Got Questions? Real Estate Investing FAQ - Wholesaling & Flipping Houses -

[REI4sure]

Reading other comments and gaining additional insight into wholesale investing. Your vidoes are helping me to format my REinvesting deals. Still working on that first deal, but getting there..thanks to your video. robinson9689@att.net

[SoSmooveent]

Ok, If I got a seller using your 1 page contract, could I assign that 1 page con. to a note buyer/ investor??

[RLJ93727]

Great real estate investing advice #UN#

[crome3do]

what is the question that you ask the seller on how to get a good offer?  What techniques do you use?

[TeachMeFlipping]

Do a search here on YouTube for "The Magic Question"

[crystal12250]

i have a contract rent to own on a house, asking price,

$62,500.00, needs about $5,000+ repairs,

other houses in area, 88,000.00+

i don't have the money to fix it up, i don't want to live there, what should i do,

i was thinking about a roomsing house?

[cassandraj11]

So If I make $10,000 on a wholesaling deal how much of that will go to taxes? Ive read upwards of 40% is this true?!

[ciscokid7455]

Hello all !! Are there any fellow students of Ty in CA ? I'm in Long Beach of LA county

[EEECODE65]

lov your vids,if a seller calls you and you try a short sale and bank accepts offer do you have to pay amount in total within a certain time periodn what if you get a 300,00 house for 185,00 short sale how can you pay that if your just starting out? thanks ty

[TeachMeFlipping]

short sales are money makers if you have the resources in place, most lenders want proof of funds to take your offer serious, there are some services out there that will provide those pof letters but i've heard banks have started throwing those in the trash,,,, just what i heard

you would need your buyer in place to make a short sale work.... also they may take months just to get a acceptance, counter offer or rejection back from the lender...

money can be made with the proper resources

[richboywayne]

How many bandit signs should I put out and when do I need to pick them up?

[TeachMeFlipping]

nothing less than 100, i would recommend more if you can afford it

pick what up, let them stay posted as long as possible

[Liz2000a]

How do I find out what is the price of the house after it is fixed up??

[TeachMeFlipping]

Do a search for this video

"How to Determine and Use After Repaired Value aka ARV to negotiate deals? Real Estate Investing"

[TruJoker1]

How do you feel about doing a google search for investors? I have seen some that are nationwide and was wondering were they any better or worse than say an investor you would use.

[TeachMeFlipping]

sure, as long as they buy it doesn't matter, i've personally never tried it myself, let us know how it works out

[Theworldisyourz09]

how can my offer stand out over realtors and other investors

[TeachMeFlipping]

if you have your marketing generating your deals you won't have to compete with realtors and other investors for the most part

you're 50% of the way there when motivated sellers are calling you to buy their property because of your marketing

wal-mart uses marketing for biz, why shouldn't you?

[docreiss]

not certain about other states, but "flipping a house" in Washington state is illegal.

[TeachMeFlipping]

actually, "illegal" flipping is not permitted in any state. the term is sometimes missed used to describe "fraudulent activities" to sell or buy real estate.

an example would be an inflated appraisal or the buyer provides false income info, etc

please show me where it's illegal in Washington to buy a property and resell it for profit

[toddhaze]

Hey Mr. Taylor, I've just gotten my bandit signs and I'm excited...

[TeachMeFlipping]

great, get'em out and get that phone ringing with motivated sellers,

by the way call me Tyrone, makes me feel old, lol

[diazinvestments]

Hey Coach... I am located in south florida and I put ads on craigslist and most people that call me are upside down in their mortgage. I was wondering do you have any advice on doing shortsales?

[TeachMeFlipping]

i've only done a couple of shortsales and they are really not my thing because of the time frame and followup needed to put deals together.... don't get me wrong there's money to be made there but just doesn't fit what i do

[TruJoker1]

Hi, I wanted to know if capital gains tax applies to wholesales?

[TeachMeFlipping]

you have to check with your cpa, i simply follow my cpa's advice, take the most deductions i can and pay the taxes

[yazzyyaz77]

hi, watched your video, i have no money in investing in houses, how do i go about buying a house with no money?

[TeachMeFlipping]

i have more than 35 videos at my channel here on youtube that will answer your questions, my channel TeachMeFlipping if that's not enough, call me

[teacherbuyshouses]

Mr. Taylor,

I placed bandit signs in a target area Friday night and I've received 12 calls over the weekend! There is a particular seller that has a home with fire damage. It was burned twice. The insurance company will pay for the home to be fixed, but she would rather move.

I haven't seen the home yet. Do wholesale buyers take chances on homes with fire damage? Can I still use your formula in this case? The ARV on the home is 53K.

[TeachMeFlipping]

Yes, you will have buyers that will take on burn outs but not many. You gotta find out the extent of the fire damage determine if you have a deal or not. Find out what prices she has been quoted to repair the damage which I'm sure will be high because contractors know an insurance co. is paying for it.

Those signs work, uh?

[SlimSexy33]

Would you recommend working outside of the state you currently live in, and what are the drawbacks in doing so?

[TeachMeFlipping]

I would always recommend doing deals in your market first but with the power of the internet you can definitely put deals together in other states.

[SlimSexy33]

Can you send me your own page contract you talk about on your video? I have a full contract and you are correct in that it can be a bit confusing to the seller and buyer for that matter.

Thanks

[TeachMeFlipping]

email me

[SlimSexy33]

One more question Tyron :0 If i put a property under contract as the buyer, how do i explain to the seller when i come back with MY BUYER who they are? They are looking at me like i thought you were the buyer? Looking forward to your response. :)

[TeachMeFlipping]

You simply introduce your buyer as "your partner - on this deal"

[SlimSexy33]

Hello, I love your videos, very simple and to the point. My question is when do you take the contract you have signed from the seller and buyer to the title company? And when you do take it to them what do you say? or how do you present the deal to them should is say? does it cost anything to work with the title company and if so when do you pay?

[TeachMeFlipping]

ASAP - when you have both contracts

You include a closing details sheet to explain how the funds are dispersed.

Your buyer normally pays all closing cost so that wont be an issue with the title company.

[teacherbuyshouses]

Good Afternoon,

I have purchased a couple of wholesaling courses and have listened to you about using lead scripts to determine if a house is worth making an offer on. I'm pretty sure that each seller will have a unique story. How do you know which deals are good ones (after you calculate your offer using the formula)? Do you ever make offers on homes that still have mortgages on them? How much equity has to be in the home before you consider making an offer?

[TeachMeFlipping]

It's all numbers, the formula gives you a breaking point to let you know if there is a deal or not.

Yes, I have a video that will explain - simply go to my channel to locate that video

The formula will tell you, if the mortgage is more than the number you need then there's no deal.

Hope this helps

[daneixa]

Hello,

I enjoyed your video and I have only one question? I have no credit, I am on work comp, and have no liquid capital to invest, can I still invest in property?

If the answer is no then how do I go about finding investors who can because I have the most uncanny ability to locate great, and I mean great, opportunities but can't take advantage of them.

Thank you,

Alexis

[TeachMeFlipping]

Yes, that's exactly what wholesaling allows you to do is make money without using any cash or credit. Check out all of my videos and you will get a better understanding on how it works.

[TeachMeFlipping]

Here's how I define wholesaling houses:

Wholesaling or Flipping Houses is simply understanding how to control a property with a contract long enough to sell your interest via an assignment fee to a real estate investor/buyer who wants the property because of the deep discount that you have negotiated with a motivated seller. Of course, all of this is done with NO MONEY DOWN.

[DaManAt13st]

I know you don't like working with real estate agents but what if I find a really good deal from an agent that I want to wholesale and I have to pay money down. How will I structure that deal?

[TeachMeFlipping]

Is it a REO? Also, what do you mean by "money down"? Are you referring to earnest money?

[DaManAt13st]

No it's a regular home for sale and yes I am reffering to earnest money. I have found a deal like that and I can't afford the $10,000 earnest money the agent is asking for to lock up the property. I would like to know if you might have a way to structure a deal like this with an end buyer?

[TeachMeFlipping]

Why in the h3ll would they need $10k down as earnest money? How much does this house cost? PLEASE TELL ME THIS HOUSE COST $1 MILLION DOLLARS

Also, how does this realtor have the nerve to ask for $10k in this BUYERS MARKET.

[DaManAt13st]

lol, the house is for sale at $700k but worth over 1.5 mill after some cosmetic work thats why. NYC pricing

[TeachMeFlipping]

big boy flipping, that $10 earnest money stuff won't work here as you may know.... to play in this world you gotta play by those rules but if a realtor wasn't involved you could do an option with the owner which would give the owner the option to sell someone else if you don't provide a buyer

[TeachMeFlipping]

At first it did for me because I never saw the subprime market imploding like it did... I simply had to go back to basics and find out who was still buying plus who was new in the market

[nmr20067]

Is this down ecomoncy effecting the Wholesaling RE business model.

[vcredle]

I know bandit sign are great, but is there anyway to avoid someone taking your sign down and have you every got caught by the law? I'm in GA and there are certain laws that apply, like putting them on light polls. I've seen this thing called the bandit sign stapler (goggle it) that allows them to stapler the siigns on polls very high without a ladder.

[TeachMeFlipping]

Video coming soon on your question

[TeachMeFlipping]

i just posted a video on your questions and hopefully i've answered them, just do a search on "bandit sign laws" if you're not already on my email list

[rippinem45]

Hi Tyrone,

When you have a buyer for your wholesale deals, do you meet up somewhere to get a earnest money deposit and have them sign the assignment contract?

Do you give them the Purchase and Sale Agreement also?

Thanks!

[TeachMeFlipping]

I will do a video on this topic, stay tuned

[rippinem45]

Hi Tyrone, I have 3 questions.

1. Where do you find your deals when you send postcards?

2. Do you make phone calls or do you let the sellers call you?

3. Do you have a script that you follow?

[TeachMeFlipping]

1. I target absentee owners because they don't live in the property and it may be a problem for them. 2. If I had to make cold calls, I would have never did the first deal but it's a great way to find deals if you can handle a lot research and no's at the end. 3. Yes, my course includes 2 scripts for outgoing and incoming calls.

[teacherbuyshouses]

Good Morning. What is the difference between the ARV and market value? If there is a difference, what is the best way to obtain an accurate ARV?

[TeachMeFlipping]

they are the same thing but can differ depending on the source, i like Real Quest because it pulls everything from your court house which means mls listed sales and for sale by owner sales

[teacherbuyshouses]

Do you use assistants to answer leads and find properties?

[TeachMeFlipping]

I use to have an answering service when I had a full-time job but now that I don't, I simply answer the phone myself. The answering service helped a great deal when I had a full-time job

[DaManAt13st]

What ways other than bandit signs have you used to find deals? (looking in newspapers, online etc.)

[TeachMeFlipping]

Postcards, billboards, radio, tv but nothing works better than bandit signs for the money

[nmr20067]

Do you think that marketing to Probate leads are some of the best leads to go after today?

I hear two things. One, that that niche is VERY low competition because people are intimidated by the process. As a result, there are big checks waiting there.

Two, in contrast, I have heard some investors say Estates want top dollar and they are not always motivated at all.

[TeachMeFlipping]

I've never done those because I'm not a great researcher and I don't have the patience for it but if you do and have the time to dedicate to it, I would definitely pursue those as ONE SOURCE of leads but not your only method to find deals.

MARKETING, MARKETING, MARKETING, let the deals find you.

[teacherbuyshouses]

Tyrone,

I saw that someone asked about vacant properties in the "hood". Most of the vacant homes/junkers in my area are in low-income neighborhoods. I only saw one "For Rent" sign in that specific area. Is this an ideal place to search? If not, what's the ideal "home" to look for?

[TeachMeFlipping]

In my city, those areas are GOLD MINES and I've probably done 95% of my deals in those areas. But if you're not comfortable in those areas, do biz in the areas that you are comfortable with.

[TeachMeFlipping]

Real Quest will allow you to create targeted list. The postcard simply says who you are, you wanna buy their house and contact info. I only view properties that I have negotiated a price on. And I rarely make offers, I ask questions that get the lowest price possibly.

[PAgirl09]

Hi Tyrone,

How do I find absentee owners to mail postcards to?

Can you give me an example of what I would write on those postcards?

Do you always go to a property and check it out before putting in your offer?

Thanks!

[ramart1976]

Hey Tyrone,

My Name is Ramon and I'm from nyc. I have two questions.

1. What is the price for the online course?

2. Should we do wholesaling with our name on the contracts or should we work on opening a trust before we began?

[TeachMeFlipping]

The online course in audio plus me walking you thru your first 3 deals is currently $497 which is discounted off the regular price of $697 as of today. I would suggest you at least setup an LLC to do deals under.

[lilyfrmla2]

Hey Tyrone,

I talked to you this morning and you did answer all of my questions then, but I went driving around for Bandit signs in not so good areas. I did find some but ROUGH areas in the city. My question is should I market that area? And if so, will the end investor buy from me there?

[TeachMeFlipping]

Go back to those areas and see if you notice any "for sale" signs or "for rent" signs and that will be the the tell - tell sign investors are doing biz there which i'm sure they are

[dchinnis2005]

What is the best way to build a buyers list? I am wanting to get started in this business and I am looking forward to doing so very soon my concern is that is i get a property under contract and cannot find a buyer. I know this may happen occasionally but I want to get my business started and I am going to need to quickly be able to find buyers for my properties to get the cash flow started. Thanks for your time looking forward to more videos from you in the future.

[TeachMeFlipping]

Watch the video I did on the subject at my channel "TeachMeFlipping

"Buyer's List: Real Estate Flipping Training Flip Houses Investing make cash money"

[texantwin24]

I've never assigned a contract or flipped out house, but I have a very good question. Wholesaleing is the cheapest; easiest way into real estate. Whats holding me back is, I dont know if i have the extra income to spend on marketing. What would be a safe dollar amount per month for marketing just to get my feet wet and do a deal a month?

Ken

Houston, TX

[TeachMeFlipping]

$200 per month on bandit signs will get you going and/or 1000 postcards to absentee owners would cost you $350

[nmr20067]

People always say make $5,000 in terms of assignment fee.

How much do you really make after taxes? Like 2,500??? Because I know you also pay a SE tax at 15% which really sucks because altogether it will take close to 50% of your profit.

Do you pay less taxes if you incorprate. Also I hear you should not even think about that unless you know you can get deal on a consitent basis.

I know your not an accountant but I figured you could answer since you have done 100s of Wholesale transactions.

[TeachMeFlipping]

You're right, I'm not an accountant and I pay more taxes than I would like. I just keep the records and revenue then pass them on to my cpa.

But I would rather pay taxes on $100k or $200k, etc. than $30k

[conklbm]

I am a wholesale beginner. My question is this: If I get a good property under contract, and my buyer's list is not massive (20 at most currently), what is to stop an investor from waiting until I can't get it sold, my contract expire, and them go to the buyer directly?

[TeachMeFlipping]

Nothing but scratch that investor off your list because you don't wanna do biz with type of person.

And if no one on your list wants the property you need to market the properties to continue building your list whether you have a buyer or not. Allow your deals to build your list thru your marketing of those deals because buyers enter and exit this biz all the time.

That could happen but it's never happened to me.