LOW-END Residential Real Estate Flipping

There are basically two strategies in residential real estate that can make you a lot of money in any market.

Both strategies are about flipping properties. (Flipping is a term used for buying and reselling a property right away at a profit).

The first residential strategy is about flipping low-end properties.

The Definition: Low-end means the lowest-priced single-family homes that are at least 3 bedrooms and1 bathroom. (No condos, no small 2 Bed 1 bath homes, and certainly no vacant land, as these, do not resell as fast).

The Concept is to focus on the low-end inexpensive properties that could be resold very fast to renters that can afford the payments to own.

The Business Model using the FACTS system works as follows:

Find: You find these at the bank’s non-performing asset department also called REO or real estate owned. You can find them at the auctions. Or listed as short sales or bank foreclosures on the multiple listing services.

Analyze: The idea is to get the property way below comparable sales in a market that does not have too much inventory sitting for sale. The rehab must be cosmetics only otherwise you cannot make a profit.

Control: the way to negotiate and put these properties under contract is to show proof of funds and usually pay cash.

Time the process of due diligence and financing by having a team of contractors that can work with you on the rehab and they can give you a quick estimate and have a team of investors or your own cash to pay in full and get the best price.

Strategize: The best strategy is to rehab quickly and lists the property for resale either all cash if the market is trending higher or sell it easy terms by carrying a mortgage note at the higher end price of the market.

Your buyers will usually be those that could not qualify for traditional financing due to credit, or job history. If they have paid rent on time for over a year and have a steady income you can give them easy term financing with some down payment and reasonable monthly payments that would include property taxes and property insurance. The idea is to keep those monthly payments low enough to attract renters that want to become homeowners and will stick with the payments.

You can resell the mortgage notes at a discount low enough to make the return attractive enough with a decent yield for investors seeking cash flow secured against real estate. The discounted selling price must still leave you enough room to profit.

You can magnify your profits if you buy these properties in bulk and sell the notes through a system of presentation and sale then work with third party companies that can service the loans from collecting payments, to depositing them into your account and so on.

Application for Success: I have created a great system for this method of transacting residential low end properties in markets throughout the united states since 2009 when I started buying in bulk and creating notes. I automated the system then scaled it and sold hundreds of homes to end buyers who are happy to afford a home, build their credit and gain equity all at the same time. These notes were sold at a discount to hundreds of investors who benefited from the secured cash flow and the satisfaction of helping others in the process.

Through my training and investment company CMREI, I offer two opportunities one for training and one for investing.

For those that want to get trained, we have a live 3 day coaching in the office and in the field to show students how I did hundreds of these deals in the last couple of years. Attendees learn how to find these REOs, how to buy them, rehab them, and resell them by carrying the financing and creating mortgage notes. We have all the documents and steps spelled out for anyone who wishes to sit one on one with my expert staff to see how to transact anywhere in the United States including Florida and California where my company has been very active this past year.

Those that want to get into the investment right away, can buy an existing Note at a discount and get a 12% yearly return, with all the set up in place for it to perform for years to come.

Anyone can do this one at a time, you can even learn how to assign the notes in any market provided you are trained and know how the process works and uses the system to your advantage.

Sincerely,

Cherif Medawar