Getting Started No Money Down House Flipping

Blog BiggerPockets Real Estate PodcastBiggerPockets Podcast 050: Getting Started and No Money Down House Flipping with Mike Simmons

On today's episode of the BiggerPockets Podcast, we sit down and talk about the best ways to get started with real estate investing, as well as some killer tips for investing without using your own money.

From picking a niche, overcoming analysis paralysis, and a lot more – our guest, Mike Simmons, will share his story of overcoming obstacles and becoming a full time house flipper in the Metro Detroit area.

Mike has a great story and an incredible strategy for flipping houses using no money of his own, so whether you are brand new or have been investing for years – you don't want to miss Mike's creative advice.

Read the transcript for episode 50 with Mike Simmons here.

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In This Show, We Cover:

Overcoming “shiny object syndrome” and “analysis paralysis”
Losing $1000 on his first “almost deal.”
Finding contractors without losing your hair
Dealing with Detroit investing
Why Mike had to evict a squatter who broke into his property
Finding good deals in any market
Using social media to attract private money
Using partnerships to get started or to grow
How Mike structures partnerships
Should you start with wholesaling?
And a whole lot more!

Links from the Show

Books Mentioned in the Show

Rich Dad Poor Dad by Robert Kiyosaki
The Art of the Deal by Donald Trump
The Millionaire Next Door by Thomas J. Stanley
Wealth Attraction for Entrepreneurs by Dan Kennedy

Tweetable Topics

You can read for days – and never do anything. Get out there and DO something. (Tweet This!)
Work with a Realtor who knows you and knows your business. (Tweet This!)
50% of something is better than 100% of nothing. (Tweet This!)

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Connect with Mike

Mike’s BiggerPockets Profile
Mike’s Website and Podcast: JustStartRealEstate.com

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By BiggerPockets Real Estate Podcast

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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50 Replies

Doug Merriott

Replied over 6 years ago

Great show guys! I found a lot of this information to be invaluable. Particularly liked the experienced mentor challenge, you should run a contest with that one. Definitely thanks to Mike for sharing his wisdom.

Joshua Dorkin

Replied over 6 years ago

Thanks for listening, Doug! I’m happy to hear that you found the show to be valuable.

Doug Merriott

Replied over 6 years ago

Congrats on the 50th show!

Mike Simmons

Replied over 6 years ago

That’s so cool! I guess I didn’t even realize that I was on the 50th show! Very honored!!

Mike Simmons

Replied over 6 years ago

Thanks Doug! I appreciate the kind words.

gerald harris

Replied over 6 years ago

Great Interview I had been on the fence for over a year before I took action. Relocating from California to North Carolina I continued to second guess my self. My mindset had to change as well. Moving from a real estate agent mindset to moving to an investor mindset had to change. The real key is to get going!

Mike Simmons

Replied over 6 years ago

Totally agree Gerald! Have to get out there and take action!

Mark Pritchard

Replied over 6 years ago

Thanks for the show guys. I definitely learned a few things that hopefully I can put to good use.

Joshua Dorkin

Replied over 6 years ago

Thanks for the message, Mark! We’re happy to hear it and appreciate you taking the time to share!

Brian Gibbons

Replied over 6 years ago

This was a great podcast. Not only rehabbing is not for everyone but Detroit MI is not for everyone (did I get that right Josh? lol). Now Ann Arbor, MI, coeds, beer, Big Blue, did I say coeds? And JV Partnering for 50 50 profits, moratorium on payments, that is always sweet.

Mike Simmons

Replied over 6 years ago

HAHA Brian. I have to agree!

Joshua Dorkin

Replied over 6 years ago

Yeah, yeah, yeah . . . let the ribbing continue 😉

Rick Schneck

Replied over 6 years ago

Great show and excellent guest! Mike’s humble articulation of successes, challenges, investor structure, and encouragement to take action was inspiring and motivational. Thanks Mike!

Mike Simmons

Replied over 6 years ago

Rick, I appreciate the kind words. I’m glad you enjoyed the episode!

Joshua Dorkin

Replied over 6 years ago

I’m with you, Rick!

Joshua Dorkin

Replied over 6 years ago

I’m with you, Rick!

alex anderson

Replied over 6 years ago

great tips, especially being vocal about what you are doing, and where your vision will take you and also about getting out and looking through the open houses to see what the other homes look like so you’re not over-improving an area.

Jason Fraser

Replied over 6 years ago

I’m glad I followed the quick tip about listening to the show all the way to the end. Halfway through the chances of Detroit of having a Josh Dorkin Day and giving him the keys to the city went from 0 to 10%. By the end of the show it went back to 0. All Detroit jokes aside, it was a great show.

Mike Simmons

Replied over 6 years ago

Hahaha! Jason I love that! I don’t know that I didn’t much to change Josh’s opinion of Detroit, but it was fun to discuss. I might just buy Jason that $5000 house in Detroit and challenge him to stay for a week!

luis

Replied over 6 years ago

Great episode to start off the year! Thanks guys and congrats on the 50th show, cheers! -Luis

Joshua Dorkin

Replied over 6 years ago

Ouch. And I was really excited about getting that key!

Grant Fosheim

Replied over 6 years ago

Congrats on the 50th episode. I really enjoy these longer podcast and hope that is a trend in the future. Also, you mentioned a place to post success stories in the podcast but I don’t see a link in the show notes. Am I missing something?

Joshua Dorkin

Replied over 6 years ago

Hey Grant – Thanks for the message — I also like the longer episodes . . . you get to really dig in! As for the Success Stories — I’ll add the link above, but you can get to it here.

Michael Sadler

Replied over 6 years ago

Great podcast! It sounds a lot like there are a few paths new investors can go down that are ‘less than desirable’. Experience can really help. Congrats on reaching 50! 😀

Joshua Dorkin

Replied over 6 years ago

Thanks Michael!

Dawn Anastasi

Replied over 6 years ago

Great podcast! I was starting to think that there should be not one but two $5,000 houses in Detroit and they could be used for the Bigger Pockets version of “Survivor: Detroit”. Everyone is armed with a rock to start with to protect themselves. First challenge: stay at the houses overnight to fend off copper thieves. Whichever team wins gets their rocks upgraded to bats.

Joshua Dorkin

Replied over 6 years ago

Hey Dawn – The game sounds like fun — except if I’m the one stuck playing survivor 😉

Mike Simmons

Replied over 6 years ago

Hey, I thought we ironed this out. LOL

Tom Keith

Replied over 6 years ago

Really Enjoying the show today! Congratulations on the Big 50. Wonderful guest and great questions. Thanks Guys Tom

Joshua Dorkin

Replied over 6 years ago

Thanks for listening, Tom! I appreciate the congrats.

Bruce Harris

Replied over 6 years ago

Great show guys! Owning two rentals in Detroit is definitely for the Braveheart lol. But like you said Mike only certain areas and dont be gone to long. Ha! Also, let me be the first to take you up on your offer by taking you out for lunch or coffee to pick your brain about learning how to rehab. I stay here in DETROIT and was thinking of doing some fix and flips in Warren and Madison Heights area. Let me know if that’s cool… Thanks, And leave my city alone, lol Bruce

Mike Simmons

Replied over 6 years ago

Bruce, shoot me an email at [email protected]. I will definitely sit down for coffee and talk to you about those areas. I do know those areas well and have invested quite a bit in the Warren area many times over the years.

Dan Dietz

Replied over 6 years ago

Great show this week. I got a late start so have been listening to about 3-4 of the older ones each week to gather all the gems of info I can. Mike, I would like to know more about your thoughts on how your (excellent) strategy on borrowing Private Funds might/will change as you do Buy-n-Holds more in the future? It sounds like almost all if not all of you current ones are ‘short term’ (under a year). Are you planning on using PM for the Buy-n-Holds in any way? I am currently doing Buy-n-Holds in my Self Directed IRA (one duplex and searching for more). There is a TON of opportunity in my area. I have been working on my plan to seek PM for both borrowing in my SDIRA (HAS to be Non-Recourse in IRAs) and also outside of my retirement funds. I plan to be speaking to a couple/few potential lenders in the upcoming weeks to see how my plans might play out. I am going to be seeking time frames anywhere from 2 years (long enough to refinance/season) and also longer terms of 10+ years. What are your thoughts on longer term Private Funds? Thanks, Dan Dietz

Bruce Harris

Replied over 6 years ago

Thanks alot Mike! I sure will. Talk to you soon! Bruce

Tere

Replied over 6 years ago

I really enjoyed this first podcast. I have been paralyzed for several years, but I am finally getting back in the business. I found this article around the web…. right after I listened to this. Very enjoyable. http://www.buzzfeed.com/drewphilp/why-i-bought-a-house-in-detroit-for-500

Cyrus Sidhwa

Replied over 6 years ago

Mike, Great episode – will have to give this another listen!! My question is about inviting multiple contractors to the property at the same time. Do you actually let them know beforehand that there will be multiple contractors? Does it even come up?

Mike Simmons

Replied over 6 years ago

Great question Cyrus. The answer to both questions is no. I do not tell them before hand, and it never comes up. It honestly has never been in issue, I decided a long time ago that I will never sit at a property for an entire day only to have more than half of the appointments not show up. I get there before any of the contractors, lead them through and take charge of the situation. I give them all a list of repairs before I start walking them through and then answer their questions all at one time at the end. It has always worked out very well for me.

Cyrus Sidhwa

Replied over 6 years ago

Thanks Mike!

Joshua

Replied over 6 years ago

Does Brandon pay attention or is he just ADD?

Joshua Dorkin

Replied over 6 years ago

I was wondering the same thing, Joshua.

Joshua Dorkin

Replied over 6 years ago

I was wondering the same thing, Joshua.

Dave Jennings

Replied over 6 years ago

Hi Tim Great interview today. I’m new to biggerpockets its been a very helpful site. I was wondering if you could share the contracts you use with your partners and contractors? I would like to get a better understanding of them before I sit down with my lawyer. Thanks Dave

Klee

Replied over 6 years ago

Great show! I’m going through listening to the podcasts going backwards, so far this has been the best show yet (in my opinion)! I learned a great deal and was motivated. I’m among those who’s shy in pulling the trigger if you will, but realizing that education and mentorship is key to my success in starting. Might I add you guy are truly hilarious! Thanks for your commit to educate us newbies and soliciting experienced REI’s to assists us! Klee

Joshua Dorkin

Replied over 6 years ago

Thanks for the message, Klee! I appreciate the feedback and I’m glad you get us 😉

Carson

Replied over 6 years ago

Mike, I am wondering what cities you are finding these $50k 3/1 homes with a ARV for 110ish in, and if you see the supply drying up. I live in Ferndale and look at the Ferndale/Royal Oak/Oak Park/Berkley markets. Over the last year and a half, I have seen the standard 3/1 brick ranches go from 40-50 to 60-80 to now well over 100k. It looks like there are still a decent number of the 40-50’s in S. warren and hazel park, but with much more risk of not achieving a high resale value. Thanks for the insightful show. Carson

Mike Simmons

Replied over 6 years ago

Hi Carson, I agree, it is getting harder and harder to find properties in that price range. But I am still doing it. I am increasingly having to rely on marketing to find good properties as opposed to the MLS. These properties are still out there it’s just harder to find them. As a matter of fact I just rehabbed a house in Ferndale that I bought for $56,000. Put $45,000 into it. And it is listed for $124,900. In the past I have invested in Warren (north of 696), Southern Sterling Heights, Royal Oak,etc. I continually expand my radius in order to find the right deals for me. I do not buy in bad areas. I would consider South Warren and Hazel Park areas that I would not be interested in flipping houses.

Carson

Replied over 6 years ago

Thanks, I Apprecite the response. Ferndale is definitely a hot market. I just completed my first flip in pleasant ridge, but am looking to get into buy and hold. I look forward to reading about your ventures in ’14. Carson

Deadrick

Replied over 6 years ago

Mike, Great info! Do you have a copy of a jv agreement that you wouldn’t mind sharing? Thanks, Deadrick Colbert

Account Closed from Brooklyn, New York

Replied over 5 years ago

Just a quick comment on an investor protecting themselves from Subcontractors liens against their property. When you sign an owner/contractor agreement (a contract) you can require that the contractor provide a “payment bond” which puts the risk onto a “surety,” rather than onto the investor. The payment bond states that if the contractor doesn’t pay his or her subcontractors, the surety is then liable for that payment. This is a great way to protect yourself, however many small contractors may not have experience with this. I’m not sure if anyone has experience using these, but I think it might be another option. thanks for all the great info! -Sean

Luis Tafolla Real Estate Investor from Rockford, Illinois

Replied over 3 years ago

Very good podcast. Does this guy have a commentator’s voice or what? The show was funny as heck and informative at the same time I really enjoyed listening to the show. By the way josh said “show 49!!” I believe this is show 50! I found it absurd that someone can break into your house, and then you have to evict them. its absolutely ridiculous.

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BiggerPockets Podcast 050: Getting Started and No Money Down House Flipping with Mike Simmons

Listen to The Show on iTunes

Listen to the Podcast Here

In This Show, We Cover:

Links from the Show

Books Mentioned in the Show

Tweetable Topics

Want more articles like this?

Connect with Mike

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BiggerPockets Podcast 050: Getting Started and No Money Down House Flipping with Mike Simmons

Listen to The Show on iTunes

Listen to the Podcast Here

In This Show, We Cover:

Links from the Show

Books Mentioned in the Show

Tweetable Topics

Want more articles like this?

Connect with Mike

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