Experience with new program for out of state fix and flipping?
Member since 2019 · 48 posts · 12 votes
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
See my responses in bold
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on each others toes? YOU cant, get the great deals, I can ( and others) as we have a team there for years. Also nobody is going to give away the great deals as we are doing all the work. Good 10% - 14% net caps ( based on cash purchases ) sure but the super great ones no.
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot? Yes or more. I just sold a 3 br , I was all in about 63k, sold for 105k, rent will be 1400, value about 125k so win win right. YOU cant ( highly unlikely) get deals like that.
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high? Do you have out of state buyers? Again, nobody in Cleveland ( I know most of the " players " ) is going to give away the super great deals, why would they? Though many believe 10-15% net cap with equity IS a super great deal and are happy.
4. Are these midwest markets saturated with investors? I can only speak about the Cleveland markets, A LOT of investors from around the world for years and years. However still going very strong, there is simply little inventory and none for MF, litterlly nothing out there. I can get them you for the most part cannot.
I hope you appreciate my direct responses,
All the best
See my responses in bold
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on each others toes? YOU cant, get the great deals, I can ( and others) as we have a team there for years. Also nobody is going to give away the great deals as we are doing all the work. Good 10% - 14% net caps ( based on cash purchases ) sure but the super great ones no.
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot? Yes or more. I just sold a 3 br , I was all in about 63k, sold for 105k, rent will be 1400, value about 125k so win win right. YOU cant ( highly unlikely) get deals like that.
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high? Do you have out of state buyers? Again, nobody in Cleveland ( I know most of the " players " ) is going to give away the super great deals, why would they? Though many believe 10-15% net cap with equity IS a super great deal and are happy.
4. Are these midwest markets saturated with investors? I can only speak about the Cleveland markets, A LOT of investors from around the world for years and years. However still going very strong, there is simply little inventory and none for MF, litterlly nothing out there. I can get them you for the most part cannot.
I hope you appreciate my direct responses,
All the best
See my responses in bold
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on each others toes? YOU cant, get the great deals, I can as I have a team there for years. Also nobody is going to give away the great deals as we are doing all the work. Good 10% - 14% net caps ( based on cash purchases ) sure but the super great ones no.
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot? Yes or more. I just sold a 3 br , I was all in about 63k, sold for 105k, rent will be 1400, value about 125k so win win right. YOU cant ( highly unlikely) get deals like that.
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high? Do you have out of state buyers? Again, nobody in Cleveland ( I know most of the " players " ) is going to give away the super great deals, why would they? Though many believe 10-15% net cap with equity IS a super great deal and are happy.
4. Are these midwest markets saturated with investors? I can only speak about the Cleveland markets, A LOT of investors from around the world for years and years. However still going very strong, there is simply little inventory and none for MF, litterlly nothing out there. I can get them you for the most part cannot.
I hope you appreciate my direct responses,
All the best
Thanks for the direct responses Bob. Looks like most of these deals would be coming off of MLS and yeah I assumed there may be some good deals but didn't expect great ones. Good to know that that profit is possible. My goal would be to scale the flips and do more volume as active income and then purchase buy and hold. I do not have out of state buyers so I would need to use a service like Roofstock or another turnkey focused site that take a commission.
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
I can only speak on the questions I would have an answer for, as I know nothing about this turnkey provider.
2.) There SHOULD be some amount of equity into a property you buy that requires work to be done to it if it's actually a good to decent deal, but you'd have to know that by running numbers and estimating rehab, not just going off of a gut instinct as nothing is given for free in that manner. And to get to the 10k-20k equity figure on a property as cheap as some of the ones in Cleveland, you're likely looking at a large rehab project.
3.) Usually turnkey companies get so many properties in large quantities that they get a bunch of mediocre to good deals that pan out well over the long term. It's economies of scale in essence. How a market shift would affect their model is to be seen, but the market is still steady here right now.
4.) Short answer, yes. There are still deals, but there are more people fighting for them than ever.
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
I can only speak on the questions I would have an answer for, as I know nothing about this turnkey provider.
2.) There SHOULD be some amount of equity into a property you buy that requires work to be done to it if it's actually a good to decent deal, but you'd have to know that by running numbers and estimating rehab, not just going off of a gut instinct as nothing is given for free in that manner. And to get to the 10k-20k equity figure on a property as cheap as some of the ones in Cleveland, you're likely looking at a large rehab project.
3.) Usually turnkey companies get so many properties in large quantities that they get a bunch of mediocre to good deals that pan out well over the long term. It's economies of scale in essence. How a market shift would affect their model is to be seen, but the market is still steady here right now.
4.) Short answer, yes. There are still deals, but there are more people fighting for them than ever.
See my responses in bold
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on each others toes? YOU cant, get the great deals, I can as I have a team there for years. Also nobody is going to give away the great deals as we are doing all the work. Good 10% - 14% net caps ( based on cash purchases ) sure but the super great ones no.
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot? Yes or more. I just sold a 3 br , I was all in about 63k, sold for 105k, rent will be 1400, value about 125k so win win right. YOU cant ( highly unlikely) get deals like that.
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high? Do you have out of state buyers? Again, nobody in Cleveland ( I know most of the " players " ) is going to give away the super great deals, why would they? Though many believe 10-15% net cap with equity IS a super great deal and are happy.
4. Are these midwest markets saturated with investors? I can only speak about the Cleveland markets, A LOT of investors from around the world for years and years. However still going very strong, there is simply little inventory and none for MF, litterlly nothing out there. I can get them you for the most part cannot.
I hope you appreciate my direct responses,
All the best
Thanks for the direct responses Bob. Looks like most of these deals would be coming off of MLS and yeah I assumed there may be some good deals but didn't expect great ones. Good to know that that profit is possible. My goal would be to scale the flips and do more volume as active income and then purchase buy and hold. I do not have out of state buyers so I would need to use a service like Roofstock or another turnkey focused site that take a commission.
In correct, the deals are not from MLS. 99% of the deals I have done are off market. We do not take commission; The purchase price has our " fee" built in. Aso all of the flips I have done are with cash buyers, If you are not a cash buyer it will be nearly impossible for you to get good deal, too much competition.
All the best
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
I can only speak on the questions I would have an answer for, as I know nothing about this turnkey provider.
2.) There SHOULD be some amount of equity into a property you buy that requires work to be done to it if it's actually a good to decent deal, but you'd have to know that by running numbers and estimating rehab, not just going off of a gut instinct as nothing is given for free in that manner. And to get to the 10k-20k equity figure on a property as cheap as some of the ones in Cleveland, you're likely looking at a large rehab project.
3.) Usually turnkey companies get so many properties in large quantities that they get a bunch of mediocre to good deals that pan out well over the long term. It's economies of scale in essence. How a market shift would affect their model is to be seen, but the market is still steady here right now.
4.) Short answer, yes. There are still deals, but there are more people fighting for them than ever.
You are working much to hard. ALL you need to do is connect with those that provide properties and allow them to handle all. The chances of you getting a great deal in Cleveland without cash is not going to easy, nearly impossible. Not trying to discourage you I just tell people what they need to hear vs want . Cleveland is one of the most competitive markets in America, all cash buyers as is, close asap vs a loan, inspections appraisals. Do you have the 100k cash to even start ?
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
I can only speak on the questions I would have an answer for, as I know nothing about this turnkey provider.
2.) There SHOULD be some amount of equity into a property you buy that requires work to be done to it if it's actually a good to decent deal, but you'd have to know that by running numbers and estimating rehab, not just going off of a gut instinct as nothing is given for free in that manner. And to get to the 10k-20k equity figure on a property as cheap as some of the ones in Cleveland, you're likely looking at a large rehab project.
3.) Usually turnkey companies get so many properties in large quantities that they get a bunch of mediocre to good deals that pan out well over the long term. It's economies of scale in essence. How a market shift would affect their model is to be seen, but the market is still steady here right now.
4.) Short answer, yes. There are still deals, but there are more people fighting for them than ever.
You are working much to hard. ALL you need to do is connect with those that provide properties and allow them to handle all. The chances of you getting a great deal in Cleveland without cash is not going to easy, nearly impossible. Not trying to discourage you I just tell people what they need to hear vs want . Cleveland is one of the most competitive markets in America, all cash buyers as is, close asap vs a loan, inspections appraisals. Do you have the 100k cash to even start ?
No, I planned on using a hard money lender which is what the program suggests I use. From what I understand, the prospective properties are found on MLS and rehabs that cost between $20-30k so it's not full gut jobs. Its more cosmetic and anything major that would show on a home inspection would be repaired or replaced. No worries, I rather someone not sugar coat it. Thank you!
Hi, are there any members of Martel's new FlipSystem program that can share their experience? I know his turnkey business is good so I imagine this program may be good too but out of state fix and flipping is a lot different than turnkey rentals. The program looks to set you up for success with an experienced team, deal acquisition, and coaching.
Some of my concerns are:
1. There is no cap on members so how will all of us get good deals? Will we end up just stepping on eachothers toes?
2. Is the estimated $10k-20k "profit" likely on a property that you are all in $100k (buy + rehab) likely in Cleveland or Detriot?
3. The idea is to flip these properties to out of state turnkey investors? Is this a practical business model with rising interest rates and prices still high?
4. Are these midwest markets saturated with investors?
5. Is it wiser to flip locally with way more expensive homes but where I can have a little more control and know the market right now?
Any advice or help would be great from anyone. Thank you!
I can only speak on the questions I would have an answer for, as I know nothing about this turnkey provider.
2.) There SHOULD be some amount of equity into a property you buy that requires work to be done to it if it's actually a good to decent deal, but you'd have to know that by running numbers and estimating rehab, not just going off of a gut instinct as nothing is given for free in that manner. And to get to the 10k-20k equity figure on a property as cheap as some of the ones in Cleveland, you're likely looking at a large rehab project.
3.) Usually turnkey companies get so many properties in large quantities that they get a bunch of mediocre to good deals that pan out well over the long term. It's economies of scale in essence. How a market shift would affect their model is to be seen, but the market is still steady here right now.
4.) Short answer, yes. There are still deals, but there are more people fighting for them than ever.
You are working much to hard. ALL you need to do is connect with those that provide properties and allow them to handle all. The chances of you getting a great deal in Cleveland without cash is not going to easy, nearly impossible. Not trying to discourage you I just tell people what they need to hear vs want . Cleveland is one of the most competitive markets in America, all cash buyers as is, close asap vs a loan, inspections appraisals. Do you have the 100k cash to even start ?
No, I planned on using a hard money lender which is what the program suggests I use. From what I understand, the prospective properties are found on MLS and rehabs that cost between $20-30k so it's not full gut jobs. Its more cosmetic and anything major that would show on a home inspection would be repaired or replaced. No worries, I rather someone not sugar coat it. Thank you!
@Chris Nerio Hi Chris. One question related to determining the value is; what’s the cost to buy into the program? Do you know what that cost is yet?
The cost is $15k, but you are getting a pretty impressive CRM with lots of automated tasks and deal management. There are vetted RE people throughout the deal process to exit, so these folks already understand what you are trying to do, or what the system needs to do to work rather (if I understand what is being offered). I mean, I see it as kind of like buying into a business...you are going to have to do some work, but you also can operatednearly anywhere and have some systems in place that would otherwise cost you time, tens of thousands of dollars to create, and expertise. Theoretically, this allows you to leapfrog all that and buy into a flipping business directly.
I did get on a call with two people, one for Martel Turnkey and another for FlipSystem. I considered buying their turnkey rental but I wasn’t familiar with their markets (mostly Ohio, Detroit area and a few Memphis homes). bought in the Indianapolis metro area since I knew that area well (used to live there).
For FlipSystem I couldn't justify spending the $15,000. I would just use that money towards a down payment - I work with a real estate agent who does deals with many investors and has had a few off market properties (I know many investors don't use realtors but I prefer to). I'm looking cautiously at doing fix and flips with an exit strategy of holding the property as a rental if it didn't sell. Since I only had the one call with FlipSystem she didn't mention taking out a hard money loan. Interest rates with HML and private lenders are higher than bank loans. Did they explain HMLs to you? Did you decide to sign on with FlipSystem?
@Brad Taylor have you jumped into flipsystem? If so, early observations?
Thanks!