Fix and flip single-family houses for quick profit––and long-term
prosperity The Complete Guide to Flipping Properties offers
proven, straightforward guidance for anyone interested in flipping
properties for quick profits. This comprehensive guide to flipping will
help any real estate investor design a detailed plan for achieving their
financial goals as quickly as possible. Steve Berges, creator of the
value play strategy, shows you step by step how to flip properties and
lock in profits. With in-depth explanations of every aspect of the art
of flipping––from finding properties and closing the deal, to repairing
houses and reselling at the best price––this book is the ultimate
resource for novice investors and real estate pros alike.
The
Complete Guide to Flipping Properties includes:
- Time-tested
strategies for flipping
- Ten proven methods for locating
great properties
- Property valuation methods––and which one
is right for you
- Financial analysis and modeling
techniques
- How to create value and maximize your profits
- Seven steps of successful negotiation
- How to
close the deal
- Foolproof exit strategies for getting rid
of properties
- How to assemble a winning team of
professionals
- Three keys to maximizing your potential as a
real estate investor
With tips on writing business
plans, investing on credit or with OPM (other people’s money), and
creative financing methods, The Complete Guide to Flipping Properties
gives any investor the tools they need to build wealth safely and
reliably.
Table of Contents
| Acknowledgments | ix |
| Chapter 1 | Introduction | 1 |
| Background | 2 |
| Real
Estate: A Sound Investment | 4 |
| Leverage: The OPM Principle | 6 |
| Economic Housing Outlook for the Next Decade | 8 |
| Chapter 2 | Flipping Properties Defined | 11 |
| Three
Primary Classes of Flippers | 13 |
| Scouts | 13 |
| Dealers | 15 |
| Retailers | 17 |
| Using Options To Flip Properties | 19 |
| Clearly Defined Objectives | 20 |
| Entry Strategy | 22 |
| Postentry
Strategy | 23 |
| Exit Strategy | 23 |
| Chapter 3 | The Value Play Strategy | 25 |
| Buy-and-Hold Strategy | 26 |
| The Value Play Strategy | 29 |
| The Value Play Selection Process | 31 |
| Property Location | 33 |
| Price Range | 35 |
| Physical
Condition | 35 |
| Chapter 4 | Ten Ways to Locate Properties | 45 |
| Real Estate Agents | 45 |
| Classified Advertising | 49 |
| Real Estate Publications | 51 |
| Local and National Web Sites | 51 |
| Real Estate Investment Clubs | 54 |
| Bank
REOs | 55 |
| Marketing | 56 |
| For Sale by Owners (FSBOs) | 60 |
| Vacant Properties | 61 |
| Foreclosures | 62 |
| Chapter 5 | Valuation Methodologies | 65 |
| How to Know How Much Is Too Much | 66 |
| Valuation Methodologies | 66 |
| Replacement Cost Approach | 66 |
| Income Capitalization Approach | 68 |
| Sales
Comparison Approach | 70 |
| Chapter 6 | Financial Analysis | 73 |
| The Texas Two-Step | 73 |
| Multiply Your Efforts by 22 | 82 |
| From Residential to Commercial | 93 |
| Chapter 7 | Seven Steps of Successful Negotiations | 111 |
| The
Psychology of Negotiating | 111 |
| Comprehensive Knowledge of Market | 114 |
| Degree of Seller's Motivation | 115 |
| Backdoor
Exits | 119 |
| Concessions | 121 |
| The
Red Herring Technique | 122 |
| The Money-Talks Approach | 123 |
| Chapter 8 | Financing and Closing Considerations | 127 |
| Conventional
Mortgages | 127 |
| Mortgage Brokers | 129 |
| Local
Banks | 130 |
| Lines of Credit | 131 |
| Owner Financing | 133 |
| Partnerships | 135 |
| Your Business Plan | 136 |
| What Every Borrower Should Know about
Credit Scores | 137 |
| Underwriting Guidelines | 140 |
| The Closing Process | 142 |
| Chapter 9 | Assemble a Winning Team of
Professionals | 149 |
| Scouts and/or Dealers | 150 |
| Office Manager | 151 |
| Property Rehab Manager | 152 |
| Local Lender or Mortgage Broker | 153 |
| Real
Estate Attorney | 153 |
| Title Company | 154 |
| Real
Estate Agents | 155 |
| Chapter 10 | Three Keys to Maximizing Your
Potential | 157 |
| Postentry Planning | 157 |
| Doing It Yourself versus Hiring It Out | 159 |
| Increasing
Your Property's Marketability | 163 |
| Preplanning | 163 |
| Heightening
Visibility through the MLS | 164 |
| Offering a Marketable Product | 166 |
| Competitive Pricing | 167 |
| Offering Incentives | 167 |
| Summary | 168 |
| Chapter 11 | The Three Principles of
Power | 169 |
| The Principle of Vision | 172 |
| The Principle of Passion | 178 |
| The Principle of Autonomy | 180 |
| Appendix A | Property Inspection
Checklist | 183 |
| Appendix B | Owner and Subcontractor
Agreement | 195 |
| Appendix C | Sample Real Estate Forms | 201 |
| Appendix D | Sample Personal Financial Statement | 219 |
| Appendix E | @www.thevalueplay.com | 223 |
| Appendix F | @www.symphony-homes.com | 225 |
| Index | 227 |