How To Flip A House In 5 Simple Steps

Alright what's up guys, here dude, listen up I got Cody Burber in the house what's up bud? What's up baby? Dude glad to have you here. I'm ready to do this. If you see this animal online, dude this guy got a party and have fun. I'll never forget watching one of your first videos and you're like, "I would 5 years before I ever bought a lottery anything." I'm like, "Dude, that was like me. Except that was 4 and a half years. I caved that for four and a half years and then I like... I saw you whip the doors go up. I can... I get on your rolling. Alright, so guys listen up. Cody is the man here guys when it comes to this game of flipping, whether you're talking wholesaling or actually like hands-on rehabbing, listen, I can't think of anyone better that can bring on the channel that can really dive in on this. And so here's here's a reality so many people have requested this video and so here's what we're going to do... It's about to be... We're going to keep this video short with schools in session so dude pen and paper you're going to want to go. But for any of their like, "Men, you're going to fast. I need more. Slow run down. There's a link below and I asked Cody to actually put a webinar together with him and one of his buddies where they're crushing it in the game and you can get more information there. But with that, with the tongue we got man, dude, I'm going to lay down like the law here on the 5 steps how do you really get in the game and how do you really make it happen? Yeah and I think this is going to be a great video just because when I first started real estate investing, I leaned in on wholesaling, right? Because there was risk free, I didn't have any money when I was starting, and I needed to create the money so I can go and do the rehabs because these are the bigger paydays. Yes. This is where you really can magnify your results and for me, I kind of take the mindset of like, I'm a marketer in the real estate space that wants to generate as many leads as possible and I don't want to leave any lead behind. So I was on doing my wholesale deals every once a while, cherry pick out the best one, run a rehab on it and get the big paydays. So pause I want to help you guys understand this. When we say wholesaling we're talking about rehabbing we're talking about flipping but different. One is flipping paper and you can get paid 2 grand, 5 grand maybe 10 grand for finding a good deal and pawning it off so you get out of the deal. And you can make some quick money that way. But do the other side is you say, "Hey, but if I actually find that good of a deal and I actually throw some money in this and get on the rehab, I'm not making 5, 7, 10 grand, I might make 30 grand, 40 grand, 50 grand dude what's the most you ever made on? Come on, keep it real fresh with us. Alright, the most I ever made and this isn't typical by any means. It only happened to me one time and it was a it was a... I bought the house for like $550,000 and I rebuilt the whole entire thing. We sold it for a little over $3,000,000. So it was a massive renovation and I made a little over a million dollars. It was a game-changer but I'm telling you right now, my average one is probably like 40k, right and I got 10,12 going at any one time so we're rolling through on that. I got a whole machine and system and but you know... No stress. No stress. Guys check it out so we're not talking about flipping paper wholesaling. Right now we're actually saying, "Hey, when you find that deal that has the bigger money into it, how do you lay that down and when we were kind of talking about this before Cody got on the plane, he's like, "Kris, honestly it's best if I break it down in 5 steps. These are the 5 steps that I do when I take down every one of my deals no emotion. So.. Alright I'm just going to commandeer the old marker here. So first off, the first step is probably the most important step because you have to have a plan, right? You got to know what type of rehab you're going to do. There are different types of rehab and there's different types of properties you can rehab. So you know, I recommend leaning in on single-family houses, right? Especially in today's market I would work in those working-class neighborhoods, right? So working class, you're talking about maybe like 150, 200? Yeah. So like one of the things I always think about when I'm doing research before I buy, I'm always looking at in saying how fast are property selling in this area - right - the days on market. If the days on market are low, that's a good sign because you want to be able to buy it renovate it and then get it go in and get paid. So you got to have a plan, what type of properties are going to get renovate. Alright? This is something I love about this guy because you know that I plan that single-family safe zone? So my guess is if you're buying 150,200, you probably making sure you're always walking in with maybe a hundred thousand or more of equity so you can put the money in and have a march and to grab your 40 out when your done. That's exactly it. Minimum 10% return after everything else gets paid out. Minimum 10. I get more than typically about a minimum of 10. The other part of the plan is making sure you understand what's going on in that particular market. So that way you don't over rehab. This isn't some an emotional thing. This is a very by-the-numbers, non emotional decision and what I see a lot of people do is they get excited it's their first rehab. So act like they're going to live they're going to say, "This is my house". And yeah, that doesn't mean you need granted in this thing. No other comes from the market out granted don't put granded in that. Don't put...You won't recover that money yep and speaking of money, let's roll right into the next thing that you want to kind of get organized and that's your financing. I'm sure they do too if you found a really hot deal you got to find a way to take that down fast. You got to probably have a way to like like are you like buying these homes cash so you can secure the good deal. You order the banks... Almost every one of my deals is paid for using private lenders. Got you! So I started off wholesaling, does private lending mean cash? Yes, it's cash. It's just... Think... It's just it's just not mine. Deep pocket, private individuals that are like, "I'll support that because they're going to earn money on their money out. Yes and I'm sourcing good deals that in a good deal will either sell itself or help you raise the money. They're not really lending me money when I go to borrow money from a private lender. They're investing in a great opportunity. So I go hunt down those good opportunities. You got to get your financing together so sometimes I take a 100% of my private lender money and I just buy the property. Sometimes I take my private lender money and we work out a little bit better of a return for them. I put them in a second lien position and I go and get a hard money loan - yes - if the deal is really good and really juicy, I can do that kind of financing structure and I can take a hundred grand from a private money lender and buy four properties with it. Versus one... You get what I'm saying? Yeah, and dude, I'll just going to drop this to see if you agree. If you find a really good deal, the money's out there. -Oh- If it's a good deal, the money's out there. I know some people watch this like, "How would I meet someone that has money that could buy something cash and back me?" I'm like, Listen, get out in the game put your fill skis out there and the people out there. If you have a good deal, the money is always available. To get out there on social media start networking go to those real estate research groups. You're going to find the people popping up. And for me my first private lender came by accident. I was just talking to somebody about my what I'm passionate about which is real estate and he's like, "Oh you should talk to my dad." Yeah my dad likes to invest in stuff like that before you know it, little sites where his dad actually was a Wall Street guy that helped merge the RG reynolds Nabisco merger back in the 80s and he had more money than he knew what had to do with a knew what to do with and I didn't even know my buddy - Wow! Where's the trust fund guy? Yeah and you know we don't talk about that stuff and so talk about what you're passionate about, you never know and there's different financing types get familiar with what they are, be smart about it. Awesome! Moving on. Moving on. Number 3 - Hey guys, by the way, I really wish we could slow this down because I hope you're getting like there's a lot of good stuff here that's why I hadn't record the 70 minute lengthy version. It's in the link below. You just sign up for the webinar and they're actually going to get you the deeper detailed information but I want to go this fast because I want to make sure that we can get you what's needed. That's right and this is the Golden Rule. Buy it right, right? You have to source good deals and you have to buy the properties right. We make money in real estate when we buy, right? Not only selling. and it's never more more true and more important than when you're renovating a house - yeah - right? There's kind of a rule that I can share with you that makes it kind of easy if you're new. It's basically take the ARV which stands for after repaired value the value, the value that the property would be worth if it was fully renovated and sold on the open market and just take off 30%, right? Just right out of the gate. Just like basically it's like the 70% rule. That's a good general rule of thumb when you're first starting out. If you're saying here's this house, it's worth 300,000, I take off my 30% that drops it down to 200. If I get it for 200, you're in the ballpark now. Aint. Now if the repairs are reasonable - yes - I know I got to pay my realtor fees and I got to pay on my money that I borrowed but there should be something left over unless you're doing like insane rehab like I have to cut the property in half and bulldoze it, yeah - your first few ones part of your plan might be. Hey I don't want to do a massive renovation. I don't want to add an addition. I want to do a lipstick on a pig right and just paint and carpet make it smell good and move the property right? Those are some of my favorite renovations because you're in and out so fast but... Alright so you want to buy it right so that means you have to have your financing lined up so you're not getting screwed here. This is where a lot of people they get stuck in bad financing they make all these assumptions like the property's going to sell quickly and then it doesn't but they're stuck in a hard money loan. I don't know why but real estate of tracts optimists. So everyone goes to the most aggressive number. It's probably worth this. It'll probably only take this long. It'll probably only cost that. It's like actually, you paid more for that. You held the money longer and you did way more rehab than you wanted, this is one of those areas... Where I'm a crazy optimist guys. But when it comes to finance and real estate I'm a realist which means I don't want to be swayed this way or that way, I also don't want to be the negative I want to seek in time to become dead on the mark. Boom! I like it. Alright, number 4, we all want to be bosses. Let's rehab like a boss and what does that mean you have to understand how to go out and hire good team members because I believe that my job as a real estate investor, is to bring in the money, source good deals and then put the team together and manage the team. Now some people out there might be like I like to hang cabinets. I'm a tinkerer I like to work on things really try to focus on your highest and best use and return on your time and... aka, don't! Seriously, it's my nice way of saying just. Oh if you go to Home Depot like every day I forgot the nails, I forgot the screws. Today we're getting the lighting fixtures. I'm like dude you can go from putting ten hours in for just being the deal like for putting it together to 300 hours because you're all so now the rehabber that's not rehabbing like a boss that's re having like a fool. Yeah and there's lots of steps in the rehab process, right? There's a lot of moving pieces. That's why we put the training together because so that way we could take the time and go in on like how do we source materials who are all the players what is the flow of the actual process of rehabbing so that way I know I got to bring this person in and then this next person comes right behind them and it's like a train moving down the track. We got like a prophet train, right? I'm working with it. Going down the track and if you get it down right< that's where you can start scaling your business doing multiple rehabs at one time. My crews literally move from project to project it's like an efficient well-oiled machine and you know that's where you having like a boss. Because I got to tell you we do hundreds of flips every year in going into markets and finding the best deals and getting them rehabbed, you know my thing is I'm not flipping for profit, I'm actually I'm running an efficient flipping model for actually make as much money to Kim as ROI .Because I'm going to hold on to my homes, I love holding property it's just one of my favorite things to do and I got to tell you. this whole thing like a boss what he's telling you what he's teaching you you better be taking notes on it cuz schools the session from an expert and he knows what he's talking. about. Okay< fifth and final step. This is the staging and sales stage of a rehab and people ask me do I have to stage my properties? Yes, unless it's like the lipstick on a pig Staging is unlike b.ringing furniture in and making it feel like a home? Yes so that because here's the thing that you got to understand you want your houses to sell quickly right especially if you have financing on it and you just want to turn and burn and keep deal flow going. And so for me I tried selling a bunch of deals without staging here's what. you find people focus on the weirdest stuff they walk in and they're like they'll find like the things that you would never think that they would zero in on - yes - which totally take away their attention on... So you're shifting the focus by getting that thing staged? Yeah it gives them that instant like visualization of like I know where I'm going t o it at night. I know what its going to be like to be in the kitchen with my kids playing in the other room in like the kitchens, the bathrooms, those are the two main rooms in a house that you really want to nail down and get done right. I just ask you from your experience, how much quicker do you accelerate the selling process by staging? I would probably say 50 to 60% . In fact, it pays for itself so much that I actually went out and I. bought all my own staging furniture now I'm doing it this I'm on a scale but I staging 20 houses I'm like I could just own a couple couches and linens and candles and knickknacks and like books? And I don't fully, fully stage meaning like and by the way staging could be anywhere between a thousand to two thousand dollars on these types of houses. So we're not talking about a ton of money but the impact is huge and ultimately we want to sell and we want to sell quickly. It's about time, right? It's about compressing that time and getting your money in and out as fast you can. That's it. Wow, dude, guys so first of all, Cody dude, dude boom right there the five steps you taught that was awesome. I appreciate that for those fees are like, (oooooh too much information...) Click the link below that's why I asked him to prepare the lengthy video and I'm tell you right now it's worth it. Because you didn't shoot that alone, you actually have partnered up in Atlanta with Kenan Anita Corsini so... Freaking awesome flip that show out yep. Flip or flop Atlanta. So what I did, I'm a I'm a student of success just like you guys right like you guys are smart for following Kris because you want to learn from people that are already playing the game at the highest level so you can get there faster. Yeah. Well even though I've done over a thousand flips, I still travel all over I hire lots of consultants. I'm like a bit believer of cutting a check to solve solve a problem and go further. So I flew to Atlanta ,to my friends Kenan and Eva Kor Sini's operation. I brought my video crews with us, drones with us and we just had such a blast documenting everything that they were doing because they play the -game at a really high level- right and I learned so much about all this stuff and that's there they're going to be in the training class with me for 70 minutes just power packed intense. So that's powerful that you got them. So guys, check it out. Listen, I hope this has been useful for you. We want to talk about how you really play the flipping level learn from someone who's very masterful at it you know Cody's laid out the steps here. Your next step is to actually go to the link right now below and I want me to click the link, I'm looking to register for that webinar. I want to get that additional 70 minutes of training, if you're hot on this topic and other than I just want to tell you that my buddy Cody he's got his own YouTube channel. So we're going to provide that link. I want you to go follow them and check it out I love what he's doing, I loved that this man is up to do the manners of stunts I'm going to have about a couple more times. Maybe a couple more videos. But dude, thanks for showing up today. Thanks for being here. And thank you for partying your wisdom and your knowledge. -You got it. Anytime. -Hey, guys. It's time for you to go and make it happen.

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