EVALUATING THE FLIP "INDUSTRY" NICHE

[Tim Silvers]

As I see it, there are basically 3 business flip models:

- Virtual Wholesaling/flipping contracts/contract assingment - no cash needed
- Short Sale/REOs - using a double escrow and transactional funding
- Bulk REOs - using hedge fund financing, hard, or private funds

Although the web is besieged with tons of sites to gurus pitching their programs for their various programs, courses, boot camps and the like, I believe there are also some very well-respected "real" investors doing actually these deals and profiting. Real estate investor sites like this one comes to mind.

And these are the real people I need to network with.

In each of these models, there is a common deniminator - the investor must buy as low as possible by recognizing a window of opportunity and taking a deeply-discounted, short-term position on a ultra-distressed situation - in order to re-sell at enough of a spread or profit to make sense, but still at a deep enough discount for the deal to make sense to the end buyer which is usually, but not always, another investor - and one that's willing to hold, do the rehab, get tenants, etc. The only real difference between the 3 programs is the method and type of product and how it's acquired. It seems like they key is to have a list of end buyers lined up as soon as you find the property(s) or better yet, before you find them.

The bottom line questions for those in the field doing these deals are:

1) What is your close ratio?

2) Are the deals as lucrative as the promoters so claim (i.e., average of $15K per deal)?

3) Can they work in all markets (i.e., how can you do wholesale flips when the majority of good deals in a market that is predominantly underwater - and thus would become short sales or REO flip transactions)?

4) Out of the ton of online flip gurus promoting their programs, who are the top 5 that are most honest, helpful and "real" you'd recommend, if any?

5) Out of the 3 of these programs, how would you rate each program on a scale of 1-10 in terms of:
- how lucrative/profitable
- ease of the process from start to finish
- finding buyers
- finding sellers
- working with realtors - yes/no - and why

On a side note, I'd like to find other investors who I could co-venture with or who would be open to a mentor relationship in my area which is Las Vegas.