Have you heard people tell you that you simply can’t get houses at .30¢ or .40¢ on the dollar? Or that you can’t flip a house for $20,000?
Lots of naysayers out there will say it’s just not possible.
But we know otherwise – it most certainly is possible, and if you’re like me, Andrew Massaro, you’re doing it right now. Of course we can contract on the cheap… and make a ton of money on the flip!
And here’s why – because this is our reality: We’re paying attention, we truly believe we can do it and we make smart offers.
And because I have that positive, ‘I really believe I can do this’ mindset - you know what I just did? Yep, just got a deal for .26¢ on the dollar. Buyer in place. $20,000 profit.
I did it with these 3 tips…
Pay Attention
First, pay attention to what’s going on with the housing market.
If, for example, the market is booming, that usually means that seller-direct deals are limited, but the profit per deal is, yep, booming.
Remember back from 2000 to 2005? There weren’t a bunch of deals, but when you did scoop one up, you made at least $10k, and sometimes upwards of $60k+. Heck, buyers were so eager to get their hands on a house where the value was rising through the roof - that they were bidding up the price.
Now those were fun times.
And here’s the icing…
When values are rising fast, people want to get a piece of the action - even if they’re not in real estate. They’ll borrow, partner and do whatever they can to start building a portfolio of properties.
And, since these people have no idea where to find deals, who are they going to turn to?
You.
Even the experienced investors will head your way, possibly looking to partner on deals or see if you have inventory for them too.
You Must Believe
Next, you have to believe that you can get a deal under contract for pennies on the dollar. This one’s big, folks.
Of course you know that the lower you get that price, the more money you make. And at the very least you increase your chance of flipping it…
But, if you fail to believe you can get a deal at .20¢ on the dollar, you can’t… and won’t. So, believe not only that you can… but WILL.
Make Smart Offers
Third, offer less than what you’re willing to accept.
I mean, the seller may just accept it. Plus, it’ll give you room to negotiate. And remember you’ll most likely end up getting it for cheaper than your ceiling, anyway.
Keep in mind, a seller may laugh at your low offer. They may get angry or be offended. Get ready for that, it happens. But, don’t get discouraged… wholesaling is a numbers game. This is just part of the territory.
Most people are not going to accept your lowball offer. But that’s okay because all you need to do is land one.
Here’s something that will probably resonate with you sports fans – this idea reminds me of what Tim Tebow said to his critics when he was entering the NFL draft:
“I don’t need every team to like me. I only need one.”
Keep Dealing
Look, before I got this sweet deal under contract, I made an offer on another one... I offered the guy $20k cash.
What did he say?
“I’ve already received offers for more and I won’t take anything less than $40k.”
What did I do?
Put my tail between my legs? Heck no! I sent him a contract, anyway... and I moved on to another deal.
So, make your low offers, expect them to be accepted but be prepared to negotiate, and then go flip that house for ridiculous amounts of money. You can make more money on one flip than many American families make all year.
Believe it can be done. Because it can.
That’s the only reality you should focus on.
I’m Listening
Share your thoughts in the comments section below.
Surround yourself with positive people and tune out negativity.
Know your market inside and out.
Believe you absolutely can do this business.
Make offers based on the numbers of the deal and be prepared to negotiate.
Keep making offers – one deal after the next.
Andrew Massaro
, also known as "The Maestro", is the founder of Wholesale Coaching, Inc. and is one of the most sought-after wholesale and REO coaches in the U.S. A University of Florida graduate, Andrewís house flipping career started in 2005, during one of the most dramatic and awe-inspiring real estate booms in recent memory.
After many years of success flipping houses in Tampa Bay, Andrew began also pursuing his passion and purpose: hands on, one-on-one coaching and mentoring other investors. Through Wholesale Coaching, students interact with and are coached by Andrew, personally. He has the unique ability to teach and guide his fellow investors to the results they desire. The one-on-one interaction and partnership is the key and what really sets him apart from others who offer coaching.
Andrew is also a loving husband, father to a beautiful little girl, Charlie Lynn, and an active board member of Current of Tampa Bay, a non-profit focusing on humanitarian efforts and showing love to underprivileged individuals.