Flipping Properties: Generate Instant Cash Profits in Real Estate

Flipping Properties: Generate Instant Cash Profits in Real Estate

by William Bronchick, Robert Dahlstrom

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Real estate investing has historically been one of the most consistent ways to achieve great wealth. Focusing on proven strategies for buying and selling properties quickly, (also called “flipping,”) Flipping Properties offers would-be investors the details on how to generate cash from this popular real estate investment method. The authors outline a step-by-step process for generating cash flow, with or without a stellar credit record, large sums of cash, or a real estate license. Guidelines help tailor a practical investing game plan for both experienced investors as well as beginners. To make a solid start, the authors reveal the essential elements of real estate transactions as well as the basics of what makes “flipping” such an appealing way to invest in real estate. Covering pre-purchase through closing and beyond, Flipping Properties is a complete reference that also includes legal forms, sample contracts, hands-on checklists and sample advertising and marketing materials designed to get properties to sell. At the heart are practical strategies to buy bargain properties, then rapidly resell them for cash profit.

Product Details

ISBN-13: 9781419535512
Publisher: Kaplan Publishing
Publication date: 04/01/2006
Series: Flipping Properties: Generate Instant CA
Edition description: New Edition
Pages: 272
Product dimensions: 7.25(w) x 9.00(h) x 0.60(d)

About the Author

William Bronchick, Esq., is a nationally known attorney, author, entrepreneur, and speaker. He has spoken to tens of thousands of people at seminars and conventions nationwide, including the “Get Motivated” Tour and the Learning Annex Real Estate Expo. Bronchick has been featured in countless media outlets, including CNBC’s Power Lunch, Investor’s Business Daily, USA Today, XM Satellite Radio, the Los Angeles Times, and has served as the President of the Colorado Association of Real Estate Investors since 1994.

Table of Contents

Traditional Approach to Real Estate Investingix
The Speculator's Approachx
The "Nothing-Down" Approachx
The Way Things Are in the Real Worldxi
What to Expect from This Bookxi
What's New about This Book?xii
1The Concept of Flipping Properties1
The Flipper2
Different Types of Flippers2
Find the Back Door First7
Join an Investment Club8
Run a Classified Ad8
Selling Properties Retail9
Getting Rid of Difficult Properties10
Minimize Your Loss11
Key Points to Remember12
2The Mechanics of Real Estate Transactions13
The Deed13
Types of Deeds14
Elements of the Deed15
Recording Documents18
Notes and Mortgages19
Priority of Liens20
The Basic Loan Transaction21
Typical Owner-Carry Transaction21
Assumable versus Nonassumable Mortgages22
The Due-on-Sale Clause23
The Double Closing24
Title Seasoning26
FHA Antiflipping Regulations27
Deed Restrictions28
Assignment of Contract28
Key Points to Remember30
3Proven Ways to Find the Deals31
Find Motivated Sellers32
Use the Newspaper33
Real Estate Agents37
Mortgage Brokers41
Bank-Owned Properties42
Farming the Neighborhoods42
Promote Yourself45
Probate Estates47
Getting Referrals48
Foreclosure Properties50
Getting Paid Not to Buy54
Government-Owned Properties55
Key Points to Remember56
4Analyzing a Good Deal57
Pick the Right Neighborhoods57
Pick the Right Kind of Houses58
Establish Value59
What Is a Good Deal?63
Key Points to Remember67
5The Art of Negotiating the Deal69
Deal Only with Motivated Sellers69
Price Isn't Everything72
Dealing with Real Estate Agents74
Key Points to Remember77
6Putting it in Writing79
Basic Contract Principles79
Basic Legal Requirements of a Real Estate Contract81
Earnest Money82
Breach of Contract86
Buyer's Remedies for Breach86
Seller's Remedies for Buyer's Breach88
Drafting the Offer89
Key Points to Remember97
7Finding Money to Buy the Properties99
Good Credit Is a Plus, Not a Necessity100
Using Your Own Cash100
Using Other People's Money101
Borrowing Money102
Bringing in Partners106
Have the Seller Finance the Purchase108
Key Points to Remember111
8The Closing Process113
The Property Inspection113
Title and Searches114
Existing Mortgages and Liens117
The Closing119
Key Points to Remember120
9Rehabs-The Big Bucks121
Is the Rehab Business for You?121
Estimating Repairs123
What Should You Fix?127
Repairs on the Inside131
Repairs on the Outside137
Planning the Renovation Process141
The Rehabber's Toolkit144
Key Points to Remember146
10Presenting Your Masterpiece147
Compare Your House to Neighboring Ones148
Getting the Exterior Ready149
Getting the Interior Ready150
Take an Extra Week to Get It Ready157
Key Points to Remember158
11Success in a Changing Market159
What Is the Ideal Market for Flipping?160
Balanced Markets164
Exit Strategies165
The Great Debate: Flipping versus Holding168
What's Right for You?171
Key Points to Remember172
12Liability Issues173
Know the Law174
Carry Lots of Insurance174
Never Do Business in Your Own Name175
Don't Put Real Estate in Your Own Name177
Doing Business with Partners178
Key Points to Remember179
13Tax Issues Involved in Flipping Properties181
Basic Taxation Rules of Real Estate Transactions181
The Real Estate Dealer Issue184
Independent Contractor Liability187
Keeping Good Records188
Key Points to Remember189
14Starting and Succeeding in the Flipping Business191
Surround Yourself with Like-Minded People191
Build a Team192
Only Talk to Motivated Sellers195
Be Persistent195
Treat Real Estate as a Business196
Should You Invest in Real Estate Full-Time?197
Keep Up Your Education199
Key Points to Remember202
Appendix AGood Deal Checklist203
Appendix BSample Ads205
Appendix CSample Forms211
Appendix DState-by-State Foreclosure Guide232
Appendix EInternet Resources236

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Flipping Properties: Generate Instant Cash Profits in Real Estate 3.3 out of 5 based on 0 ratings. 9 reviews.
Guest More than 1 year ago
This book got me started in real estate investing. It is a must for any beginning investor, covering the whole gambit: flipping ('quick-turning') real estate, rehabs, negotiating, writing contracts, dealing with realtors, setting up a game plan, finding other investors to work with, etc. It comes with some real good sample contracts, which, from my attorney background, I must say are quite good! Syndicated Columnist Robert Bruss, also an attorney, gave this book a '12' on a 10 scale. I have since read some of Mr. Bronchick's other books and they all cover the important details and legal aspects of real estate better than any other books. As an attorney, I often notice that these details are often glossed over in other books which are loaded with theory. You won't be disappointed with Bronchick's books - they are loaded with content! It's good to see there's a real estate attorney out there covering people's bottom line!
Guest More than 1 year ago
I have read a lot of real estate investing books some costing well over a hundred dollars, Then I read Flipping Properties, now I know what those other books where talking about.
Guest More than 1 year ago
This is a very refreshing alternative to the usual "get rich quick" theme. Rather than promising riches, the book offers real "meat and potatoes", not fluff. The author goes into detail about real estate transactions, including legal angles and practical issues. I would highly recommend this book for any beginner investor.
Guest More than 1 year ago
The authors do not discourage rental properties, but approach real estate investing like a business, which requires maintaining a good cash reserve. This is smart advice! This book is very well written! It is easy to read, but offers plenty of enough 'meat'.
Anonymous More than 1 year ago
Bill Bronchick, of Bronchick Consulting Group, LLC, through his Legalwiz training, and Phuongvi An “Vi” Nguyen, of PVC, Inc., marketed Valois Dynasty, LLC. While acting as managers of the investment, they were seeking $600K to purchase Arkansas apartments.   Bronchick’s 2010 Investment Summary said “Also involved in the investment and management of the Company will be William Bronchick, … an attorney with 20 years experience. … [His] experience is primarily being used in this transaction to review the legal issues, paperwork and advise the Company.” Bronchick claimed this was the deal of the century and he was investing $100K. After he got the investors’ money, he only contribution $50K, and soon resold his share. He later got 2 new investors to pay $200K into the failing property. His blast email said, “I wanted to let you in on a lucrative apartment deal in Little Rock, AR. It's three buildings totaling 188 units, C class, purchased about 2.4M below appraisal. It needs a turnaround to make it profitable and cash flow, which means it needs money from investors. The game plan is to take it up to 90% occupancy, then sell in about 3-4 years for a big back-end number.” For the first year Bronchick alleged that the entity had an accountant. This was untrue.  Bronchick held 1 annual meeting in 4 years. When members complained he said, “…the operating agreement states that annual meetings are not required, in which case holding any meeting held is a courtesy for the members. The Managers are not interested in extending that courtesy so long as the complaints and attacks continue.” The complaint was asking for a meeting. The Summary said, “The syndicators want 25% of the equity for bringing the deal to the table. Thus, cash on cash return for investors … = 29.74%. The Seller wants an additional $400,000 … thus a cash on cash return for investors is near zero for first two years, then near 30% thereafter.” Also, “Mrs. Nguyen and Bronchick will receive a 25% interest in the Company in exchange for negotiating and syndicating the deal and agreeing to manage and oversee the onsite property manager and the income and the expenses for the Properties.” The Summary said, “Management will enact strict tenant quality and credit review procedures to ensure the Company’s revenues will not be interrupted by tenant default.” “Average Vacancy: 10%” They refused to disclose records for the first 1.5 years which showed actual vacancy increased from 50% to 70+%, and 83% economic vacancy. They didn’t disclose canceled property insurance or a $43,000 delinquent water bill. Their response was “Insurance company inspected the properties in early February. We have received notice that as of April 7th we are cancelled, due to our low occupancy and their assertion that over 50% of our tenants were section 8 tenants. … We are currently uninsured for replacement or loss on the property, but we still have liability and umbrella coverage. …, we hope to resolve it within the next few weeks from new capital infusions.”  While Bronchick cashed out his interest, the property was foreclosed on 12/3/14 with a judgment for @ $4,152,299.   The investors lost their $800,000. Bronchick encouraged the investors to use IRA/ Roth funds. While he markets, “Bill Bronchick’s Bullet Proof Asset Protection System,” Bronchick failed to tell the investors that their lifetime IRA losses couldn’t be used to offset for tax purposes.
Anonymous More than 1 year ago
Guest More than 1 year ago
Ignore everything you just heard about property flipping, it's illegal. Refer to HUD's anti-property flipping rule in 2003. What the author isn't telling you is that true property flipping often involves an inflated appraisal, the home is stripped of its equity by the original investor, and the prices are severely inflated. We're talking tens of thousands of dollars over a period of months. The unsuspecting buyer of this property is left with a large mortgage payment on a property that's severely overvalued.
Guest More than 1 year ago
Remember in school when your homework paper was due but it was just too short, so you used oversized bolded headings and triple spaced it. Well that is what this author did. I don't need big font to make a book look full of information. I want detailed solid information. I would not refer this book to any partner investors. I expected more. The information was not detailed, explicit, or a great source of 'flipping properties'. However, there are very good ideas, their approach is interesting, and they do provide a good 'dicitionary term' approach for a novice investor. If this is one of your first books-it works. However, there are other titles out there with relatively the same info that are more comprehensive.
Guest More than 1 year ago
I bought this book expecting the contents to be about the title 'flipping properties'. Little did I know it just another beginners how-to book. Same info you can find reading other books. The only thing thing that pertain to the title was the first couple of chapters defined what flipping properties was (which could've been found on the net), a total waste of money. It doesn't go into depth on the subject, or use much real life examples.