Biggest House Flipping Mistake

[@connormccormackskygold9282]

Love the fact that this guy is totally honest, crisp, clear, direct, informative, and no bullshit. Way to go Phil!

[@freedom_mentor]

As a follow up to the previous comment, I usually give $1 earnest money on my deals because I usually work directly with sellers and I rarely join the dogfight of listed foreclosures which require significant non-refundable earnest money.

[@freedom_mentor]

It helps all parties involved. Thankfully, it sounds like the non-refundable earnest money part would snuff you out of any deals my students or I would be selling so the good news is, if you are the buyer, you won't have to worry about doing business with us :) But if you are selling a property and someone strings you out for 45 days and then cancels scot-free and you have to start all over, don't come complaining to me because I already told you so.

[@homecareconstruction9852]

Hi Phil Thank you for laying out the real world nuts and bolts I have both flipped and held With 14 years of experience in Mortgage banking, I can assure your viewers that you are absolutely correct Most folks do not understand the loan process and controlling the buyer is essential for the seller to have a successful sale and for the buyer to have a precise and smooth purchase transaction In my experience it is clear that most Realtors also do not understand the loan process either and can give the seller advice that may actually be a detriment to the successful sale Contract construction, as you have laid it out is essential You are doing a great service in providing such accurate information

[@freedom_mentor]

GREAT question! And the answer isn't a neat and clean "1% of the sales price" or "at least $2,000". No. It's truly a case by case basis. Here's the two questions you want to ask yourself: 1. What amount is enough to cause the prospective Buyer some pain if they want to walk away? 2. What amount is going to cover at least the costs associated with the time the deal will be tied up with this Buyer? You want the minimum amount where those two questions to intersect

[@scoobiewu]

These are great tips for anyone selling! We didn't do a flip but employed these strategies and was able to sell our house within 30 days of vacating. Everyone was happy in the end.

[@freedom_mentor]

There are definitely two very opposing schools of thought as it relates to the sharing of business trade secrets. On one side is your line of thinking, and many others share that too, including the authors of "Re-Work" who run the company 37 Signals. On the other side are those that guard what they believe to be trade secrets very closely. I see both sides and I think it depends on what type of investing you are doing; traditional or creative. Thanks for sharing your thoughts!

[@freedom_mentor]

Good question. If I understand you correctly, you are talking about being able to use 75% of the rental payment as income to help the mortgage holder improve his/her Debt to Income ratio, right? It has been done before. The mortgage holder can request a copy of the lease you have in place with the tenant and they can send that to their underwriter and sometimes they will accept that and therefore 75% of the rental income can be used to offset the mortgage payment for DTI purposes.

[@frankgrimes2991]

Phil, what I love about your videos, besides the priceless information you provide, is the fact that your videos aren't interrupted every 3 minutes by ads. Thank you so much!

[@vera1887]

Thanks, I'm not in the business, but I do enjoy watching these videos and your responses help to understand specifics and differences, its so fascinating

[@leonardoalvarez8908]

Love your video's! very great tips! I haven't been in this business long im only 19 but I did acquire my first property already! I am in the process of renovating to flip and these are amazing tips especially like it will be my first time selling and now I have a few pointers! thank you!

[@gainelturner3325]

Hi Phil, truly enjoyed your knowledge and mentor guide on the best formula form House Flipping, and way's on not to make Mistakes. What I love best, their not too long and overdrawn, but very specific and right to the point of what to do, and what to stay away from. I've learned a great deal from each video that I've watched and I want you to know that I truly thank you........

[@freedom_mentor]

That's an example of the many in-between details of this business that require one to one coaching and training. I know exactly what you are talking about, a biased inspector that is trying to sabotage your deal, but how to handle those situations depends on many different background details.

[@bobreavis1]

Right arm Phil! I guess that should read "right on Phil". You say it straight and honest and I admire you for it. Keep up the great work ant thanks for your free youtube presentations. Worth pure gold my friend. I give you and A+ with two thumbs up.

[@totowolf9716]

Not the biggest mistake if you have a price point that will attract multiple buyers for an instant sale which goes back to the most important factor in flipping is buying low and pricing slightly below market while still maintaining a decent margin. The biggest mistake by far is not buying low enough and cost overruns. That simple.

[@Jeff-xy7fv]

That's exactly what I was thinking before I watched this video. I was once told that if you don't buy right, then you're doomed to fail right off the bat. So the biggest mistake is paying too much for a house amid competition with a lot of other bidders.

[@TyroneBryant]

Absolutely great strategy to buy and flip quickly for a decent profit.

[@bobreavis1]

One of the best damned videos I've seen about core issues of selling. I'm good at the renovation end but I learned something from this vid about controling the buyer. It's really about financial damage control. I loved it and you just saved me one hell of a lot of money! Thanks Phil.

[@freedom_mentor]

It's very difficult to put together a good deal for an investor with a non-motivated, unrealistic seller. Therefore, I avoid working with unmotivated, unrealistic sellers. I've found that too many real estate investors mistakenly try to make a deal out of an unmotivated seller. I use one of the most liberating words in the English language...NEXT

[@ShawnnaJohnsonPublicFigure]

This was great advice!!! Thank you!

[@freedom_mentor]

Sounds great. My team will reach out to you as soon as possible.

[@jamesparish64]

Damn! that's some great insight Phil Thank you!!!

[@SeanMcCaffrey-zo4jw]

Phil when it comes to your teaching, I am speechless. SPECTACULAR!!!

[@woodedape]

Cool! That was the answer to a question is was wanting to ask you. I am moving back to my Hometown. Unfortunately it is a depressed area. I want to by a decent home to live in and then later on buy some investment properties. However I was worried about buying a home in this area and then not being able to resell after rehabing it. Thanks for all the info so far! Keep up the great videos. You are very inspiring. Thanks!!!

[@freedom_mentor]

Some lenders don't allow that addition on the closing statement. That can kill the loan on the day of closing...its happened to me before.

[@nicojannasch387]

I LOVE these videos. I hope everyone is taking notes!

[@freedom_mentor]

That's a very big question that requires an even bigger answer. I would suggest reading my book "How to be a Real Estate Investor" before doing your first deal. It will be very eye opening to the truth of how to be successful in this business.

[@AlexSujeewakaDeSilva]

Mr. Phil, it is very enlighten presentation, Sincere note of appreciation for same, I really love it. Thanks & God bless you.

[@johnhassler7517]

Phil, I believe your true calling was teaching. I really appreciate your videos, your techniques, and descriptive, simple explanations. I've listened to others on here in the same field, but you have a good manner with your explanations. You make it easy to follow along for any education level. I'm confident others will agree. Keep it going, you're doing a great job.

[@freedom_mentor]

Thanks so much for the kind words. I just to tell it like it is out there :)

[@freedom_mentor]

It sounds like you may be mixing up two different styles. On the creative side of things, you are hoping that there is very little competition because you see very few bandit signs or people posting We Buy Houses posts on Craigslist. The beauty of Creative investing is that there is usually very little competition. However, on the traditional side, which includes foreclosures, it's a different story. You are not just competing against other investors, but retail buyers. It's a different ballgame

[@eunece88]

This is by far the smartest thing I have ever heard!! And you made it fool proof... So glad I found this video

[@sdloper1]

Wow you were right about getting that under contract... I contacted the seller and someone already purchased the home. I am such a beginner in this business, but very passionate and motivated. I had no idea what to write in the contract or ifI should have a lawyer write it up or what. That's why I really need your help. I get calls about deals likethis all the time and it's killing me to see the money just slip through my hands.

[@chillinwithladychil713]

Phil, my name is Lisa and i think you are inspiring...you are a great teacher, it's very easy for me to understand your techniques and what your saying..I live in Illinois and would love to be an apprentice of yours. I really hope you consider me as your apprentice and teach me to benefit myself...I'm unemployed right now and a single parent and always wanted to get into real estate..I have what it takes to do this...Thanks for taking time to read this comment,

[@freedom_mentor]

I certainly could, and perhaps in the future, I will, Good idea. But here's a quick short cut for MOST investors...avoid them altogether. I could give you a 100 reasons why foreclosures are big waste of time and money. Too much competition, from retail buyers to hedge funds and Wall Street firms. to other investors. Much more risk because they require cash for earnest money, down payments, etc. Restrictive. It's hard to flip them. For most investors, its best to avoid foreclosures altogether.

[@freedom_mentor]

You get written and/or verbal permission prior to obtaining information from the mortgage broker.

[@freedom_mentor]

(1) A Buyer usually has to make a refundable earnest money deposit of $500, $1,000 or more, IF they are investing the traditional way. Please check out my video on Traditional vs Creative Investing. (2) Again, in a traditional transaction, if you have to put down earnest money, you would be wise to have some outs in the contract so that after the inspection period, the earnest would still be refundable. That;s tough to pull off with foreclosures because banks force you to use their contracts.

[@CarltonWatkinsSr]

Great closing info and again thanks for sharing. I enjoy learning from you. I just recieved your book today and I am looking forward to that reading. Pugs

[@andreewert1142]

Great Series Phil..good advice

[@freedom_mentor]

Either way, you will get the tax benefit because the $5,000 is an expense. So from a tax perspective, either way is the same. Usually though, lowering the purchase price can wreck havoc with the new buyer's loan process. Usually, it is better to give a $5,000 credit and leave the sales price alone. However, in some cases, the new buyer's lender will not allow any credits so you have to reduce the purchase price and that can delay the loan process because you have to create a new contract, etc.

[@Kdija89]

Great advice! I'm just getting started in this business. Thank you so much for sharing this informative video.

[@freedom_mentor]

There is ALWAYS a buyer, if the property is marketed correctly and the price is right. Make sure the property is exposed to the entire market so that all potential buyers can see it and make sure the price is low enough to beat all competitors.

[@youmarc11]

Wow Phil, awesome info. I wish I had done these in the past.

[@pauldec10]

Very informative! Thanks for the post.

[@danah.320]

Fantastic tips! Enjoy all of your video's. Learning a lot (and I've bought/sold a few homes on my own). Thanks so much Phil!

[@comforthomesrealtygroup8660]

Your the best real estate teacher ever! you break everything down, so its easy to follow. Thank you so very much!

[@georgetheavguy]

Excellent video Phil! Thank you for the advice. I am sure to use it in the future.

[@bamhektv]

I love Phil's energy... This is the first video I watch from him. And as a sales person, everything he pointed out made perfect sense to me.... Thank you for this valuable info and I'll be putting it to work!

[@kamranrazi321]

Very helpful advice. Thanks Phil

[@janetholmes3167]

LOVE your videos Phil! Thanks.

[@fanofjeraldbringsswag4522]

Thanks for this video, so motivating!! God bless you for freely sharing the knowledge you have in this business!!

[@amyaz7070]

I'm currently putting my house on the market to upgrade into something bigger for me and my kids - This video gave me great info on not only researching and learning the "flipping house" business but info on selling our current home. I'm probably going to finish watching your series of videos by the end of the night! Thank you!

[@freedom_mentor]

The more information I share, the stronger relationship I build with the audience of budding real estate investors out there. As the relationship builds, some ask me and my team to mentor them and we work together and share in the profits of the deals we do together. So why would I share all my secrets? Because when I do, I share in the upside along with the person who received those secrets.

[@18wkiii]

Why don't you have more views... This is good stuff Phil, happy I came across this. Question on "subject to" can the mortgage holder claim the mortgage payment (75% of it) as income?

[@superspartan112]

Phil, you explain like a good professor. Kudos on this amazing video, this is great advice given to us for free... Can't understate the help you've been.

[@TheOatahcosa]

Are u single?

[@DancingAngelicR]

Wonderful advice! Thanks so much!

[@jennie1276]

First video I have watched of yours & I am excited to watch more, will re-watch & take notes later. Thank you for making this info available to the public!

[@lawrenceoliver9827]

thank you for the reply cant wait for the vid ive been looking at a couple of them but was leary of them until i heard more about how to go about them here in maine there is not much competition from anyone due to ive seen only one person actually posting bandit ads on craigslist for buying homes and hes on the other side of the state lol

[@OliverKoolO]

Your videos are great. Excellent insite and from your expressions and tone you really enjoy what your doing. Keep it up. Thanks.

[@Pcjacobo]

great tips and thanks for the video!

[@vasyak9264]

great job Phil, good mentoring.

[@flatmls6183]

Education is key!!!! Great Video!!!!!

[@lawrenceoliver9827]

thanks for the info phil could you do a vid on forclosures and the steps to do and avoid

[@tvuu]

Phil, on your last point: Post inspection response. If you list the property for $100,000 and their's $5000 worth of major repair to close the deal. Would you lower the price to $95,000 so save on taxes if applicable or would you sell it at $100,000 and give them $5000 cash as described in the videos? BTW: Great information, love the videos. I'm learning so much!

[@MrAlanKendall]

Great Video. I once had a very good loan officer that was getting me good loans. I was selling a home and did none of these things and nothing happened in my excrow for over a month, I had to sit down with the listling agent and talk him into getting the buyer to use my loan officer and the persons credit was bad and the very professional loan officer got their credit cleaned up and got the deal done.

[@GAonMyMind]

great tips! thanks Phil!

[@hesneyk1]

I am so blown away by this information. I am in the wishing stage that I can do this stuff (due to zero knowledge & experience). I really want to do this stuff, but I am so afraid. This is so new to me & I am so green. Thanks for your heart of a teacher Phil.

[@AndieeGrl]

I can relate to you Keith. I'm in the same boat! We must keep pushing and make it.

[@KingKrow.]

Same do I but I'm losing this fear and planning when to take action

[@tnuoccak3v]

I recommend to keep studying then. If you are really interested don't think it will be easy. Maybe go ahead and get your real estate license. It's easy, and you can meet people who are making transactions with houses all the time. Connect with the smart people. There are a lot of real estate agents, I would say most of them know almost nothing about the housing market. You could be one that does.

[@nicolafisher241]

On the off chance that your monetary circumstance is in desperate straits and you want an ongoing generating 138 usd per day cash online to bail you out of this situation. You may need to look *OnlineNetCareer. Com*

[@LifeX2Find]

Kev N .. Then, why would you advise them to get their real estate licenses, if most of the agent's you suggesting they hang with know nothing about the hosuing market? You're funny!!

[@roninslv]

Great stuff Phil thank you.

[@wall5303]

Great information!

[@rmark1986]

AWESOME VIDEO..............THANKS

[@efazgoffur2761]

Thank you so much for sharing your knowledge and experience

[@TalkEssence]

Thx Phil for your time & info. What is the wisest & most cost effective way to market property in your experience?

[@AlcaniZFilms]

GREAT information!!!!!!

[@1charcoal1]

The information Phil discusses on this video is priceless!.

[@DJ-nomadlife]

Came across this channel last week ,and this guy seem to give legit and doesn't hide any information .thanks Phil.

[@sarabeltran9734]

Hi Phil. Thanks for sharing your knowledge. I really enjoyed,

[@nextari]

This is excellent advice!!! Thanks, Phil, & would be great to hear your recommendation for amount (range) of Earnest Money demanded (as a percentage of Total Price). Thanks!

[@darwinalfaro6406]

great video man! lots of great information.

[@boxerinvestments]

Awesome information.

[@thejazzmonastery9541]

Thank you Phil, I haven't even begun and I'm a late starter at that, but your vids are hugely helpful as I ponder what to do with a small sum I'll have soon.

[@tridan333]

Phil, Now this is a great video, It will save me loads of time and money. Excellent Strategies, thanks for taking the time on making this video. Daniel Musquez

[@dwaynealcorn2274]

Great info, Thanks !

[@luissolis5652]

Super helpful thanks

[@jeroenhemmeryckx]

Your insights are remarkable! Thanks man, subbed immidiatly after the video

[@vitaliyilich]

Thanks for the vid! Great info. I'm just starting to look into becoming part of the real estate industry. I'm young and need mentoring. I love learning and love to work hard. What would you advise? By the way great energy level did you drink a rockstar?

[@jasminemoreno9046]

Love all this Info! I feel ahead of the game! I’m barley going to start real estate classes and I’ve watched many of your videos! I love all the information and the energy you give! Gracias

[@LasVegasWholesaleRE]

Thanks Phil, I really enjoyed your Video, Thanks for the Great Information....

[@cyrussidhwa]

Outstanding Video! Thank you.

[@irinab7524]

Thank you! Very helpful

[@theopenbook3280]

Hey Phil!.. Great stuff;).. How much would you ask for in regards to the non-refundable earnest money?

[@rigadel]

I really enjoy your videos Phil, thank you for all

[@theman2249]

Can you make a video about how to present a property to a potential buyer when he comes to take a look at it?

[@marymcdonough6068]

Thank you for the great and useful info Phil. You truly are a master.

[@henrylacks9979]

Its so interesting to hear you say this is the biggest house flipping mistake, Phil. Outsiders like me have all types of fantasies about what the biggest mistake is but thanks to an experienced veteran like you sharing these videos, I can be presented with sound wisdom on this topic.

[@mofeinez518]

Great Video. Very Informative. Makes lots of sense to me.

[@TheFredismShow]

Great video Phil!

[@jackb.nimble4933]

I just started watching your vids, and really enjoy them. You have a very sincere presentation style. This video is fantastic. I cannot wait to start controlling the buyers!

[@lynnhwang9117]

11:58 lol you're quite the actor.. lots of good info i learned a lot thanks

[@joel4chaz]

I am simply speechless. Phil, your awsomeness renders me speechless.

[@D_effective]

That last one blew my mind, wow. Great vid. As a person trying to start a flipping business this video has priceless information. Subscribed.

[@Niko-gi5dl]

Love it! Thanks Phil!

[@bori188]

Phil you have so much knowledge. I would love to have you as a mentor especially if we're going half on deals. I've signed up on you web site but haven't heard from no one. I would love to get started soon. please steer me in the right direction.