How To Flip Houses Using Other People's Money

How to flip houses using other people's money. This is going to be a fabulous one, especially in this economy, this time, this recession, high interest rates, there are so many opportunities. So get a pen and paper. The three things we're going to talk about. Where do you even find funding sources? Little hint, is there everywhere? But stay tuned, I'm going to tell you where. Number two, how to find a strong investment team. One of my greatest mentors said, money follows management. So if you've never done this, you better get a team that's done it. So you have a portfolio, you'll have a resume of properties. Number three is developing that flipping strategy. And at what point do you move from flipping to holding? So let's begin. So how do you find the right funding sources? Well, first of all, there's money all around you. There are people who have 401ks that have jobs and majority 401ks. And if you're in other countries, it's similar. It's your qualified plan. That's part of your employment. They'll let you borrow up to $50,000 of your own 401k money. So if you are an engineer, a doctor, whatever you are, I can promise you, your fellow employees all have money that you could be borrowing from them. And right now, a good interest rate that you could pay other people's money, 10, maybe 12%. More beginners might even take 9%. More sophisticated folks are going to take 13 to 15%. But there's money everywhere. 401ks, there are great lenders, alternative lenders. There's so much money on the sideline sitting in cash because people are not liking the crypto, NFT, and stock market right now. So there's tons of money that's available. Just hard money lenders in general. Look them up in your area. They're everywhere. If you really want more sophisticated money, come on into our community. We have people who are millionaires, on their way to be millionaires, 100,000aires, who love borrowing money. So we're teaching them to be a hard money lender. Hard money lenders, which is what I am, I love putting my money out to you. And mine's 12 to 15%. But I get first position, which means if you screw up the asset, the project, the house, or the flipping, I get the house because I know how to flip it and I know how to sell it. So what's the worst case for the lenders? If they're in first position, they get the property because you didn't do it right. So more sophisticated places, there's a lot of private equity firms, hedge funds. Those take a little while. You're going to need a bigger resume. So for a lot of you that are just starting and you want to use other people's money, it is your friends and family money. That's the easiest stuff to get. Or it's your coworkers that have big 401ks that you can go get from them. There are trillions of dollars sitting in 401k money that are not invested or not invested even properly. A lot of them will cash in or do it differently if they knew that they could actually have a successful project working with you and flipping properties. Funding sources in general that can give you 0% financing, this is my favorite, for up to 21 months. Now we have a variety of those sources. In fact, one of our sources has over 500 lenders that can make you fundable. So if you lean in and become a client of ours, which if you're interested in learning how to get funding and finance and be fundable, click on the link below and get an appointment with one of our team members. Like do that right now. If you have any questions that you need answered before, go to asklaurel.com, ask a question, make a request. We'll be right back out with you. But we can fund so many people and you don't need a great credit score. Now let's just say you totally blew your credit, totally blew your credit. Then what you could do, and you don't want to do the real estate, but you want to get in. What you could do is find somebody who has good credit and has money, put them together and go find somebody who's flipping. So a lot of this deal-making happens by who has the assets. And you say, well, what's the assets that you need in flipping? Somebody needs the flipping experience. Somebody needs the money management experience, right? Somebody, you've got to have, somebody needs the credit potentially if you're actually going to refi at the end. So you're going to need a team around you. So let's move to that topic. How do you find a strong investment team? Well, first of all, who's already done it? Like I've done hundreds and hundreds, I've had thousands of real estate transactions and been a part of them. So I'm always a great team member, but to have me on your team, you've got to come all the way in and become a client. Cause I'm going to make sure that you're corporately structured. Your trust is structured. Your insurance is structured. All of your operating agreements are structured, right? So I want to make sure you're solid before you're getting any of my money, which by the way, that's pretty standard for hard money lenders and more formal lenders. You're going to need to have a strong financial team. They're just not handing money to some beginner who has no resume and no portfolios, no properties they've ever worked on. Having good credit score, that's kind of a myth. So I just wanted to handle that. I don't think a lot of you think, well, I have to have really good credit to do it. No, you don't. You actually have to have more experience. Like money will follow management and experience and success. It's not difficult to raise capital for not only flipping projects, but any project, if you actually have a good track record of being able to take money from investors and pay them back. And that is a bigger deal than most of you think. I'd love to teach you how to do it. So the third thing I want to talk about is developing a strong flipping strategy. Now we're in a really, really different time because we're about to go into a really big, what's called a high level foreclosure market, which means everyone in 2000, 2001 that overbought their house, had a variable mortgage or didn't pay their mortgage, went to forbearance. A lot of the financial institutes are going to straighten that up in the next months and year to come, which means a lot of people are going to be forced into foreclosure or having to hand you their house of which then they can become the bank, which is what I'm looking forward to. I'd love to hold somebody's note for 300,000 and become the bank and you pay me instead of the bank, your mortgage payment every month. So notes is going to become a thriving business. Do you want to flip them? Could you flip notes? Could you flip properties? Potentially. So what is your flipping strategy given the current environment of the recession and high interest rates? And the biggest thing also to notice is your area and every area is so different right now. What are your construction costs and material delivery costs? I'm doing a construction project in the middle of Nevada. It takes a lot to get the product there. It takes a lot to get cement there. It takes just the cost to get the product and get materials, accelerates your numbers. So you've got to have a really good, strong financial analyst team to analyze. You may be able to do a really good buy on the property, but once you have all of the labor and material additional costs and accelerated rates, it might not be as profitable as you think. So make sure you're doing your math. Make sure you have a really strong financial strategy. And I can tell you anyone who's going to borrow you money, that's going to lend you and give you some money, whether it's a hard money lender or somebody on a 0% financing team of ours, you're going to have to have strong financials and a strong team. If you don't know how to do it, again, call our office, go to the comment section, say, hey, I want to talk to somebody. Again, we have that link in the description below. We'd love to talk you through it and actually coach you through your first transaction. Due diligence is my trillion dollar tip. But before I give you those, I want you to subscribe to my channel. Click the notification button. Be here every day. I'm here five days a week for you and your family. And for those of you wanting to get in real estate, surround yourself with five other people who want to get in real estate and say our commitment is There are so many people who say they know what they're doing in real estate. They haven't done a real estate transaction for decades, right? I just closed real estate deals as more as recent as November last year, constantly in construction deals. So if you want to lean in and get some coaching and mentoring, we'd love to help you actually really learn how to do it, learn to raise capital and find the right lending for you and your family. So let's go to due diligence right now. So I have the top processes of due diligence. Number one, what are your money rules? And do you have congruent money rules? Meaning, are you just flipping because you want to flip? Are you going to flip and buy and hold? What is your real strategy? And understand that. Be able to talk about it. If you want somebody to give you money, you have to be able to talk about your strategy. What's your exit strategy? You have to know that and you have to, again, know your numbers, as I spoke of earlier. What's big money investing? So some of you writing a $10,000 check is big. Most of us writing $100,000 check is normal. I got investors who are writing quarter million dollar checks and even half a million dollar checks. So what is really big money mean to you? Do you need big money? And associated to that is sophisticated money. Are you, there's a money that you're wanting smarter than you, have more experience than you. That's going to be a little challenging. And if you posture it right, it could be helpful because now you're bringing that experience on your team in a positive way. But to not tell them that like they have more experience than you, getting yourself backed up there. Who has the oversight of the project? Are you keeping oversight? Are you keeping bank control? Is the information going to be transparent? Is it going to be on a portal? The investors get to see what's going on, how their money's being spent. What are the economics of the deal? Which means really in this, where's the market? There's so much variation in the real estate market right now, which towns are thriving, which ones aren't, which ones have not a lot of opportunity and not a lot of movement. And there's other towns that are still thriving all over the country. And then the last one, again, we talked about is the leadership. Is the leadership sound? Do they know what they're doing? Do they have experience? So the more money you want, the more sophisticated your project, the more sophisticated the team needs to be. So again, lean in, let us help you have an appointment with our team. And let's make you a millionaire in real estate. It would not be difficult to do in the next 12 to 18 months, but you have to lean in and say, yes, I'm committed. You can do everything we say. Go to Ask Laurel if you have any questions and I look forward to helping you in your first real estate or actually expand your real estate into many states or into many projects. I've taken many, many people from no projects to 20 to 30 projects within a 12 to 18 month period and millionaires. Not difficult, very different. And you got to be committed. So if you're committed, call us. Talk to you tomorrow.