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PASSIVE PROPERTY FLIPPING?  33.8% In 6 Months... Here's How  |  Episode 93

PASSIVE PROPERTY FLIPPING? 33.8% In 6 Months... Here's How | Episode 93

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's


PASSIVE PROPERTY FLIPPING? 33.8% In 6 Months... Here's How | Episode 93

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

ratings:
Length:
9 minutes
Released:
Jul 1, 2015
Format:
Podcast episode

Description

A BOOMING TREND among affluent investors is the “Outsourced Real Estate Flip” where the investor provides the funding, and a professional real estate flipper does the rest.  But what does a REAL DEAL look like when doing this?  If you’re an affluent investor, and would like to enjoy the strong profits available from flipping in a wholly passive manner, today’s case study will answer a LOT of questions for you.  I’m Bryan Ellis… this is Episode #93!-------Hello my friends… today, I’ll give you a case study that you’re going to LOVE… that is, if you love the idea of an investment that’s SIMPLE and SAFE and STRONG… and FAST!  These deals last only a few months on average, but the hard dollar results look much longer term… you’re going to love it! A quick announcement:  I’m leaving today for a family vacation in northern Michigan for the next 2 weeks.  Each year, my wife, my 4 kids and the grandparents take a trip up to enjoy the family cottage and some time to recharge and to smell the roses!Now, the truth is, I’ll still be working half days… largely so that this podcast doesn’t become neglected.  But I do beg your grace for the next two weeks, as it’s possible… but not likely… I could miss a weekday or two.  Thanks in advance for your patience!So, today, I’d like to give you a great case study of a real deal that produced strong profits and a very fast and very high cash-on-cash ROI.  The example I’m about to give you is NOT unique… it was performed by MY flipping team, who work with my clientele of affluent investors to perform what is called a “Fully Outsourced Real Estate Flip”.  This is a quickly growing trend among affluent investors, and after I give you this case study, I’ll give you some things to look for, and some things to look OUT for, if you’re interested in adding this strategy to your portfolio.So, let’s call this case study WHITE CANYON.  That’s the road the property is on, in San Tan Valley, Arizona, a suburb of Phoenix.So here’s the story:  An affluent investor client – I need to respect his privacy, so let’s call him Bob – decided he wanted to profit from the strong opportunity in real estate flipping, but without having to swing hammers or hire crews.  So he agreed to fund a flip transaction with my Phoenix team.Here’s how it played out:My team learned about Bob’s financial capabilities… namely, that he had a budget of $75,000 and was willing to use hard money or other financing if it made sense.  We then got to work doing what we do best… buying the RIGHT PROPERTY at the RIGHT PRICE in order to quickly flip and make a nice profit.By the way… my team is, far and away, the biggest buyer of foreclosures in the Phoenix metro area.  Those guys have purchased OVER 13,000 properties at auction.  Nobody else is even close to that.So, on December 4, 2014, we purchased a property for Bob on White Canyon.  It was a property with real potential.  Bought it for $170,000 and got to work turning it’s potential into real in-the-pocket type of profit.So, we got Bob funding for 80% of that purchase price, so that he only had to fund a 20% down payment along with renovation and some minor miscellaneous costs.And 6 months later to the day, on June 4, 2015, that property closed escrow.  What were the results?Well… it was a cool cash-on-cash return of 33.81%.  That’s not an annualized number… that’s the straight-up result of this deal.  Bob’s out-of-pocket investment ended up at only a bit under $66,000 versus a net profit of over $22,000… a very strong result, to be sure.How would you like results like that in your portfolio?Now, I picked this example out of literally hundreds available to me… not because it’s the BEST example, but because it’s actually a somewhat muted example of what’s possible.  In terms of financial results, we see this level of result on a very regular and frequent basis, and have a vast supply of case studies to prove it.But what was really ATYPICAL… and subpar… about this deal is the duration of the deal.
Released:
Jul 1, 2015
Format:
Podcast episode

Titles in the series (100)

Do you INSTINCTIVELY KNOW that Wall Street doesn't have your best interests at heart, and that there's a better way to grow and protect your money to build wealth for generations? Then this is the alternative investments show for you. Self Directed Investor Talk is America's ONLY Podcast exclusively for Self Directed Investors (whether using a Self Directed IRA, Solo 401k, or non-retirement accounts) who trust themselves more than they trust Wall Street. You'll get innovative investment strategies, deadly accurate market analysis, and uniquely vetted profitable investment opportunities that conventional financial advisers don't even know about. You'll receive a powerful new episode every day of the week... and each episode is 10 minutes or less! Check it out right now! See acast.com/privacy for privacy and opt-out information.