How To Flip A Real Estate Contract
Articles,  Blog

How To Flip A Real Estate Contract


Hey, what’s up my friends. Kris Krohn here
and i’m joined again by my good friend Jerry Norton, the flipping king. And
today we’re going to be talking about the right way to flip a contract because
there’s absolutely a right way to do that. And then hands down, there’s a super
popular wrong way. Jerry’s going to teach us the right way today. Alright my friends,
Jerry’s going to be breaking it down. First of all, before we talk about the right
way and the wrong way, what do you mean by flipping a contract and can you make
money doing this thing? Yeah, so this is a fast way to make real… To make money in
real estate. It’s not a long-term strategy. It’s a short-term strategy
where you’re get in, you get out. You don’t own it, you don’t fix it, you don’t
do any of that. You don’t fund it. It’s just a really simple quick way to make a
lot of money on a on one deal and then you move on to another deal. We call it
wholesaling. Okay, so wholesaling is essentially where
you go out there, you find… This isn’t my expertise by the way but… Because I’ve
only done it a handful of times. I have my other strategies that I rock out. But
essentially, you find a wicked good deal and then there’s a way to flip it for
money? That’s right. It’s basically you’re you’re flipping a piece of paper not the
property. So, real simple, you get a contract, just like you would on any deal
or you’ve got a seller and a buyer. You’re the buyer, you sign a contract to
buy that fully executed purchase and sale contract. And then once you have
that, that baby’s money now, right? Think about it. Another investor would
love to have that contract. And you’re basically saying, if this deal could make
$50,000, if I just give it to you, well, you give 10 grand to
me, right? That’s right. I got a guy in our community right now. He’s been a YouTube
fan, he jumped into my program and he’s in the process of just actually flipping
a contract for $50,000. Yeah. So, that’s it. I mean investors are looking for deals.
So, if you have that deal, they will pay you to basically step in your shoes. Now,
become the new buyer and take that deal and they’ll pay you for it. By the way, you
got to wait for the end of the video because actually Jared’s going to do
something super special. He’s going to show you how you can get paid $10,000
just for serving up a really good deal. And so, we’ll get there
in a second but really here we’re… But we want to talk about the right way
and the wrong way. What first of all is the wrong way? Like, what’s the big
mistake that people make? Oh and I see so many
people do this and it just like tears at me when they do this. So, if you think
about it, when you have a contract, there’s a seller and a buyer and then
there’s going to be a closing, right? You go to that closing, there’s a title or
escrow company. They’re going to facilitate the closing. Well normally, the buyer has
to come to that closing with money to pay the seller, right? Well, let’s say that
you’ve got an investor that wants that deal but you don’t structure it
correctly and you go to the closing and you actually have to do two closings. One
is the buyer with the seller, the original seller. You’re the buyer. So, you
have to come with money to the closing. And then, let’s say your second closing
with your investor cash buyer is after that one. So, you would then turn around
and do a second closing and then they would be buying it from you. The problem
with this double closing is that the biggest thing is, you have to come with
the money to buy the deal even though you’re going to turn around and sell it
even five minutes later. It’s the kind of money. Is this double closing even legal?
Because I’ve heard some people say it’s not. Oh yeah, a double closing is
totally a standard way to do it. Because your closing as the buyer and then your
closing as the seller. What used to happen is they would, they would merge
them all into one. Mm-hmm. And now they stopped doing that. Title
companies won’t do that anymore. It was really nice because you could fund the
first closing with the cash from the second one but they won’t do that
anymore. I mean, it’s really rare to do that. So, the problem with this though is
not only do you have to have the cash to go to the closing but you’re going to pay
fees at that closing as the buyer. Then you’re going to turn around pay fees again
as the seller. It cuts into your profit. Yeah. So, what I hear you saying is
what people are doing wrong is they’re saying, “Hey, I’m not planning on really
doing the deal anyway. I’m going to hand it off but I’m going to go through all the
trouble of saying, now I got to come up with the cash and I’m going to cut into
my profits with all these extra fees.” But you’re using a system that basically
clears all of that away. It is the solution, the right way. What is the right
way? So, the right way is to do what we call a single closing using an
assignment contract. So, rather than do 2 separate contracts, one as a buyer
one as a seller, you’re going to merge your cash buyer with the original seller
using a document called an assignment contract. And that’s simply to put it in
really simple terms, it’s basically saying, “Hey, you cash buyer. I’m going to give you all the rights of my contract. But you got to step in and become the
new buyer instead of me.” And you got to pay me. And when we go to closing, you
bring the money and then you also bring money to pay me the agreed amount that
like the $10,000. So the deal is like the treasure chest of the… Like, I always talk
about finding a good deals like pirate booty. Like I’m going hunting
for buried treasure. I find me some buried treasure in my property. And
this assignment contract is basically the way that I can turn it into cash
with hands off not even needing to do the deal. Jerry this is important because
a lot of a lot of you that are out there they’re watching this, I mean I’ve got
older teens watching this, I’ve got people their 20’s and 30’s and the number
one thing that I hear is, “Oh, Kris, I don’t have cash. I don’t have credit.” Don’t
have the money. How do i how do I get going faster? And so, I love that you’ve shared
with us today the right way and the wrong way to flip a contract. And I want
to thank you for doing that. And it’s time to get to that bonus. Oh yeah, listen
whether you got money and credit or if you’re like me when I started. No money,
no credit. You start off like Jerry and I were like, “Aaaaaahh.” Then what I want Jerry
to do here is actually explain what you can do right now if you’re in that
situation to actually land some quick money fast in the game real estate.That’s
right. So, here’s the deal guys. I’m looking for deals. I do deals all over
the country. These are fix and flip deals. And my biggest problem right now Kris
is I need more deals. So, that’s where you can come in here. If you’ve got the time
and the energy to go out there and I’ll show you how to do this. I’ll even give
you software on how to find these deals. You go find the deals then you bring
them to me. I’ll be your buyer and I’ll pay you $10,000 for every deal that
needs my credit. So, just pause for a second. I mean, I’ve known Jerry a long time. But
this is actually kind of crazy because in the silent world, people used to you
know get away with paying 3000, 5000. Why are you paying so much
money? Well, because listen. I want you to be
excited about this, I want you to be motivated, I want you to go out there and
find these deals. And you know what? I’ve got enough profit on these deals that I
can gladly pay you $10,000 because now I don’t have to go find the
deal, you found it for me. Now Jerry, what if they’re actually finding… Let’s say
they just find… They’re out there, right? The deal of the decade comes along every
day. So, let’s say they find the deal of the decade and they’re like, “Oh
my gosh. What if I don’t want to share it with Jerry for ten grand? What if I want
to do the deal and make all the money?” Can they do that? Oh, yeah. You have the
contract, so if you want to keep that deal, if you want a wholesale it to
somebody else or whatever. The nice thing about what I’m offering is you don’t
have to worry about finding a buyer. I’ll be your buyer. So, if you don’t want to
have to even worry about going out there and networking and finding other
investors. You know, cash buyers that you can take your deals to. And you just want to bring them to me. And I’m your man. Bring those deals on I’ll pay you $10,000.
Hey, thanks Gerry. Listen up guys. I want you to click the link in the
description below. That’s where you’re going to go to get the rest of the details. If you are not a subscriber, fix that right now. I’ve got Jerry coming on doing
a few more videos. If you’re liking this topic, if you want to learn everything
about flipping, I’m going to have Jerry lay it all down. Break it down for you. So,
make sure you subscribe. But click that link, get on that free webinar where
Gerry can actually show you exactly how he can pay you $10,000 for him being the
buyer on every one of those deals. And that’s what I talked about making money
fast on flipping contracts.

7 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *