welcome to video 1 of this two-part
video series where you're gonna look
over my shoulder and watch me virtually
wholesale a real live deal from start to
finish coming up for a limited time you
can get a free copy of Jerry Norton's
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channel
I'm Jerry Norton with flipping mastery
calm and this channel is all about ways
to help you make money flipping real
estate so you can live your dream life
be sure to subscribe and turn on the
bail notifications so you don't miss new
videos hey we're gonna have some fun if
you're a hands-on type of learner like
me you're gonna love this two-part video
series where you're gonna watch me
virtually a wholesale a house in
Indianapolis now when I say virtually
what I mean by that is remotely I live
in Arizona and this is a deal in Indiana
so I haven't actually seen this property
in person and I'm gonna wholesale it in
a remote market across the country
without ever physically seeing it that's
what I love about wholesaling as of
right now we have the contract with the
seller and so on this video I'm gonna
show you three things how we found the
deal how we analyzed the deal and how we
secured the contract with the seller and
of course I'll be teaching and
explaining everything so you'll learn
with a real live deal and not abstract
theory you're also gonna get an inside
look at my deal management system
flipster which as you'll see is
invaluable now I can't imagine doing
this business without flipster if you've
never heard of flipster it's a
cloud-based all-inclusive house flipping
platform that has tools to help you
organize and streamline and automate all
of the steps to finding and flipping
houses - check it out and see it in
action just go to get flipster calm and
be sure to stay tuned for part two on a
future video or I'm gonna show you how
we find a buyer and structure the
wholesale and the most important part
getting paid at closing all right are
you ready let's go first let's talk
about how we found this deal inside flip
sir there are multiple lead generation
tools and one of them is the MLS finder
tool now this tool finds underpriced
properties for sale on the MLS or what
we call on market now let me digress for
a second and talk about on market on
market means the seller listed the
for sale with a real estate agent I'm
shocked at how many people don't know
this but you can find awesome deals on
the MLS like you're about to see and you
can wholesale on market properties just
the same as you do with private sellers
off market it's no different just
because there's an agent doesn't change
anything you get the contract and you
flip it to a cash buyer now I did an
in-depth video on how to find and flip
on market deals I'll put a link to that
in the description box below and you can
watch it later so using the MLS finder
tool we set up a campaign we call it or
a search in the zip code for 6 203 now
this generated a list of under priced
properties and one of them was a brand
new listing on Villa Avenue ok after
finding the lead we pulled up the
listing to get more information let's
take a quick look at this property it's
listed as 2,500 square feet and from the
outside it looks great the write-up says
new roof and windows but then take a
look at if you enter your pictures
it's gutted right down to the studs now
later we learned that this was a
rehabber who started but then for
whatever reason couldn't finish it maybe
ran out of money who knows and it really
doesn't matter
they are extremely motivated to sell
that's all that matters so using the
ammos finder tool in flipster we found
this deal now step 2 is analyzing the
deal to determine the offer price
you know crunch the number so inside
flipster we go to the deal analyzer and
flipster crunches all the numbers for me
let's take a look the after repair value
or what it will sell for once it's fixed
up is 300,000 the rehab budget on this
baby is a hundred thousand so how do we
know the ARV is three hundred and the
rehab is a hundred aside from the built
in algorithm in flipster well nothing is
exact science so let me show you how we
confirmed or validated those numbers if
I go on Zillow calm or Redfin calm which
are free real estate listing services
let's look at what's going on now I'm
gonna zoom in on the market here in that
neighborhood and look at recently sold
homes during the past three months in
the very neighborhood so you know really
recent and what I'm looking for exactly
is other fix and flippers because that's
who we want to compare our deal to to
get our ARV now if I wasn't able to find
comps going three months back I'd go
back six months and then nine months and
then a year but I was able to find
six fixin flips that sold in the last
three months right nearby and by the way
how do I know these are fixing flips
easy they're completely rehabbed they're
staged and they're vacant so let's
quickly look at these six comps and list
out the sold price per square foot for
each so we have here 827 Randolph this
property here sold for a hundred and
twenty seven dollars a foot we have 1639
Woodlawn this one sold for a hundred and
eighteen bucks a foot
we have 1806 Woodlawn that's sold for a
hundred and fifteen bucks a foot and we
have 835 Villa which is the same street
where we're on this one sold for a
hundred and forty four dollars a foot
then we have 1020 Villa also on our
street which sold for a hundred and two
bucks a foot and then our six comp here
we have 1028 Dawson which sold for a
hundred and nine bucks a foot
now why am i more concerned about price
per square foot than I am about actual
sale price because the square footage is
very on all of them so price per square
foot allows me to look at them
objectively apples to apples
okay now let's drop the highest and
lowest to get rid of our outliers so the
highest is 835 Villa and the lowest is
1020 Villa okay so now let's take the
average sold price per square foot of
the four remaining comps and that is
approximately a hundred and eighteen
bucks a foot so if I take our deal which
is two thousand five hundred and
eighteen square feet and I multiply that
by a hundred and eighteen bucks a foot
that gives us two hundred and ninety
seven one twenty four as our sale price
ARV which for simplicity I'm gonna round
it up to three hundred thousand now I
went pretty fast doing that if you'd
like to see me analyze real deals way
slow down using Zillow and red fin I
have an entire playlist of videos where
you can see me do that I'll put a link
to that playlist in the description box
below that you can watch later so going
back to our deal analyzer in flipster we
have an ARV of three hundred thousand
and following the standard buy formula
of 70 percent a fixin flipper would pay
a hundred and ten thousand for this deal
and if you really want to understand the
formula better you guessed it I have a
video for that too you know the drill
I'll put the link to that video in the
description box below and you can watch
it later so backing in
to the numbers if they fix and flipper
bought this house for a hundred and ten
thousand put a hundred thousand in rehab
they'd be all in for two hundred ten
thousand which is 70 percent of three
hundred thousand and they'd make a forty
five thousand dollar profit so the buy
number for a fix and flipper on this
deal is a hundred and ten thousand but
that's what a fix and flipper would pay
for it so now we have to figure out what
we need to get the deal for and build in
our wholesale fee which would be
anything under a hundred and ten
thousand so for example if I got the
contract for ninety thousand I could
wholesale it for a hundred and ten
thousand and make twenty thousand well
guys check it out it came out for sale
on the MLS for 50 thousand now don't you
dare tell me you can't find heels on
market so now let's go to step three
which is making the offer and getting
the contract now we were able to get the
contract on this deal for two distinct
reasons reason number one is we followed
my double dip strategy which is to go
directly to the listing agent
unrepresented and let him represent us
and submit the offer by doing that he
gets both sides of the Commission he
gets a three percent for being the
listing agent and he gets three percent
for representing us as the buyer's agent
for a combined six percent now that's
technically called dual agency in real
estate or what I've coined the double
dip strategy now I have an entire video
dedicated to this technique that you can
watch I'll put a link to that video in
the description box below and you can
watch it later
but the point is the listing agent is
highly motivated to get our offer
accepted because he'll make six percent
instead of three percent
now that was reason number one when we
got the deal and reason number two is we
beat the competition by getting our
offer in first we got our offer in
immediately after the property was
listed for sale in fact the listing
agent we double-dip with said that while
he was presenting our offer to the
seller
he received four offers but it was too
late we made a full price offer and got
it accepted before the other offers came
in so to recap full price offer of
$50,000 to the deal that's how we got it
so our goal is to wholesale our fifty
thousand dollar contract for a hundred
and ten thousand dollars that's a
$60,000 wholesale can we do it
time will tell and guys help me out I
need your feedback if you found a
hands-on deal breakdown video like this
helpful and you'd like to see more
videos like this then go ahead and like
this video and leave a comment and let
me know I value your feedback and I
would love to hear from you and stay
tuned for part two where I'm gonna break
down how we found our cash buyer and how
we put the deal together and how we
wholesale this property and in the
meantime be sure to watch this next
video where I show another live video
deal example where I show how I found a
cash buyer it's another hands-on real
deal video like this one so watch that
now and if you haven't yet be sure to
subscribe I'm dedicated helping you make
more money flipping houses so you can
live your dream life and I'll see you on
the next video