Peter Conti - Lot Flipper Program
Investor · Wheat Ridge, CO · Member since 2012 · 8 posts · 1 vote
Peter Conti - Lot Flipper Program
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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?
45 Replies
- Miami, FL · Member since 2014 · 1 post · 0 votes12y
I just got a letter from Peter Conti so looks like he's trying to run the lot finder scam promotion by mail now. Just a heads up....hide your wallets.
Have to agree with Aaron, anything Preston Ely recommends is most likely some sort of scam or a waste of time/money. Don't fall for the Christian good guy BS. A snake is a snake no matter what he calls himself.
- 12yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Account Closed
total BS.. unless they are working west coast or prime east coast.. there are not lots to be had that have 8k premiums.. those that send in the 1k have lost it no doubt. I mean I bought lots last year in Atlanta for 4k a piece and they were .5 acre nice lots..
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Doug Snavely:
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.Since Ely is involved I deleted and threw away my snail-mail invite.
- Wholesaler · Powder Springs, GA · Member since 2013 · 516 posts · 143 votes12y
Not sure if this is the wrong place to ask this but,
If I had a lot, what formula would I use to determine to price of home to be built on the lot, or what to sell the lot for if I have comps? I'm sure there's a 15% rule here on BP. These guys have rules for everything. I just can't find it.
on topic: I have gotten these email too, and you can instantly tell how full of crap it is. The CRM I use has a built in message board and a couple of investors have posted up adds looking for the same criteria that Lot Flipper wants.
- Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes12y
Often times people use 20% for lot value, so that a $100,000 lot would have a $400,000 house for a total value of $500,000. But that's a rough estimate, local areas, local neighborhoods will vary, particularly like high priced land areas such as Manhattan and ocean front.
- 12yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
David out here in Oregon we use 4X to 5X and of course as the value of the house goes up say North of million you can pay much more for the dirt.
So when I am looking at buying lots for say a 250k sale I would want to buy those for no more than 50k.. And then it depends on system development fees, school impact fees, transportation fees, building permit fee's.. those all have to be taken into consideration.. In Lake Oswego were I have 2 under construction right now 2700 sq ft and 3500 sq ft all in for permits was 45k
I have 3 going in the Carolinas right now 1800 to 2000 sq ft all in permits 5K
Also sub cost to build are vastly different in different parts of the country. Look what they can do in Texas perfect example of all in and can make a profit selling a brand new 1500 sq ft home for 80 to 90 a Foot.. Our build cost range from 65 to 95 depending on the house PLUS permits.
As I stated before this is just another way some company makes 1k a deal and maybe those buy a few lots just to say they did.. they bring in 100's of thousand with the public and maybe buy or payout a few with no intention of building on the lot or anything else.
Its just Guruism in my mind.
- 12yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
and as a follow up.. builders and infill builders usually have a pretty good handle on their inventory and how to buy it.. Along with realtors that specialize in New construction.. Most builders ( me included ) have realtors that are our bird dogs..not necessarly to sell me the lot but to get the list back. Most all the time they take no commish on the lot purchase with expectation of getting the listing and creating their own inventory.. builder realtor teams are the norm in the building bizz
- Centerville, UT · Member since 2014 · 2 posts · 0 votes12y
I just watched their webinar (that is, recorded replay they make seem like it's live), and wanted to check BP for any feedback. I was surprised to see that this Lot Flipper "deal" has been available for over 1.5 years. Well, the "deal" is still going, despite that they say they'll only accept limited numbers of participants -- my guess is there's no cutoff whatsoever, and it's a pain to get your money back once you realize it doesn't work as advertised. This one was through Jerry Norton and Kent Clothier. Looking for lots where nearby home values are 400,000 - 1,000,000. So it looks like they've changed their terms over the last year (used to be 1.5 MM on the upper end, then 1.3 MM, now 1.0 MM).
They make it sound nice, but definitely too good to be true. Glad I found this thread for more info on the matter.
The money-back guarantee on the $1000 seems really difficult to get, and deals are likely next-to-impossible to get closed. From the website,
"To qualify, you must submit 1 or more deals per month for 90 days and if you don't make at least $8,700, we will promptly refund your $1,000 deposit. During this time, you have access to all of the training modules and can get on the coaching calls. If you download the audios, contracts, scripts and/or other tools, the program cannot be refunded as you now have all of our intellectual property."So, if you download any of their stuff to try to help you get deals done, then they can't refund you. What's the point?
If you get invited to buy the Lot Flipper, don't do it. - Quincy, MA · Member since 2014 · 3 posts · 0 votes11y
I quickly watched their webinar, Just decided to check BP... I'm glad I checked and didn't buy it it seemed like a scam.
How would I know after submitting the deal, they would circumvent me and do the deal? Is there a NDA agreement? Probably not or use some other company`s LLC to do the deal.
Thanks for sharing your input guys!
- Wholesaler · Concord, NH · Member since 2014 · 9 posts · 0 votes11y
I just went on the webinar and quickly got off. I knew this was BS within 10 minutes. He is asking us to find lots for him but he is going to provide software that will find the lots for us. Why would he need anyone to find lots for him if he created a software to find the lots? This is a complete rip off to get people to spend $1000.
- Real Estate Investor · Newmarket, CANADA · Member since 2010 · 4 posts · 0 votes11y
I have also requested refund - don't know if that will work. After going through the training and finding some samples and inputting, it seems the parameters are awful tough to meet so didn't bother even submitting to them. Not sure if I can get a refund, but will try!
- Copper Hill, VA · Member since 2015 · 18 posts · 4 votes11y
Thanks for everyone's reply. I did not purchase the program happy to say. I have noticed a lot of these similar type programs are out there. I recently went to a 3 day workshop put on by Fortune Builders. I did not sign up for their mastry program since they wanted anywhere from 10 to $33,000. They called me the next day and ask me why I didn't sign up. They still continue to call me and ask about my goals and what do I want to achieve. I'm not sure about them either even though there are registered with the BBB with an A+ rating. I'm playing along just to see what they are about. I do not intend to pay out big bucks for training even though I do need to know what I'm doing and do need knowledge and direction. It just gets me how it is so many scams out there on real estate.
- Fort Worth, TX · Member since 2015 · 2 posts · 0 votes11y
I gave this program a shot last year. I have a friend here locally that's a broker, and we actually managed to find a couple of areas that met their parameters, at least theoretically. I had 4 lots lined up, got the first one through their deal genie, and thought we were on to something.
They insisted on a price/Sq ft figure for the finished home, and we found it... In one of the highest-end areas in this county (Tarrant County, TX). They just didn't understand that it doesn't cost as much to build here as they think it should. They want custom - build prices for what they call a "spec house".
Yeah, I could have gotten out of the area a bit more, but I know this area. I gave up. That's about the time I found BP, so, it's a lesson learned, albeit an expensive one.
- Wholesale Real Estate · Poughkeepsie, NY · Member since 2015 · 1 post · 0 votes11y
jerry norton also has the same deal on lot flipping to are the two of them the same people???
- Shipping "MSC" · Hope, AR · Member since 2015 · 7 posts · 0 votes11y
Dude please do not give them money. That's a fly by night deal. 1k for them doing little to nothing that you can't do yourself.
- Investor · Forney, TX · Member since 2015 · 90 posts · 30 votes10y
Just watched part of this webinar...it was sent out via an email from myhousedeals.com
Looks like this scam is still going... sounds like the EXACT same recording...Jerry North
if it sounds too good to be true, it probably is
- Safety Harbor, FL · Member since 2015 · 19 posts · 0 votes10y
I'm getting spam from Jerry Norton offering the same kind of junk. The most recent email was titled "How to make $8700 sitting at Starbucks".
- Real Estate Investor · Spokane, WA · Member since 2015 · 6 posts · 0 votes9y
SAVE YOUR $1000!!!
I signed up for this after checking out the webinar, reading the site and then calling the 800# to verify the requirements of $400K-$1M and lot price of 15% of the final home price (I am not going to complete detail but you get the jist).
So after you sign up and they get you in the system you find out there are many more criteria and you cannot even submit a deal unless it meets all the criteria.
Here are some of the goodies they don't tell you until you pay them your "deposit"
1) If the lot is listed for sale, no matter how low it is or if it meets all the other criteria, you have to get the lot under contract for at least 10% under listed price.
2) The projected sale price of the home has to be between $400K and $1M, but it also has to be OVER $175/sqft. So if there is a nice development in your area like I have in mine that meet all the advertised criteria, they may not qualify if they are large houses. Basically the house has to be a maximum size of 2285sqft - 5714sqft respectively. In my area the $600-$750K houses don't qualify because they are all around 4500-5000sqft putting them below the $175/sqft threshold.
3) The lot must be less than 1 acre. So no giant country vistas.
That's all I can remember off the top of my head. I am sure there are areas you can find with qualifying deals, but with the criteria so specific there are only a few big cities with these areas, and every wanna-be flipper that buys this system are all fighting for the few lots available in these select areas. So if you have a way to find these and lock them in, then this would be a good system for you. Even though their training says to pick one region and preferably a local region so you can work with local people to begin with, when you call and talk to their "coaches" (if they have time for you) they tell you that they are finding deals all the time, you just have to keep searching until you can find the right area, with the right lot, with the right deal, then turn it over to them.
If you are capable of doing these things, don't waste your time turning the deals to them, just find that good of deals and do them yourself.
I hope this saves someone the "deposit" money they would never see again.
- Real Estate Agent · Tampa, FL · Member since 2015 · 97 posts · 23 votes3y
I watched the video for info on land flipping (which is basically what this is) but did not sign up for the program. I immediately found 8 lots on my MLS meeting the sale price criteria, in the same community, which are ready to build. I offered to negotiate a package deal for all 8 lots as the buy price was somewhat higher than what Jerry wants.
This was the response:
Jerry is interested in vacant land under an acre, developed, buildable, and zoned residential. We're looking for a spec sale range with a minimum of $400K-$1 million with a population minimum of 50,000. Our goal is to buy a lot and then build a spec home to sell for profit. (The video didn't mention a minimum population)
If you have properties that meet these criteria, you need to enroll in our Lot Flipper program. (Of course! I need to enroll and pay before he'll look at my deal. This tells me he is in this for the $1,000 enrollment fee banking on most never meeting his "criteria") Sure smells like a scam to me!
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