004 The $164,000 Month Flipping Property

Learn how to invest in real estate, flip real estate, wholesale, tax liens, foreclosures, probate, abandoned property, short sales, hard money, owner finance financing, no money down and much more!

 

Hello and welcome everybody to another edition of extremerealestateinvestors.com. This is the podcast for all of your real estate investing needs, questions, strategies, and techniques. I’m super excited to be here today and I’ve gotten a tremendous amount of emails over the past week asking a ton of different questions, ranging from what to do on a specific deal that some people are working on to new investors that are just trying to get into the business now for the very first time.

I want to welcome you to the podcast and thank you so much for taking the time to listen to me and what I have to say about the world of real estate investing as I know it. I want to make sure that everybody out there has a great and clear understanding of how to invest in real estate, what to look for, how to structure deals, what qualifies as a deal, and what to do with it once you’ve got it.

I’ve been in real estate for about 13 years now and I started off as a real estate agent just selling houses for commissions and have evolved into a full time real estate investor who now owns a real estate brokerage and investment company with nearly 40 employees and independent contractors working for me. I’m 35 years old and have done over 700 transactions totaling over $100 million and doing all of that has helped me realize my dream life, dream lifestyle and I want to help you achieve your dream lifestyle through investing in real estate today.

With the techniques that I teach you in this free podcast alone honestly you can get out there and consistently make anywhere between $5,000 and $15,000 per deal, just by wholesaling properties. The process is so simple that it is practically a no brainer once you understand some fundamental basics about real estate whole selling. If you wanted to do this business part time and just make an extra $5,000 a month I can show you exactly the stuff you need to take to achieve a $5,000 per month additional income. If you wanted to do this full time, quit your job, and become a professional real estate investor the earning potential is limitless.

Currently I am averaging a very high five figure and low six figure monthly income. And you heard me right. I said five to six figures consistently on a monthly basis for my real estate investing. I can honestly say that I’m definitely not that sharpest tool in the shed, I never graduated from high school, and I must have had well over 50 jobs from the time I was 16 years old until I started making money in real estate. In fact, my first two and a half years in the real estate business I was still working another full time job just to make ends meet.

Now, if you’re anything like I was, struggling to pay bills, buy the things you want, take vacations, pay for college for your kids, or anything else that you desire but cannot really seem to get a grip on, then you’ve definitely come to the right place. I can help anybody who’s serious about making money in real estate just like I’m helping my current coaching clients and investors make money too.

If you’ve been sitting on the sidelines wondering what you should do you’ve come across my podcast or seen some of my videos on YouTube for a reason now is the time for you to take action and do something. Listen to my podcast, go to YouTube and search my name, Michael Kevorkian, that’s spelled K-e-v-o-r-k-i-a-n and hopefully you’ll get some motivation to make a change in your life for the better.

What I teach in real estate investing is a simple 12 step real estate investing system. It is the step by step process that walks you through the beginning stages of real estate investing all the way through being a professional real estate investor. I have taken all things into consideration and assume that anybody listening right now is starting where I did when I first got into investing in real estate, which is full of motivation and desire for a change but absolutely no money.

That being said I’m going to take today’s podcast and introduce you to step number one of my 12 step process, which is wholesaling, also known as bird dogging real estate deals, and walk you through every single step of the process so you can literally make a check in the next 30 days if you apply my tips, tricks, and techniques.

Now last week’s podcast I actually went through that in detail and what I’m going to show you today and have you listen and learn about today is the four deals that I’ve done in the month of January and how much money I’ve made wholesaling properties. I’m going to give you all the numbers, strategy and general guidelines that I use, formulas for buying property, and what you should expect to wholesale and resale the property for to an investor buyer.

We’re about to get started here talking about step number one, which is wholesaling. But before I do I want to go ahead and give you all the information about my 12 step real estate investing system. I’ve gotten countless emails asking me what the 12 steps are so I’m going to list them here for you, so hopefully you’ll write them down and pay attention to the podcast and YouTube videos, go to my website, get some free information, that’s extremerealestateinvestors.com, extremerealestateinvestors.com, and you’ll have a ton of free information for you to use in your real estate investing career.

Let’s get to the Extreme Real Estate Investors 12 step real estate investing system. Again, please try to keep in mind that these 12 steps are listed in order which I believe makes the most sense starting from a beginner real estate investor and eventually graduating into a much more sophisticated armchair passive income real estate investor. Here they are in order of experience and typically money needed to accomplish these types of transactions.

Okay, are you ready? Here we go. The first of the 12 steps is wholesaling. Wholesaling is the easiest and fastest way to make money in real estate, especially if you have no cash and no credit. I’m going to use today’s podcast to talk about some recent deals and you’ll see how I was able to make a six figure income this month wholesaling just four properties. It’s probably one of the most amazing and lucrative techniques that I teach, and one that I started with and continue to use on a daily basis in my business. I literally made $164,000 in the month of January just flipping four wholesale deals, and I’m going to walk you through them here in just a few moments after I walk you through the 12 step real estate investing system.

So step number one is wholesaling. Step number two is REO and HUD, bank own foreclosures that are an absolute flipping gold mine. Step number three is pre-foreclosures, and I’m not talking about short sales. This is one secret strategy I know the other so called gurus aren’t sharing with anybody. Number four is what I call the reverse short sale. It is a powerful technique and I have not heard anybody even mention this ever. I mean it. Nobody has ever even talked about this that I know of. I’ve talked to thousands of people in my brokerage investing career, in my real estate investing coaching students and still nobody has claimed to have heard this technique from anyone other than myself. Do you know what that means? I’m going to tell you. It means no competition.

Step number five is ugly and abandoned properties. I always say, what happens when you’re ugly, you tend to get abandoned. So this is probably one of the biggest money makers I’ve seen when it comes to beginner stages of real estate investing. I love it. It is a gold mine there as well. Step number six is the not so hostile takeover strategy. This one technique alone will put you in a category all by yourself. If you were to do this properly and consistently you could literally buy houses with no more than $1,000 or maybe $2,000 out of your pocket at any given time, period.

All right, we’re half way there and I know you’re super excited to hear the rest of the 12 step real estate investing process. So here it is. Step number seven, lease options. I’ll teach you techniques and strategies on how to buy and sell property in today’s market using lease options and positioning yourself like I have to get a 400% return on investment on every property you buy and sell through our lease options strategy.

Next is the part of the 12 step real estate investing process that you may find will require a little bit more capital to accomplish. I’m not saying you will definitely every single time need more capital for these deals. However, it’s been my experience that more money is needed for the last five strategies than for the seven previously mentioned. So number eight is our owner financing strategy that works like a charm and helps you build either short term investment inventory to rehab and flip or longer term holds that you can rent out.

Number nine is joint ventures. Now this is one super powerful strategy that again, I have yet to hear anybody talk about or teach anywhere else. This is a way for you to be able to work with people that will never accept your wholesale price to purchase a property and don’t want to get into any other types of transactions such as owner financing or lease options. Remember, the deal is never dead. Do whatever you have to do to get this deal. Think outside the box.

Number ten is rehabbing for huge profits. This strategy is for the seasoned investor without a doubt. If you think you’ve got what it takes to be a rehabber, hey, I salute you for your bravery. At any given time I typically have two to three rehab projects going simultaneously. It is hugely profitable but definitely not something that I would advise a beginner real estate investor to try to get into right of the bat. You could get steamrolled if you don’t do things right, and believe me when I tell you, I’ve done rehabs that didn’t pan out like I thought they would. I had a deal that sold for $80,000 under what I expected to get for the property. But guess what? Because I have a tried and true system I still made a profit of nearly $70,000 when I did sell it. So was it a good day or a bad day? I expected to make $150,000 but only made $70,000. I’ll let you think about that one for a while.

Next step is step number 11, and that is land lording for cash flow. That is where you’re buying properties and renting them out to tenants to collect a passive income. On the surface it sounds like a pretty simple idea, but you can get your clock cleaned if you’re not careful. I have a failed proof full proof system to make sure that every property you buy, how you buy it, how much you spend to buy it, how much you put into it for rehab, and how much you get for rent always gives you high double digits and sometimes triple digit cash on cash returns.

I just picked up a rental for next to nothing. Seriously I bought it for $27,500. I’m getting $1,300 a month and taxes and insurance on the property are about $2,000 per year. So what’s my return? Nearly 50% per year. Rental is up every year and so is the value of the property. This works if you know how to buy using my strategies and buying techniques.

And finally number 12 in my 12 step real estate investing system is hard money lending. Obviously you have to check with your state laws and guidelines about become hard money lender, but let me tell you the returns are amazing and the process, again, is full proof if you follow my step by step process for lending money.

Okay, so back to the deals that I’ve done this month and how I’ve made $164,000, this month of January 2013. I really want to stress the importance of this process and how it can change your life forever. You need to open your mind and open your eyes to the reality of this business and how it will change things for you by giving you the financial freedom you want and need so badly. Are you tired being broke, just trying to make ends meet and find yourself with more month at the end of the money? It’s no joke. And I know you want to make a change in your life, or you wouldn’t even be listening to this podcast. You can stop wasting your time and your life slaving at a job that will never lead to anything but more stress, limited income, almost zero opportunity for growth and an overall miserable existence if you take the time to learn my 12 step real estate investing system.

Why are you allowing someone else to control you? You have to ask yourself this question. Look at it like this. Your boss is telling you when to show up, when to take a little break, when to take your lunch, when to go home, when you can take a vacation, how much money you can make, and if you ever step out of line you’re fired. What kind of life is that? Honestly it sounds a lot like slavery to me and not freedom. Are you a kid? Do you need someone controlling your every waking moment? Look, you may love your job and never want to leave and that’s fine, but you can make a lot of extra money on the side doing this and actually take control of your life once and for all if you just take a few steps and do something about it. Real estate investing is the number one wealth builder in America and it has created more wealth than anything else known to man.

My 12 step real estate investing system will show you exactly the step by step process you need to go through to change your life. The best part of my system is that I don’t offer a lot of filler or hype. I don’t sell you endless add-ons like a lot of other people out there selling how-to courses and real estate investing. My methods are proven, they work, and are easy to duplicate time and time again.

Like I said, I’ve been in real estate for about 13 years now and I stared off as a real estate agent just selling houses for commission, and that’s evolved into a full time real estate investing career for me. That’s not because I got lucky. I’ve put in the work and got the results, and you can too. I’m 35 years old, I’ve done over 700 transactions totaling over $100 million, and doing all of that has helped me realize my dream life, dream lifestyle and I want to help you do the same thing.

Now I’ll show you how I was able to make a six figure income this month wholesaling just for property. It’s probably one of the most amazing things I can share with you and I want you to take the initiative and do it for yourself already. I literally made $164,000 in the month of January just flipping four wholesale deals using my 12 step real estate investing system. It’s so easy that anybody can do it. There’s no magic and no secret to making money in this business. The only magic or secret is that you need to learn this system and apply it exactly the way I teach you and boom, that’s it, you’ll be on your way.

Once you sign up and get started you can have your first deal within the first 30 days of using my system and see for yourself how easy it is to make a killing in this business. Get started and get paid already. You can actually get yourself on the road to financial freedom, and if you choose to you can walk right into your boss’ office and tell him or her to shove it. You can make more money in one month and in some cases in one deal than you do all year at your current job. So what are you waiting for? I’m going to show you how easy this is by walking you through the four deals I did this month, and I think you’re practically going to fall out of your chair when you hear these numbers.

So the first deal that we did this month was a property in a northwest suburb of Chicago. This was an owner, a long time owner. There was no mortgage on the property, no financial distress, the property was really run down and I got it at a very, very nice price. I put the property under contract, we had talked and I had the structure of the deal in a way that worked for the seller the best. So what I wound up doing the seller wanted to secure a sale, they wanted to know that they could sell the property but stay in the property for two months without paying and just take their time moving out. Now they were an older couple, they were retiring and moving to Florida.

So what I wound up doing was we came to an agreement on price, signed all the paper work, got everything together that I needed to do, went to the closing and closed. Okay, I actually wound up buying this property from these people and I let them stay there for two months without having to pay a single thing. Now some people say, “Oh, you’re crazy,” but what I wound up doing was putting the property, putting some of the money from the sale of the property into escrow. So that way I had to guarantee that if they went over their time limit of 60 days then every day that they were in the property they were going to pay me an extra, I think it was $100 a day. It’s incentive for them to leave and it’s protection for me to make sure that they do wind up leaving as agreed. And if they don’t, then I’m going to get a little bit of money back.

So what I wound up doing with this property was I wholesaled this to an investor, a rehabber who wound up putting some money into the property and then turn around, sold it, and made a huge profit. On this property alone I picked up $40,000. I didn’t touch it. All I did was buy it. This is a wholesale. This is not a contract flip, which is also a wholesale deal. This is not a contract assignment, which is also a wholesale deal. But this is by definition still a wholesale deal because even though I did close on it and I did use money to buy the property and get the people to put the transaction together with me it’s still wholesale because I didn’t do anything to the property. So that is property number one. I made $40,000. That is one way of doing a wholesale deal.

The next property is in a suburb, southwest suburb of Chicago. This is a very similar situation where I had a property owner, a lady that was moving out of town. Again, paid off property, and this time the property was in really, really nice shape. I wound up buying the property from her. I took some pictures. I put it on the market. Again, this is where I used cash. I used money to buy this property. I didn’t have to. Mind you. I don’t like you to sit there and think, “Oh well, man, you got the money, or you got the investors behind you. I can never do this because I just don’t have any hope.” No, listen to me, if you follow my system and you cannot find the cash somewhere if you are part of my coaching program, I will partner with you on deals and get you transactional funding to put these deals together. So you don’t have to worry about the money. Okay, I don’t want you to say, “Oh, I don’t have the money so therefore I can’t.” Negative, that is a negative. Do not think that way.

Back to this deal. I purchased this property from the lady. Same thing, she needed a couple of weeks to get out so I cashed her out, made sure I secured the deal. I put the property on the market, took some pictures inside and out, put a sign in the front yard. I believe it was two days on the market and I got I think it was like 96 or 98% of asking price. We were asking I think 255 or 259 for this property and I wound up getting 245 in two day’s time without putting a dime into this property. Picked up $75,000 there, on that one transaction.

The next one, now, this is super beginners stuff here. The next one is a property that I picked up which is a probate deal and I made $23,000 on a contract assignment. Now, for those of you that want to cry in your milk and tell me, “Oh yeah, hey, I don’t have the money, and l love listening to this podcast, but I just can’t really make it happen because I’m stuck and I’m broke, and I’m this and I’m that.” I didn’t do anything but get a contract people. So listen to me. I made an offer, they accepted it. I took that contract, found another investor that was going to buy it from me. All of this I teach you in the 12 step real estate investing system and our coaching program. So I found my investor buyer and assigned the contract to him for $23,000 more than I had the property under contract for and they knew it and they’re okay with it. Why? Because without doing anything else he gives me $23,000 I’m handing him $50,000, and that’s before rehab guys. Pay attention. This is no joke. This is serious money. I’m not even going to have to rehab this property. The investor is going to do it themselves.

Okay, in the last transaction that I did this month was a property again in a different northwest suburb of Chicago and I made $26,000. Now, I used two of the 12 steps to put this deal together. What I did was this was a lease option transaction where I bought it, I actually bought the property and did a lease option to the buyer and picked up $26,000 in cash. Not in future cash, in actual cash. So do the math. If you want to take a calculator there are only four numbers, so I want you to go ahead, write them down, and punch them into your calculator, you’re going to see how much I picked up in this month of January 2013. $46,000 on deal number one, $75,000 on deal number two, $23,000 on deal number three, $26,000 on deal number four. That’s a total of $164,000 and that my friend is no joke.

Now, I know if you weren’t interested before, you are now. Here’s what I’m offering and that is only if you’re interested in doing these kinds of deals and being successful as a real estate investor whether that is a part time or full time investor. Like I told you earlier my 12 step real estate investing system is no fluff, no hype real estate investing process. I offer my 12 step real estate investing system and coaching and nothing else. No newsletters or upsells. Just real world real estate investor training.

You will learn the 12 steps I use in my real estate investing business. You will have a personal coach, me and only me, not somebody on my team, not someone I paid to pick up all the coaching business, because that’s not what I do. It’s going to be me and only me talking to you, to walk you through the deals and what you need to do from start to finish. You will learn every strategy I know in detail how to implement each one and go from beginner to cashing huge checks.

The very first thing we’ll do is create an investing plan and a business plan for you so you know exactly what to do every day and what steps to take. You’re going to have two one hour coaching calls with me personally every week. One is a group call, and the group is never any more than five people per call so everyone’s questions can get answered, and a one hour one on one call with just you and me. That’s every week. Of course if you have a partner or a spouse they can listen and participate as well and that’s free of charge.

Now here’s the thing you need to keep in mind. There is only so much time in a day. So I have a very limited availability for new coaching clients and if you’re serious about doing this you need to act fast. Remember, I still run a full time real estate investing business and the coaching and the training I’m offering is something I do in addition to it, not in place of it. I can only take on a few more clients and that’s it. I know that you will get results taking advantage of my system and I’m so sure of it that I offer 100% money back guarantee that if you don’t get results in your first 30 days working with me and my system that I will refund your money for the coaching, period.

All you have to do is decide to take action, take control of your life and go to my website at extremerealestateinvestors.com, fill out the application to see if you’re a good fit for my program and we will take it from there. We will review your information and if we feel that you’re a good fit for my 12 step real estate investing system and coaching program then we will send you a follow up email within 48 hours.

Remember, I only have a few spots open at this point. So if this is something you’re interested in I encourage you to take the next step and visit my website at extremerealestateinvestors.com, fill out the application under the Let’s Talk tab and secure your spot before it’s too late.

This is my friend. It is all in your hands now. If you do something about your financial future or not ultimately that is up to you. I want to help you succeed and I think you deserve to live a better life. Everything you ever wanted can be yours if you take the steps and reach out there and grab them. Sign up before it’s too late and you wind up looking back a year from now with the same miserable thoughts and feelings of failure. Take action if you want to see a change. You have to do something about it. That’s it. I’ll stop now and it’s time for us to wrap up anyway.

I want to hear about your successes and do a phone interview podcast with you when you close your first deal. So get out there and make it happen. You can do this. Believe me when I tell you. It’s not hard or complicated when you have the right tools, systems, and support in place. I want you to be successful, make more money, help people and change a lot of lives for the better in the process. I can’t explain what real estate investing has done for me. It has totally changed my life for the better and there isn’t a thing on this earth I would rather be doing than real estate investing and helping other people realize their dreams by teaching you what I know and what I have learned along the way.

Now here’s a small favor I want to ask of you. If you go ahead and go to iTunes and download my podcast, leave me some feedback. I always appreciate the five star reviews and I’d be happy to announce your name and reviews on my next recording of the Extreme Real Estate Investor’s podcast. As I said I definitely want to share your success stories with the rest of the listeners out there, so take a little time and go to iTunes, leave a review and I hope you found this podcast informative, inspirational, and it motivates you to get out there and make a difference in your life and lives of other people by helping them get rid of properties they no longer want or need. If you have any questions you can email me directly at info@extremerealestateinvestors.com, that’s info@extremerealestateinvestors.com or just go to extremerealestateinvestors.com and contact me through my website. While you’re there you can download my e-book, “16 ways you can turn unleveraged assets into income” for free.

I’m super excited that we launched the website on time. We’ve got a ton of great information, podcast, video, and a whole lot more to share in the days and weeks to come. I also want you to go ahead and send me an email or contact me through the website at extremerealestateinvestors.com. If you have any subject matter that you specifically want me to cover in the next episode I’d be happy to help and do everything that I can to help you in your real estate business.

All right, so thank you for listening and I really appreciate you letting me talk for so long and giving me your attention, taking time out of your day. Again, please do something about it. You guys, you have the choice to make change here. It’s in your hands. Get on a computer, get to my website, fill out the form, let’s talk and let me help you out before somebody else takes that place and I don’t have any more room. I’ve had a lot of fun and hope you learned a thing or two. Remember to always pay it forward. Until next time happy investing and remember to go big or go home.

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