com21 P a g e

How to Flip a House in 5 Simple Steps 2012Bear in mind that an REO sale is much differentfrom a traditional real estate transaction.However, if you choose to use an REOspecialist when flipping houses, as they can bea great source for house flip deals. Throughthese specialists, you may be able to purchasemany of your deals very affordably.or house flippers. In many cases the answer isthat it can be.The best kinds of short sales for house flippingpurposes are in cases where the owner hasmoved out of the house prior to beingforeclosed on. In many cases, neglect anddamage occurs and this then creates a solidopportunity for house flipping.4. Short Sale SpecialistsShort sale specialists are typically real estateagents who have become experts innegotiating short sales. The definition of ashort sale is a property sold by a seller througha real estate agent for less money than whatthe seller owes the bank who holds themortgage.When a seller does this, it saves the seller frombeing foreclosed on and could save their creditrating in the process. The biggest question iswhether the property can in fact be sold shortenough to be attractive to real estate investorsYou can meet short sale specialists at REIAmeetings. I also recommend asking aroundwhen you are speaking with your real estateagent to see if they can refer you to a goodone.When you do find a short sale specialist whoworks in your geographic area, make sure youask them about their experience, training, aswell as what banks they work with and alsowhat their average time frame is from time ofoffer to closing.www.HouseFlippingSchool.com22 P a g e

How to Flip a House in 5 Simple Steps 20125. Attorneysventures but can also be a source of potentialdeals.As a critical member of your house flippingteam, your attorney can also be a tremendoussource of house flips as well. Not only will theygive you solid real estate investing legal advice,but if they are a general attorney they mayknow of potential house flips through divorceand other legal settlements.Attorneys typically have many clients with realestate holdings who may be a good source forhouse flips. These include estate sales andbankruptcy. Bankruptcy attorneys may haveclients who are looking to shed assets quicklyand a house flipper can both close quickly andsave the seller real estate agent fees, which aretypically upwards of 5-6% of the sale price.6. Other Real Estate InvestorsAs we discussed before, other real estateinvestors you meet while networking can notonly be great sources of potential jointThink of everyone in the real estate communityas a potential partner for you. That’s not to sayyou should be giving away good deals to otherinvestors, but in house flipping, think of eachof your competitors as potential partners. Theymay not be now, but they could be in thefuture – so build relationships with everyone.There are hundreds of different ways to findhouses to flip, and this list is by no means allinclusive. The common thread is that nomatter what stage of your house flippingcareer you are in; always keep your eyes andears open for opportunity.If you use the strategies we have outlined, andif you are constantly pushing towards what it isthat you most desire, you will find thatopportunities for house flips will bemagnetically drawn to you all you need to dois remain aware and be ready to act whenthose opportunities arise.www.HouseFlippingSchool.com23 P a g e

How to Flip a House in 5 Simple Steps 2012When house flip opportunities do fall into yourlap, the most important thing to do is takeaction. You’ll find then that the last thing youconcern yourself with is how to find houses toflip because you’ll have so many opportunities;all you’ll be required to do is just cherry pickthe best house flips and watch the money rollin.STEP #3: Secure the FinancingOne of the biggest sticking points new houseflippers have is securing financing for theirdeals. In many cases, they just don’t knowwhether to get the money first or get the dealsfirst.So which one do you do first?www.HouseFlippingSchool.com24 P a g e

How to Flip a House in 5 Simple Steps 2012There is really no right or wrong answer to this.The bottom line is that in order to learn how toflip houses with no money, you need to beworking both

flipping career. And as you’ll learn in these pages, when flipping houses successfully, taking action is what it’s all about. So congratulations for taking bold action! Like you, the day I decided to take action and took my first steps to learn how to make a full time living house flipping