What is AstroFlipping?

Wholesaling
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What is AstroFlipping?

Caleb L.
Investor · Georgetown, Tx. · Member since 2019 · 149 posts · 69 votes

Hi,

Does anyone know what exactly AstroFlipping is? I listened to the case study of Josiah Grimes on the collapse of wholesaling: https://www.astroflipping.com/... and he said that wholesaling is collapsing, which I find really hard to believe.

Does anyone know what it is or what the difference is between astroflipping and wholesaling? It looks like a know strategy for real estate that's like wholesaling, but easier and you can turn 1 deal into 50 deals (at least that's the theory, or something like that).

I wanted to bring it to the BP community, so you guys could rip it apart and explain it for me. ;)

Thanks  a lot,

Caleb Leal

@Lydia R.@Brandon Turner, do you know anything about this? Is it a real estate strategy? 

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Ed Brancheau
Investor · San Diego, CA · Member since 2019 · 166 posts · 121 votes
6y

*** I say KeyGlee throughout as more of a representation because they're the brains behind Astroflipping. I don't know if you are actually selling to KeyGlee.

I'm looking into Astroflipping myself but I "Astro" is just branding their specific type of wholesaling. And from what I can tell so far is that it's a kind of arbitrage.

This means that they tell you what kind of deals they (KeyGlee?) will automatically buy the contract from you and sell to an institutional investor they have. You keep 60% of the difference, they keep 40%.

For example, you sign a contract for $100K and the institutional buyer pays $120K. You get $12K and KeyGlee(?) gets $8K.

The other part is that you find wholesalers that have soon-to-expire contracts that match the criteria. Then you offer to buy their soon-to-expire contracts to be bought automatically from KeyGlee(?). And you split your commission with the original wholesaler.

For example, you find a wholesaler with a deal that matches the criteria valued at $100K and the institutional buyer pays $120K. You likely make a deal with your wholesaler to split half your commission. So, you get $6K. They get $6K. And KeyGlee(?) gets $8K.

Of course, your wholesaler will take the deal because otherwise they'd get nothing when the contract expires. You'd take the deal because you get $6K for just having the connection to KeyGlee(?).

Now, of course, we'd all like to be in KeyGlee's middleman position because they're not doing much to connect us. But they've already done their part by finding the institutional investor. Knowledge, and connections, is power.

That said, I'm still skeptical and doing more research.

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  • Brian Van Pelt
    Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
    7y

    @Caleb L.

    Scroll towards bottom
    https://www.biggerpockets.com/forums/93/topics/681698-astro-flipping-wholesale-contracts

    0Reply
  • Caleb L.
    OP
    Investor · Georgetown, Tx. · Member since 2019 · 149 posts · 69 votes
    7y

    Thanks a lot @Brian Van Pelt! 

    0Reply
  • Caleb L.
    OP
    Investor · Georgetown, Tx. · Member since 2019 · 149 posts · 69 votes
    7y

    @Brian Van Pelt After reading it, I'm still slightly confused. Not quite sure what it is. Is it really wholesaling? It sounds like wholesaling with a twist. 

    0Reply
  • Odalis Herrera
    East Orange, NJ · Member since 2017 · 3 posts · 2 votes
    6y

    @Caleb L.

    Were you able to find any further info on the topic?

    0Reply
  • Caleb L.
    OP
    Investor · Georgetown, Tx. · Member since 2019 · 149 posts · 69 votes
    6y

    @Odalis Herrera Not really. Honestly, I believe it's just another fancy word for the same thing, wholesaling.

    I'll keep an eye out to see if it goes anywhere or becomes popular, but I'm staying clear of it.

    0Reply
  • Esmeralda Lopez
    Member since 2020 · 8 posts · 2 votes
    6y

    I watched the same video and am still confused. 

    0Reply
  • Ed Brancheau
    Investor · San Diego, CA · Member since 2019 · 166 posts · 121 votes
    6y

    *** I say KeyGlee throughout as more of a representation because they're the brains behind Astroflipping. I don't know if you are actually selling to KeyGlee.

    I'm looking into Astroflipping myself but I "Astro" is just branding their specific type of wholesaling. And from what I can tell so far is that it's a kind of arbitrage.

    This means that they tell you what kind of deals they (KeyGlee?) will automatically buy the contract from you and sell to an institutional investor they have. You keep 60% of the difference, they keep 40%.

    For example, you sign a contract for $100K and the institutional buyer pays $120K. You get $12K and KeyGlee(?) gets $8K.

    The other part is that you find wholesalers that have soon-to-expire contracts that match the criteria. Then you offer to buy their soon-to-expire contracts to be bought automatically from KeyGlee(?). And you split your commission with the original wholesaler.

    For example, you find a wholesaler with a deal that matches the criteria valued at $100K and the institutional buyer pays $120K. You likely make a deal with your wholesaler to split half your commission. So, you get $6K. They get $6K. And KeyGlee(?) gets $8K.

    Of course, your wholesaler will take the deal because otherwise they'd get nothing when the contract expires. You'd take the deal because you get $6K for just having the connection to KeyGlee(?).

    Now, of course, we'd all like to be in KeyGlee's middleman position because they're not doing much to connect us. But they've already done their part by finding the institutional investor. Knowledge, and connections, is power.

    That said, I'm still skeptical and doing more research.

    7Reply
  • John Christadore
    Wholesaler · NJ · Member since 2020 · 32 posts · 8 votes
    6y

    @Ed Brancheau $5800 for the 6 week course. $7800 for the executive package.

    2Reply
  • Mark Eder
    Member since 2020 · 2 posts · 2 votes
    6y

    Hi Ed, I was wondering if you went forward on the Astrofipping program and if so, did you have some good results?

    0Reply
  • Anita Dees
    Member since 2021 · 2 posts · 0 votes
    5y

    @Ed Brancheau, I think you have to buy a KeyGlee franchise ($100K) to get the 40%.

    0Reply
  • Anita Dees
    Member since 2021 · 2 posts · 0 votes
    5y

    The cost of Astroflipping courses are now apprx $7K & $9K.

    0Reply
  • Momi Rapozo
    Los Angeles, CA · Member since 2015 · 42 posts · 28 votes
    5y

    @Caleb L. Yes 7-9k now is the cost. I think what they’ve been able to do is connect many people and leverage their community. Relationship building!

    I’m still researching but try a blueprint in place that you can leverage.

    0Reply
  • James Smith
    Member since 2021 · 1 post · 1 vote
    4y

    Astroflipping is the wholesale side that finds deals for Keyglee. 

    1Reply
  • Alejandro F.
    Investor · San Diego · Member since 2019 · 32 posts · 11 votes
    4y

    I went ahead and got on a call with an Astroflipping sales rep. The high pressure sales pitch was strong with that one!!!

    As @Momi Rapozo mentioned, I believe the major benefit of signing up is the ability to leverage the community they've built. When I asked the sales rep if a wholesaler can just sell directly to KeyGlee, the answer was "that is out of my wheelhouse" proceeded by quickly changing the topic. It sounds like it is possible for a wholesaler to bypass the middle man (Astroflipping student/acquisition specialist) and go directly to KeyGlee. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Alejandro F.

    High pressure sales tactics are typically a sign to run away fast.

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    3Reply
  • Alejandro F.
    Investor · San Diego · Member since 2019 · 32 posts · 11 votes
    4y
    Quote from @Chris Seveney:

    @Alejandro F.

    High pressure sales tactics are typically a sign to run away fast.

    I couldn't agree more! :)
    0Reply
  • Brandon Cochran
    Investor · Tampa, FL · Member since 2022 · 18 posts · 12 votes
    3y

    So I was trying to figure out what the benefit of Astroflipping is too..

    If you have a DEAL under contract, finding an investor to sell it to shouldn't be very hard. However, I'm wondering how they actually help you find a deal and get it under contract in the first place.. 

    Does Keyglee have a lead generation system online (PPC, SEO) and then gives them to the students to negotiate?.. Only thing I can think of. 

    0Reply
  • Dustin P.
    Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes
    3y

    You are just going to a more established wholesaler with a large buyer's list, that's all. They are assigning your deal

    I would not pay the money for the course personally. The entire concept is literally just building a buyer's list so you can re-assign another person's deal

    1Reply
  • Jerry Bustamante
    Member since 2019 · 1 post · 0 votes
    3y

    Appears to me that it's paying for coaching .. as so many other . Well.i don't want to use the word scams but it's flirting with it ... I'm a carpenter and have been  trying to get into flipping ..but these get rich fast  schemes always pop up so I research them and what I've always found that's it's to good to be true ... . I'm not a real estate guy . But I di have common sense !  

    0Reply
  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    3y

    It's called rebranding an old strategy. It's wholesaling, nothing more...except some will charge more to "teach" this rebranded concept. 

    1Reply
  • Meghan Andersen
    Member since 2023 · 4 posts · 6 votes
    2y

    I know this is a late response but hopefully others will see it in the future. No, it is not legit. I think those who defend it already know how to wholesale and can appreciate the few gleams of actual insight the 'course' can provide. My husband signed up for the course, much to my dismay. What was advertised as some magic system is just a bunch of video calls where Jamil and other 'experts' basically have a podcast where they talk for 3 hours, occasionally on topic - but more often about other products you'll need to buy to be more successful. The workbook they send in the mail is about half full of more like therapy sessions and learning your why, what kind of traumas are stopping you from being the most successful version of yourself, typical guru space filling fluff. The guys that work for him are idiots to put it kindly. More due diligence should have been done on our part but if you do a Google search you'll see all you need to. The method Jamil is selling is basically what anyone can get access to with the right connections and reading a few books.

    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    2y

    I think it's just some marketing gimmick to refer to wholesaling/wholetailing

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