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How To Flip A Real Estate Contract

Hey, what's up my friends. Kris Krohn here and i'm joined again by my good friend

Jerry Norton, the flipping king. And today we're going to be talking about the

right way to flip a contract because there's absolutely a right way to do

that. And then hands down, there's a super popular wrong way. Jerry's going to teach us

the right way today. Alright my friends, Jerry's going to be breaking it down. First

of all, before we talk about the right way and the wrong way, what do you mean by

flipping a contract and can you make money doing this thing? Yeah, so this is a

fast way to make real... To make money in real estate. It's not a long-term

strategy. It's a short-term strategy where you're get in, you get out. You

don't own it, you don't fix it, you don't do any of that. You don't fund it. It's

just a really simple quick way to make a lot of money on a on one deal and then

you move on to another deal. We call it wholesaling.

Okay, so wholesaling is essentially where you go out there, you find... This isn't my

expertise by the way but... Because I've only done it a handful of times. I have

my other strategies that I rock out. But essentially, you find a wicked good deal

and then there's a way to flip it for money? That's right. It's basically you're

you're flipping a piece of paper not the property. So, real simple, you get a

contract, just like you would on any deal or you've got a seller and a buyer.

You're the buyer, you sign a contract to buy that fully executed purchase and

sale contract. And then once you have that, that baby's money now, right?

Think about it. Another investor would love to have that contract. And you're

basically saying, if this deal could make $50,000, if I just give it

to you, well, you give 10 grand to me, right? That's right. I got a guy in our

community right now. He's been a YouTube fan, he jumped into my program and he's

in the process of just actually flipping a contract for $50,000. Yeah. So, that's it.

I mean investors are looking for deals. So, if you have that deal, they will pay

you to basically step in your shoes. Now, become the new buyer and take that deal

and they'll pay you for it. By the way, you got to wait for the end of the video

because actually Jared's going to do something super special. He's going to

show you how you can get paid $10,000 just for serving up a

really good deal. And so, we'll get there in a second but really here we're...

But we want to talk about the right way and the wrong way. What first of all is

the wrong way? Like, what's the big mistake that people make? Oh and I see so

many people do this and it just like tears at

me when they do this. So, if you think about it, when you have a contract,

there's a seller and a buyer and then there's going to be a closing, right? You

go to that closing, there's a title or escrow company. They're going to facilitate

the closing. Well normally, the buyer has to come to that closing with money to

pay the seller, right? Well, let's say that you've got an investor that wants that

deal but you don't structure it correctly and you go to the closing and

you actually have to do two closings. One is the buyer with the seller, the

original seller. You're the buyer. So, you have to come with money to the closing.

And then, let's say your second closing with your investor cash buyer is after

that one. So, you would then turn around and do a second closing and then they

would be buying it from you. The problem with this double closing is that the

biggest thing is, you have to come with the money to buy the deal even though

you're going to turn around and sell it even five minutes later. It's the kind of

money. Is this double closing even legal? Because I've heard some people say it's

not. Oh yeah, a double closing is totally a standard way to do it. Because

your closing as the buyer and then your closing as the seller. What used to

happen is they would, they would merge them all into one. Mm-hmm.

And now they stopped doing that. Title companies won't do that anymore. It was

really nice because you could fund the first closing with the cash from the

second one but they won't do that anymore. I mean, it's really rare to do

that. So, the problem with this though is not only do you have to have the cash to

go to the closing but you're going to pay fees at that closing as the buyer. Then

you're going to turn around pay fees again as the seller. It cuts into your profit.

Yeah. So, what I hear you saying is what people are doing wrong is they're

saying, "Hey, I'm not planning on really doing the deal anyway. I'm going to hand it

off but I'm going to go through all the trouble of saying, now I got to come up

with the cash and I'm going to cut into my profits with all these extra fees." But

you're using a system that basically clears all of that away. It is the

solution, the right way. What is the right way? So, the right way is to do what we

call a single closing using an assignment contract. So, rather than do

2 separate contracts, one as a buyer one as a seller, you're going to merge your

cash buyer with the original seller using a document called an assignment

contract. And that's simply to put it in really simple terms, it's basically

saying, "Hey, you cash buyer. I'm going to give you all the rights of my contract.

But you got to step in and become the new buyer instead of me." And you got to

pay me. And when we go to closing, you bring the money and then you also bring

money to pay me the agreed amount that like the $10,000. So the deal is like the

treasure chest of the... Like, I always talk about finding a good deals like

pirate booty. Like I'm going hunting for buried treasure. I find me some

buried treasure in my property. And this assignment contract is basically

the way that I can turn it into cash with hands off not even needing to do

the deal. Jerry this is important because a lot of a lot of you that are out there

they're watching this, I mean I've got older teens watching this, I've got

people their 20's and 30's and the number one thing that I hear is, "Oh, Kris, I

don't have cash. I don't have credit." Don't have the money. How do i how do I get going

faster? And so, I love that you've shared with us today the right way and the

wrong way to flip a contract. And I want to thank you for doing that. And it's

time to get to that bonus. Oh yeah, listen whether you got money and credit or if

you're like me when I started. No money, no credit. You start off like Jerry and I

were like, "Aaaaaahh." Then what I want Jerry to do here is actually explain what you

can do right now if you're in that situation to actually land some quick

money fast in the game real estate.That's right. So, here's the deal guys. I'm

looking for deals. I do deals all over the country. These are fix and flip deals.

And my biggest problem right now Kris is I need more deals. So, that's where you

can come in here. If you've got the time and the energy to go out there and I'll

show you how to do this. I'll even give you software on how to find these deals.

You go find the deals then you bring them to me. I'll be your buyer and I'll

pay you $10,000 for every deal that needs my credit. So, just pause for a second. I

mean, I've known Jerry a long time. But this is actually kind of crazy because

in the silent world, people used to you know get away with paying 3000,

5000. Why are you paying so much money?

Well, because listen. I want you to be excited about this, I want you to be

motivated, I want you to go out there and find these deals. And you know what? I've

got enough profit on these deals that I can gladly pay you $10,000

because now I don't have to go find the deal, you found it for me. Now Jerry, what

if they're actually finding... Let's say they just find... They're out there, right?

The deal of the decade comes along every day. So, let's say they find the deal

of the decade and they're like, "Oh my gosh. What if I don't want to share it

with Jerry for ten grand? What if I want to do the deal and make all the money?"

Can they do that? Oh, yeah. You have the contract, so if you want to keep that

deal, if you want a wholesale it to somebody else or whatever. The nice thing

about what I'm offering is you don't have to worry about finding a buyer. I'll

be your buyer. So, if you don't want to have to even worry about going out there

and networking and finding other investors. You know, cash buyers that you

can take your deals to. And you just want to bring them to me. And I'm your man. Bring

those deals on I'll pay you $10,000. Hey, thanks Gerry. Listen up guys. I

want you to click the link in the description below. That's where you're

going to go to get the rest of the details. If you are not a subscriber, fix that

right now. I've got Jerry coming on doing a few more videos. If you're liking this

topic, if you want to learn everything about flipping, I'm going to have Jerry lay

it all down. Break it down for you. So, make sure you subscribe. But click that

link, get on that free webinar where Gerry can actually show you exactly how

he can pay you $10,000 for him being the buyer on every one of those deals. And

that's what I talked about making money fast on flipping contracts.