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Peter Conti - Lot Flipper Program

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Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 12:22 PM
1 vote


I just spent an hour listening to Mr. Conti describing a program called Lot Flipper. I find a lot for sale, and if they like my deal - they take it and do whatever with it - but will pay $8700 as a finders fee (when it closes) for the lot. I give them a $1000 deposit to show my sincerity, they send some easy to follow short training and I am off to find a lot.

Is this for real or a scam?



Charles Morgan

Real Estate Investor from El Paso/Socorro, Texas

Oct 18 '13, 01:27 PM


Who is buying the lot? Do you have to give them the $1000 before they will look at the deal?

If it is a deal then sell it to an investor and save the $1000.

I hope I'm not being negative :-)

Seriously though, some more information on the program would be nice.



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 01:46 PM


You are not at all being negative! It sounds like some kind of a bird dog program. When I find a lot that meets their criteria, I use their proof of funds letter (updated monthly, they said) to place the offer. I submit info on the lot into their program, "Deal Genie" and if the program likes the lot, I get $8700 when they close on the lot. That's it - "...don't know of an easier system to make money" they say - no money out of my pocket. I am required to give a $1,000 deposit so they know I am serious. Upon my first closed deal, I get that deposit back by double to $2000, making my first check $10,700. No limit to the number of lots I can do, but of course the "job" offer is limited to only a select few... $8700 is a number they reached as an average of some sort, nothing magical.

Concerning your comment to save the $1000, I would do that. But how can I sell to an investor what is not mine - certainly not without serious marketing efforts to locate a buyer, my own EM, etc? They make it sound, my take here, like they are so flush with cash that they are too busy to find lots to build on, so this program finds the additional land to develop.

My questions were one, how do I know they really take my offer and not just circumvent my "finders fee"? How ridged are the requirements - if they want prime property only, why would they need this "help"?



Mike Grayford

Rehabber from Simi Valley, California

Oct 18 '13, 02:11 PM


I don't know anything about this program, but when someone says "don't know of an easier system to make money", just give us $1,000, it sounds like they've found an easy system to make THEIR money, $1,000 at a time.

Seriously, how can they say it takes no money out of pocket, but you need $1,000 to work with them?



Account Closed

Dallas, Texas

Oct 18 '13, 02:19 PM


Doug,

Did they give you a website, business address, business phone number? How do they take the payment for the $1000?

Joe Gore



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 02:47 PM


There was an opt in box and they provided a 1-800 number to gain access if desired. Credit card was requested for payment.



Charles Morgan

Real Estate Investor from El Paso/Socorro, Texas

Oct 18 '13, 02:49 PM


@Doug Snavely I think you hit the nail -

Quote - How ridged are the requirements - if they want prime property only, why would they need this "help"?

Have they given you any idea of their "requirements"? In the meantime they get to use your money interest free.



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 02:50 PM


One other thing - the email about Peter Conti and this "program" was sent from Preston Ely. From that name I was interested in viewing this deal; if it were not from Preston - I would have just deleted.



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 02:52 PM


I have to "deposit" the $1000 and find a lot before I get that answer. ...or at least an answer I'd trust...



Charles Morgan

Real Estate Investor from El Paso/Socorro, Texas

Oct 18 '13, 02:56 PM


Visited Preston's site, found this:

Sell My Stuff

The Easiest Money You'll Ever Make. Sign Up, Send Email, Get Paid.

Hmm, two different ways to make the "easiest money you'll ever make"?

I can make twice as much, twice as easy if I sign up for both, yay! Where do I click?



Account Closed

Dallas, Texas

Oct 18 '13, 03:07 PM


Doug,

Did they give you the requirments before you give them the $1000?

Joe Gore



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 03:12 PM


No, I asked the question in the forum box, they acknowledged my question but no answer. I guess it's back to work Monday...



David Krulac

Real Estate Investor from Mechanicsburg, Pennsylvania

Oct 18 '13, 03:31 PM


@Doug Snavely

I've heard that the lot requirements are something like:

1. The lot must be less than 2 acres.

2. The lot must have public water and public sewer.

3. Must be suburban area no rural properties

4. Lot must be no more than 15% max of the final house+lot price.

5. Total package house + lot must be in the price range of $400,000 to $1,300,000.

Those requirements don't sound all that difficult, BUT in many areas including most of flyover country, there are few candidates. Around here there are very few houses in those price ranges. Only 7% of the houses currently listed for sale are above $400,000.and above $800,000 is only 1.5% of the houses. Around here the market for $1.3M houses is very thin, less than half of one percent. Then lot prices have escalated as there are more regulations every year including endangered species, wetlands, flood plains, hydro-geological studies, traffic studies, and density reductions, that lot prices are often 25% or more of the total package price. At 15% for a $400,000 total package the lot price would have to be $60,000 or less. there just are not many $60,000 lots available that you would put a $340,000 house. So the numbers narrow the scope of possible lot candidates. Perhaps in high price areas like CA, the numbers might work better.

How would these numbers work in your CO?



Doug Snavely

Wheat Ridge, CO

Oct 18 '13, 04:15 PM


That is good info. Using your example, that deal would be tough if not impossible in Denver. Thanks for the insight!



Jerry K. Donor

Lien Investor from Mokena, Illinois

Oct 19 '13, 12:34 PM
2 votes


@Doug Snavely

Wrote this up yesterday but apparently it didn't post. Others have made some same comments, but here are mine:

A) Always do a Google search of the guru(s). (I'll let you determine what you read about these two people). These guys have a thread or two on BP as well.

B) I had a friend who asked me to listen in on this webinar with him. He had listened once and it was done again, and he wanted my opinion.

I had him turn it off about 45 minutes into it when I saw the numbered steps slide. Their "easy" system works something like this:

1) You find vacant lots in high-end residential areas. They want homes in the area to be in the $400k to $1.5 million range.

2) You negotiate the lot price and it must meet this formula - Determine the average market price of a home built on that lot and take 15% of that value. Negotiate the price of the lot to be that 15% amount or less.

So if the average home would be $500,000 then the max price for the lot should be $500k x .15 = $75,000.

3) You get the lot under contract.

4) You submit the deal through their "Deal Genie".

5) If it passes their Deal Genie, then they buy the lot and they give you your money the day they close.

You do realize in step 3 YOU are getting the lot under contract and if the "Deal Genie" rejects the deal, then you have a contract to buy the lot. Cancel the sale and you lose your deposit.

Oh yeah, they breezed over the "language" you put in the contract for a 10 day inspection period. That gives you the time to submit the deal and see if it is accepted. Problem is, I know of few sellers who will accept a contract on dirt with a 10 day "inspection" window.

One other thing - you will be looking long and hard for a lot that you can buy for 15% of market value prices. As an example, below is a screenshot from Trulia.com (ignore the debate on how good are market prices on Trulia & Zillow).

The three prices in the red circles are for lots that are currently listed for sale. All around $165k - $170k. Notice the values of the surrounding homes are in the $650k to $800k range. So let's say average is $650k. That means you have to try and get one of those lots for $97,500.

Now it could be that the those three lots are way overpriced at $170k, but a recent lot sale one block to the east (in yellow outline) that did have some prep work already done (stacked stone bridge over a culvert and the lot was cleared) sold for $225,000 a few months ago.

You will be doing a lot of bird-dogging to find the 15% deals. They said something about 90 days money back for your $1,000 deposit, but you have to have submitted three deals in that time. So if you don't get 3 lots under contract and submit them in that 90 days, you don't get your $1,000.

Don't get me wrong, this could work for people. Do you have the time and confidence you can find at least 3 deals in 90 days?



My Biggerpockets Blog - Lien Online Me http://www.biggerpockets.com/blogs/2682


Jerry K. Donor

Lien Investor from Mokena, Illinois

Oct 19 '13, 01:09 PM


My friend just sent me a link to the recorded "webinar" so I skipped through it to the slides where they discussed the steps.

The 10 day inspection is so that you can get the contract on the lot without a deposit. The gurus will pay the earnest money deposit for you if the deal passes their "genie" at then end of the 10 days. So this is how it's a "none of your own money" deal. Except of course for the $1,000 deposit to get their training and access to the "Deal Genie".



My Biggerpockets Blog - Lien Online Me http://www.biggerpockets.com/blogs/2682


Jeff Smith

Real Estate Investor from Lubbock, Texas

Oct 23 '13, 05:34 PM


Im listening to the same webinar right now. (live or recorded I dont know)

The webinar is sponsered by Cameron Dunlap.

I have personally met Peter Conti in Dallas in 2008. He has a great book on buying lease options.

I knew I was going to listen to this webinar today because I do business with Cameron Dunlap currently with his ibuyhouses.com exclusive territory set up

and his iFlip CRM and I really like that. You can check it out here if you like. iFlip

Anyway back to this land subject, I knew I was going to check it out so today while Im driving I listened to my podcast of Bigger Pockets that they did with a guy named Seth. So from what I learned on that + this post I have some new exit strategies for flipping land and I still have may $1000.


Edited Oct 23 2013, 17:52 by Jeff Smith


Karen Cullen

Ballwin, Missouri

Oct 27 '13, 10:05 AM


Here's their presentation on youtube. Supposedly their last live webinar is today at 2pm.

http://www.youtube.com/watch?v=9e73OxLv9aU

Also someone mentioned above that some areas may be hard to find property meeting their requirements, but supposedly, you can find the deals online, they don't have to be in your area, - you don't have to visit them.



Joe Young

Knoxville, Tennessee

Nov 06 '13, 08:28 AM


I am a Realtor that has been approached by 2 people that are paying for this course. It is the same exact email they tell their customers to send to Realtors that have a good zillow rating and a few testimonials. I submitted many offers and had 14 accepted after all was said and done, but absolutely none of them got accepted by the "Lot Flipper" people and all of them were within their requirements. The lot flipper reps tell me they submit the offers to the "deal genie" and get no response for the 10 day inspection period, and if they pester them enough they tell them something generic, like the comps weren't high enough price per sqft. So it sounds like a definite SCAM! My niche market is lots and land in TN, NC, and GA primarily (42 lots last year and over that this year) so if anyone wants to make money flipping they should do it the old fashion way of getting a good Realtor and invest wisely. They claim to pay you around 8k for each lot but you can make way more than that if you do your research.



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