Here is my attempt to give back, I hope it helps some of you. If you wish to rip it apart, feel free. Maybe much of this is old and rehashing, but it is how I see it, and I hope it helps. I offer a money back guarantee that you will learn how to flip if you follow these steps. If you want me to honor it, you must first send me some money, so I have money to return to you in the unlikely event you have the IQ of an earthworm.
First, before you walk down this path, you must acknowledge a simple fact: not everyone is cut out to be a flipper. If you are one of the folks in this majority, do not despair. There are other ways to make money.
Second: The purpose here is so you can determine whether or not flipping is for you, and do so with out losing much money if you are not. If you are it will give you a beginning nest egg to invest from.
Step one: pull 1k out of your savings account. “What!,†you say, “I don’t have 1k.†Then you should not be flipping!!!!!
In one of the books I am writing, one of the chapters has to do with stopping the bleeding before attempting to climb Mt. Everest. The point being, if you have not shown enough financial discipline to save 1k that you are willing to lose, then you should not even be considering flipping.
Step Two: Begin scanning the papers, look around as you take different routes home from work, look at the auction adds for your area, and look on ebay for a CAR!
Utilizing KBB.com, buy a 1k-1.5k car for $600. “But,†you snivel, “I do not know how to tell what is wrong with a car. I would not know what to look for. What if the car breaks down and cannot be repaired?†My answer- then you only lost $600 instead of $600,000 dollars, so shut up. Do you honestly intend me to believe that you know more about repairing a $100,000 house and limiting your losses than you do on a $600/car. “But a car is not a house,†you whine. No but all the principles are the same, just on a smaller scale.
On the buying side you will learn: negotiating a good deal, how to find a good deal, the diligence necessary to find said deal, what your personal requirements are for a good deal.,
While in possession of the car you will learn: how to negotiate with contractors (mechanics), how to evaluate a mechanics work, how to fix what is necessary vs. what is extra, and how to live with some of your money at risk.
Through selling you will learn: how to market a product for sale whether on your own or utilizing an outside sales agent, how to negotiate with buyers, if you do it right, you can learn and test the power of using ebay vs the local paper vs consignment on a local lot.
Through it all you will learn whether or not you are cut out for flipping. Remember all the players are the same, just less money involved. If during the process you find you do not like this whole flipping thing. Drive the car, or tow it to the nearest junk yard. If you drive it in, they may give you $100-$200 dollars for a running car. Now you are done with it, you only lost a few hundred bucks, and you can scratch flipping of your list of possible investment vehicles.
If you like it, keep repeating the process. Do not take your profit and move up to a more expensive vehicle until you have done about 10. The next step before that would be taking the profit from 3 or 4, and doing multiple cars at once. This will give you a small taste for juggling multiple house projects at one time. After doing this enough times, and if you still find you enjoy it, save enough of your profits to buy your first real estate flip. I recommend doing at least 20% down if not more. The more you put down, the bigger the cushion if you have to cut you losses. Remember any money is ever invest is 100% lost until it puts money back in your pocket.
I recommend always staying in the entry level home market. In my where and when, that is homes <150k. I like the entry level because there are always buyers. People always need a house, but they do not always need a $1,000,000 house. Plus the lower the entry point, the easier it is to cashflow as a rental if need be.
Flipping is a numbers game. You have all heard the 100:10:1 rule, will just apply it to cars to practice. You would not turn over you money to a money manager without some sort of track record, why would you turn all the flipping liability over to yourself without a track record?
Let me end by sweetly saying If you cannot hack it flipping cars, you have no business whatsoever flipping houses, so learn something else!
First, before you walk down this path, you must acknowledge a simple fact: not everyone is cut out to be a flipper. If you are one of the folks in this majority, do not despair. There are other ways to make money.
Second: The purpose here is so you can determine whether or not flipping is for you, and do so with out losing much money if you are not. If you are it will give you a beginning nest egg to invest from.
Step one: pull 1k out of your savings account. “What!,†you say, “I don’t have 1k.†Then you should not be flipping!!!!!
In one of the books I am writing, one of the chapters has to do with stopping the bleeding before attempting to climb Mt. Everest. The point being, if you have not shown enough financial discipline to save 1k that you are willing to lose, then you should not even be considering flipping.
Step Two: Begin scanning the papers, look around as you take different routes home from work, look at the auction adds for your area, and look on ebay for a CAR!
Utilizing KBB.com, buy a 1k-1.5k car for $600. “But,†you snivel, “I do not know how to tell what is wrong with a car. I would not know what to look for. What if the car breaks down and cannot be repaired?†My answer- then you only lost $600 instead of $600,000 dollars, so shut up. Do you honestly intend me to believe that you know more about repairing a $100,000 house and limiting your losses than you do on a $600/car. “But a car is not a house,†you whine. No but all the principles are the same, just on a smaller scale.
On the buying side you will learn: negotiating a good deal, how to find a good deal, the diligence necessary to find said deal, what your personal requirements are for a good deal.,
While in possession of the car you will learn: how to negotiate with contractors (mechanics), how to evaluate a mechanics work, how to fix what is necessary vs. what is extra, and how to live with some of your money at risk.
Through selling you will learn: how to market a product for sale whether on your own or utilizing an outside sales agent, how to negotiate with buyers, if you do it right, you can learn and test the power of using ebay vs the local paper vs consignment on a local lot.
Through it all you will learn whether or not you are cut out for flipping. Remember all the players are the same, just less money involved. If during the process you find you do not like this whole flipping thing. Drive the car, or tow it to the nearest junk yard. If you drive it in, they may give you $100-$200 dollars for a running car. Now you are done with it, you only lost a few hundred bucks, and you can scratch flipping of your list of possible investment vehicles.
If you like it, keep repeating the process. Do not take your profit and move up to a more expensive vehicle until you have done about 10. The next step before that would be taking the profit from 3 or 4, and doing multiple cars at once. This will give you a small taste for juggling multiple house projects at one time. After doing this enough times, and if you still find you enjoy it, save enough of your profits to buy your first real estate flip. I recommend doing at least 20% down if not more. The more you put down, the bigger the cushion if you have to cut you losses. Remember any money is ever invest is 100% lost until it puts money back in your pocket.
I recommend always staying in the entry level home market. In my where and when, that is homes <150k. I like the entry level because there are always buyers. People always need a house, but they do not always need a $1,000,000 house. Plus the lower the entry point, the easier it is to cashflow as a rental if need be.
Flipping is a numbers game. You have all heard the 100:10:1 rule, will just apply it to cars to practice. You would not turn over you money to a money manager without some sort of track record, why would you turn all the flipping liability over to yourself without a track record?
Let me end by sweetly saying If you cannot hack it flipping cars, you have no business whatsoever flipping houses, so learn something else!
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