Archive for November, 2015

Episode 8: How a 19 Year Old Got Funding For His First Deals w/Kevin Ramirez

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Show Notes

Kevin Ramirez is from Venezuela living and is doing business in Raleigh, North Carolina.

He started in Real Estate at 19 years old with a flip, found a JV partner to fund the whole deal and after that fell in love with the business. He currently focuses on rehabbing and wholesaling. Every deal he has done has been without his own money.

Currently 21 years old, still a one man operation, he is working on building systems to automate his business. With 19 deals to date in 2015 he is looking to close the year with 25.

He doesn’t yet consider himself an expert and stays open to learning more and more every day.

What you will learn in this episode:

  • How Kevin Ramirez was able to get funding for his first deals even though he was 19 years and new to the business
  • Find out how his first flip made a total profit of $65,000
  • Where he found his money partners and how he got them on board with him
  • What key points need to be covered in a Joint Venture agreement when flipping

Kevin’s first deal generated a total profit of about $65,000! Not bad for any deal, let alone a first rehab deal.

Kevin didn’t have the money to buy the house and fix it up so he teamed up with another investor to fund the deal with an agreement to split the profit 50/50. Not bad all, especially considering he didn’t have any of his own money in the deal…meaning no risk!

The numbers for that first deal are as follows (rough figures):

Purchase: $145k
Repairs: $75k (taking 4 months to fix)
Sold in 1 day for $295k
Netting about $65k profit that he split with his JV partner

He found his first JV partner that put up the money for the first deal and several deals after that from his craigslist ad.

Kevin also shared some of the key points from the joint venture contract he was using. It’s important to make sure that any unknowns are covered and thought through before partnering with somebody.

Make sure to get competent legal advice for the joint venture contract from a local attorney. The agreement should contain things to cover what happens if more money than was anticipated for the rehab is needed, how profits (and losses if that happens) will be split, and any other details for who is supposed to what in the partnership.

It’s also important to specify that the partnership is just for the single deal and not future deals. This is important because you don’t want them saying you guys have a business partnership where they want a piece of all of your future deals.

Kevin shares how a sign he put in the yard of the house he was rehabbing generated a call that became his second deal.

He was very generous in the episode and gave a lot of great information and tips. You don’t have to start real estate investing by wholesaling. You can do what Kevin did and partner with people that can put up the money.

Find out more about how to do that by listening to this incredible episode.

Download The Infographic

Click here to download the Infographic that Kevin has shared with us

Recommended Books

The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It

Links

SellYourHouseRaleigh.com

How to Start Flipping Houses Epic Post on FlippingJunkie

Please Rate and Review

This is my simple request: If you enjoy the podcast and look forward to hearing a lot more episodes, I would be very grateful, happy, beholden and otherwise indebted to you to rate and review the podcast on iTunes.

It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.

Ratings and reviews allow the podcast to be seen by more people, which will help me achieve my goal of helping as many others as we can to get started in the house flipping business and change their lives.

Click here to rate and review our podcast! :)

Not sure how to leave a rating and review? Click here to view the instructions (it only takes 2 minutes)

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There will be a brand new episode every single week, so be sure to subscribe and receive each episode as it’s released.

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The post Episode 8: How a 19 Year Old Got Funding For His First Deals w/Kevin Ramirez appeared first on Flipping Junkie.

Episode 7: Wholesaling Houses the Right Way w/Sharon Vornholt

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Show Notes

Sharon Vornholt is the owner of Innovative Property Solutions in Louisville, KY. She has been investing in real estate since 1998 and has been a full time wholesaler since 2008.

Sharon is the creator of the Louisville Gals Real Estate Blog and the popular podcast “Let’s Talk Real Estate Investing”. She is also a mentor and a coach who loves teaching others how to succeed in this business.

How she got her start

Sharon’s dad was a contractor that used to drag her to a lot of different job sites. She owned and operated a house inspection company for 17 years.

She then attended a Real Estate Investor Association meeting and learned about flipping houses. She then started rehabbing. Her initial plan was to rehab and get big chunks of money to buy rental properties with. That worked for a while, but then the market changed….big time.

Wholesaling houses

In 2008, she found it difficult to sell houses (as did everybody across the country). This is when she found out how awesome wholesaling was. She decided to try and sell a house she was going to rehab to another investor and see if she could make money quickly, without doing any fix up.
She’s been wholesaling ever since.

In this episode, Sharon talks about the differences between an assignment of contract and a double-close. The gist is that assigning a contract involves getting a house under contract and then selling the contract (as well as the obligation to close on the contract) to another investor for a fee.

Double-closing involves a little more complexity. Not much though. There are two transactions with a double-close. You have a A B transaction where the seller of the house sells the house to you as the buyer. Then you have a B C transaction where you are the seller and the investor that is buying the house ‘as-is’ from you is the buyer. he funding from the sale from you to the end buyer goes to fund the first transaction between you and the seller of the house.

For many people considering wholesaling houses, the fear of not being to find a buyer and not be able to close the deal if they can’t find a buyer scares them from ever getting started. Sharon shares how she allows for an ‘out’ by using escape clauses. During the show, we went over three good escape clauses that included: ‘subject to accepted inspected’, ‘subject to partner approval’, and ‘subject to funding approval’.

Sharon also discusses how she handles making sure her end buyer closes. This is done with a non-refundable earnest money deposit. If the end buyer doesn’t close, she keeps the (usually over $1,000) earnest money deposit.

We discussed how it’s better to have a short list of highly-qualified, experienced and fast-acting investors to sell your deals to. Sharon has about 4 or 5 people that she sells ALL of her deals to.

Check out the episode to also learn what to do if you are having trouble finding a buyer for a wholesale deal. Don’t just throw your hands up. There are lots of great tips for how to recover from that situation.
Sharon’s been kind enough to provide us with a detailed guide on marketing to probates and absentee owners for awesome deals.

The guide shows you why these methods of marketing work so well by delving into the point of view of the seller for each situation. I highly recommend you download this guide from the show notes page. Oh, and it’s absolutely free.

Download The Guide

GIFT GIFT GIFT DOWNLOAD:
Click Here to Download the ‘Probates and Absentee Owners: Your Fast Track to Real Estate Riches” guide

Recommended Books

The 12 Week Year: Get More Done in 12 Weeks than Others Do in 12 Months

Links

LouisvilleGalsRealEstateBlog.com

Please Rate and Review

If you enjoy the podcast and look forward to hearing a lot more episodes, I would be very grateful, happy, beholden and otherwise indebted to you to rate and review the podcast on iTunes.

It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.

Ratings and reviews allow the podcast to be seen by more people, which will help me achieve my goal of helping as many others as we can to get started in the house flipping business and change their lives.

Click here to rate and review our podcast! :)

Not sure how to leave a rating and review? Click here to view the instructions (it only takes 2 minutes)

How to Subscribe to the Podcast

There will be a brand new episode every single week, so be sure to subscribe and receive each episode as it’s released.

subscribe
iTunes Subscribe on iTunes Stitcher Subscribe on Stitcher

The post Episode 7: Wholesaling Houses the Right Way w/Sharon Vornholt appeared first on Flipping Junkie.

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