What is AstroFlipping?

[Caleb L.]

Hi,

Does anyone know what exactly AstroFlipping is? I listened to the case study of Josiah Grimes on the collapse of wholesaling: https://www.astroflipping.com/... and he said that wholesaling is collapsing, which I find really hard to believe.

Does anyone know what it is or what the difference is between astroflipping and wholesaling? It looks like a know strategy for real estate that's like wholesaling, but easier and you can turn 1 deal into 50 deals (at least that's the theory, or something like that).

I wanted to bring it to the BP community, so you guys could rip it apart and explain it for me. ;)

Thanks  a lot,

Caleb Leal

@Lydia R.@Brandon Turner, do you know anything about this? Is it a real estate strategy? 

[Ed Brancheau]

*** I say KeyGlee throughout as more of a representation because they're the brains behind Astroflipping. I don't know if you are actually selling to KeyGlee.

I'm looking into Astroflipping myself but I "Astro" is just branding their specific type of wholesaling. And from what I can tell so far is that it's a kind of arbitrage.

This means that they tell you what kind of deals they (KeyGlee?) will automatically buy the contract from you and sell to an institutional investor they have. You keep 60% of the difference, they keep 40%.

For example, you sign a contract for $100K and the institutional buyer pays $120K. You get $12K and KeyGlee(?) gets $8K.

The other part is that you find wholesalers that have soon-to-expire contracts that match the criteria. Then you offer to buy their soon-to-expire contracts to be bought automatically from KeyGlee(?). And you split your commission with the original wholesaler.

For example, you find a wholesaler with a deal that matches the criteria valued at $100K and the institutional buyer pays $120K. You likely make a deal with your wholesaler to split half your commission. So, you get $6K. They get $6K. And KeyGlee(?) gets $8K.

Of course, your wholesaler will take the deal because otherwise they'd get nothing when the contract expires. You'd take the deal because you get $6K for just having the connection to KeyGlee(?).

Now, of course, we'd all like to be in KeyGlee's middleman position because they're not doing much to connect us. But they've already done their part by finding the institutional investor. Knowledge, and connections, is power.

That said, I'm still skeptical and doing more research.