Flip Your First Home For MASSIVE PROFIT (Pro Secrets)

These are the 5 main things you need to flip a home.

Ryan Pineda

November 24, 2021

There are five main pieces that you're going to need in order to flip a house. 

  1. The deal
  2. The money
  3. The contractor 
  4. A realtor
  5. The title company. 


Those are the only pieces you need. Some of those pieces are easier to find than others. Let me jump into the easy ones.


First, the realtor and the title company go hand in hand. Realtors already have title companies that they work with. You want a realtor and a title company, who's got experience with investors. The types of deals we do as investors sometimes can be more complex and there are a lot of title companies who don't quite understand it. So instead of just going with the first person you know, you can actually go on Facebook groups and meetup groups to find these people. If you search for house flipping or real estate investing or wholesaling real estate on Facebook, on meetup.com, you will find a bunch of groups that are dedicated to this.


Now on Facebook, a bunch of them might just be giant groups that are nationwide. That's okay. You can simply join the group, make a post and say, “Hey, my name's Ryan. I'm a brand new flipper here in Las Vegas. Does anyone have any realtor referrals for investors? Does anyone have any title, company referrals for investors?” You're going to get a ton of people who are going to respond with realtors, with title companies. They themselves may even be a realtor and you can connect directly with them. Same thing on meetup.com.


The next easiest one would be your contractor. Everything I just said about the realtor and the title company on how to find them with the Facebook groups and the meet-ups applies to the contractor. You can go in those same groups and ask for contractor recommendations. You can go to the realtors and do the same. The easiest way to find a contractor is through referrals. 


So like that in the span of a couple of minutes, you already eliminated three of the five things you need. 


The next easiest one to find is money. Now I know a bunch of you are thinking that's the hardest to find. “I don't have any money. How am I going to flip a house?” Now I can promise you, there is more money in the world than there are deals right now. Investors are looking for places to put their money. You, as a flipper, have an opportunity to give them a great return that other places don't. So the easiest way you're going to find money on your first deal is through what I call hybrid lending. It's when you mix hard money with private money. 


So let's first talk about hard money lenders. There are professional lenders who lend on fix and flips for a living. They charge high interest rates. They have high fees, but they'll lend to you really fast. They don't really care about the debt to income ratio. They don't really care about W2 jobs. All they really care about is the deal. Finding these people is very easy. You can do the same thing with the Facebook groups and the meetup groups ask who they use for hard money lending. You can also do a Google search and just say, “Las Vegas, hard money lender.” You're going to get a ton of searches for hard money lenders. There is no shortage of them.


In fact, I will give you three big nationwide lenders right here. I use Lending Home, Lima One Capital, Lending One. Now, assuming that you're a first-time flipper, you're not going to get as good a terms as someone like me, who's experienced, but typically, as long as it's a good deal, they'll lend you up to 80% of whatever you need. That includes both purchase and rehab. So to take a theoretical deal, let's just say that you're going to buy a house for $80,000 and the renovation is $20,000. So you're all in for a hundred. You think you're going to sell the home for $170,000. They're going to give you 80% of the $80,000 purchase price.


Then they'll give you 80% of the $20,000 rehab. So that covers most of it, which is great. You still need to figure out where that other 20% is going to come from.


What I teach my students is to combine it with private money, go find somebody else who has the 20% and bring them on as a partner. Either guarantee them a flat interest rate on their money or partner up with them for an equity split. So the way it would work is you'd get your hard money loan for 80% of it. Then you go find this $20,000 from somebody else. Then you would just say for your $20,000 I will pay you 10% interest or we'll split the profit 50/50. Whatever it is when you're trying to do your first deal, you can't be worried about getting the very best terms ever. You just want to do the deal and with how I'm telling you to do it, you're going to get into the deal for no money. 


That's why I say you don't need a lot of money to start. It's very easy to find a hard money lender who will give you 80% and it's not that hard to find somebody with $20,000 or $30,000. There's a lot of people who have that kind of money. 


The one thing I'll add to just that whole scenario that I didn't mention is that you should get more than $20,000, even though $20,000 is what you need for the down payment. You're still going to need to make interest payments every month. You're still going to have some holding costs. You're still gonna have other things you gotta pay for. So in that scenario, I would ask this person for $30,000, give me an extra $10,000 to cover some interest payments, closing costs, etc. 


Now, the last piece that I've been waiting to talk about is the hardest to do, and that is deals. Finding a good deal is the hardest portion of this. There are three ways to find deals and I'm not going in depth on them, but just so you're aware, the three major ways to find are on the MLS, through wholesalers and through direct marketing. If you're just starting out and you want to flip a house, I would not do direct marketing.


Direct marketing is a whole different business in itself. I don't want to say you shouldn't do it or not, but it is not the easiest way. Remember this video is about the easiest way to get your first deal. It's very lucrative if you do it right, we get the majority of our deals from direct marketing at this point, but it is tough to get it set up and going. 


Let's talk about the other two wholesalers and MLS. Those are much easier. Now, obviously with the MLS, we know that those are properties that are on the market. There are a lot of ways to get deals on the MLS. One of my favorite ways is through auto searches. Just know that that is the best way to get deals on the MLS through auto searches, but most likely the easiest way for you to get your very first deal flipping is through a wholesaler. A wholesaler is somebody who finds deals for a living. So my company, not only do we flip, but we also wholesale, instead of us buying the deals, we will take a quick profit and sell it to another flipper.


And you might be saying, “Ryan, why would you do that?” There are deals where it just makes more sense for us to wholesale them. Then there are a lot of wholesalers who strictly only wholesale. They don't want to buy properties. They don't want to fix them up. They don't want to deal with any of that. So they will happily sell you the deal and make a quick profit. So really to get your very first deal, you just need to network with as many wholesalers as possible.


It is completely free to network with wholesalers and have them send you deals. That's why I believe for a new person starting out, it is the best way. It doesn't cost you money. You don't have to spend as much time working on it, just meet as many people as you possibly can. 


I like to use the MLS as well. That's how I started. I strictly was MLS and wholesalers for years before I ever started doing direct marketing. We made a lot of money just doing that. So that's how you're going to figure out the deal side of it. As I said, deals are the hardest part of this business. That's where the gold is, but obviously they're out there. There are people like me who are doing over a hundred a year. There are people who work full time jobs doing multiple deals every year.


It doesn't matter what boat you're in. You can find a deal. You just gotta put the work in.


So the question you have to ask yourself is can I take this information and actually implement it? And I think you can. I see people do it every single day from no experience at all. It's just a matter of whether you're willing to put in the work or not. 


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