How Do I Begin Flipping Houses?

[@TheRamseyShow]

Make sure to hit the subscribe button and thanks for watching! kzbin.info

[@youtuber6185]

I just subscribed for the third time. For some reason I keep getting unsubscribed. Kinda explains why you only have 1.1 million. You deserve much more. Keep up the good work!

[@bobsworldentertainmentpodc640]

The Dave Ramsey Show Dave enjoy your show

[@jcrowley1985]

To answer the question in the title, try working on your upper body strength.

[@ZacGolus]

jcrowley1985 bro probably doesnt even lift. 😂

[@Noc4ball]

You mean lower body?

[@arefallout]

jcrowley1985 Probably better to work on your deadlifts and power cleans

[@Wanderer25]

Getting bit by a radioactive spider or possessing mutant genes may also help.

[@DiscoFang]

jcrowley1985 You even flip bro?

[@morganbarber5009]

I understand not wanting to be in debt but there are many options a person can take to cover themselves and their personal finances to start flipping homes. People are saying he isn’t in the position to flip a house because he only makes $30k a year...so what he’s supposed to wait on a six figure salary before he ventures off to start making money? His low salary is probably the main reason he wants to flip a house for profit. Dave has great advice and his advice is geared towards people who have already made it, people who don’t need credit, people who are established. We can all get out of debt by eating rice and beans for several months or years but to actually get out of the rat race you def have to have a plan or else you will just spend the rest of your life saving for retirement and I personally don’t want to be 60 or 65 before I get off the wheel.

[@patpat1776]

Morgan Hughes Totally agree !!

[@BoazYoshiYahBanYasharalah]

Morgan Hughes Agreed...why not use hard money? No effect to your credit and the property is the collateral

[@ahastar1141]

Right, but Dave is also the perfect person to give advice on this. He lost his shirt doing it but also found a way to be successful. I think Dave is a touch nervous hearing a guy say “ hey I follow your your advice but I am wanting to take half my take home income that I have saved and buy a car but I also wanna flip houses”. The reason people are saying he should get his income up first, because at 30k for a house hold income is basically a bad flip away from going deep in debt with really not much safety net. He doesn’t have to wait for a six figure salary however if he could get his household income up to say 50k that my give him a bit more security income to fall back on. There are other ways to raise your income to where you can take that Hail Mary shot and have some fall back. Right now it doesn’t seem like he quite has that set up. I am all for people taking risks and shooting their shot, but you always need to have an exit plan if things aren’t working. If he gets stuck with a house for 6 months to a year because it doesn’t flip quickly, can he afford to keep that mortgage?

[@franky01ize]

Excellent point

[@Mike-01234]

Dave gave a great example of how he could make $6-10k with little to no risk to his credit sounded like a great deal to me, and he pointed out how contractor guys think they are making money but a free remodel can eat up all the profits.

[@tonyjohnson1305]

Dave has PTSD from going bankrupt.

[@hookmeupken2190]

He just tries to help others not repeat his mistake.....sounds wise to me :)

[@drumyogi9281]

@@hookmeupken2190 Dave had 90 day loans and defaulted. I doubt the caller would be that dumb.

[@AR-me9jy]

Wouldn’t you

[@imahustla5029]

@@AR-me9jy right!

[@rachels5645]

Haha yes!!

[@kermit1]

He needs to focus on getting his income up before thinking about flipping houses. 30k combined? He'd be better off starting his own business.

[@bighands69]

It all depends on what he actually buy a house for and sell it for. If he is buying it for 30k selling it for 60K and putting 10K in and doing it in 6 months and also working at the same time then he could make well. Too many variables. We have no clue to his skill levels either.

[@bighands69]

It could be debt owed to other businesses that may have given him a line of credit.

[@jpwilliams5264]

He works for his Dad, I doubt hes acctually making only 30k a year. Sounds like crafty book keeping to me

[@Noc4ball]

kermit1 he might be able to flip some doll houses or those mini houses with that income.

[@firesign4297]

kermit1 No it can flip houses in.areas he can find those low income areas..where you can house for $5000 or less...

[@missJazzitup99]

T.v. shows about flipping houses are suppose to be entertainment not educational. Don't try to copy them.

[@PublicNuisance2K24]

Everything on the internet is true

[@Vera-dg3hf]

If flipping houses was easy, everyone would be doing that. Plus, it’s a smart business because most flippers do a very bad job with homes. Tons of issues at inspection, structural cover ups, and all types of nightmares. It’s a nasty business.

[@JCC56]

I personally know many that lost everything trying the flipping house business. Definitely not easy and high risk unless you have lots of working capital.

[@walleye364]

MY problem with trying to flip a house was that when I found out about a foreclosure and had a realtor show me the house. They would call back and said it was sold to so and so...Well It didn't take me long to figure out there were some shady deals going on where a couple realtors were in kahoots. They were scouring the low ball properties for their own side business.

[@JohnDoe-gc1kt]

Well duh lol the bankers do it too. I met a guy who was in real estate who told me once you get enough money the banks will give him a call first to see if he wants the property.

[@ivarlosna6516]

@@JohnDoe-gc1kt He probably pays them a cut under the table straight to their pocket.

[@JohnDoe-gc1kt]

@@ivarlosna6516 wouldn't doubt it

[@davefabris9167]

You can never trust real estate agents!!!

[@mrmighty9862]

@@ivarlosna6516 you don’t need to when everything you do is legal.

[@2bituser569]

I thought the caller said $3k per year too lol!

[@bigholliday74]

Daniel Bennett he did

[@Ken-iu2zp]

He did. Then he switched it and said 30.

[@Paperboympr357]

Dave’s facial expression was priceless 😆😂😂

[@semperfi-1918]

He did say 3k

[@sconrady123]

He got food stamps! Ima need to buy those real fast

[@michaelwoods4495]

What the guy wants isn't flipping, it's rehabbing. I know a guy who does well at it now that he found really good contractors for each improvement at good prices. You need an eye for which properties offer an opportunity for high-value but low-cost improvements.

[@snarecat3441]

Rehabbing… vs “ flip”?

[@michaelwoods4495]

@@snarecat3441 In my mind, rehabbing adds value. Flipping is just buy and sell. Take it for what it may be worth to you.

[@adammcgirt7123]

Ppl mess up flipping houses when they find a 100 grand house, pay 85k for it and then wanna put 50k in it. Trying to make it the best on the block

[@ToniEvanu]

So basically he told him to do wholesaling right?

[@raygoogs]

Yes

[@hockinghillsalive3624]

But wholesaling requires a real estate license in many US states. So there's that investment you have to make, too.

[@MumuJax]

To Be The Bearer no they don’t, wholesalers don’t require any type of real estate license

[@mauricegeorge4320]

@@MumuJax The problem is for a couple make only 30K, there is no way they have personal connections to enable them to find that "great deal".

[@EranRicos]

@@mauricegeorge4320 He may have a harder time after finding a deal to have an investor to re-sell the property to make the 5K. Maybe because he is in construction already he's thinking of buying a very cheap run down place and plans to work it in his off hours. It may work- $10,000 property could be had sometimes in Detroit, Philly, etc. Habitable homes in those same areas may appraise for upwards of $50,000. If he can work with his wife and in 2 months get it in selling shape, he may be able to work it out. Now in those same areas, he has to be concerned with crime, theft of tools, damage to property while being worked on.... etc.

[@johnathonnehls9278]

He should try getting properties at the county tax lien sale or the state sales. Great way to get properties on a chance or get your investment back if the owner redeems.

[@secretsquirrel6718]

I listen to hia show sometimes and people call in about house flipping. And geeze. If you have to ask....... I paid cash for my 1st house and lived in it for 4 years while i fixed it up and thats how I did it.

[@ivarlosna6516]

Having experience from construction, especially if it is the right kind of jobs, he should be looking at buying trash houses that are about to fall apart and fix them while living in them for a year. Sell, rinse and repeat.

[@RandalColling]

Everyone watches TV and thinks "flipping houses" is winning the lotto..... It's TV people!!!! NOT REAL. Flipping houses isn't so easy.

[@estrada4561]

Do you flip houses ?

[@juniorpalomera-garcia7448]

EmOhEm INVESTORS great ?

[@ivarlosna6516]

Flipping houses is years of hard work living in said houses and renovating them from trash conditions. Unless you have a lot of money to invest.

[@RandalColling]

@@estrada4561 I actually have done some flips over the years. My day job is COMMERCIAL REAL ESTATE INVESTOR. We dont flip.

[@alexanderderoy4714]

Flipping houses isn’t hard... you just need to have a solid team and make sure your getting good deals you can’t just fix and flip any house well you can but you want to make sure the hiuse will sell if not you will end up like Dave and be scared of debt

[@firesign4297]

HE might wanna look into being a...Contractor! 👍👍

[@ShadaeBalancesKnightAstro]

FIRE SIGN Excellent idea!!!!!

[@tajfaraj3402]

this is how I'm beginning, I'm not going to collage, I'm gonna take carpenter classes, pass them, then work and a job between 30- 40 grand a year, and I will live with my parents for 5 extra to years and I'll save every penny and at the end I will have 150-200 grand, and thats how I'll get started

[@m.williams3497]

Taj Faraj yeah college isn’t for every one way to plan. It’s a waste overall helps a bit

[@ivarlosna6516]

Living for free you need $40k AFTER taxes to save up $200k in 5 years if we're not counting interests on investments. Better take two jobs if you want $40k after tax with no education. You might learn something and it might inspire you to consider starting your own business.

[@Wifistaxx]

Same exact thing as me but as soon as I graduate from high school, im going to study welding and save all of the money I made from working

[@corbin101]

How’s this going for you?

[@hubaldodejesus9456]

@tajfaraj402 how’s it going for you man?

[@jbone79]

Dude sounds 43 not 23

[@indiejones4683]

Jesse Bolado he's married that's why 😂

[@Ken-iu2zp]

Jesse Bolado ☺☺

[@Ken-iu2zp]

Jesse Bolado true

[@anyama2914]

Everyone sounds older on the calls, first cause they are talking about grown adult situations and their voice sounds distorted

[@WompaOne1]

Maybe that's because he's 25 years old, his wife is 23. 😉👂

[@MrHav1k]

Didn't know Dave wholesaled houses before. Fascinating....

[@guillermogutierrez-santana4446]

He did a more extreme version, in which he actually took out money to buy the homes, and tried to sell the property and the loan.

[@bobbybob4680]

My family has been in the house flipping business as long as ive been alive. I would always help my uncles fixing it up for side money. Now that im established in thinking of doing it on a small scale like singlewide trailers

[@eduardorodriguez550]

Buy a home in a good location close to schools shopping and highways rent it out and find an investor who you can do remodels for that way youre building your cash and learning the ropes until you're ready to go on your own.

[@danielc346]

Get a purchase agreement with motivated seller for 0 down deposit with a closing date of 30 days which is possible. Now you have a month to find an investor with the cash. Sell the contract to the actual buyer for an “assignment fee” on an another contract between you and buyer. File everything to a title company and they will clear title, work the transaction, get the money wired from buyer and disburse the funds to the seller like you agreed with him, they will also disburse the “assignment fee” to you in the amount agreed by you and buyer.

[@joedoe7839]

I have an uncle by marriage who has made a lot of money flipping houses and holding onto rental properties.

[@ChaceBonanno]

Dave's referring to the economic profit, which accounts for the opportunity cost. When you deduct what you would've made remodeling for someone else, are you still making money?

[@mipueblo6013]

He talks like all debt is bad. I agree that consumer debt is terrible but not debt that will make you money.

[@davidkrumme1302]

Mi Pueblo debt doesnt make you money lol

[@mipueblo6013]

depends how you use it

[@joshfaye3300]

Ur in debt after you've bought the house. When the house is sold, you're out of debt with profit

[@davidkrapenschitz6255]

Josh Rhode that's a risk still. You may make a profit 3 different occasions but one bad deal can set you back badly. With this guys income he should just buy a couple rent houses. Let them make the the money needed to do major house flipping.

[@DTX8177]

David Krumme there is such thing as good debt and bad debt.

[@omaxman1]

my first flip took 1 year to sell in 2013... man, I was glad I didn't have payments on it

[@selenajaimes1821]

How much did you make off of it ?

[@guzman9011]

Then the price was too high

[@chrisludwig9783]

Do remodeling jobs til you get enough to flip

[@kevinbails8320]

What about moving from fixer upper to fixer upper and remodeling it as you go? Or would it still be better to just do contracting on the side?

[@AK-47ISTHEWAY]

I believe that's known as a Live-in Flip. I know people who do that, including one of my uncles. They look for distressed properties and live in them as they are fixing them up. Once they sell, they just roll that money over into a new property. My uncle pretty much got to live in every state in America from doing that, and he's making tens of thousands, sometimes hundreds of thousands a year per flip. You just really have to know what you're doing in order for it to work. He started out working construction in the late 1970s right out of high school, so he has a background in the trades.

[@myempirepro]

I respect the DR. Join your local REIA to learn flipping homes.

[@robsgarage4746]

He needs to ask his father for a raise or a End of the Year Bonus based on performance. Also, how much is his father making/year?

[@RoadtoEcoEmpwmt]

Dave never mentioned assigning the deed? Or taking over the mortgage note ( which would be a pre foreclosure). He just said finding a foreclosure.

[@realestateinvestingtips]

he's talking about Wholesaling

[@simonmarthinsen1566]

House Flipping Guide it’s called a contract assignment. When you wholesale it you actually have to buy it. It’s also called contract flipping

[@raygoogs]

Yes he is

[@hockinghillsalive3624]

+Simon Marthinsen, don't you have to have a real estate license in many states to be able to do contract assignments?

[@Mudoh415]

Hey Gerald!

[@tatianabeatty9821]

Email me. Interested in this !

[@Whoiskevinjones]

Do remodels for someone else to learn how much it costs, the problems that arise and costs that arise over budget.

[@sandyxloredo]

If he knows how to fix up a house he should just work for other people fixing to their houses. They can pay him under the table for weekend jobs and that can be his side hustle

[@maddog12186]

The title response you need to purchase a house that can be profitable. Then do the work yourself if you can, if you happen to have alot of money you have more options. So while you are young learn how to fix the things. Save some money for you need money. I'm flipping a house. Though I have some money in my emergency fund, I still want it as an emergency fund and not drain it... I'll be fixing it part time. Will be working a full time job. I still think it will take me at least a year to fix it up 75% of the labor on me. I plan on either living in it or renting it out. Then once I get more money I'll put another house on the property. It's a lake house with 2 addresses on 3 lots. The land is more valuable then the house. So it needs work. The land is amazing for northern Illinois. Definitely an investment property with alot of potential I just have to put the time in it to make it profitable. Though I'm still employed doing a specialatity. My hobby is fixing things in a house. I don't like to take my work home but if I need to I'll do my specialty on this house.

[@hannaholiver8831]

As someone who works 2 jobs and lives in an area thats very spread out with terrible public transportation sometimes cash cars can cost you more than a 15000 financed vehicle with good gas mileage and a good warranty... It sucks making those car payments but my cash car was like a bomb waiting to explode every few months... I could never get on top of the repairs no matter how much I saved. I can stick to a true budget with my car payments at least. Also depends where you live imo because of the insurance rates.

[@wholesalepreneur6175]

Wholesaling houses definitely works. I do it every day and loving it.

[@valev5705]

Teach me how? Or at least tell me the tools to gets started, thank you

[@natedogg2983]

me too i’m curious

[@corbin101]

It’s a bit saturated now and it’s been becoming illegal to do in many states without having a RE license. Also, there’s a lot of scummy and unethical ppl in the game that make sellers not want to work with them unfortunately

[@paulettebrown2413]

Dave Ramsey is the reason my sisters and I are getting into wholesaling!

[@tensphreak]

2:01: If a bank buys out another bank don't they have to honor the loans that already exist? How can they call the notes and force a borrower to make balloon payments since notes (debt/charging interest) are what keeps a bank in business?

[@fhuber7507]

Flipping houses is a RISKY way to try to make money. You buy a house, then you have to fix it up. Some people make a lot of money because they can evaluate the house well and they know how to remodel for maximum return. Most people will spend more on the remodel than the value they add.

[@agtj9019]

Buy and hold to rent is better

[@ncabcabin]

Flipping homes is lucrative if you know what your doing

[@PorkBoy69]

*When you have enough money for more than one property. Flipping can make a ton more cash than renting, but its a high labor cost. So it makes sense to start flipping, and then transition into owning rentals.

[@jakemf1]

MILLIONS IN MOTION way more headaches and slower return on investment

[@artamezcua5168]

I’m an investor flipping homes requires capital. If you don’t have capital find a way to get some or open a business to build capital. Then start thinking about flipping homes. It’s not that easy!

[@Gloksic12]

Already been looking into wholeselling. Its intriguing

[@minecraftdoors1661]

Any progress?

[@danielwillliams9669]

Great advice. I was looking to do the same thing. However, I wanted to do it without banks and loans. Just great advice!!!!!!!!!!!!!!!!!!!

[@austinistic572]

Liked after "that gravy's not good"

[@AREDEE365]

He can't survive without a vehicle. Ramsey should have provided a better solution for that than just "don't do it".

[@chriswood4510]

Some older fella was talking me into flipping on a mortgage. But after hearing this I’m not too sure.

[@Jurijim314]

Careful on flipping. Better to buy and rent then buy fix and sell

[@prettyfancypants907]

so I wont lie I have a home to fix ... it will be passed down to me. if i start wanting to flip houses should i start getting educations in electric, plumbing and basic certifications if I was to do this for a living? or would it just be best to go to my college for a specific handyman type course? so lost. because I'M willing to get into the guts of the house and fix everything for a better resale value. im just not sure where to start

[@antoniomontgomery859]

You still are going to need the banks approval to sell/ buy the property at $21k if they dont own the home outright

[@JerryDLTN]

The profit you make is the finders fee (from the investor). You're just bringing the investor to the seller....giving away the rights and secret of the deal.

[@tryitout-701]

how does the investor not go to directly to the seller?

[@musicman1eanda]

Yeah how do you find the seller before the investor does?

[@EdgarGaray89]

Dave just described real estate wholesaling!

[@zayneblove7045]

I see him more of as contractor instead of the business flipper. Cause if you Put a lot of money in the house then you will not profit in the home. So the contractor or remodel has to be simple so you can profit. Yeh like dave said is correct.. I been to couple flipping homes. That's my dream job!

[@ms8172]

I don't understand that Dave? The bank got sold to another bank and they called your notes? So you had a lot of debt flipping multiple properties and the banks can call their entire notes at any time? Can someone explain...... learning. Thanks!

[@2bituser569]

Marty Summers not all notes have that recall option. He took that option to get the loans quick and easy.

[@rileyhiggins4753]

This is a common clause in many debt contracts. It rarely happens to people but it can happen. One way this might happen is if the mortgage company thinks you are in breach somehow for instance if they give you a lower rate for being your primary residence but you decide to rent it out and buy another house. If they find out then they can foreclose on you. There are tons of reasons to foreclose. There is a reason why a mortgage document is dozens of pages long. They are not protect you they are protect there interest.

[@Chazilla3000]

“I never bought the house. I just sold the position and another investor bought it.” Smartest thing I’ve heard all day.

[@billmiller2308]

Much easier said than done though. Think about it, what deals are out there you can get your hands on that investors can’t? Those are the only deals this works with.

[@Waterman42069]

This is actually probably the dumbest thing he has ever said. Why would his investors that he knows not already know about this deal?

[@RiRiWorld80]

Hello I would like to go into lease option business aka rent to own but I'd like to buy the house then lease it to a potential buyer. My issue is that I can't find a program or book with this information and the guru's out there want anywhere from $2k - $7k to invest in their program which I think is extreme. Does anyone know how I can start this business cheaper or of a program or book? Anyone can answer this or Dave Ramsey. Thanks in advance.

[@flippinmitchells809]

Wholesaling is a great way to make money and not invest your own. But we have been successful flipping houses using other people’s money or debt. But we get in, one or two at time, and get out as fast as possible. Then we buy rentals for cash flow and future investments. But flipping when done safely and with very careful math, flipping can be lucrative. Just be smart about it.

[@investorfriendlyprobaterea4309]

Dave basically wholesaled houses which is the easiest way to get into real estate bc u don’t need money or credit, just need to find a motivated seller & the cash buyer

[@oliviafox3310]

You may like to watch Homemade Homes on KZbin. The fellow buys houses really cheaply, fixes them, and rents them out. He's in it for the long haul.

[@kennethroyston]

Where did you go to buy foreclosures?

[@BigBoyO56]

What if you team up with investors and slit the profits for your first few flips?

[@libertysprings2244]

There is good money in doing bathrooms and small projects. He could work with one of the Home Depot contractors if he doesnt want to make sales himself.

[@pageoanedwards5050]

Dave Ramsey, I really this is a great interview. Thank you for the advice given.

[@bigbrotherinlife1654]

Wholesaling that's all he had to say in a nutshell. But overall great information.

[@craigadams3639]

What Dave is talking about is called wholesaling houses

[@stevemyopinion423]

I had a idea, if I don't own a house, but have say 200k in cash, if I just buy house I like fix them up the way I like it, and sell it for a profit, and the first one I CANT sell at a profit, I just keep. could there be a problem with that.

[@fpl_bailey]

az21bob666 I think that is a great way to do it because doesn't involve any debt at all. The last thing you want to happen is that the house is on the market for months on end while making payments on it.

[@cashmab]

You could do that, within reason, but not if you go overboard with the remodel and put more money into it than you could reasonably get back out of it. Always refer to comps in the neighborhood to see what similar houses are going at cash sale value, and back-calculate from that how much you could spend on a flip property for it to be worthwhile. A common mistake for newbie flippers is to ignore the comps and put more money into the remodel than they can reasonably get back out of it.

[@prettyfancypants907]

ps, my income is under 10K and I have no shame. I'm asking information for a future investment since house flipping seems like something i can and should do. im willing to pour time into recreating a house and learning how to fix plumbing electric and heat. on the side. not sure where i should start or if there is a specialized education one gets in house flipping. should i get all those certificates individually? and then do side jobs for companies? how should i start?

[@livinginkansascity]

Wholesale until you get the cash.. brilliant!

[@WCPearson97]

Dave!? I’ve seen used Toyota’s for sale for more than new prices. Is the depreciation based on a ford, gm etc? Seems that Toyota’s hold their value. Thank you for your time!

[@jaime9164]

Im Will that absolutely makes no sense. Some cares hold value better than others yes, under no regular circumstances though will a used model ever be worth more than a new model. Just because someone is asking for it doesn’t mean anyone is buying at said price.

[@come_explore_with_me_IL]

I don't get the find house cheap, and without doing any remodel sell it to another investor... (let's say buy at $50,000 and sell at $60,000) um presumably that investor is also looking for real houses and can also just but the house at $50,000! Why would he buy it from you for $60,000?

[@myempirepro]

Because the investors may never find the deal... you found it for them and get paid for finding it. Your primary job is basically marketing and prospecting.

[@charlesg7926]

Because you already have a contract in place with the seller, so the investor can’t just steal the property from you. If they say no, you can still find somebody else within the five day timeframe. This isn’t like when ghetto cheap people hire a painter off of craigslist and then just hire somebody else instead because they found somebody cheaper. When you have a house, and hundreds of thousands of dollars, if you do something illegal like break contract you can expect to be sued big-time.

[@jayjohnsonfsf7504]

Anyone knows how to draft up a contract like Dave talked about? Or the type of contract it is so I can speak with an attorney

[@davidking4779]

Find distressed property bargains that banks won't lend on and buy them using hard money loans. Don't offer to pay more than 60% to 70% of the finished value. Work fast, don't let them sit around for long. A hard money lender will loan 100% of the purchase if you supply the labor and materials to remodel. A history of past successes is helpful.

[@reesejohnson2788]

This was excellent advice

[@mrmighty9862]

So don’t borrow $3M. Got it. But what about $300k over 3-5 properties.

[@NotShowingOff]

Even though debt isn’t good. Debt tied up to real estate is t bad. Plus the odds of a bank calling for a loan to be settled immediately are low. No risk it no biscuit.

[@tkvimsavage1886]

Fellow Tennessean... Thanks for all the tips..

[@Super07gsxr600]

so when you write up a contract to to "buy" a house you only have like a week or so to find someone else to buy it ?

[@walkbyfaithandbudget5718]

i believe so. the goal is to find someone to buy the house asap

[@bethanyh1637]

It would be wise to have potential investors already in mind before writing a contract like that.

[@NoEscapeGaming]

Isaac Gonzales you are supposed to have a list of investors ready before you go under contract

[@anthonydooley224]

The key is the contingency clause that states "subject to agreement by my business partner". The partner is the real buyer. If you can't find another buyer, you don't buy the house. You have to know your numbers for it to work.

[@zayneblove7045]

Or maybe have real estate investor that You already connected too before hand...

[@inmate0054]

in Louisiana you can assign forclosers contracts

[@reginalddawson9258]

Great points Dave!!!

[@MikeBurnsArrangedAccidents]

Dave does Wholesaling? Didn't think he had it in him! Cool!

[@jahq9930]

I doubt anymore. He has too much money to still be wholesaling when he can just pay a house in full and have that income every month

[@sam56094]

You said you buy it then you said you didn’t buy it , can you explain what exactly you meant when you said you never bought it , you just sold the contract, cause I heard you say you bought it within 5 days

[@JT-si4sm]

sam56094 Look up wholesaling real estate on KZbin. It’s exactly what he is talking about. Basically putting a property under contract for let’s say $20,000 with a seller. Sell the contract to a investor for $30,000. You net $10,000. The property was actually worth $80,000 fixed up so the investor puts money into it (let’s say $10,000 so the investor is in it for $40,000) a sells for $80,000. Now the investor makes a profit of $40,000.

[@HermannTheGreat]

If you can't do the repairs yourself, or don't have a business partner who can, you should never get into house flipping.

[@jorgediazdelrio9880]

HermannTheGreat How many houses have you flipped?

[@wakeuppeople7327]

He’s half right. Hiring contractors is very expensive. But if you can hire men yourself and oversee the work you can make big money.

[@axiomist1076]

There's something I hadnt thought of. Thanks for the tip. Still I'd like to know how the flipping process is done w/o putting any money in it.

[@nfldshorty21]

Dave is right don't flip houses unless you have the cash to buy the house outright and the cash to fix the house as disposable income. I would say you should have at least 100k in cash before attempting it and expect that you might lose instead of gain. It is always a gamble

[@CWTGD]

You sound stupid

[@thestrappingentrepreneur2822]

How many homes have you flipped

[@juliorod1126]

I have 85k saved up, should my goal be buying 250k houses investing 20 to 30 grand and fixing them up and flipping?

[@CalebPendergast]

Are subject-to contracts legal in all states?

[@DIYApprentice]

Caleb Pendergast Are you asking about subject-to investing, where you take over the seller's existing loan, or what Dave mentioned about adding a clause to the contract, where the deal is contingent upon partner approval? Two different situations. Subject-to investing is very hard to do in some states, such as Washington, because of distressed property owner laws that were enacted in recent years.

[@CalebPendergast]

I honestly thought they were the same thing.

[@ek07305]

Caleb Pendergast There is subject to (investing what Dave is talking about) and subject-to (residential and sometime commercial leases) where there is tenants wanting to leave a their place but are still bound to the lease can have someone take over the lease for them in a subject-to lease or also called contract assignment, which is also a term that's interchangeable with real estate investing. The difference is in how you use it. What the commenter might be talking about is that particular state may have enacted a law against the investing side of subject-to or contract assignment.

[@kensfestoolchannel7916]

Caleb Pendergast it’s just a contingency. He isn’t even taking over the note till he finds another buyer.

[@leedotted970]

Hmm....Pretty complex way of explaining Wholesaling. But still great advice as always. 👍

[@slicksteve22]

I agree with him here. Good advice on this space.

[@theflippingfreemans7408]

thanks for the video. a budget is the key!

[@tomaricotube]

Very very very very very few people can actually make money by "flipping" houses. The truth is the deals just aren't there. A house worth $50,000 is worth $50,000 weather the owner is in foreclosure or not. You will not be able to buy a $50,000 dollar house for $25,000.

[@wonderplanet343]

Very Great Info!!

[@faizaaziz9850]

What is your opinion on a tax lien property ?

[@sagatuppercut2960]

I don't understand why this guy is eager to buy a $15,000 vehicle. He could spend $7500 and still find a decent car/truck that runs. If I were him, I'd make extra payments on the home loan. I'd take whatever side job I could on the weekends or ask my dad if I could work extra hours to get enough money to pay off my home loan. Once he's debt free, with a car that's 100% paid for, he can stack money. Then I can find a realtor to give him some good deals on REOs. He can purchase a cheap fixer and fix it up. Then sell it. Ta da!

[@trinajames7222]

He could do the paperwork trade off for investors separately then also offer his and his construction team's work for the same and other contracts, that way he's gettin' paid doing two different jobs instead of cheating himself on doing the construction himself.

[@salemthorup9536]

Is the way you used to flip houses still legal? Now I have to go look this up.

[@AngTheCanadianPilot]

God bless you again thank you for the advice

[@carlosalfaro602]

Dave's face "are you done talking"

[@rodjilius]

he's talking about wholesaling

[@annwilliams6438]

Yes. You can get a remodeling job without having to buy a house first!

[@kensfestoolchannel7916]

He is correct. But I’m tired of doing Remodel’s for other people. I can buy a house and do it at my own pace and make the same or even some more money.

[@edveras6215]

Alot of people dont understand how dangerous it is to flip houses. It's like the stock market and even bonds. Never take on risk from an investment only take on risk as an investor. In order to make money on the stock market you rely on the economy of the nation to do well. People don't realize that you should never look at average returns to analyze your potential profits. When we are in a bear market and stocks are going down, you must also consider the potential profits you could of made on interest on your money if the market was doing well and going up. It can take a very long time to make up for your losses. If you invest 100,000 dollars in the stock market and your stocks go down by 10% after one year, you end up with 90,000 after the loss. It won't take you 10% to get back to 100,000 because 10% of 90,000 is 9,000 and you will end up with 99,000 instead of your full 100,000 and those loses can compound over time when people are convinced to invest in the longterm. Bonds rely on the national interest rates to stay lower than your note. Once the interest rates become higher, your bond will devalue and the national interest rates are not under your control. When you flip a house, you rely on the housing market to do well and to perform just as strong from when you started to analyze the deal and eventually finance the deal. If the housing market drops for your investment during the months that you rehab the property, you would of rehabbed a house that has went upside down while you took debt out in order to finance that deal. That is dangerous because you don't control the housing market. Only invest in things you can control. And debt on top of a bad investment can really set someone back like it set Dave Ramsey back.