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Flipping Houses in Today’s Market
THE PROFESSIONAL INVESTORS GUILD IS A CLUB THAT
IS FOCUSED ON TEACHING ITS MEMBERS HOW TO CREATE
LONG-TERM WEALTH, PROTECT THEIR ASSETS, AND CREATE
PASSIVE INCOME, PRIMARILY THROUGH REAL ESTATE. WE
PROVIDE EDUCATION, RESOURCES, AND ONE-ON-ONE
MENTORING TO HELP INVESTORS ACHIEVE THEIR
GOALS, WHETHER THEY ARE A BRAND NEW INVESTOR OR A
SEASONED PROFESSIONAL .
OUR CLUB’S PHILOSOPHY IS THAT WE SHOULD NOT DEPEND
ON THE GOVERNMENT TO SECURE OUR FUTURE, BUT
RATHER WE SHOULD DEPEND ON OURSELVES. IN A TIME OF
UNCERTAINT Y, WHERE JOB "SECURIT Y" IS A THING OF THE
PAST, IT'S IMPERATIVE THAT WE CREATE OUR OWN SUCCESS
THROUGH BOTH DISCIPLINED AND CREATIVE INVESTING
TECHNIQUES.
PROFESSIONAL Investors Guild
1. Professional – A person engaged in an activity or
occupation for gain or compensation.
a. It’s not a pastime or hobby.
b. As opposed to amateurs, we expect to be paid.
c. Implies quality of service, as well as high moral and
ethical obligation to consumers.
Professional INVESTORS Guild
1. Investor – someone who allocates capital or resources in
expectation of a return on the investment, financial or
otherwise.
a. Investing in Our Real Estate Business
b. Investing in Our Education
c. Investing in Our Industry
d. Investing in Our Community
Professional Investors GUILD
Guild – An association of artisans who control
the practice of their craft in a particular city.
Members of a guild would seek to enhance
the flow of trade to their self-employed
members, and met regularly to share
ideas, “secrets” and new technologies
regarding their common craft.
1. Sen. Bill Nelson (D-FL)
Working to Fix Credit
Reporting Issue that Doesn’t
Distinguish Between “Short
Sales” and Foreclosures.
2. What to do with Fannie Mae
and Freddie Mac?
3. Are We in the Middle of
Another Housing Bubble?
A Recent History of Flipping
 1. A Season of “Good Times” – 2004-2007
 It was “DY-NO-MITE!!”…and we could do no wrong.
 Flipping was EVERYWHERE, and EVERYONE was doing it!
2. The Great Recession – Late 2007-2009
 Real Estate’s Favorite Buzz Word (Flipping) Became Real Estate’s
Dirty Word…Almost Overnight.
 The Industry Needed a Scapegoat…Someone to Blame.
 The Words “Flipping” & Fraud” Became Inseparable.
"The claim that minorities
are creating a housing
bubble through
flipping, no-look bids, and
300% returns is simply not
reality," Jacob Gaffney
wrote on
HousingWire.com.
"Flipping is a form of
fraud and not a typical
transaction. No-look bids
are not exclusive to
Hispanic and African-
American investors. No
one is making a 300%
return."
A Recent History of Flipping
 3. Suddenly ALL the Rules Changed…
 Hard Money Evaporated, Refinances Ended, Buyers Disappeared
 I Had No Fall Back Occupation or Safety Net
4. An Unbelievable Discovery
 Short Sales – The Perfect Niche for a Declining Market
 The Rules Changed Again…
 A New Funding Source Emerges – Transactional Funding
5. The Market Stabilizes…
What’s Working Now?
 1. Fix & Flip, Renovations, Rehabs
 Most Common Investment Strategy – Everyone
Can Understand
 Market Stabilization Made Rehab a Viable Strategy
Again…
 Opportunity for New Investors Increasing as Hard
Money, Private Money Makes its Return…
438 Turnberry Road
Cantonment, FL 32533
Purchased October
11th, 2011 for $100,000
Rehab Cost: $13,000
Sold for $160,000
(30 DOM)
Net Profit: $40,000
What’s Working Now?
 2. Wholesaling / Flipping Paper
 The Easiest Creative Investment Strategy
 Place a House Under Contract to “Tie it Up”
No Risk – Protected with Contingencies, Contract
 Re-Sell or “Assign” the Contract with an
Assignment Form
919 E. Desoto Street
Pensacola, FL 32501
Contract for $25,000
with Motivated Seller
Flipped to Investor for
$32,000 on 4/2/2012
Net Profit: $7,000
What’s Working Now?
 3. Short Sale Flipping
 Negotiate with the Seller’s Lender to Take Less
than is Owed on a Home. (A/B)
 Find a Buyer (Investor or Retail) to Pay More than
Your Contract Price with the Seller (B/C)
 Purchase the Home with Transactional
Funding, and Re-sell to End-Buyer (same day), &
You Pocket the Difference.
7821 Hilburn Rd.
Pensacola, FL 32514
Seller Owed $177,745.26
Bank Agreed to Accept
Offer of $84,500 for a
Net of $74,692.30
Flipped to Retail Buyer
4/22/2013 for $105,000
Net Profit: $13,000
6553 Sellers Drive
Milton, FL 32570
Bank Agreed to Accept
Offer of $14,500
Flipped to Cash Buyer/
Investor for $24,500 on
January 14th, 2013
Net Profit: $10,000
What’s Working Now?
 4. Lease Options (Sandwich Options)
 Similar to Short Sale, in which you lease with the
option to buy from a motivated seller, with the
right to sublet.
 You turn around and re-lease it to an end buyer for
a higher down payment, higher sales price and a
higher rent…and you make the difference.
924 Montclair Road
Pensacola, FL 32505
Had it listed for $94,900
on MLS as a Flip.
Listed in Thrifty Nickel
Lease Option for $97,900
Ad -Thursday, Met Seller
on Saturday, Had Check
on Sunday for $33,000.00
What’s Working Now?
 5. Subject-To
 The motivated seller deeds you the property, but
you leave the mortgage in their name.
 You make up the back payments (if any), and
begin making the payments to the bank, while you
pursue your exit strategy…lease option, rehab, flip
4067 Parkview Lane
Pace, FL 32571
Seller Called Me TWO
Days Before the Auction!
Owed Bank
$84,000, PLUS $22,000 in
Back Payments and Legal
Fees
Spent $12k to Rehab &
Sold for $161,000
w/Profit of $35,000
What’s Working Now?
 1. Subject-To
 The motivated seller deeds you the property, but
you leave the mortgage in their name.
 You make up the back payments (if any), and
begin making the payments to the bank, while you
pursue your exit strategy…lease option, rehab, flip
 The key to all investing strategies is DISCLOSURE.
Silver Membership Level
 1. Monthly P.I.G. Meeting
with Lesson & Networking
 2. Private Online Access to
Meeting Audio & Power
Point Presentations
 3. Monthly Q&A Session
Tele-Conference
 4. Free Listing on Our
“Vendors” Page & Access to
Hard Money Lenders, etc.
 5. Post 1 Property Per
Month to P.I.G. Website
 6. Access to Real Estate
Course Library
 7. Wholesale & JV
Opportunity, Priority
Level 2
 8. Unlimited Deal Review
 $17.00 per month + One-
Time $25 Initiation Fee
Gold Membership Level
 1. Monthly Rehab Walk-
Thru Question & Answer
 2. Quarterly Business
Mastermind Session
 3. Post UNLIMITED
Properties to the P.I.G.
Website
 4. Wholesale & JV
Opportunity, Priority
 Level 1
$37.00 per month + One-
Time $25 Initiation Fee

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Flipping Houses in Today’s Market

  • 1. Flipping Houses in Today’s Market
  • 2.
  • 3. THE PROFESSIONAL INVESTORS GUILD IS A CLUB THAT IS FOCUSED ON TEACHING ITS MEMBERS HOW TO CREATE LONG-TERM WEALTH, PROTECT THEIR ASSETS, AND CREATE PASSIVE INCOME, PRIMARILY THROUGH REAL ESTATE. WE PROVIDE EDUCATION, RESOURCES, AND ONE-ON-ONE MENTORING TO HELP INVESTORS ACHIEVE THEIR GOALS, WHETHER THEY ARE A BRAND NEW INVESTOR OR A SEASONED PROFESSIONAL . OUR CLUB’S PHILOSOPHY IS THAT WE SHOULD NOT DEPEND ON THE GOVERNMENT TO SECURE OUR FUTURE, BUT RATHER WE SHOULD DEPEND ON OURSELVES. IN A TIME OF UNCERTAINT Y, WHERE JOB "SECURIT Y" IS A THING OF THE PAST, IT'S IMPERATIVE THAT WE CREATE OUR OWN SUCCESS THROUGH BOTH DISCIPLINED AND CREATIVE INVESTING TECHNIQUES.
  • 4. PROFESSIONAL Investors Guild 1. Professional – A person engaged in an activity or occupation for gain or compensation. a. It’s not a pastime or hobby. b. As opposed to amateurs, we expect to be paid. c. Implies quality of service, as well as high moral and ethical obligation to consumers.
  • 5. Professional INVESTORS Guild 1. Investor – someone who allocates capital or resources in expectation of a return on the investment, financial or otherwise. a. Investing in Our Real Estate Business b. Investing in Our Education c. Investing in Our Industry d. Investing in Our Community
  • 6. Professional Investors GUILD Guild – An association of artisans who control the practice of their craft in a particular city. Members of a guild would seek to enhance the flow of trade to their self-employed members, and met regularly to share ideas, “secrets” and new technologies regarding their common craft.
  • 7. 1. Sen. Bill Nelson (D-FL) Working to Fix Credit Reporting Issue that Doesn’t Distinguish Between “Short Sales” and Foreclosures. 2. What to do with Fannie Mae and Freddie Mac? 3. Are We in the Middle of Another Housing Bubble?
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  • 13. A Recent History of Flipping  1. A Season of “Good Times” – 2004-2007  It was “DY-NO-MITE!!”…and we could do no wrong.  Flipping was EVERYWHERE, and EVERYONE was doing it! 2. The Great Recession – Late 2007-2009  Real Estate’s Favorite Buzz Word (Flipping) Became Real Estate’s Dirty Word…Almost Overnight.  The Industry Needed a Scapegoat…Someone to Blame.  The Words “Flipping” & Fraud” Became Inseparable.
  • 14. "The claim that minorities are creating a housing bubble through flipping, no-look bids, and 300% returns is simply not reality," Jacob Gaffney wrote on HousingWire.com. "Flipping is a form of fraud and not a typical transaction. No-look bids are not exclusive to Hispanic and African- American investors. No one is making a 300% return."
  • 15. A Recent History of Flipping  3. Suddenly ALL the Rules Changed…  Hard Money Evaporated, Refinances Ended, Buyers Disappeared  I Had No Fall Back Occupation or Safety Net 4. An Unbelievable Discovery  Short Sales – The Perfect Niche for a Declining Market  The Rules Changed Again…  A New Funding Source Emerges – Transactional Funding 5. The Market Stabilizes…
  • 16. What’s Working Now?  1. Fix & Flip, Renovations, Rehabs  Most Common Investment Strategy – Everyone Can Understand  Market Stabilization Made Rehab a Viable Strategy Again…  Opportunity for New Investors Increasing as Hard Money, Private Money Makes its Return…
  • 17. 438 Turnberry Road Cantonment, FL 32533 Purchased October 11th, 2011 for $100,000 Rehab Cost: $13,000 Sold for $160,000 (30 DOM) Net Profit: $40,000
  • 18. What’s Working Now?  2. Wholesaling / Flipping Paper  The Easiest Creative Investment Strategy  Place a House Under Contract to “Tie it Up” No Risk – Protected with Contingencies, Contract  Re-Sell or “Assign” the Contract with an Assignment Form
  • 19. 919 E. Desoto Street Pensacola, FL 32501 Contract for $25,000 with Motivated Seller Flipped to Investor for $32,000 on 4/2/2012 Net Profit: $7,000
  • 20. What’s Working Now?  3. Short Sale Flipping  Negotiate with the Seller’s Lender to Take Less than is Owed on a Home. (A/B)  Find a Buyer (Investor or Retail) to Pay More than Your Contract Price with the Seller (B/C)  Purchase the Home with Transactional Funding, and Re-sell to End-Buyer (same day), & You Pocket the Difference.
  • 21. 7821 Hilburn Rd. Pensacola, FL 32514 Seller Owed $177,745.26 Bank Agreed to Accept Offer of $84,500 for a Net of $74,692.30 Flipped to Retail Buyer 4/22/2013 for $105,000 Net Profit: $13,000
  • 22. 6553 Sellers Drive Milton, FL 32570 Bank Agreed to Accept Offer of $14,500 Flipped to Cash Buyer/ Investor for $24,500 on January 14th, 2013 Net Profit: $10,000
  • 23. What’s Working Now?  4. Lease Options (Sandwich Options)  Similar to Short Sale, in which you lease with the option to buy from a motivated seller, with the right to sublet.  You turn around and re-lease it to an end buyer for a higher down payment, higher sales price and a higher rent…and you make the difference.
  • 24. 924 Montclair Road Pensacola, FL 32505 Had it listed for $94,900 on MLS as a Flip. Listed in Thrifty Nickel Lease Option for $97,900 Ad -Thursday, Met Seller on Saturday, Had Check on Sunday for $33,000.00
  • 25. What’s Working Now?  5. Subject-To  The motivated seller deeds you the property, but you leave the mortgage in their name.  You make up the back payments (if any), and begin making the payments to the bank, while you pursue your exit strategy…lease option, rehab, flip
  • 26. 4067 Parkview Lane Pace, FL 32571 Seller Called Me TWO Days Before the Auction! Owed Bank $84,000, PLUS $22,000 in Back Payments and Legal Fees Spent $12k to Rehab & Sold for $161,000 w/Profit of $35,000
  • 27. What’s Working Now?  1. Subject-To  The motivated seller deeds you the property, but you leave the mortgage in their name.  You make up the back payments (if any), and begin making the payments to the bank, while you pursue your exit strategy…lease option, rehab, flip  The key to all investing strategies is DISCLOSURE.
  • 28. Silver Membership Level  1. Monthly P.I.G. Meeting with Lesson & Networking  2. Private Online Access to Meeting Audio & Power Point Presentations  3. Monthly Q&A Session Tele-Conference  4. Free Listing on Our “Vendors” Page & Access to Hard Money Lenders, etc.  5. Post 1 Property Per Month to P.I.G. Website  6. Access to Real Estate Course Library  7. Wholesale & JV Opportunity, Priority Level 2  8. Unlimited Deal Review  $17.00 per month + One- Time $25 Initiation Fee
  • 29. Gold Membership Level  1. Monthly Rehab Walk- Thru Question & Answer  2. Quarterly Business Mastermind Session  3. Post UNLIMITED Properties to the P.I.G. Website  4. Wholesale & JV Opportunity, Priority  Level 1 $37.00 per month + One- Time $25 Initiation Fee