The document summarizes that the traditional method of fixing and flipping houses for profit is no longer viable due to rising costs and longer timelines to complete flips. It suggests a new method called "Fix, Finance, and Flip" that claims to allow investors to buy properties 30% cheaper and sell them 30% higher for much greater profits without using their own money. It indicates this method sources discounted properties from the large portfolios of delinquent mortgages that big Wall Street hedge funds have acquired.

1. Let me show you a secret method savvy investors are using to get 30%
more on the exact same properties... Turning “ok” deals into profit
geysers, and one-time payouts into years of monthly cash flow...
THE OLD WAY OF
FIXING & FLIPPING
IS DEAD
Whether you’re a seasoned real estate pro or brand new
to the business, it’s urgent you understand this..

2. WHETHER YOU’RE A SEASONED REAL ESTATE PRO OR BRAND
NEW TO THE BUSINESS, IT’S URGENT YOU UNDERSTAND THIS…
THE OLD WAY OF
FIXING & FLIPPINS IS DEAD
Let me show you a secret method savvy investors are using to get 30% more on the exact same
properties… turning “ok” deals into profit geysers, and one-time payouts into
years of monthly cash flow…
Fellow Investor,
Here’s the thing about traditional fix & flips…
• Finding deals with enough meat on the bone is getting harder – and will soon become like
finding a needle in a haystack.
• You’re going to be busier than a 1-armed paper-hanger if you want traditional fix & flips to fuel the lifestyle
you’re looking for.
• Traditional fix & flips work like gangbusters on “reality television” but in real life? Not so much…
In his book 7 Habits of Highly Effective People, Stephen Covey, writes at length about climbing
the ladder of
success…
And he cautions that if you’re going to do the work to climb the ladder – at least make sure it’s
on the right wall.
Solid advice.
Nothing’s worse than getting to the top of the ladder only to realize that you didn’t get where
you really wanted to go. Using those terms, what I am telling you is that if you’re primarily doing
regular fix & flip real estate - your ladder may be on the wrong wall.
If your goal is to build wealth, cash flow, and enough time-freedom to do the things you want to
do then regular fix & flips will not get you there.
Not anymore. That ship has sailed.
Here’s why…
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3. THE OLD WAY OF
FIXING & FLIPPINS IS DEAD
The trend is clear…
It’s getting harder to make a buck flipping houses – if you do it the way they’ve always been
done.
Right now – for flipping the old way - the highest return on investment is in homes that sell for
between $100,00 and $200,000 after repairs.1
Middle class America for the most part.
In that price range, the average gross return on investment is 44%.
That sounds pretty good right?
After all, 44% on $150,000 is a profit of $66,000!
Not so fast…
Don’t forget the “fix” side of the fix & flip…
Average rehab costs run 20%-33% of the after repaired value.
http://www.realtytrac.com/news/home-prices-and-sales/q2-2015-u-s-home-flipping-report/
For sake of argument, let’s cut it in the middle at 26.5%.
So that same $150,000 home, on average, actually costs you $39,750 to fix up to the point where
you can sell it.
Now your profit is down to $26,250.
Starting to look pretty grim.
But we’re not done yet…
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4. FIX & FLIP CARRYING COSTS
ARE RISING DRAMATICALLY –AND
ARE ONLY GOING TO GET WORSE.
There are a few reasons that’s true.
First, interest rates are at the lowest they’ve ever been – so they’ve got only one way they can go
– up.
So assuming you need to borrow money to float the deal…that loan is soon going to cost you a
lot more.
How much more?
Depends how high rates go.
But there’s a bigger reason it’s costing more to carry a fix & flip and bring it to fruition…
The average flip is now taking a staggering 179 days to complete, up over 100 days from the year
2000.2
Assuming your cash is tied up and you can’t fund the flip without borrowing, that’s 6 full months
of loan payments…taxes…heat and hydro payments…
So chop another $10,000 off the total profit and you’re down to $16,500.
On a $150,000 home, flippers are averaging around $16,500 profit - for 6 months of work!
http://www.realtytrac.com/news/home-prices-and-sales/q2-2015-u-s-home-flipping-report/
And that’s without real estate agent fees, lawyers, brokers, and the rest.
After all that hard work, there’s virtually nothing left!
Hang on now…what about flipping cheap houses?
According to RealtyTrac, houses under $50,000 actually returned on average negative 12%!
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5. Flippers lose 12% on these cheap deals.
And that’s before considering rehab and carrying costs.
In other words, you might lose $10,000 to $20,000 on a $50,000 house.
What about flipping expensive houses?
Houses between $750,000 and $1 million only returned gross profits of 18% - and with average
rehab costs running 20%-33%, it doesn’t take a genius to see that you’re losing money there too.
Here’s the bottom line…
t
If you’re just getting started, this math should shock you. Fix & flips work much better on televi-
sion than they do in real life.
Maybe A&E knows this, and that’s why they cancelled Flip This house in 2009?
Now if you’re a master flipper, you might be able to buy better, rehab cheaper and quicker, and
make more money…
I get that. But it’s still a ton of work – for a lot less than you could be making.
What if you could change things – just slightly – and add at least an extra 30% on every
flip?
It’s possible, as you’ll soon see.
At least 30%.
I can show you how to sell properties in your market for 30% higher than you’re able to today –
with the exact same amount of work done.
By itself, that should get your blood flowing…30% is a lot of money.
But what if I told you that you could buy properties 30% cheaper too?
Now we’re talking.
Here’s why that’s possible…
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6. THE BEST DEALS HAVE GONE
UNDERGROUND. BUT YOU
CAN STILL GET THEM –
IF YOU KNOW WHERE TO LOOK.TTTV
Used to be, some of the best deals were bank-owned real estate – REOs
They were a steady supply of houses to rehab and flip for a decent profit.
But have you noticed that getting an REO from a bank these days is like pulling teeth?
If you’ve been around awhile, you’ll have noticed a massive change in inventory…
As you can see, foreclosures are less than half of what they were in 2010.
http://www.jchs.harvard.edu/research/state_nations_housing
But even that’s misleading…
It’s not that people aren’t getting behind on their payments anymore.
And it’s not like people aren’t losing their homes anymore. Unfortunately, that hasn’t changed…
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7. What’s different today is how the banks are handling homeowners that are getting behind.
More and more, the banks are selling pools of these delinquent mortgages to private hedge
fund companies. Giant Wall Street hedge funds.
In fact, these hedge funds are sitting on 9 million real estate deals as we speak.
9 million!
So you can stop wondering where all the deals have gone…Wall Street has them.
But the good news is, Wall Street bought them in bulk…so they got them cheap – as low as 10 to
20 cents on the dollar.
And even though the hedge funds are middlemen – if you know how – you can buy these deals
directly from them…and get them cheaper than you ever could from the bank in the first place.
That’s how it’s possible to buy 30% cheaper than you are today.
In a perfect world, you’ll buy houses for 30% less than you are today, and sell them for 30% more
than you are today.
And although the OLD way of fixing and flipping is dead…the NEW way is very much alive and
well.
I call it…
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8. FIX, FINANCE, AND FLIP!
Now don’t let the “finance” part scare you...
This is something you can do without any of your own money.
But this extra little twist will allow you to make 30%-60% on your flips, immediately.
Imagine what 30%-60% more profit on every deal would mean to your flipping business…
• Finding deals with enough meat on the bone is getting harder – and will soon become like
finding a needle in a haystack.
• You’re going to be busier than a 1-armed paper-hanger if you want traditional fix & flips to
fuel the lifestyle you’re looking for.
• Traditional fix & flips work like gangbusters on “reality television” but in real life? Not so
much…
Fix, finance and flip is a real game-changer.
And I can almost guarantee you nobody else in your market is doing this.
The field is wide open for you to get started.
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