Astro Flipping Wholesale Contracts
Specialist · Sarasota/Bradenton, FL · Member since 2018 · 14 posts · 9 votes
Astro Flipping Wholesale Contracts
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Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7yAstro flipping is a sales gimmick they are using to sell coaching. Instead of just telling you straight out they hint around and fluff it up. Astro Flipping is simply selling multiple properties to 1 investor. That’s all it is. it’s not 1 property turning into several deals its a relationship with 1 investor that you do multiple deals with.
79 Replies
- Real Estate Agent · Boston Ma · Member since 2019 · 31 posts · 31 votes6y
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
- Specialist · Baton Rouge, LA · Member since 2018 · 117 posts · 110 votes6y
Thanks @GARY LEONARD JR... That really helps clarify how it is different. You should provide a course ;)
- 6ySergey TkachevPro MemberInvestor, Agent, CPA · West Sacramento, CA · Member since 2009 · 690 posts · 262 votes
Originally posted by @GARY LEONARD JR:
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
Thank you for the detailed explanation of the transactional side, really appreciate it!
- Baltimore/NYC · Member since 2018 · 1 post · 2 votes6y
Thanks to everyone who has contributed to this thread! Lots of helpful information.
- Member since 2020 · 5 posts · 5 votes6y
Originally posted by @GARY LEONARD JR:
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
I would really like to learn more about this process. Would you be willing to provide a slightly more detailed walkthrough?
- Real Estate Broker · Brockton, MA · Member since 2020 · 24 posts · 25 votes6y
Originally posted by @Rose Arredondo:
Here in California, everyone is doing it. It's some what of a burned out sector for certain areas. It's caused for investors to buddy up with a R.E. agent, in order, to get the "in pocket" listings. Hence, causing for the wholesaler to use that agent for the re-sale; if it isn't, that they have an in house agent.
If you buddy-up with other investors, it's "no questions asked, here is your money and hand over the title". Properties are purchased in cash by a group/pair of investors. It's repaired with private investor money. Such as, Fund & Grow, that lends on a zero percent for 12 months. Once, the re-sale occurs, Fund & Grow is paid back, all investors get their profit and original cash invested. Keep in mind that there's plenty of tax write-off in all of this. Including, gas, lunch, mileage, remodel expenses, points, interest, etc.
To boot, the property can be sold before even under going rehab and already have a buyer lined up and waiting, ready for the purchase of a renevated property. This is done with a contract between the expected buyer and release from the 1st seller. Contracts can be lined up before the renovation even begins. Once, the rehab is finished...…. some investor/buyer may request that a selective tenant be placed, before handing the property to the new owner. This is speculative, as all deals vary.
I'll be honest, even some of the class "C" and "D" areas have become competitive due to these wholesalers. They can have up to multiple properties all at once. Some of this craze, has caused for me to go invest out of state.
Where ever you plan to purchase...……….. you must know your numbers, your risk, your budget, and your expected profit. If you don't know the industry, buddy with an investor that you can possibly follow and learn from. DO NOT TRY THIS, unless, you feel confident in what your doing. You can run a risk and loose your pants.
I believe you are confused - That is NOT astro flipping-
Straight up
Astroflipping
- Wholesaler gets property under contract
- He goes to one investor ( aka another wholesaler)
-Wholeslaer assigns their deal to fellow designated wholesaler
-The 2nd wholesaler now has equitable interest which he assigns over ( For the 2nd time to a cash end buyer)
-That cash buyer closes the deal with seller- Wholesaler takes their percentage out of the assignment fee (usually 40%)
- The wholesaler then wires remaining 60% to the wholesaler who actually got property under contract in the first place. That same wholesaler then just gets properties under contract and assign it over and forget it
- The back end wholesaler only worries about the disposition side and ensures the deal is transferred to a reliable cash buyer
Rinse Cycle Repeat Multiple wholesalers can be going to on investor to do this (basically pass their deal over for it to be generated quickly into 60%
You see the scalability!
- Real Estate Broker · Brockton, MA · Member since 2020 · 24 posts · 25 votes6y
Originally posted by @Travis Steinemann:
Thanks @GARY LEONARD JR... That really helps clarify how it is different. You should provide a course ;)
Haha :) I’ll leave the course stuff up to Josiah and the Keyglee Team who coined the method. Basically cuts the business into two halves
- Real Estate Broker · Brockton, MA · Member since 2020 · 24 posts · 25 votes6y
Originally posted by @Devin Browning:
Originally posted by @GARY LEONARD JR:
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
I would really like to learn more about this process. Would you be willing to provide a slightly more detailed walkthrough?
Sure But the more details the more confusion.
here are the players:
Wholesaler # 1
Wholesaler # 2
Cash Buyer
Motivated Seller
Wholesaler #1 Through marketing get property under contract with motivated seller- therefore (see below)
Wholesaler # 1 signs P&S with Motivated Seller
Wholesaler # 1 has equitable interest in the property. Traditionally he would then market for a cash buyer correct ? But wholesale .#1 doesn't- here’s what he does (see below)
Wholesaler #1 assigns to Wholesaler # 2 instead of a cash end buyer.
This allows Wholesaler # 1 to focus on acquisitions and get more deals under contract to assign over to wholesaler # 2
Wholesaler # 2 usually has a rotund viable buyers list(s). They market there newly assigned deal to a cash end buyer
Wholesaler # 2 finds cash investors and assigns their interest in the deal to the final cash end buyer
Cash end buyer then closes with the motivated seller
Assignment fee is dispersed and paid in full to Wholesaler #2.
Wholesaler # 2 takes their share (usually 40% or whatever they agreed on with wholesaler #1)
After paying themselves, wholesaler 2 sends 60% or whatever the deal agreed upon ro wholesaler #1
Wholesaler 1 makes 50 to 60% of the deal and only need to work. about the acquisitions side of the business.
I hope that makes sense to everyone.
Like my business - I very rarely even deals with acquisitions or motivated sellers I have wholesalers dropping their assignments at my door step on a daily basis (doorstep figure of speech) All’s I need to do is ensure deal was formalized correctly and not a pie in the sky inflated or deflated figures- If it passed, ill market to my rotund buyers list where (if I did my job correctly which I always do) rapidly find a buyer to close deal with like clock work
- 6yShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
@Gary Leonard Who are you? It’s hard to trust people that have nothing on their profile. And what Is your relation to @GARY LEONARD JR? This looks similar to what occurred when everything started to come to light about Clayton Morris. There were brand new accounts made that spoke highly of Morris trying to counter the fraud claims made in the forums. But I believe it just turned out to be people who worked for his company creating new accounts trying that we’re making fake posts. What is your involvement with KeyGlee??
- Real Estate Broker · Brockton, MA · Member since 2020 · 24 posts · 25 votes6y
Originally posted by @Shiloh Lundahl:
@Gary Leonard Who are you? It’s hard to trust people that have nothing on their profile. And what Is your relation to @GARY LEONARD JR? This looks similar to what occurred when everything started to come to light about Clayton Morris. There were brand new accounts made that spoke highly of Morris trying to counter the fraud claims made in the forums. But I believe it just turned out to be people who worked for his company creating new accounts trying that we’re making fake posts. What is your involvement with KeyGlee??
I am partners with Keyglee for I conduct business with them on a Wholesale Platform. I am a Licensed Realtor within the State of Massachusetts and I am also a Real Estate Investor on a National Platform
I have conducted many transactions under my broker on the retail side and many for my business on the Wholesale side.
May I ask Who are You and why would you speak about Claytons lawsuit as if you truly know that he scams people? Have you met him? Have you conducted business with him? Or are you speaking through the individuals who didn’t read the fine print and left it up to others to make their investment decisions for them?
My credentials below since you are interested
$51,000 in April- Not a bad month. And my Buyer is a developer who will be pulling in over $3,500,000 of which $3,250,000 of that will be his profit. Def not a scam.
Who are you?
- 6yShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
@Gary Leonard It seems like you are a real person. It’s hard to know when someone becomes very vocal yet has very little information on their profile. I hope you have better interactions with KeyGlee than I have had.
As far as working with Clayton Morris, I never purchased a property from him. I only got as far as messaging back and forth about buying a property from him several years ago. However, I have messaged several investors over the past few years who have had purchased properties from him, or what they believed was from him, and yes, they shared their own personal stories on the BiggerPockets forums. If you are interested, you can read several personal stories if you search Clayton Morris or Morris Invest in the search bar above. After reading several stories here or in the several newspapers and articles that have been written about Clayton Morris and the accusations of fraud, and you can decide.
And as a general rule, you will come across as more credible with more information on your profile.
- Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes6y
KeyGlee, Astroflipping, they've got nothing on the real estate secrets you will have at your disposal once you finish intensive training with McRib International Seminars. There's just no money like the money in the McRib secrets. We have had great success with several of the longtime members here. If you can endure the intensity, maybe you can join our ranks. Money, success, the car, the boat, the ladies, immortal REI superstar status...they can all be yours.
- Real Estate Coach · San Diego, CA · Member since 2019 · 164 posts · 121 votes6y
Originally posted by @Corey Robinson:
@Eric Jones
I just talked to one of the team members and the term Astro flipping is more of a brand name for their coaching program but the company is KeyGlee. They’re disposition specialists and help tons of wholesalers in their markets get their deals sold. The coaching program will allow you to duplicate their process while they hold your hand. I’m on the fence about it but Jamil one of the owners of KeyGlee does some big deals with big names in the wholesale world so I might make the jump. If I do I’ll keep you guys updated.
[Link Removed by Moderators]
Just wondering if you signed up after all? If so, what has your experience been with them?
- 6yTisha BanksPro MemberRental Property Investor · Houston, TX · Member since 2020 · 10 posts · 4 votes
@Shiloh Lundahl and @gary Leonard thanks for my entertainment. Gary... You rock
- Wholesaler · Brownsville, TX · Member since 2012 · 7 posts · 0 votes6y
Thank you guys for the input. It seems like I’m already doing this.
I get a lot of calls I have a list of buyers wanting to buy with Seller Financing. Unfortunately can’t do that with Wholesale deals
Wish I had Private money so I could offer the Seller Financing. - Las Vegas, NV · Member since 2009 · 196 posts · 32 votes6y
Originally posted by @Gary Leonard:
Originally posted by @Devin Browning:
Originally posted by @GARY LEONARD JR:
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
I would really like to learn more about this process. Would you be willing to provide a slightly more detailed walkthrough?
Sure But the more details the more confusion.
here are the players:
Wholesaler # 1
Wholesaler # 2
Cash Buyer
Motivated Seller
Wholesaler #1 Through marketing get property under contract with motivated seller- therefore (see below)
Wholesaler # 1 signs P&S with Motivated Seller
Wholesaler # 1 has equitable interest in the property. Traditionally he would then market for a cash buyer correct ? But wholesale .#1 doesn't- here’s what he does (see below)
Wholesaler #1 assigns to Wholesaler # 2 instead of a cash end buyer.
This allows Wholesaler # 1 to focus on acquisitions and get more deals under contract to assign over to wholesaler # 2
Wholesaler # 2 usually has a rotund viable buyers list(s). They market there newly assigned deal to a cash end buyer
Wholesaler # 2 finds cash investors and assigns their interest in the deal to the final cash end buyer
Cash end buyer then closes with the motivated seller
Assignment fee is dispersed and paid in full to Wholesaler #2.
Wholesaler # 2 takes their share (usually 40% or whatever they agreed on with wholesaler #1)
After paying themselves, wholesaler 2 sends 60% or whatever the deal agreed upon ro wholesaler #1
Wholesaler 1 makes 50 to 60% of the deal and only need to work. about the acquisitions side of the business.
I hope that makes sense to everyone.
Like my business - I very rarely even deals with acquisitions or motivated sellers I have wholesalers dropping their assignments at my door step on a daily basis (doorstep figure of speech) All’s I need to do is ensure deal was formalized correctly and not a pie in the sky inflated or deflated figures- If it passed, ill market to my rotund buyers list where (if I did my job correctly which I always do) rapidly find a buyer to close deal with like clock work
After reading through all the posts on this thread, the only one that made sense and that answered the KeyGlee "mystery" is yours.
From your breakdown, the AstroFlipping/KeyGlee business model is just a systemized version of co-wholesaling or JV which I've been doing as a one-man shop for the last 5 years. As you explained, I work on the disposition side of the deal by bringing buyers to the contract holder (or supplier as I call them) who is on the acquisition side. They deal with the marketing, marketing budget expense, hassle with the sellers, and rightfully get the lion's share of the total markup to the buyer. All I do is procure a buyer. Sometimes it's a 50/50 split of the assignment fee, but most of the time, it's a fraction, but I will make it up in volume because of the economy of scale in that I can work with an unlimited amount of suppliers. Bad analogy, but I'm basically like the street dealer selling them product at a markup from from my...supplier, lol!
Here's the thing: the only way it works consistently is if I work with newbies or smaller wholesalers who don't have established buyers lists that out-compete mine. Only occasionally am I able to squeeze a deal here and there with the established wholesaler.
I cannot see ANY of the big suppliers out there working with KeyGlee given the fact that the suppliers a) hog up most of the spread on the deal thus leaving little to no room for me and my flip buyers, and b) have a large list of established buyers already, so what can KeyGlee offer? Maybe they have an insider connection to hedge fund buyers that no one else has, and that will buy at higher prices?
Right now, I need to refresh my buyers list, it's stale and needs fresh blood. Product is flying off the shelf, just not to my buyers :(
Thanks for any input. - Investor · Tampa · Member since 2020 · 1 post · 4 votes6y
Before anyone blasts me for not having a profile - I just bumped into AstroFlipping webby and found this thread so I created an account to chime in hopefully to save someone from paying that much for coaching. Nothing new here. KeyGlee is just a master wholesaler with a mac daddy buyers list. And their "AstroFlipping" program is just a way for them to collect several thousand dollars from you to teach you how to be a Wholesaler #1 and feed them deals etc It's all about the LIST. If you have the biggest and best list of buyers - other wholesalers will bring their deals to you to liquidate fast. So as wholesaler #2 you have non-stop supply of wholesaler #1s feeding you deals. You don't do any marketing or deal with sellers because you don't have to. You are the man that has the list that sells it fast and that is what wholesaler #1s want. So that is how you can "astro flip" so many deals etc. Back before the last real estate crash when everything was humming, we worked with a really big wholesaler #2. He had a monster list and it was just magic. He would instantly sell our deals so we sent all our wholesale deals to him. Most of time he was selling to buy & hold landlord types who were happy with just a little bit of a discount under market value as they were playing long rental game. So even on tight deals he would make lots of money. But let me say this. To make a statement that wholesaling is dead or is going extinct is just nonsense. they talk ibuyers and tech trying to scare everyone but they don't know ****. the truth is - the ibuyers and big tech funds don't want to deal with PROBLEM properties. That is not the slice of pie they are targeting. Problem properties are where wholesalers thrive. Wholesalers FIX PROBLEMS. They are problem solvers and because you will always have homeowners with problems - you will always have wholesalers. The other thing is EQUITY. You need to be able to find DISTRESSED SELLERS WITH EQUITY. If no equity you can't astro flip anything. here is free tip for everyone thinking about paying all that money for coaching: what we do and have always done is buy dead people estate homes in real time. I'm not talking about chasing probate court filing junk that happens seven months after the death which is so competitive you can't even get a deal. I'm talking about Dad died last week and we are talking to family to work out the "problem home" they all inherited and put cash in their hands. What "probate lead sellers" will never tell you is it usually takes the family several months to get around to finding a probate attorney and filing probate. So from the date of death you have a seven month window of opportunity to grab that deal because nobody knows it is even there. The other thing probate lead sellers won't tell you because they don't study the data is that upwards of 50% to 70% of estate homes have prior estate plans where they completely avoid probate. So these homes NEVER get to a courthouse probate filing. So if you're working probates and battling thousands of competitors - know that you are missing out on 70% of estate homes that never go there. Another tip: 95% of estate homes are F&C (because by the time mom and dad check out they are usually well past their 30 yr mtg amortization and have paid off the home) and usually the home is a brady bunch timewarp from the 1970s that need updating. But mom and dad liked it that way because of all the memories with kids so they didn't change anything. They usually have 3-4 relative heirs (kids) who are all usually broke and don't want to fix up mom and dad's home. They just want and need their inheritance money fast - so they are already preframed to sell to an investor at a discount. This is how to do monster equity flips. Like high 5 and 6 figures doing wholesale double close deals. This is what we've done for years. We were crushing it during the last real estate crash in 2008 because we always knew how to find equity because equity lives in dead people homes etc. We don't do ads either. And we don't even use social media. This is getting kind of long but bottom line is if you are Wholesaler #1 - find distressed dead people homes with lots of equity to get deep discounts from the heirs. The best are real time dead people homes. (not probate. probate is too late) and then continue to build up your own buyers list to eventually become Wholesaler #2 so you can have other Wholesaler #1s feeding you deals. There you go. that is all you need to know.
- Member since 2020 · 5 posts · 5 votes5y
Originally posted by @Skip Collins:
Before anyone blasts me for not having a profile - I just bumped into AstroFlipping webby and found this thread so I created an account to chime in hopefully to save someone from paying that much for coaching. Nothing new here. KeyGlee is just a master wholesaler with a mac daddy buyers list. And their "AstroFlipping" program is just a way for them to collect several thousand dollars from you to teach you how to be a Wholesaler #1 and feed them deals etc It's all about the LIST. If you have the biggest and best list of buyers - other wholesalers will bring their deals to you to liquidate fast. So as wholesaler #2 you have non-stop supply of wholesaler #1s feeding you deals. You don't do any marketing or deal with sellers because you don't have to. You are the man that has the list that sells it fast and that is what wholesaler #1s want. So that is how you can "astro flip" so many deals etc. Back before the last real estate crash when everything was humming, we worked with a really big wholesaler #2. He had a monster list and it was just magic. He would instantly sell our deals so we sent all our wholesale deals to him. Most of time he was selling to buy & hold landlord types who were happy with just a little bit of a discount under market value as they were playing long rental game. So even on tight deals he would make lots of money. But let me say this. To make a statement that wholesaling is dead or is going extinct is just nonsense. they talk ibuyers and tech trying to scare everyone but they don't know ****. the truth is - the ibuyers and big tech funds don't want to deal with PROBLEM properties. That is not the slice of pie they are targeting. Problem properties are where wholesalers thrive. Wholesalers FIX PROBLEMS. They are problem solvers and because you will always have homeowners with problems - you will always have wholesalers. The other thing is EQUITY. You need to be able to find DISTRESSED SELLERS WITH EQUITY. If no equity you can't astro flip anything. here is free tip for everyone thinking about paying all that money for coaching: what we do and have always done is buy dead people estate homes in real time. I'm not talking about chasing probate court filing junk that happens seven months after the death which is so competitive you can't even get a deal. I'm talking about Dad died last week and we are talking to family to work out the "problem home" they all inherited and put cash in their hands. What "probate lead sellers" will never tell you is it usually takes the family several months to get around to finding a probate attorney and filing probate. So from the date of death you have a seven month window of opportunity to grab that deal because nobody knows it is even there. The other thing probate lead sellers won't tell you because they don't study the data is that upwards of 50% to 70% of estate homes have prior estate plans where they completely avoid probate. So these homes NEVER get to a courthouse probate filing. So if you're working probates and battling thousands of competitors - know that you are missing out on 70% of estate homes that never go there. Another tip: 95% of estate homes are F&C (because by the time mom and dad check out they are usually well past their 30 yr mtg amortization and have paid off the home) and usually the home is a brady bunch timewarp from the 1970s that need updating. But mom and dad liked it that way because of all the memories with kids so they didn't change anything. They usually have 3-4 relative heirs (kids) who are all usually broke and don't want to fix up mom and dad's home. They just want and need their inheritance money fast - so they are already preframed to sell to an investor at a discount. This is how to do monster equity flips. Like high 5 and 6 figures doing wholesale double close deals. This is what we've done for years. We were crushing it during the last real estate crash in 2008 because we always knew how to find equity because equity lives in dead people homes etc. We don't do ads either. And we don't even use social media. This is getting kind of long but bottom line is if you are Wholesaler #1 - find distressed dead people homes with lots of equity to get deep discounts from the heirs. The best are real time dead people homes. (not probate. probate is too late) and then continue to build up your own buyers list to eventually become Wholesaler #2 so you can have other Wholesaler #1s feeding you deals. There you go. that is all you need to know.
How would I go about finding "dead people homes" without chasing probates?
- Irvine, CA · Member since 2018 · 31 posts · 10 votes5y
Originally posted by @Gary Leonard:
Originally posted by @Devin Browning:
Originally posted by @GARY LEONARD JR:
Originally posted by @Paul Fournier:
What’s up BP!
Recently, I came across a wholesale strategy called Astro Flipping, which seems to be a way to get multiple deals out of one property. This seems to be the new craze.
Have you done these kinds of deals before? What’s the process for successfully completing deals like these? And Is it worth it?
Thank you BP!
Astro Flipping is just a fancy way of selling online coaching. If you wholesaled before you probably Astro Flipped and didn’t even know it. It’s when ( you) partner with (1) investor and complete deal- Usually latching onto the Dispositions side of the spectrum.
1) Wholesaler Gets property under contract tract with motivated Sellers
2) Ensure due diligence and makes sure the numbers work.
3) Then Partners with another investor who gains equitable interest of the property and lines the deal up with a prospective buyer -
4)Secures buyer then reassigns back to wholesaler for a $2000 to $3000 fee-
5) Wholesaler now has equitable interest back and a buyer ready to close- Buyer closes and wholesaler gets their assignment fee LESS exit fee of either $2000 - $3000 to partner who provided buyer.
So imagine doing this with 20 wholesalers who don’t have a solid buyers list and come to you because all your business focus is on direct to buyer/flipper/ landlord with airtight contracts on a national platform. While those 20 closings are scheduled 15 more investors come with their contracts and dropping them off by transferring equitable interest securing a buyer, and existing for a fee - You charging the wholesaler a fee of usually $2000-$3000 because you’re delivering the deal back to them with a secured, willing and able buyer.
Has nothing to do with a rehab team -
It's having one wholesale get the deal, you don't JV nor daisy chain you actually take control of the property through getting deal fully assigned to you. Once you now have equitable interest you market for a buyer AT THE SAME PRZICE POINT as the wholesaler, after securing a buyer, you reassign to wholesaler with buyer attached to the deal. Have a stipulation that although you are assigning the contract to the buyer, you are not given them full assignment until day of COE (usually so they don't back out of the deal and try to go over your head as well as allowing you to reassign back to wholesaler.
I would really like to learn more about this process. Would you be willing to provide a slightly more detailed walkthrough?
Sure But the more details the more confusion.
here are the players:
Wholesaler # 1
Wholesaler # 2
Cash Buyer
Motivated Seller
Wholesaler #1 Through marketing get property under contract with motivated seller- therefore (see below)
Wholesaler # 1 signs P&S with Motivated Seller
Wholesaler # 1 has equitable interest in the property. Traditionally he would then market for a cash buyer correct ? But wholesale .#1 doesn't- here’s what he does (see below)
Wholesaler #1 assigns to Wholesaler # 2 instead of a cash end buyer.
This allows Wholesaler # 1 to focus on acquisitions and get more deals under contract to assign over to wholesaler # 2
Wholesaler # 2 usually has a rotund viable buyers list(s). They market there newly assigned deal to a cash end buyer
Wholesaler # 2 finds cash investors and assigns their interest in the deal to the final cash end buyer
Cash end buyer then closes with the motivated seller
Assignment fee is dispersed and paid in full to Wholesaler #2.
Wholesaler # 2 takes their share (usually 40% or whatever they agreed on with wholesaler #1)
After paying themselves, wholesaler 2 sends 60% or whatever the deal agreed upon ro wholesaler #1
Wholesaler 1 makes 50 to 60% of the deal and only need to work. about the acquisitions side of the business.
I hope that makes sense to everyone.
Like my business - I very rarely even deals with acquisitions or motivated sellers I have wholesalers dropping their assignments at my door step on a daily basis (doorstep figure of speech) All’s I need to do is ensure deal was formalized correctly and not a pie in the sky inflated or deflated figures- If it passed, ill market to my rotund buyers list where (if I did my job correctly which I always do) rapidly find a buyer to close deal with like clock work
Thanks for the detailed explanation. Sounds a lot like JV to me though.
One question I have is: Why would wholesaler #1 not want to find his/her own cash buyer? IMHO disposition is much easier than acquisition. If wholesaler #1 could do the marketing and negotiating with motivated sellers, they could easily advertise their properties on FB groups and Craigslist. There are many interested cash buyers in FB groups.
Reason why I am asking this is because I am looking at JVing, I have a list of cash buyers but I am thinking why would any wholesaler want to give me 40% of their assignment fee just for disposition when they can do it themselves?
- Irvine, CA · Member since 2018 · 31 posts · 10 votes5y
Originally posted by @Devin Browning:
Originally posted by @Skip Collins:
Before anyone blasts me for not having a profile - I just bumped into AstroFlipping webby and found this thread so I created an account to chime in hopefully to save someone from paying that much for coaching. Nothing new here. KeyGlee is just a master wholesaler with a mac daddy buyers list. And their "AstroFlipping" program is just a way for them to collect several thousand dollars from you to teach you how to be a Wholesaler #1 and feed them deals etc It's all about the LIST. If you have the biggest and best list of buyers - other wholesalers will bring their deals to you to liquidate fast. So as wholesaler #2 you have non-stop supply of wholesaler #1s feeding you deals. You don't do any marketing or deal with sellers because you don't have to. You are the man that has the list that sells it fast and that is what wholesaler #1s want. So that is how you can "astro flip" so many deals etc. Back before the last real estate crash when everything was humming, we worked with a really big wholesaler #2. He had a monster list and it was just magic. He would instantly sell our deals so we sent all our wholesale deals to him. Most of time he was selling to buy & hold landlord types who were happy with just a little bit of a discount under market value as they were playing long rental game. So even on tight deals he would make lots of money. But let me say this. To make a statement that wholesaling is dead or is going extinct is just nonsense. they talk ibuyers and tech trying to scare everyone but they don't know ****. the truth is - the ibuyers and big tech funds don't want to deal with PROBLEM properties. That is not the slice of pie they are targeting. Problem properties are where wholesalers thrive. Wholesalers FIX PROBLEMS. They are problem solvers and because you will always have homeowners with problems - you will always have wholesalers. The other thing is EQUITY. You need to be able to find DISTRESSED SELLERS WITH EQUITY. If no equity you can't astro flip anything. here is free tip for everyone thinking about paying all that money for coaching: what we do and have always done is buy dead people estate homes in real time. I'm not talking about chasing probate court filing junk that happens seven months after the death which is so competitive you can't even get a deal. I'm talking about Dad died last week and we are talking to family to work out the "problem home" they all inherited and put cash in their hands. What "probate lead sellers" will never tell you is it usually takes the family several months to get around to finding a probate attorney and filing probate. So from the date of death you have a seven month window of opportunity to grab that deal because nobody knows it is even there. The other thing probate lead sellers won't tell you because they don't study the data is that upwards of 50% to 70% of estate homes have prior estate plans where they completely avoid probate. So these homes NEVER get to a courthouse probate filing. So if you're working probates and battling thousands of competitors - know that you are missing out on 70% of estate homes that never go there. Another tip: 95% of estate homes are F&C (because by the time mom and dad check out they are usually well past their 30 yr mtg amortization and have paid off the home) and usually the home is a brady bunch timewarp from the 1970s that need updating. But mom and dad liked it that way because of all the memories with kids so they didn't change anything. They usually have 3-4 relative heirs (kids) who are all usually broke and don't want to fix up mom and dad's home. They just want and need their inheritance money fast - so they are already preframed to sell to an investor at a discount. This is how to do monster equity flips. Like high 5 and 6 figures doing wholesale double close deals. This is what we've done for years. We were crushing it during the last real estate crash in 2008 because we always knew how to find equity because equity lives in dead people homes etc. We don't do ads either. And we don't even use social media. This is getting kind of long but bottom line is if you are Wholesaler #1 - find distressed dead people homes with lots of equity to get deep discounts from the heirs. The best are real time dead people homes. (not probate. probate is too late) and then continue to build up your own buyers list to eventually become Wholesaler #2 so you can have other Wholesaler #1s feeding you deals. There you go. that is all you need to know.
How would I go about finding "dead people homes" without chasing probates?
Great question. That is exactly what I wish to know too.
- Member since 2018 · 1 post · 0 votes5y
I see most of these posts are two years old....lol. But, to update, I just got off my 'coaching call' w/Astroflipping. Their new coaching fees are $78 & 9800. After reading these old posts has me doubting their true motivation(s). One aspect I didn't like was that if they help with a transaction that you may be struggling with, will cost you 50% of your sale (a part of learning.....??).
- Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes5y
Sounds like "Astro Flipping" is another word for Daisy-Chaining. New name (for promotional purposes), same strategy.
- Realtor · Scottsdale, AZ · Member since 2018 · 64 posts · 47 votes4y
Quote from @Shiloh Lundahl:
@Erin Lachance to be honest with you, I have become disillusioned with Josiah and KeyGlee Homes or KeyGlee Investments. Josiah and his partners have a big wholesaling presence in Arizona and I have bought several properties from them in the past. In fact, I had Josiah come out and speak to my investor meetup group and he did a great job explaining their wholesaling model. However, since they got bigger, they have really lost touch with some of their investor base and have stopped treating their investors as they used to.
Here are a couple of recent examples: 1) they sent out a deal in Mesa, AZ and I looked at it and called and talked with them about it and then I drove by the property to look at it closer. I told them that I wanted it, I signed the purchase agreement and I deposited the earnest money with the title company. I then called them and asked if we could close it with my title company who is able to close in such a way where she includes rehab costs into the closing and it helps me be able to get a cash out refi quicker. Kevin at KeyGlee told me “no” that they weren’t going to change the title company or close it how I wanted to. I said that I didn’t know if I’d be able to do the deal the way they had it set up and that I needed a coupe of days to think about it. I tried talking to Josiah but I never got him to return my calls or texts. Then when I called to verify the closing date, because I was going to go ahead and close on it anyway, they had sold it to someone else. So I had the purchase agreement signed and I had my earnest money deposited and they sold it to a different investor without following up or talking with me about it.
Example 2) I had a problem property in Phoenix that I decided that I wanted to sell. They had just sent out a property on their email list 3 doors down from the one I decided that I wanted to sell. I called and talked with Kevin to ask him who the investor was who bought the other property to see if they would be interested in buying my property which was right by the property they wholesaled. Kevin said that they don’t give out their investor list and that was it. I told him I did’t want their list I just wanted to speak with the investor who bought that specific property to see if he wanted to buy mine as well. He said he wasn’t going to tell me and then offered to wholesale the property for me if I wanted him to. I reached out to Josiah to find out what was going on with the people in his company now and he never returned my calls or my texts.
So whereas Josiah Grimes and KeyGlee used to be a one of the wholesaler groups I liked working with in Arizona, now I don’t really care to work with them anymore.
I too was looking forward to working with KeyGlee given their strong presence in AZ. I brought them into a deal to buy a property informing them it could not be wholesaled. They confirmed they would not wholesale it and told me they would be doing a fix and flip. While under contract they tried to wholesale it behind my back. When I confronted them they lied and said they were not trying to wholesale it (yet it was on their website). They cancelled the contract at the last minute when they couldn't wholesale it. Disappointed that Jamil markets his company as 'ethical wholesalers' who depend on RE agents as their partners, but then do not operate in an ethical manner.
- Member since 2022 · 62 posts · 16 votes4y
Quote from @Skip Collins:
Before anyone blasts me for not having a profile - I just bumped into AstroFlipping webby and found this thread so I created an account to chime in hopefully to save someone from paying that much for coaching. Nothing new here. KeyGlee is just a master wholesaler with a mac daddy buyers list. And their "AstroFlipping" program is just a way for them to collect several thousand dollars from you to teach you how to be a Wholesaler #1 and feed them deals etc It's all about the LIST. If you have the biggest and best list of buyers - other wholesalers will bring their deals to you to liquidate fast. So as wholesaler #2 you have non-stop supply of wholesaler #1s feeding you deals. You don't do any marketing or deal with sellers because you don't have to. You are the man that has the list that sells it fast and that is what wholesaler #1s want. So that is how you can "astro flip" so many deals etc. Back before the last real estate crash when everything was humming, we worked with a really big wholesaler #2. He had a monster list and it was just magic. He would instantly sell our deals so we sent all our wholesale deals to him. Most of time he was selling to buy & hold landlord types who were happy with just a little bit of a discount under market value as they were playing long rental game. So even on tight deals he would make lots of money. But let me say this. To make a statement that wholesaling is dead or is going extinct is just nonsense. they talk ibuyers and tech trying to scare everyone but they don't know ****. the truth is - the ibuyers and big tech funds don't want to deal with PROBLEM properties. That is not the slice of pie they are targeting. Problem properties are where wholesalers thrive. Wholesalers FIX PROBLEMS. They are problem solvers and because you will always have homeowners with problems - you will always have wholesalers. The other thing is EQUITY. You need to be able to find DISTRESSED SELLERS WITH EQUITY. If no equity you can't astro flip anything. here is free tip for everyone thinking about paying all that money for coaching: what we do and have always done is buy dead people estate homes in real time. I'm not talking about chasing probate court filing junk that happens seven months after the death which is so competitive you can't even get a deal. I'm talking about Dad died last week and we are talking to family to work out the "problem home" they all inherited and put cash in their hands. What "probate lead sellers" will never tell you is it usually takes the family several months to get around to finding a probate attorney and filing probate. So from the date of death you have a seven month window of opportunity to grab that deal because nobody knows it is even there. The other thing probate lead sellers won't tell you because they don't study the data is that upwards of 50% to 70% of estate homes have prior estate plans where they completely avoid probate. So these homes NEVER get to a courthouse probate filing. So if you're working probates and battling thousands of competitors - know that you are missing out on 70% of estate homes that never go there. Another tip: 95% of estate homes are F&C (because by the time mom and dad check out they are usually well past their 30 yr mtg amortization and have paid off the home) and usually the home is a brady bunch timewarp from the 1970s that need updating. But mom and dad liked it that way because of all the memories with kids so they didn't change anything. They usually have 3-4 relative heirs (kids) who are all usually broke and don't want to fix up mom and dad's home. They just want and need their inheritance money fast - so they are already preframed to sell to an investor at a discount. This is how to do monster equity flips. Like high 5 and 6 figures doing wholesale double close deals. This is what we've done for years. We were crushing it during the last real estate crash in 2008 because we always knew how to find equity because equity lives in dead people homes etc. We don't do ads either. And we don't even use social media. This is getting kind of long but bottom line is if you are Wholesaler #1 - find distressed dead people homes with lots of equity to get deep discounts from the heirs. The best are real time dead people homes. (not probate. probate is too late) and then continue to build up your own buyers list to eventually become Wholesaler #2 so you can have other Wholesaler #1s feeding you deals. There you go. that is all you need to know.
@Skip Collins Thank you so much. This write up was amazing and insightful. So, so helpful. Thank you for taking the time to write it. My one question is, how do you find “dead people” homes? What should I look for and where? I understand to avoid probate lists, but I’d love to find a resource(s) to be able to search, skip trace and contact the type of leads you recommend.
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