How to wholesale real estate with no money. Interview Flipman Ty Wholesaling Expert. Free App.

How to wholesale real estate with no money.  Interview Flipman Ty Wholesaling Expert. Free App.


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just a minute okay okay sounds good
all right I Tom here flip anything USA today we’re gonna interview Ty Taylor
flipman.net tie is a wholesaler of real estate he is also very experienced real
estate investor as well as a mentor he mentors a lot of people around the USA
and I’d actually reached out to him many months ago when I’ve started my station
and I identified him as being the real deal and I was anxious to talk with him
and he graciously did talk to me and we’ve been buddies since and so today
let me introduce you this is ty I have two going very good time very good so ty
I wanted to get right into first get a little background on you how did you get
interested in real estate from the beginning what what opened your eyes to
the the possibilities well first you have to just know me entrepreneur first
like at least I’d like to think that I am and I sorta have to give a little
back story to get to the real estate part of it but I’m not one of these guys
that grew up you know selling lemonade or mark you but I think sold garbage
back door to door it happened for me in my early 20s you
know when I was in college so one of the first things that I did of any
significance I had to bring an idea that I was going to take my student loan
money and start buying you car used cars and become a millionaire so one one
small problem there that if you’re not mechanically inclined you’re gonna get
holes in that business and so I hold so it didn’t last long after buying a
few cars so I fast forward a couple years later my brother two of my cousins
I grew up with and one of my brother’s friends went to AA I guess you would
call a vacation back in 1995 to Daytona Beach and one of my brother’s friends
drove up from Orlando that lived there and he was telling us about his mobile
car wash business yes start and he had did six figures so you know I couldn’t
wait till I got back to Birmingham off you know the trip that we were on to to
invest in me some equipment so I bought a baby-blue passenger van or deceased
had already been taken out been 900 bucks on that bought a pressure washer
and what else a hundred two gallon tank and an assignment put outside just let
people know what we were doing when we’re on site so I was in business just
like that you know we started showing up at barber shops and Hair Salons place of
the moment what people were working so that summer my cousin and one friendly
we went to high school we were in business so fast forward to the fall
when it starts to cool down even here in the south and one morning woke up it was
45 degrees or something like that and one day event and I knew hey there’s no
way I could know I way I can do that you know just seasonal business so you’ve
been for me anyway you know it’s about that same time of year when I probably
earlier when I decided to quit back then or whatever but there I’ve been watching
I just couldn’t do it and so so I’m melting around for the
next few years with some multi-level marketing stuff had no chance of
succeeding in that because of my lack of personality I guess you would say and
getting people to believe what I believe or whatever it so one of my friends this
was in 2002 one of my there’s now a wife of going to school to
become real estate agents and so the guy that normally talked to class he wasn’t
there so to substitute he didn’t talk about being an agent he talked about
investing in real estate and creative ways of investing in real estate without
you know using your own cash or credit so my friend mentor said a couple of
things to me and I didn’t act on it at that time I was in October of 2002 fast
forward to December you know right after Christmas I was at my mom’s house Lisa I
was 27 to be exact I just don’t know I can remember that but I just can’t and I
was up early one morning she was preparing breakfast for me and one of
the cars and she’s infomercials came on yeah we had all seen them over the years
or whatever it it’s not like they really tell you anything and just you know a
lot of testimonial Carter who helped me make $30,000 or this or that but no one
is never telling you how they made the money and so I part about half way to an
actual episode so I went up to dabble but they were just on all morning on
Saturday and Sunday morning and so I just watched it from beginning in again
I didn’t take anything but at the end of it I thought to myself he can’t be lying
about all of this right and so on and have internet back then so I went I got
back to Birmingham and I went to this entrepreneur message board I used to
frequent and post on and ask questions about different things I actually
question does Carla she’s program really work and only one person replied and
like yes it does but Ronald Legrand’s course is better hmm
like that’s so I did a search found on his website and at that time he was
charging $1,500 for the course and for me it was a lot of money and so they had
a condensed version of it for $69.99 with shipping 80 bucks and so I ordered
that and all it was was of teasers you know to give you just bits of
information to like just wow you you know he’s really good he’s really good
at that so um so I decided my mind if I had to get a second job
you know I was working back then I had to get a second job to come over that
$1500 or so a couple of days later I thought about eBay and I did a search
for his name and there were a couple of auctions on that exact product and so I
filled it on and lost the auction and this guy that ran the auction could do
that back then when he bear guest he emailed me and actually what I like a I
guess what we call this a bootleg or burnt copy of the course so we have the
back and forth we agreed on $400 but still with a little under undertaking
for me but I’m just feeling it was the right
you know I needed to do that so I ordered it and it was just a huge
package I went from knowing zero about real estate to just all these different
methods of ways to do deals without you know your cash your credit from hole
selling to lease options to subject twos to obviously by fixing hold army by
fixing flip or whatever but the two things that stuck to me most was number
one hole selling and lease options on top of that he made it clear if you
bought these signs I didn’t know what they were called then these bandit signs
and put them out people will call you saying they got a house for sale and you
just allowed a number to take over so I ordered some signs spent two hundred and
fifty dollars on 50 signs with a drastic overpayment but I didn’t know I was that
green and so I got him on a Friday put it was 50 cent I put him out all on the
Sunday morning and that Monday the very first two calls that I received or deals
when I’m almost desciption opportunity and the other one was actual wholesale
opportunity if woman go into the deal I will but that’s been out how I got
started yeah well that’s getting into some of
that but first of all why don’t you define wholesaling for myself and
everyone else what does that mean well in my definition it basically means as
far as real estate is concerned and this can be what houses it’s often saying a
ten thousand dollar house or the Empire State Building right number 107 is being
able to control a piece of real estate what they purchase and sale agreement
and significant discount that you can
basically sell your contract to someone that can actually purchase the property
norman of a cash buyer or a buyer with the resources to purchase now how you
actually get paid in a wholesale transaction and because once you have a
purchase and sales agreement on the property unless that contract says you
can’t assign it you can assign it now a lot of a lot of wholesalers will double
close it because they want to prevent to sell us an order beginning in a bar I
don’t worry about that cause everybody knows everybody in it to make money to
sell they got what we agreed upon the buyers are getting what we decide I
don’t I don’t ever worry about this I just assign so everything is open and
transparent for us once we’re sitting at the closing table so basically it’s
being able to control the property with a contract with the seller contract a
and then a contract B with the buyer at a higher price and you get the
difference and that’s done either through a double close of the said or
what I prefer is an assignment of contract I hope I define that I
explained it more so than defining I guess yeah so so basically and I follow
you exactly but you’re saying you enter the contract to make a purchase you’ve
got so much time to buy it and then while that you’re in say escrow or you
know in essence you go find another buyer and you write a contract with him
take yeah yeah I guess an example would make more sense
let’s we have to start from backwards you have to know what a property is
worth before you can even start negotiating on the wholesale well what
it with a seller alright and just to give some easy numbers here say I’ll sue
my house in excellent condition meaning that’s what it would appraise for an
excellent condition there’s a hundred thousand dollars but it’s called
ARV in the business after repair value meaning after it’s fixed up or after its
repaired what will it appraised for all right so
we’ll use a hundred thousand dollars now a seller calls you or you reach out to a
particular owner and for whatever reason you negotiate a price of thirty thousand
dollars I said why would someone do that well
number of reasons why someone would do that they may be going through a divorce
it may be a tired landlord the property could be neat too many repairs they
could be relocating they lost their job income in general a loss of income could
be a medical bill situation could be a kid going off to college that exists in
any market so so someone we can get it at $30,000 you place it on the contract
that’s contract a with the seller now it’s time to find a buyer you don’t know
anybody you know a lot of people say find their buyers and being the final
what they want yeah you can do it that way but if you get in this business long
enough a guy can tell you exactly what they want and area all the criteria that
they laid out for you bring that property to us a this is not good for me
right now I just did this or whatever so so what you do once you have that
property in the contract obviously the first thing you want to do is go online
you can advertise on Craigslist and pretty much eat any market all right one
of the other things you can do is go to Google and just do a search several
searches for sell my house fast buy my house fast sell a house fast just terms
of that nature and it’s going to populate with guys in your area some of
them be national but a lot of times it’s gonna be guys that market on Google ad
using AdWords looking for deals so some of those are gonna be wholesalers and/or
some of those will be cash buyer probably one of the more effective ways
to find buyers is is the reverse of Ben Stein’s defined deals you can also move
deals that way because what happens is that guy that you can advertise just a
simple generic sign you right on the sign house for sale will just say in
this situation $45,000 we put maybe fifteen or twenty twenty of those out in
that neighborhood where the house is located investors that invest in that
area or in that area on a daily basis so when they see a forty five thousand
dollar price and they know it’s $100,000 neighborhood you’re gonna get calls so
you will get called types of calls but you’re gonna get calls from the guys
that matter so those are just some simple ways to know
one to find a buyer for that deal but also it gives you an opportunity to
build a buyer’s list for future deals because you may have 20 people calling
you on that particular property you could only sell it to one of them so the
others you want to collect their information for future deals and what I
mean by that obviously their contact entering a name and phone number how
many deals they buy per month or per year what price range the number of the
minimum number of bears are bath what level repairs they’d like to to deal
with and so you slowly build a database by using the properties that your
marketing to attract buyers you know and that helps you build a data but you
always want to market your properties whether you have a buyer for it or not
because buyers get in and out of the business
so that’s your investor database so tell me so when I – this long time I’m just
asking again the the purpose of the Bandit signs if I gave you a hundred
signs and I said okay ty you only get a hundred signs to use here how many of
those are you going to use to write a solicitation for buyers to denilla
property and how many of those are you gonna use as a solicitation as I buy
houses well well assuming that the signs are printed for the cell uuu well you
could do handwritten signs for sellers and buyers which I have video to say
that but I highly recommend on’t understand how to write them for as for
the writing marker the right sign all that stuff matters because of disability
so we’re just going to assume you’re gonna buy a hundred signs that say you
know we buy houses or the phone number okay now that’s their single sided
meaning one side I have the print and the message that you want the other side
will be blank so what I would do if I do only have a budget of a hundred that I
can afford a hundred signs ten of those I’ll leave out for sellers I mean for
buyers you know because once I do get a
property on the contract then I’ll use those the blank side of those are the
ten to help market on that particular property so ninety ninety for sellers
ten for bikes and it’s all about 290 of those so if 90
of those signs you’re gonna use to say hey I buy houses to get a deal is that
correct the other 10 you’re gonna put up and say
I have a 3-bedroom 2bath for sale for 40,000 okay so that’s about the ratio
nine to one and and I know it’s interesting you’re talking about how you
write those signs and I know what you mean but do you prefer a slick clean
sign like what I’ve got back here from my app or do you want them to be
handwritten you know you know just like like we see everywhere with a felt pen
well well for what sellers of a biased you tell me you just tell me what what
application would y’all slick sign to sell or solicit of purchasing versa well
both work first of all both work with a handwritten of pretty and I again I have
older videos where I explain how people can use to do handwritten for sellers
but what I realized over time most people just don’t get it I don’t know
why it’s so important on number one the type of material that you use which is
the corrugated plastic right you can’t go in and Home Depot now and buy that
that’s hat you know they’ve been doing that that long but and then the right
type of marker the tip on the market is so important because you have to keep in
mind is fact that people right yeah people are trying to read your message
from a distance and so the thicker the stroke is on your text they’re more
visible is going to be and also you can only limit it you only have a limited
amount of space so your message has to be really in a shotgun approach that’s
why you see we buy houses or I buy houses and just a phone number because
there’s only so much you can say custom or you put on the side that the smaller
the message of the comes all right so I recommend printed on the seller side
because again most people understand to do the handwrite written is not as
important about that for the buyer side of it because
you again you could put out those ten signs for buyers and give you’ll get
more calls with ten signs for buyers than you will with ninety signs for
sellers because that’s it looks like me that are just looking for a deal right
exactly and then you’re gonna have people that call hey do you need someone
to clean your houses do you need someone to do repairs y’all rent houses you all
doing the owner financing so you’re going to get a number of different types
of calls just from that small number of signs that you put out whereas when you
when you do seller signs you’ll get some of that but for the most part
it’ll just be cells that are calling you and it’s not just gonna be as many as
buyer so alright and so let me see here so tell me like how a typical
transaction would go down somebody call them says hey I’ve got a
house for sale I saw your sign well the way I do it okay I put out a message or
whatever whether it’s been assigned a direct mail or or
us reaching out to uh selling other methods or whatever but the way the
conversation will go is and I’m normally going down to the phone what they called
a couple of different numbers so and I’ll say we buy houses how can I help
you you know they’ll say y’all buy a house like yes yeah you got a house for
sale you know and I say how they just work so dis so base you can answer all
of their questions we buy as he is we’re closing two to four weeks we pay all
closing costs – any unpaid taxes mortgages Orleans that pretty much
answers all their questions alright so then so if they don’t say they’re okay I
see so that I’ll say well you got a house house you want to sell and like
yeah I’m thinking about so what’s the address so I sort of force them into go
on here and give me the address or whatever so once they give me the
address the information that I normally collect and I’ll tell you what you
probably should collect information that I normally collect is the address the
number of barrels the bath or is it brick or combinational siding
doesn’t have central heating air because that matters you in itself being their
name obviously well I’ll give him my name my name is ty Taylor I said one
journey and so they’ll then give me that name and I’ll say what’s your phone
number even though and they come over all my on my caller ID on my phone and I
steal like for them to repeat it cuz I record my messages and so on and then
I’ll ask you why are you considering selling so that opens up the level of
motivation and I can determine so we haven’t talked about price yet now so a
couple other things that you could ask doesn’t have a mortgage uh-oh I always
ask is a baker if the property is vacant or not if it’s vacant being and that’s
one thing if it’s not that’s another because it could be them still living
there or arena done it’s not a deal breaker but you just want to know that
sure okay and so anyway so once I get to why are
you selling then the next thing is depending on what they say I’ll follow
up paying all cash and closing quickly what’s the least amount you will accept
for your property to just wait on the response and regardless of what they say
you know normally gonna say is that the best you can do and so we go from there
now my goal is always to get the seller to give me their least amount sometimes
they won’t do that so I always am with you I always like the seller to say
twenty once first it’s just easier cuz they’re out yeah yeah cuz I’ll know
immediately I will this is not gonna probably have right yeah exactly if it’s
in the ballpark where they are okay all right so but sometimes they’ll force you
in to make it an offer your best if that’s it if that’s the situation then
I’m going to offer something and this is what I always recommend the students and
non-students that I’m embarrassed about all right now I’m not expecting them to
accept it but sometimes they do what I what I’m looking to do it they don’t
hang up on me is well how if once they give me their
amount I mean once they say well I can’t do that you know you’re you’re
ridiculous so my follow-up question is well how close can you come to that
amount okay so once I get that then I’ll know you know if we’re in the ballpark
or not you know I will their time not so obviously if it’s a number that works
for me then we’ll roll with it I’ll set up a time to go out and look at it so
I’d rather go out and look at properties without the price working over the phone
that’s me now I’m not telling anyone else to do that I rather go out and look
at problem mr. price works over the phone sometimes they can give me out or
what everybody conversation you know we hadn’t talked about price but it’s rare
that I would go out and looking and we haven’t negotiated a price that comes
close to working for me but if it doesn’t work for me and I’ll just thank
them for that time I’m not a Hagler and I’m probably left a lot of deals on the
table by not being but I’ll just think I’m for the time and let him know if
anything changes to please give me a call back man that’s an important way to
close any time I’ve ever sent a letter out or anything else when I do a
solicitation I always end it with if you’re not interested now please keep
this and let me know in the future if you change your mind very important to
do that let people know that hey just because we can’t make a deal now doesn’t
mean we can’t make one later and so I’m with you on that for sure oh yeah life
sometimes I’ve had people to call me back six months a year year and a half
later they could have called other people and you know whatever but they
called me back and I’m a little different on it than others a lot of
people have screeners or whatever and they said they don’t want to waste their
time or time you know but I personally want to talk to everyone if it’s
possible sure I can gotten that busy to this point in my real estate career I
guess life span that I’m not busy and too bitter where I can’t talk to the
people they’re calling you about money yeah I’m stopping what I do what else do
I have to do you know and so and the reason I do that in if I got a virtual
assistant or whoever talking to them they’re not gonna care
I care right yeah sure it’s not gonna handle in it and try to build rapport
with the seller the owner of the property like I will that’s just me I’m
not saying everyone else I’m with you it’s the way to go you have an advantage
when nobody cares more than you nobody cares more than the party to the deal so
yeah so let’s see so okay so you’ve got that and so let’s say you’ve got a buyer
you’ve got a property you got under contract and let’s say there’s a tenant
in the house what are some of the problems or you know how do you deal
with some of that sometimes people are motivated to sell because they have a
bad tenant they have a tenant they don’t like okay all right I treat that as a
yeah that’s the reason to be motivated and so now you you just like a house
needs a lot of repairs and they have to sell it to you the price is justified a
panhead repairs you also have to give me a price when you got a bad tenant to
justify that headache that I’m gonna have to go through to get him out of
there sure and I’ll be just a whole selfish dish I wanted two recent deals
that I did I had a buyer ready to go he was all over it but he said time my
little closing should they move out you know that’s a bad courtroom to be in so
what I did was I was gonna make ten thousand on the deal but I told a lady
well I think I was gonna make ninety five hundred but I gave her a thousand
yeah that’s what he was I was gonna make ninety-five hundred on it and so I the
situation was it was the owner of the property it was her sons
it was her house that she gave to her son but he passed away and his ex-wife
and their two kids were still there but they had never paid in the rent the lady
said that had been over 20 years and had never paid the rent never paid the taxes
or anything and the owner went cold relating she said she just can’t do it
anymore they you know they need to step up and be grown people or whatever and
so so anyways so she said if you can you can go over there and tell him I sent
you or whatever so again I had a buyer ready to go a lot of
he and I had a pretty good relationship so you know I could do a few some things
with him I couldn’t do with someone else so we did do a walk-through over at the
house or whatever lady tried to bad-mouth the house but you know he’s an
investor so he expects you no problems with out or whatever cuz you know just
fighting the price and I know how to take one myself so anyway so what I did
was is that uh I said I put a letter in the mailbox and would you not supposed
to do that but I put it in a little mailbox and I basically told her to that
I would pay her a thousand dollars to move out but you don’t have to move out
anyway right we’re gone you know and so she she told she really have anywhere to
go and you know all this and I really felt bad you know but she was gonna have
to go anyway no I agree well most people are not gonna do what I would go to that
just go through the eviction process and get y’all this I’m giving you a start
and so at least that’s the way I felt about it anyway so and then you know
they they had in hustle in my opinion hustle the mother-in-law anyway so I
didn’t feel you’ve been living there free for over twenty who has free rich
or free mortgage somewhere freedom you should I’m saying oh yeah and I’m with
you I’ve had the same thing I’ve had to incentivize people to move out of
property and I bought properties without ever stepping inside and it kind of goes
to what you say as long as you know value you don’t even have to go inside a
house if you can see that structures in good shape you know there’s a bathroom
in there you know there’s a kitchen you know it might be messed up and it may be
in good shape that’s a bona fits you know but it’s all factored in there if
you’re buying it right you’ve got money in there for that kind of thing right
exactly what’s the worst it can be if you had if you just drove by property
and couldn’t see the inside of it but you knew the price was just ridiculously
right once the worst it could be you know you know someone’s living there
I’ve probably bought three or four houses now I mean I bought hobby five or
six where I committed to him over the phone without seeing them but I bought I
think at least for now where I never even stepped inside the prob
till after it closed and because like I say you know the neighborhood and I
always emphasize the same thing to the people I talked to his long you have to
know a deal when you see one and obviously you know you you know what the
property’s worth before you talk to him and you have already prepared because
there’s nothing worth something if you ever had this happen to you but I’ve
actually had a deal but for me and I didn’t even know it was a deal at the
moment you know what I mean and okay I’m like I got to figure out if this is a
deal then pretty soon I’m oh man that’s a great deal and now I’m know I’m number
two in line and I oh yeah you never forget that right oh no you don’t forget
that now I’m going to normally whatever I figure out it’s a deal
I’m normally gonna drop whatever I’m doing if the sellers know you got to
base it around their schedule or whatever but I’m gonna I’m making myself
available totally around their schedule right would you say most deals happen
after 5:00 after work is there an average for you um you know that’s a
good question huh mmm I never even thought about it like that I just tell
you I like when the daylight hours are longer you know when it gets dark at
7:38 and they said the tents because you can get more done people have a job and
my experience you know I’m always waiting for somebody to get home from
work to sign the papers oh yeah a lot of times I look at properties owned either
on the weekend because people don’t have the availability through the week or you
know after after normal business hours I guess you would say oh whatever so but
in that time frame cuz I’m already out a lot in the store
what I didn’t just in the streets or whatever looking at stuff if this a deal
and I know it today is Tuesday and I knew I can’t see it until Saturday I’ll
probably drive by it anyway you don’t I’m saying if I numbers work and so you
know I’m again I’m totally around their schedule dropping there’s nothing
anything become more important in most cases I’m not I’m not
the option you see them saying yeah I get a few more deals than probably I
said just because the morning I’m answering the phone pretty much all the
time and don’t since we’ve been calling that phone that bad number that as my
sellers wrong but that’s time I call them back but I’m going to respond
quickly you know so like I think I get a few more deals of each year just because
I respond and I’m the one answering the phone I mean I’m a I don’t have any
readout on that but that’s what I feel no I’m with you I tell everybody you’ve
got to be the first one there you know and if you’re not gonna be the first one
there you want at least be second because I mean you’re waiting in the
wings for number one to fall and make a mistake so let’s see is is there like an
average sales price or an average commission that you deal with well with
houses just from my market generally speaking is going to probably range
between there was sort of wide range but five to ten grand birdies and would that
be on an average of a home that’s selling for on average 100 grand or less
or 120 or less yeah most of my stuff is gonna be under 100 you know we also we
have mark mark areas of town with higher-end properties than that which in
some area that’s the lower end or whatever but that could even be lower
middle class in my market um you know so but you know I’ve done the houses know
400,000 also you know just don’t go just don’t come as plentiful as the other so
and what on average how much commercial do you do significantly less than
residential less just because the way I go about doing business most of the
commercial that I’ll get my hands on it’s gonna be multi-family no fire units
or those are easy yeah and it but you know I’m I guess I have somewhat of a
reach just through my youtube channel facebook or whatever so I should have
been did this you know I put it out there
people to send me some specific stuff or whatever and so looking at a couple of
deals now just because it I did that about three weeks ago and matter-of-fact
well we put a property on the contract in you Dan apartment building but it’s
what it’s bacon but there’s not baking one person is staying there and I got a
buyer for it but he wants to do owner financing on the property and so so we
went back to the cell ask for all the financing on it and so we wouldn’t know
how to respond back I think she’ll be ok with it because I actually negotiated a
deal without seeing it and it’s in a lot worse shape than what I thought
now with multiple well with multifamily says it says such high demand that if
you can create great terms you’ll have a buyer for it very easily now a lot of
time they’re just paid cash you get the right price but you can create great
turns where they can get it into rentable shape or whatever a financeable
shape probably better a better term being or just to stabilize it I guess
that’s the actual eternally like you know stabilize their property then you
know it can work so and so with that being said if she’s she agrees to those
those on financed to turn the lady to help me with you know put this deal
together you know we’ll get a full price for well we’ll get full price for you
know as far as my feet whereas normally that that doesn’t happen you know I
leave negotiate and roll them in there but we’ll get full price but also dollar
bonus so you probably like me you’ve you know that if you if you set up the
financing in other words if you get this lady to owner Kerry and if you get her
to carry it at 3% or 4% and you’ve created an assumable note now so well
well I’ll tell you to turn that offer to her you tell me if you would do this i
we had it in the contract well I’ll just throw two terms out there because it
there’s not a done deal yet sure but but but the terms the terms I offered it was
twenty thousand down of a term of 18 months $1,000 monthly
payment that goes toward the balance toward the principle 100 days and a
balloon a balloon on the balance within that 18 front 18 months now she may not
accept that that’s what I put out there you know I got a lot of flexibility
there ago she said well I don’t want to do that I’ll do interest-only something
like that’s fine it’s still a work for me it’s just I threw out those term I
thought those would be attractive but I could give you the notes no big deal got
in the contracts 10 years got on the contract for one hundred and two
thousand or 102 500 right matter of fact if it was stabilized at 80 percent in
that neighborhood the property at a 12 count would probably be worth around
$250,000 you know what I’ll tell you something you might want to consider
doing with that deal it’s close it yourself and condo eyes it you know you
can condo eyes that that that 10 units and you can system each of those units
there’s a D neighborhood it wouldn’t work in a neighborhood no you don’t
think you could do the because in dog yeah I’ve never gone to a deed it would
be ready like that if you got in good condition you know no weapon and I gave
you a conservative number if they did section 8 on the property that property
would rent it will be overworked over half a million dollars so you’re dealing
with a fairly rough neighborhood then I mean you’re kind of you’re in doing it
in that one you’re in an area that you know maybe a lot of people don’t want to
live this was early on I think I had did a dealer to an embed locally the same
guy that spoke at my friend when they were doing their real estate training
and the substitute was there he I didn’t know that that time but he taught a
class like once a month on real estate investing and one of the first things
come out his mouth that every house is a step up for
someone I can see they say you can’t get caught up into I wouldn’t live there I’m
not gonna invest there no because where he said wherever you live right now he
said for some people gonna be a Taj Mahal but for others it wouldn’t be good
enough okay who you are you know I can tell you the first five houses that I
bought I didn’t live in I didn’t live in the first five that I flipped
I brought the sixth one was the one I bought and lived in so what so but
probably Tom away 2% of my deals over the years it’s almost 15 years in the
game as of January of this coming year it’s been in those type of neighborhood
yeah you know I was looking at buying property in Compton okay Compton
California in the 1980s that’s like just like the movie Compton or whatever it
was oh yeah man I’ll tell you that was a rough neighborhood and me and my buddy
we win it down there looked at this place and you know and then we went up
to get a soda pop at the corner store and I’ll tell you more about this story
later but but as I’m walking up me and my buddy are walking up this little
black guy mr. Brown I’ll never forget him he’s a great guy comes walking
towards us and he goes you boys must be lost and he was right we were we were a
little concerned but but anyways but yeah you’re right in fact in that house
that we were looking at that none of us wanted to touch the lady next door paid
$75,000 cash for it and so like hey there’s a market everywhere for
everything oh no question about a man in those neighborhoods if dead people not
living over there for free no that means someone that needs to either invest in
Auvergne and got rental properties and or they actually purchase their home
over so you know but you know at the end of day you have to spend your money
where you’re comfortable at you know I’m saying so well I tell them
everybody there are no bad properties just bad deals right we know yeah yeah
yeah I did a deal’s a deal the check cashes a sign all right so
tell us about one of your smoothest deals like the easiest money you’ve ever
made the quickest deal oh wow let me think probably you know what that
I need to go back to this doctor I can remember things about it more so than
anything but I had this deal with this lady her name was uh miss berwitt I
won’t I won’t forget I guess she’s probably passed none because she was in
her 80s then I was over ten years ago but um she called me and she didn’t give
me a price is one over one I didn’t get a price on the phone and she lived in a
retirement facility and she wanted to have a conversation with me let me know
why she wanted to sell her house which was our pride and joy she just couldn’t
she just gonna live that anymore cousins upstairs Downstairs bit-level
and the reason that lady she summon house for 10 grand it was probably worth
80 okay it was a great condition she used to get
you know here in Birmingham certain neighborhoods they give out beautiful
what they call beautification awards and she used to win it every year in our
neighborhood and so she moved into the retirement facility and because of her
health and she just couldn’t number one maintain the house and get around in and
like she wanted to so our granddaughter moving into the
house and she told me she say uh mr. Taylor I’m gonna let you know that I
know I’m about to give you my house and gave me a price yet she said I’m explain
to you why so she explained to me that she she call herself helping her
granddaughter out gave her somewhere to live and some neighbors have been
calling her as their granddaughter letting all types of people healed
in and out of the house and and now she told me she said before I let her
destroy what it took me all my life to pay for and to maintain and treat it
like it was my home because it is and was
I’ll give it away he said so they’re gonna be no negotiations I’ll let you
have it for $10,000 Wow I said I will accept that deal and so problem with
that deal was though okay I had a buyer already ready to go and a wholesale to
help to him for 14,000 14,000 so I only made four and I’m not the type to really
worry about how much someone else made he sold it basically within the same
week to a lady that wanted to oh my date open a daycare for 29,000 you know no
friend of mine Henry Booker he’s one of my earliest
mentors and he was a fireman and he worked three days a week then he was off
four days a week and he owned I mean tens of millions of dollars in
real estate 30 years ago and and Healy told me he said Tom he said you can’t
get hurt taking a profit he said just remember that you can’t get hurt and his
point was not to hang on to it so long that all of a sudden you know things
turn on you in other words right just take your profit and go it doesn’t
matter if somebody makes money behind you in fact it’s better because you
probably never hear from him again in the litigious world that we’re in you
know I didn’t come over really good friends he’s it was half of 0pa pigs get
their hogs get slaughtered don’t be greedy yeah okay now let’s go the other
way what’s what’s like one of the toughest deals where you had yeah what
one of the that freedom matter of fact ironically
and I’m just talking about one of the first few deals I did probably maybe two
years into the beers and I just lady called me and she wanted to sell a house
that was in a hundred and fifty thousand dollar neighborhood and she wanted to
sell it for a hundred that wasn’t that was a decent deal but Neera Neera
players 46 from forty six hundred square feet so you just minor repair just
cosmetic stuff’s gonna add up on the house with that type of square footage
and so my friend that he’s a myself just find out he’s some financial services
industry now but he’s a Salesman he can say old dirt to an end
oh oh I said many thing you can talk to his lady down yeah he got it down from
100 to 50 Wow and so if I would have probably did the same thing because her
motivation well okay her parents left her the house ma’am and she didn’t live
there she treated the house is storage when I went to Butte the house there was
so much stuff mainly clothing in the house that you couldn’t even see the
floor it really wasn’t a filthy situation more about jumpsuit was it was
close there’s clutter you know what I’m saying so on so she that wonder when her
parents passed away and left her in the house they didn’t know anything on right
she went out and got an equity line for $25,000 and got behind in the payments
Wow so they were about to take that house for that 25 thousand right and so
but I didn’t know that so my friend pulled that out of her firm through the
conversation that he had with her right so she was comfortable with walking away
I think she would thieves and everything she’s probably gonna walk away with
maybe 20 grand instead of 25 from no the payoff or whatever and so on there’s now
this was before the the mortgage crisis now so it was back then you know you
could get a ham sandwich family finance or whatever so he had to grated now he
didn’t know anything about real estate I saw the house he had bought for his
family that we were going to he was gonna read
by the house and we’re just gonna pull all the across it man can do it like
that I say it doesn’t work like that yeah you know they’re not gonna let you
buy even back then and I gonna let you buy just automatic and pull deck without
now if you the held onto it a little while or whatever and then you could do
that a refi the plug but we messed around with this lady for six months and
trying to do what he was telling us a man is not gonna happen man so once he
turned it back over to me right within two weeks I found a buyer at 80,000 so
we wholesaled it to that guy for 480 thousand now during that six-month time
through this lady was she was found out to a strike strap so my friend cause you
know he wanted to do it that way so I really turned that deal over to him he
was giving her money to help support her but he was subtracting it from what she
was going to get at closing the entire time and so on today we got ready to
close it was a evening closing and what I would I got there she was already
there the tourniquet that closed so many deals with them they basically did it
after business hours and you know cuz it was a cash sale someone don’t take long
so we got that she was fired up well she has seen the hood one if no one knows
what the hell one is basically it tells who’s getting what who’s paying what
right and that’s the only time that’s ever happened to me all the deals I’ve
done and almost 10 years all the time I had a seller the trip about how much I
was making I’m up in my friend oh she’s all right your side of it yeah see he
was getting like almost he was getting like almost 18,000 I think I was getting
12 you know because all the money he had gave giving her whatever something like
that okay the total was like over $30,000 I
forget what the total number but it was over $30,000 with the money he was
giving her over over that six-month period but she saw your hood she saw the
flip yeah yeah she we getting $8,000 out of the deal but she had already been
getting her money and she got her loan paid off yeah yeah and so anyway so
cause he was see he caught the mortgage payments up and everything knows all
that was part of the deal that hey you know just gonna come back to me whenever
we closed on it and so she liked her own I see you and Eric you all are getting
ball you know I said Ms Brown I said you understand she’s well I know
that I know I agreed to do this but it just don’t right there just don’t seem
right now you all are getting more than me and so I said well we’ll just have to
wait money will reduce some number than get you some more money oh she’s all
right then sort of turn like well it’s not gonna happen to date he said if we
do it it just gonna be money for we close this that lady was so set
I’m not leaving there without money she went ahead and closed it do you want to
add in close he said Gail yeah well no that’s fun you know it’s interesting you
mention that because in my experience the most profitable deals the most
profitable deals I’ve ever had problems is well prom not just problems but
inheritance inheritance gets squandered people do not do their due diligence
they sell property to cheap they didn’t earn the money they don’t respect the
asset and many times they sell it forward to even the lake house I bought
the early autumn I beginning my deal that was an inheritance and I know about
it you know it was worth a few hundred thousand got it for eighty thousand
dollars and even going back 25 years or twenty years you know I bought this I
bought 50 acres and I made a couple million dollars on it but it was the
same thing it was five sisters inherited five sisters had hated each other is
what it seemed like so it was a tough deal – it was a tough tough deal to get
through but she made it happen but what else let’s see so it’s good through your
success stories now ty you also do mentoring right you are from entering
yeah one of the things I’m a bear born individual but back in 1999 I bought my
first computer and the girl I was dating at that time she introduced me to the
Internet you know before that and so it’s always been like this it’s unbelievable to me what someone
pays for something that you offer via the internet even more so than real
estate deals I’ve done and so I always looked in the internet marketing and so
when I decided to start the time to do this course thing or whatever and
because it’s my hobby internet marketing and look mom okay like guys several
members will help out here to meet but so the only thing I had a value was my
knowledge of real estate and what I do what I actually do living so I obviously
knew that was an interest in so but I didn’t want to be like everyone else
like when I was telling about Carlton sheets and maybe around the grand I
wasn’t gonna be the guy that all ideas just tell you about how much money I
made I want it because I took myself back to when I started okay that’s great
you made the money how did you make the money right that’s what a lot of those
can’t can’t really explain because many of them never made the money you know
yeah yeah so so I said I’m gonna take a different approach and then another
reason why I wanted to do it but a different approach I’ll just basically
give away the information right and if someone needs more information I want to
deal directly with me then you would have to pay for that and so but on top
of that I thought I would be able and I think I’ve accomplished that over the
years and there to build a I guess a database of like-minded information
especially people that believed in nothing what I had to say to even spend
their hard-earned money to capitalize off of the commercial side of the game
because now I can be in a lot of different places because of the
following that I built over that timeframe so it took a lot of patience a
lot of hours or whatever but basically what I offer that probably looked
different than what everyone else in my youtube challenge flip man died in that
so you did a search for the flip man you’ll find I have over 200 videos on
YouTube they tell you everything you want to know about hose down the house
there’s some stuff sprinkling about apartment building the SLAs
commercial up on the most part 95% I was about wholesaling houses without using
your cash and credit so everything you want to know is there again for some
people that’s lower than enough and I get text and email to all the 12 text
messages mainly of people just sending me checks saying hey thank you or
whatever so but for others that’s fine but they would like to pass for it
because even though the videos tell you everything you want to know and it’s
over 200 of them at this point they’re a puzzle they’re not in any certain order
so you have to really study you have money if you don’t have money you
probably have time so you know whatever so well buckle others take now they want
to fast forward they want to step-by-step course plus they want
someone that’s doing it and has been doing it for years to actually walk them
through transactions so that’s that is something that I do offer people can
find out pricing and more information by simply going to my website flip man
dotnet it but again you can just check out my free videos on YouTube um just
doing a search for the flip man and you should see my ugly mug pop up what is
your email anyways if they were going to write to you oh my actual email address
they can just send me an email that uh tie at flip man dotnet and that’s T Y
right yeah T Y okay alright and so how do you initially get somebody set up I
mean what’s a typical well basically the way it works is that the other side
choosing Hobbes and most people go with unlimited coaching and what that simply
means as long as I’m breathing you know I’ll be accessible to you on real estate
I don’t think I ever stopped doing real estate or whatever so but they go
through the course information they listen to it at their own pace and make
know something they’re not sure about and give me a call is it can audio video
of course yeah it’s online you know you’ll create
an actual account and so you’ll move at it at your own pace I actually do it as
a package with the whole set of houses and apartments so they get that plus the
coaching in one package so everything is at their pace of people actually what
can you guarantee if anybody guarantee you’re gonna make money
probably need to run cuz how can they guarantee you’re going to make money if
they don’t know what you’re gonna do on your ear see people look for when they
say guarantee that means that oh I thought I was doing anything I’m still
making money come on now 80% of the success that you had is going to come
from you the other twenty is gonna be knowledge and maybe some coaching but
most of the most of the production is gonna come from the individual I can
guarantee that their information is older than all of us there’s been time
tested and I’m gonna make myself available so everything is else’s on
them on the individual know when I guess you’d agree the harder you work the
luckier you get right oh yeah you put the work in you know deals is just
falling you’re left by mistake I’m not saying it’s easy it’s a very simple
process but easier is not a word I would use to explain right it’s simple but
simple but it’s hard work yeah I mean it can be a lot of work but it’s exciting
not knowing how much you’re gonna make right when you wake up in the morning
and that phone rings you don’t know is it terror is it 50 right okay everybody
can tell that but you know it is what it is you know people you know one of my
friends she think I just had the greatest life and I always have to to
back up you know I just start you know wait a minute now I mean let me pose
something to you I said can you handle not knowing when money is going to come
your way so you go to a job everything you know you’re gonna get paid every two
weeks you know the amount of it can you handle the stress of not knowing when
you’ll actually produce income okay that’s not for everybody that’s not very
long I’ll tell you what’s depressing is
having a regular job and adding up and knowing exactly what you’re gonna make
over the next 10 20 years to me I can’t handle that’s depressing yeah what’s up people
that they they consider that but I’ve been on both spectrum love it so I
understand it I understand the mindset you know and but the way I look at it
time we live in a capitalistic society and the only way this works well is that
you have to have more Indians than you have Chiefs
so if Indians are buyers flats workers Chiefs are the people that are providing
the foundation for people to work and to buy from you know so you gotta have any
four Indians that you have Chiefs well so what-what misconceptions would you
say people have about the business when they first start talking to your they
mentor in the heaven you know a lot of people ask me questions prematurely I
always have to say just go watch the videos because I mean I can tell they
have and obviously you know yeah well which I have a particular video I put
out a few months back it’s called fire mistakes newbies make one whole selling
house and I don’t know what the five were so I’ve kind of been a while but I
probably come up with them here one of the things that people automatically do
is they they’re gonna ask me and I can tell when people haven’t looked at
enough not many of my videos I get calls and text messages watched one video now
ask another question I think you had to watch my videos an hour I’m not being
rude I’m just I just know you’re not putting the time in on what’s free my
time is I’ll provide a little of it for free but when you won’t even put the
work in just to get stuff that I talked about over and over again at different
videos but the probably the biggest things are is that most people think
it’s illegal and in correlation with you need a real estate license no you don’t
need a real estate license the difference in a wholesaler and a real
estate agent is that an agent is acting in a role for a bi or silly the
HEPA so on to find a house to buy or trying to sell a house so in that role
in all states you gonna need an actual license but as a whole seller once I
enter it to a purchase and sales agreement I have some temporary
equitable interest within that property for the timeframe that the seller and I
agreed upon to close that deal so in that timeframe as long as that contract
doesn’t state I can’t do it I can assign my rights over to that contract to an
actual cash buyer yeah every every contract is assignable unless it’s
otherwise stated and I’ve talked about it too and I used to get nervous cuz I
used to write I’ve done many assignments too that’s what I don’t even call it
wholesale and I just call it assignments but I’m pretty cool but but the point
was I was gonna get it is is that with the assignments well basically but
people do have the misconception they think they need a real estate agent or
they think they need a lawyer or they think you know they need you know
somebody to do Foreman you can negotiate anything with you and the seller the
only thing you want to have is is title insurance you want to make sure that
property is clear and you want to make sure that the title passes well yeah
most definitely that’s people that west one of the common questions people want
to know should I have a title company ready to go or whatever I tell them no
because a lot of times you as the whole seller you won’t dictate that your buyer
they have the relationship that he likes to use because he’s spending his money
and he’s paying the closing cost in most cases so that individual was not always
they’ll dictate that so you having a title company of your own may be a waste
of time and money because you may not dictate that it within the transaction
that’s one of the other questions have you ever assigned a property to somebody
and then they didn’t close oh you well well the way I look at it we
the assignment never happened but I danced your question in the sense that
the way I do I do to purchase and sales agreement so I still an assignment at
the end of the day when everyone sit down and close on they ask you a
question I just perform yes that’s going it’ll do is finish long enough you’re
gonna have you’re gonna have buyers that not to perform about a double clothes
that’s what I call the double clothes when you’ve got whatever two concurrent
sales I’m talking about I’ve assigned my contract in other words I get $10,000
and I assign my position in the contract and we go down to the escrow company he
gives me ten thousand dollars and he is now I have an assignment agreement I
sign them to it and now they are buying it and I walk away and I’ve had even
I’ve had that I’ve done that several times but at one time at least I’ve had
it where a guy he didn’t close it was a couple months later and I kind of had a
little assign errs remorse I guess I kind of still wish I had bought it and
he come back by and I said you close on that deal and he said no because I don’t
think we’re going to he goes the neighborhood doesn’t want to let us do
what we want to do with the property they wanted to rezone it and so and I
said really let me go I go how about I give eight already giving me ten grand
I go how about you assign it back to me for five grand and so he took me up on
it because he was gonna walk from it anyways but so you’ve never had that
happen reactionist oh yeah see you’re I’ve never done a transaction in that
way I do assignments all might be able to pretty much assignments but the
assignment actually it doesn’t actually happen you take your money on clothes
you’re saying oh yeah yeah I sign the contract most times I just tell them the
contract and then I’m done if they close they close it if they don’t I don’t care
but okay you know oh yeah that’s a great way to do it now you’re clean you’re
clear you know what I mean but but I understand yeah yeah I normally like to
try to go ahead and do it if possible but you know cause some deals haven’t
worked out because what I’ve dealt with the sellers that’s my way of like
seeing it through or whatever and plus I guess he’s mark

5 thoughts on “How to wholesale real estate with no money. Interview Flipman Ty Wholesaling Expert. Free App.

  1. Very useful information.

  2. This is a great source of information for anyone that wants to operate with no money or very little down. Ty has made many deals where he has done double closings. This is where his closing of purchase simultaneously with the resale of same. He gives great information on bandit signs the ratios of finding buyers verses sellers with signs. I have made many similar deals but did not get there the same way as Ty. Very informative interview from a wholesaling expert. I definitely learned a few things from this interview.

  3. Thanks Tom and Ty. Β It's always interesting to hear how people got started in real estate, and to hear success stories and how they overcome problems. Β Keep up the good work! πŸ‘

  4. The Free FlipAnything App is released and getting great reviews. Download it now.
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  5. My two favorite people in one space/video! Wow!!!! Super excited to hear what they are going to say πŸ˜ƒπŸ˜ƒπŸ˜ƒπŸ˜ƒ!!!!

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