Flipping Formula

Flipping Formula

New Orleans, LA · Member since 2014 · 7 posts · 1 vote

Last night I attended the Dave & Pete Flipping Formula seminar, which they were not even there. The seminar was helpful, but I should have known it was too good to be true. They offer resources to money and buyers so it sounds great being that I have bad credit and live paycheck to paycheck. At they end though we were told it cost $6,000 for the 3 day training but if we act tonight it will be $2,000. I used $500 of my rent money to reserve a spot and I was going to get the rest from my IRA account. Well I did my due diligence after the class, which I should have done first, and it seems everyone that has gone says at the end they just want another $30k - 40k for you to move forward and access their resources. I want to know if this is true and for someone like me who could never get access to this amount of money what would I get out of the 3 day course. Would I get access to this so called $500k? I think this afternoon I am going to cancel and get my $500 back.

Last and final question.  I know it takes money to make money, but for someone like me with terrible credit, student loan debts, and no saved money, is there a way I can get funds to start wholesaling, flipping, or renting houses?  Here in New Orleans rent right now is crazy!  People are getting top dollar for such small square footage and as soon as properties are listed they are literally rented a day or two after.

Thanks!

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Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
12y

@Chad Kerlin

Welcome. Fill in the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 70 past ones to catch up on.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Couple good reads 

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul

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  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y

    So there is a fairly straightforward way to identify the free sessions that will be essentially worthless as far as content goes - they are designed to get attendees to pay for the next set of sessions. The worthless free sessions will be scheduled twice in the same day in the same facility, once early in the day (say noon) and once later in the day (say 6:00 PM) - the exact times do not really matter, what you have to realize is that they scheduled an hour or two at each of those times to get people to pay for the next sessions. No way to deliver any significant content in that short time, especially considering that there will be a selling component that consumes some time as well. 

    When you see events set up like that, just don't bother ...

  • Investor · west seneca, NY · Member since 2014 · 376 posts · 211 votes
    11y

    hi chad. i understand where you are coming from. starting out in flipping houses is hard.  everyday you read about people like donald trump and how they bought their next great deal for millions of dollars. the only thing you can derive from that is " it takes money to make money". that statement is true enough, but it isn't the whole answer. no one ever got anywhere by giving up, is one of my favorite quotes. having good credit and access to money is almost essential to investing in real estate. what you need to do is stop worrying about where you are in life and start thinking about how you can get where you want to be in life. i have actually bought a house for $500 once. in fact, i have purchased several houses over the last 11 years here in buffalo, ny and the most i have paid for one was $4100. most of what i buy are tax sale houses, i. e., houses that have been foreclosed on by local tax authorities for lack of paying property taxes. granted, most of these houses are in such a state of disrepair that they probably should be burned down and started over, but buying this way teaches you how to become one hell of a great handyman. start getting your credit in order. you hear a lot about these " credit repair" companies all around. the truth is,  THEY CANNOT DO ANYTHING FOR YOU THAT YOU CANNOT DO FOR YOURSELF. go to annualcreditreport.com and get a free copy of your credit report from all 3 agencies. by law, you are entitled to a free report each year from each company. on annualcreditreport.com, you can dispute every negative thing you see. thats how these credit repair places do it. they go on here and dispute anything that looks negative. by law, the credit agency has to follow up on your dispute to any and all creditors that you dispute. these creditors have 30 days to respond back to the agency as to whether or not this report is accurate. if they fail to answer back in 30 days, then that part of the report is removed from your report, just as if it never existed. hence, your credit score goes up and you become more desirable to  lenders.  it really is that simple. next, start paying your bills on time. this will account for 35% of your overall credit score. when that number comes up, you will have a much better chance at getting lenders to give you the money to finance your way in real estate investing. 

    start small like i did. go to any tax authority you can find near you. ask if they have a list of houses in your area that are in a state of disrepair. ask what they do with houses that have been foreclosed on for back taxes.  see how cheap you can get these. its kind of fun " making a deal happen" as opposed to sitting around and waiting for things to get better. good luck to you and please ask me for help when you need it.

  • San Francisco, CA · Member since 2015 · 786 posts · 717 votes
    11y
    Originally posted by @Doug DeMulling:

    Ok where do I start? I received an invitation for the first seminar and it was using peter and dave from flipping boston as the figureheads to earn real estate success!! We all know who they are and enjoy the show so hey lets go see what its all about. Free giveaways!!! Prizes!!! Refreshments!!!. Well it was at a ****** hotel in Bremerton, the refreshments were two pitchers of water and crappy (small) bag of mixed snacks, I got a dollar store mp3 player at the end. Still I saw it through, and listened to the first part of stupid quotes from famous people as the main act. I tried to keep an open mind, he started talking about 500k of funding that would cost 1-3 percent, hey pretty cool. Then how you can directly talk to asset managers at struggling banks and buy properties at amazing savings. I was sold, only cost $1,997 for the 3 day seminar that will make your dreams come true, money back guarantee. I asked him directly, this is going to be training not some other crap to get me to buy the "super duper" training later? He said yes its all you will need to be successful, and you have a money back guarantee... He lied and lied and lied...

    Ok I have been to 2 days of the 3 day training. It has been over 16 hours of selling and manipulation with a little bit of training mixed in. I swear the first 3 hours was ******** and fluff and the trainer promising we would get to the good stuff soon. There is 60 people in the room, that's 120k of money we have spent, its the cheapest low class event I have ever been to, there was coffee and water, that's it. Had to walk by the Mitsubishi convention to get to our ballroom and they were doing it right, soda, cookies, chips, hats, and lots of other swag, parking was validated etc..... What previous posters were saying about credit card balances is true, that was our assignment at lunch which didn't come until 1:45, we started at 8:30 am.  Well anyway this seminar was not set up to give anyone tools to be successful at real estate just 3 days to tell you sob stories and pull at your heart strings to get the 23-43k investment that they really want... Oh but joy, you might get to meet and learn the real stuff someday if you get a second mortgage to afford it.

    3rd day coming up tomorrow, from previous posts it sounds like that's when the real hard selling comes. I'm expecting all kinds of hard selling, they will probably start telling people they are losers and don't want to succeed and if they really loved their family they would do anything it takes. The trainer says the 3 pillars are... Is it legal? Is it ethical? Is it moral? Ok well it should not be legal, and it is definitely not ethical and moral.

    One more note. The trainer was talking about negative people always trying to keep you down, which is true, you need to surround yourself with good people, my motto is "it is hard to soar like an eagle if you hang out with a bunch of turkeys" also if you roll around with dogs you are gonna get some fleas.... there is a million sayings, you get the point. Anyway he told a story that related to that by saying he was walking down a dock and some guys were crabbing and in the bucket a crab was about to escape, he said "hey there is a crab about to get out of your bucket" the guy says its ok, don't worry about it, and then as he watches the other crabs in the bucket grab the crab about to escape and pulls him back in the bucket. Cool moral, negative people going to pull you back down. However he told the story in the first person like it was him that experienced it, well not true, in the peter and dave training binder they say the same story about lobsters.....

    Anyway that's about all the steam I got for now. Thanks for listening, interested what you others have to say.

    I would never pay money for any real estate training seminars. Total waste of money. What's even worse is the material taught often does not apply to Washington State. Its possible to learn a lot from working with other experienced investors. 

  • Real Estate Agent · Gig Harbor, WA · Member since 2015 · 12 posts · 4 votes
    11y

    Hello, just getting back after the 3rd day. I have to start with when I made the original post I was feeling a bit betrayed and mad about the way I was misled from the first seminar. I think my expectations were a bit high for a 3 day training. I talked to the trainer and I was very frank with him, maybe a bit rude but he held his composure well and I have to give him credit for that.  He did tell me at that time that I should leave, he didn't want me to negatively bias any of the other people. I was a bit surprised because I really was not talking to anyone, if anything they were coming to me and voicing their displeasure, and honestly I was neutral. We talked it out, he let me stay.

    Was it worth the $2000? for me no, I did learn a few things that I am going to research and implement in my strategies but it was more of them making me aware and not really teaching. The real teaching is involved when you purchase the next seminar. For someone with little to no experience they really need some type of advanced training and this program could be a good fit for some. The price tag is a bit high 20-40k, I am torn about this, for many, that's a lot of money. In the bigger picture you can pay for that with your first deal and that's what they push to get you to sign up. My advice if you don't want to, or cannot afford the training, get yourself a mentor who is successful and has knowledge to share, there are lots of them out there that are willing to pay it forward.

  • Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    looks like you are about to drink the koolaid after all.  Do yourself a favor and Run!

  • Ray HurteauPro Member
    Developer · Boston, MA · Member since 2013 · 128 posts · 66 votes
    11y

    For anyone considering the Flipping Formula or any other "guru" course. Take the money you would have spent on it and use it towards marketing. Then you can wholesale, especially in the Boston area, for 10-50k each deal. You should be able to easily make your money back and then some if you market for 6+ months to the same group of people and build rapport with local investors via REIAs to source them deals. Focus on MFHs, because that's where there is greater wholesale value than SFH.

    For my specific experience with the FF (yes, I bought into it and regretted it), you can see my other post reply here (scroll down a little for my post): https://www.biggerpockets.com/forums/79/topics/147...

    For anyone seriously considering paying for their course: please PM me because I can help advise you on how to start a marketing campaign or to better use your funds. The guru course is not cheap and you only need a fraction of what they ask to get a wholesale operation going. 

  • Real Estate Agent · Gig Harbor, WA · Member since 2015 · 12 posts · 4 votes
    10y
    Originally posted by @Craig Brouillette:

    @Chad Kerlin

    Some classes have great info but you can probably learn most of the same stuff by taking the time and using the tools and resources on this website. I doubt that clasee will have any secret funding sources so don't expect to get access to $500k just by taking the class. Also, to wholesale deals doesn't take any money and it's a good starting point for someone like you with no capital.

    Saying someone like me with no capital is a bit condescending craig. I have about 400k liquid to work with and another 600k if I hit my folks up. That's liquid.... don't want to risk my own money if someone says they will fund my deal. Does that make sense? I got sucked in and i'm a sucker and I would like to let other people know that you are gonna have to pay twice cause its a three stage *** ****ing to get to the holy land with this company, 2000 to get to the 2nd stage and 25 - 45k to get to the final destination. Oh by the way you can get your money back if you write 25 deals in 90 days and send them every rejection, that's at the 2000 level don't know if you can get a refund on the top level at least you can kiss some *** that don't invest any more cause dumbasses are keeping them rich. 

  • Real Estate Agent · Gig Harbor, WA · Member since 2015 · 12 posts · 4 votes
    10y
    Originally posted by @Chad Kerlin:

    Last night I attended the Dave & Pete Flipping Formula seminar, which they were not even there. The seminar was helpful, but I should have known it was too good to be true. They offer resources to money and buyers so it sounds great being that I have bad credit and live paycheck to paycheck. At they end though we were told it cost $6,000 for the 3 day training but if we act tonight it will be $2,000. I used $500 of my rent money to reserve a spot and I was going to get the rest from my IRA account. Well I did my due diligence after the class, which I should have done first, and it seems everyone that has gone says at the end they just want another $30k - 40k for you to move forward and access their resources. I want to know if this is true and for someone like me who could never get access to this amount of money what would I get out of the 3 day course. Would I get access to this so called $500k? I think this afternoon I am going to cancel and get my $500 back.

    Last and final question.  I know it takes money to make money, but for someone like me with terrible credit, student loan debts, and no saved money, is there a way I can get funds to start wholesaling, flipping, or renting houses?  Here in New Orleans rent right now is crazy!  People are getting top dollar for such small square footage and as soon as properties are listed they are literally rented a day or two after.

    Thanks!

    Goddammit chad, I just want to give you a big friggin hug cause I consider myself a pretty smart guy and I still got sucked into this ****. I paid the 2000 dollars for the 2nd stage of learning which I though would be the conclusion, but nay!!!!   they I needed the new improved lump of ****... if you love babies and don't beat your wife and are not a racist piece of **** then you must pay our 40k to be a winner!!!!!!  These ****ers use some hacks from a not that good tv show to make you suckers. I kinda half think that they might care but mostly I think I would knock their dumb *** out if I ever met them

  • Virginia Beach, VA · Member since 2016 · 24 posts · 5 votes
    10y

    My Husband and I just completed the 3 day 2K training of the Flipping Formula. there was a lot of good general info given. We had no knowledge of real estate before attending the first 3 hour free event. It intrigued us enough to use the remaining balance on our CC to attend this class. We got a lot out of the event and really want to do this. We did not buy into the next level. Our finances prevented it. I was appreciative that there was no high pressure pitch- It may have been because my husband is a pastor. Everyone was very nice and helpful. They even had the whole group sing happy birthday to me on day 1 of the training (after my hubby told them it was my birthday) We were told to focus on wholesaling to pay down debt and improve our credit score and then come back. Glad I found this site that seems to be very helpful!

    That all being said, can you point me to a comprehensive list of the first steps? We got a lot of info but not a step by step guide.

    Thanks!!

  • Haverhill, MA · Member since 2015 · 36 posts · 6 votes
    10y

    What is the minimum you look to make when flipping a home?

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