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How to Flip Houses, Part 4


Video Transcript

How to Flip Houses, Part 4

Hi, I'm Martial Arts Master Bill FitzPatrick

You are smart

You are hard working

You have put in the study time to know values

You have the balls to make offers

Now, here's the FLIP formula

The RULE of thumb

To make a flip work, you want to buy the target house for 70% of retail value LESS the cost of repairs and improvements

70% of retail value LESS repair/improvement costs

Your study, your intelligence Your intuition

Will tell you if you have a good deal

BUT - BUT

You also have your rule of thumb

So for a house worth $200,000 retail

70% is $140,000

If you plan on doing $15,000 worth of work

You need to buy the house for $125,000

So that's your offer $125,000

The AVERAGE person thinks

Who the hell is going to sell you a $200,000 house for $125,000

AND 80% to 90% - the average person will be correct

However,

Go back to the last video

Go over the reasons

Someone who inherited the house

Won the lottery

Wants to move to Florida from Michigan - in the next four weeks

MAKE THE OFFER

Make an offer and find out if the property qualifies as a VIABLE flip

YOU know this may come as a shock

Sometimes agents OVER price homes

And sometimes agents UNDER price homes

YES, the $200,000 house

Is actually listed for $140,000 or $150,000

YES, this ALSO sometimes happens

So your offer of $125,000 doesn't sound that far off

Again, the active investor who puts in the time to become an expert on values in a small, specific investment area

Sticks to the RULE of Thumb

AND, has the balls to make offers

Is going to win - not always - but enough to gain extra capital

How much does it cost to make an OFFER in real estate?

It costs NOTHING - NADA

Make LOTS of offers

To buy your 6 properties and pay off your mortgages

And, that's Plan A

Buy Six Properties, Love your tenants Pay off your loans

A family dynasty of wealth

So, maybe your 20 year retirement plan

Thanks to your flipping expertise and SUCCESS

The 20 years Becomes an 18 year 16 year 12 year retirement plan

Who loves you baby?

Come on?

Why not you?

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How to Flip Houses, Part 4

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