All Forum Posts by: Charles B.

Hi Everyone. I figured I would chime in as I am far from new to investing and one of my joint venture partners actually has joined Rapid Flip USA. My partner and I have done business together for over 2 years, and I trust his judgment. Additionally, I have reviewed all of the forms and techniques used by Rapid Flip USA to "flip" properties.

Now before I give my analysis I should explain that I buy or review many many training courses. First, I am always looking for a money making idea, and second I earn enough from investing to justify the expense of continuing my education. I am far from a book and tape junkie, and if anything I think most of the real estate investing courses sold out there aren't worth the paper or plastic that they are printed on.

Now, here is my analysis of Rapid Flip USA.

Is it a rip off? No. They provide the forms and techniques they describe to flip properties without using your own cash or credit. Additionally, I can say that these techniques can and do work, as I have used similar techniques on more than one occassion. I think the same thing can be said for many courses out there though. It CAN work. Will it work? Depends on you and the level of experience you have, and the effort you put forth.

Is the price of $299 worth it? I would say no. They teach the same technique that John Alexander teaches and calls the inverse purchase technique. John charges (or used to) as much $2500 for his system. RF USA charges $299. By that measure its a bargain.

The problem is without input from someone with more experience I seriously doubt that a few forms with little (and I mean very little) training or direction will lead to success.

Rapid Flip's training is really nothing more than sales hype about the kind of money you can make and a few forms. Granted, as I said, these are very valuable forms in the right hands. I just thought it was almost no direction as to how to make money with the forms.

The other "advantage" to Rapid Flip USA is access to their members only chat and bulletin boards. My partner was an avid member of the board for well over a year, and found less than 3 people who actually had done any deals. Instead there seemed to a lot of newbies who were (understandably) confused about what to do next.

Bottom line, I think the forms were worth $300 if you do not know how to use that particular technique. I do not believe a new investor will suddenly start making "real" money based on the training and forms at Rapid Flip.

Well, there is my 2 cents. I hope it helped.

I took the full time plunge over 5 years ago. Almost starved to death my first 9 months, then things turned around.

Hindsight being 20/20, I would say go full time when your part time income is greater than the income from your current job for at least 3 consecutive months.

I don't regret for a moment being in this business full time, and I make a very good living doing it. However in the current economy, I would play it slow and safe until the numbers force you to go full time.

Best of luck!!

Wow! Its been a while since I have been in the seminar mode, but gosh that is a lot of money to be given some direction. I say apply the usual principles of business in all real estate situations. Would you spend $9800 in your current business? If so, what would you think would be a reasonable return? In what period of time would you expect this return?

I suspect the answer to all of these questions will lead you to a big NO!

My advice echos the others you have heard. Save your money. Spend it on advertising, appraisal fees, or whatever will actually lead to a profit.

This is both a question and a thought for those who are just starting out in real estate investing (or perhaps have been around for a year or two) but have not really generated much revenue for their efforts.

Like many people I started off as a wholesaler. Any money I made, I made from assignment fees (we referred to them as quick flips back then). I see the same opportunities today, as I just witnessed a $25,000 assignment fee without anyone blinking an eye (either lender, buyer, etc.). Now granted this was a commercial closing, but I know the same principle still works for residential cash or hard money deals. My statement and resulting question is why so many new people seem bent on trying very difficult (requiring excellent credit or cash) methods to begin when assignments and referral fees are so easy to execute.

I am curious to hear what the new folks have to say. I would also like to hear a bit from some of the more experienced members of this board about the ease of using assignements and referral agreements.

My position is simple. It pays to build up your credit and cash reserves when you first begin any business, and real estate investing is no different. Rely on proven techniques (simple contract assignments and referral fees) where you efforts and the internet can produce income with little risk when you first begin.

Since when did the amount the seller will net become the "acutal[]" sales price? We will have to respectfully disagree here Mike. In my experience the seller and buyer determined the sales price of a contract.

To approach this rather simply; if the seller of a complex along with the buyer of that complex agree that the seller will put up the down payment in exchange for a higher sales price, than if he/she (the seller) did not have put up the down payment, that is no more a misrepresentation than if the seller agrees to accept a higher sales price if the Seller chooses to cover the closing costs of a transaction.

As long as there are commercial loan products that do not require source or seasoning of down payment funds, I believe that the down payment is simply another item that can be bargained for during the sales negotiations. This may not be traditional or the way some have become accustomed to doing deals, but these facts certainly do not make it illegal.

I do agree, that I would have a competent attorney review all and any of my contracts. After having such legal reviews done on several occassions with transactions structured precisely as my example above was, I stand firm. I see no misrepresentation there. Being cautious and making sure things are legal is just good ethical and business sense. Assuming that things are illegal because they do not fit the structure that I may be accustomed to has no basis in the law as far as I can tell.

This may or may not turn out to be a deal that Caitlyn proceeds with, but I would urge her to make that decision based on the financial merits of the purchase. In my opinion she shoudl consider any and all options regarding where and how she get the down payment, for this deal and any others she comes across.

However, with regard to DPA and its legality. That is simple. First, this is a commercial loan (as John as properly noted) and RESPA does not apply. I have no earthly idea, why (other than old habits from residential investing) you would HAVE to disclose the source or seasoning of your down payment if the lender does not require that you do so.

I find investors with no legal training seem to throw the terms like illegal or fraud around fairly loosely. Fraud in plain language is the intentional misrepresentation of material facts in a transaction which result in economic lose to one of the parties. DPA as discussed here is not a misrepresentation when the lender’s guidelines clearly state (in fact they promote the fact) that they do not consider the source or seasoning of down payment funds. Accordingly, neither the source nor the seasoning of down payment funds is material to the loan.

Also with regard to the DPA that I offer, it must be paid back immediately after or at closing. Period. These are loans for the day. The day of closing only.

At closing we will be paid back the amount loaned, and our fee. Neither the amount of the DPA or the resultant fee will add to the buyer’s loan balance.

I have a suggestion for those that have reached their limit of 4 houses (or more for that matter). Commercial lenders will provide a blanket commercial loan, refinancing the 4 or more properties into one commercial loan. This will free you up to continue purchasing and provide a pretty attractive interest rate.

I am familar with each of the three hard money lenders you have listed. Each has a good reputation in town. Their lending guidelines differ a little in terms of fico score requirements, source of down payment funds, and the type of properties and areas they will consider.

The question of who is the "best" is really based on the particular borrower and the specific property you are seeking to finance.

I am in Atlanta and I also broker hard money loans. Let me know if I can help. Though I have nothing but good things to say about the three lenders you have already inquired about.

Hi Ryan.

I don't get down to Ware County often, but it is a great corner of the world. Greeting from Atlanta.

I specialize in Commercial Real Estate Finance and private lending. Let me know if I can ever be of service to you in South Georgia.

As for BiggerPockets I think you will love the site and the networking opportunities that it provides. Good luck to you and congratulations on having very well defined goals.

If you still need help finding funding please let me know. We serve as brokers for private money sources including trust fund managers, a few hedge funds, as well as several direct lenders that perfer placement through brokers.