I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.
I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.
I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.
Hi Alton! I’d love to connect on this method if you’re available to chat.
Basically every personal house we ever owned except this last one which we built from scratch. We have done tons of non-occupied flips too (fast method). But we had four kids, a hubby who was a car guy and needed a shop or big garages, and a limited income. Adding value and sweat equity to the homes we occupied was the only way we could afford the bigger properties we needed. And we slow rolled those into better properties each time until we were finally able to pay cash for the last couple.
Much less stress and headaches than rentals especially for lower end areas where the ongoing maintenance will most likely diminish any return you may hope to make and where appreciation cannot be expected. Fix and flip is too capital intensive and relies on being able to find a retail buyer so it's arguably more risky than a slow flip. There are those that still fix up a bit before doing a slow flip to get better numbers but mostly a prehab. In some states it's better to write a full mortgage because the foreclosure timeline is short or because the municipality will not treat the buyer as having equitable title otherwise.
Are you doing land contracts or owner financing? That is what is meant by slow flip except generally you will use borrowed funds to buy distressed property and sell for more with financing--similar to what some used car dealers do but with an appreciating asset instead.
@Jassem A. In the olden days we used owner financing and even subject to financing when we were young and poor. The "slow flip" I am referring to was purchase the property in the traditional financing way and then live there while rehabbing and improving (adding bedrooms, getting the yards back in shape, updating finishes, building or adding shop space, etc.). We were in the first one 5 years, the second one 2 years, then 13 years, then 9 years. Each time we made a nice profit to roll into the next one. The last one we paid cash for and self-funded the improvements too. When we sold it we paid cash for a new build. That's SLOW - but effective.
@Teri Feeney Styers the slow flip method that I think he is referring to is the one coined by Scott Jelinek which is buying a livable property using private money on a short term (typical 60 month--like a car) and immediately marking it up 2-4 times and selling it on a 30 year term using a land contract. What makes it slow in this case is that you don't really start seeing real cash flow until after year five but it's more effective than rentals in that there is little to no maintenance.
Sure you can live in a home while fixing it up with the intention of selling it for a nice profit later but I think many people are already doing that and the buyers of slow flips now also have that opportunity without having to qualify with a bank.
I'm glad I found this thread! I just started the book by Scott Jelinek on the "slow flip" method and wanted to check in on BP. Not many folks on here discussing this approach.
How has this method been working in the current RE market? Is this feasible to start as a REI beginner?
Hmmm. Didn't realize this is a method. Usually when you buy a property you either decide 1. flip it as soon as possible or 2. hold for a rental long term. I've done these "slow flips" several times, but not intentionally. That's actually a great aspect of real estate, if things don't go as planned, wait it out!
I'm glad I found this thread! I just started the book by Scott Jelinek on the "slow flip" method and wanted to check in on BP. Not many folks on here discussing this approach.
How has this method been working in the current RE market? Is this feasible to start as a REI beginner?
Thanks for any input.
I have a friend that lives on the west coast and buys up these cheap houses to slow flip all over the midwest. I think he's about 30 houses away from retiring. Seems to work well for him after a couple years of doing it.
I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.
Hey Alton, hows it going trying to find properties for $30,000 to $40,000 & is sourcing private money an issue?
(1) Is it still feasible to buy houses for $30,000 - $40,000 in this market?
(2) What happens if your rent to own tenant stops paying? (I guess that's what the $3K to $4K deposit is for)
(3) Is it difficult to find private money @ 12% over 5 years to fund these deals?
(4) How much is Scott's mentoring or course? I think the book leaves you with a lot of questions!
The houses seem to be fairly easy to find. It also depends what type of neighborhood you're buying in though as well. I think Scott teaches to source your own deals.
If they stop paying you get them out and start over with a new buyer. Sometimes they just leave on their own as well.
Finding the private money seemed to be the biggest challenge my friend has had while doing this.
I don't know how much the course is. Probably not cheap
I'm just starting to research this method and would love to know more! Did you get the contract you use when selling the house on terms from the course/book or another source? Do you know what tax liability this method creates? Thank you!
I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.
Hi Alton!
How is the slow flip method working out for you? Would you share an update on your first deal? Did the book provide enough information to get started such as contracts, tax liability information?
I just finished his book. Haven’t taken his course. Working on getting my first deal now. Willing to chat more over the phone or Zoom if you’re interested.