Customer Reviews

Flipping Properties: Generate Instant Cash Profits in Real Estate

5 star:		(39)
4 star:		(23)
3 star:		(8)
2 star:		(8)
1 star:		(4)

 

 

I have read several books on real estate investing and I have even attended real estate licensing courses to learn the fundamentals of real estate. Having done all that my opinion of this book is generally good.

The author doesn't promise instant riches or make it seem so easy that you can do it without any work, in fact, he advocates that this is a lot of work to do it right. The sections on prospecting for houses to buy and how to approach potential sellers is also very good.

What I didn't like about the book, is his treatment of the infamous "due on sale clause" for those of you who don't know what this is, it is a clause in most mortgages that says if an owner sells you a house and he still owes money to the bank you can't just "assume" his loan, in other words you can't just take over the loan and start making the payments...at least legally. The authors advocate doing it anyways and hoping you don't get caught by the bank and making sure you explain it to the sellers, what he says is that if the bank is an out of state bank they will probably never know you have taken over the payments so don't worry about it. What he doesn't tell you is that if the bank does find out and they do decide to force the issue they can call the entire balance of the loan due at once, possibly putting the investor in a bad situation, which could also affect the original sellers since they are still listed on the loan.

The second issue about the book is the creative financing aspects of the book, it is not that these techniques don't exist, becasue they do, but understand that only about 1 in every 100 people who agree to sell to you would be interested in some creative financing, especially if they are distressed buyers. Most distressed buyers will want out of a bad situation right now with all their money (if any is left). They need cash, not some payments over time. Second the zero percent interest situation will work, sometimes, but it is even more rare than the general creative financing techniques. Most houses you buy this way will require you put some cash into the deal (or find a partner who can) and finance the remainder through a private mortgage broker paying interst rates of about 15-18%. Most banks will not lend money on these types of property because they may need a lot of work. So your three options are creative financing or private mortgage lenders, or the third is put all the cash in yourself.

The last comment is that the book doesn't discuss tax ramifications of doing flip deals at all. If you are successful and flip 3-4 properties in a year for 10-20K in profits you will be facing some mighty tall tax consequences and it would have been nice if the author had discussed this a little and some common techniques for dealing with this.

This may sound like a negative review, but it's not meant to be. The book has some great information and the author's writing style is easy to understand, but it is just meant to let you know that there are clearly some down sides to the author's suggestions that you need to be aware of before rushing into this form of investment. I would recommend reading Kevin Meyers book "Buy it, Fix it, Sell it, Profit" This is fantastic book that will compliment this book very well. I would also recommend the real estate investor's tax guide, both would be needed to give this book a balanced view.

I have been investing in real estate since 1977 and for the most part have fixed up run down properties and then resold them for a profit. I did it the old-fashion way. I have read many books, listened to dozens of tapes, and attended numerous seminars trying to learn new and innovative techniques that would allow me to take my investing and my net worth to the next level and at the same time take some of the toll off my body. There are dozens of tips in this book and each one can save an investor at least 100 times the cost of the book. In the past I have worked foreclosures, lease-options, and estate sales at the courthouse steps just to name some of them. But the technique I found in this book that has changed my approach to investing is to take over the property "subject to" and then sell on a installment land contract. I get money up front, increased monthly cash flow for the period of time the contract is written for, and then money on the back end when the buyer refinances and puts the loan in his/her own name. I followed the books advice and found a motivated seller about 1/2 hour from my house. I was able to get the seller to tell me exactly what it would take to solve her problems and allow her to go on with her life. I took over the deed "subject to", made up all of her back payments to the lenders on both the first and second mortgages, paid off her well pump, paid for all the new windows she had put in after a hail storm knocked them out, pay for all of the closing costs, and put $20,000 dollars in her pocket. However, as the book said, I had found a buyer immediately for the property at a price that would allow me to do all of the above and still put $24,000 in my pocket. I went from the book to the bank in under 40 days. This book has put me on the path of least resistance to reaching my financial goals. I can now make just as much money or even more on each deal and I don't have to kill myself doing all the fix-up. Now I make the money using this very powerful technique to both acquire and sell the property. I use my mind and my negotiating skills instead of a hammer, crow-bar, and paint brush. If you are new at real estate investing I believe this book will be an invaluable addition to your library and can put you well on the path to increasing your net worth in a very short period of time. This book is not the end all, but it will certainly allow you to hit the ground running. Take the information and forms in this book, and then contact your local real estate broker, tax accountant, and other members of your team to see what if any adjustments must be made in your part of the country to do exactly the same thing I am doing. Just a little research on your part can and will pay for itself many times over. If you are a more experienced investor, this book may help you to achieve the same financial success without the wear and tear on your body. This book is a very good read and I highly recommend it.

I received a copy of this book when I joined my local real estate investment group earlier this year. I read it cover to cover in 2 days, then went out and did exactly what it said in the chapter on marketing.

I put out 1,500 flyers and door hangers with a "We Buy Houses" message, plus a few dozen plastic lawn signs with the same message. Within a month, I received about 15-18 calls and found a real motivated seller in foreclosure. I signed up a deal with the seller and flipped the property to another investor in my local real estate association for a [$$$] profit (I used the contract provided in the book, with a few modifications recommended by my local attorney). The closing process was a little more involved than I imagined, but the basic principles taught in the book are accurate. I am now working on my second deal and should make [$$$] or so when it closes.

If you are looking to get started in real estate, this book will cover all of the basic fundamentals you need. I also recommend Robert Shemin's book, "Secrets of a Millionaire Real Estate Investor."

I bought this book expecting a guide to flipping properties, but it ended up being a terrible disappointment.

First of all the length of the book is deceptive as they use large font, wide margins, and frequent subheadings. In standard format it would fill around 75 pages at best.

More importantly the content is unoriginal and of no help. There is no definition of what the author considers "flipping" a property. There are no concrete guidelines to use--only vague generalities found in any real estate book.

I think the best comparison of this book would be to a stock picking book with the premise of "buy low, sell high" but with no real information on how to value stocks, how long to hold, how to buy on margin, etc.

Honestly, this is the first negative book review that I've written. Save your money and read the book in the bookstore to see for yourself...then put it back and move on.

I purchased this book expecting to learn all about how to flip real estate properties. Although the author, Bronchick, does touch on the subject, I was disappointed by the book's lack of depth and substance. Bronchick barely addresses the real aspects involved in flipping and discusses real estate in theory only, meaning that I couldn't find a single real life example of how he himself flipped a property. The book is only 154 pages, is loosely written, and has little substance. One example of filler in the book is "What is a Realtor?" Bronchick writes almost half a page defining what a realtor is. Maybe there honestly are people who don't know what a realtor is, but as I said, much of the book comes accross as being of little substance.

Another book on the same subject that in my opinion is far superior to Bronchick's is one written by Steve Berges called The Complete Guide to Flipping Properties. In addition to citing many personal examples, Berges also includes many inspiring stories, which I found to be particularly enjoyable.

Informative book, though slick as a dolphin's back. The biggest drawback, in my view, is that the strategy is based solely on distressed properties--the so-called motivated seller. The authors make this clear from the get-go, defining "distressed property" on page 3, and cautioning the reader throughout the book to deal only with motivated sellers.

This approach makes good sense, but it cuts out a world full of wonder: the physically sub-par house in the upscale neighborhood. Sellers in such places are seldom highly motivated, but who can deny that there are profits to be made there? Too, distressed properties are the domain of the giant wholesalers such as Homvesters,Inc., so you have very well financed competition.

I read all the way through just to see what the process was like in these sorts of transactions. Title problems in particular interested me since motivated sellers are apt to be up to their eyeballs in liens and judgements. On page 79 I found this information: "Even if the title report shows problems with the title, the contract is still in force if the seller can cure the problems before closing."

And if the seller can't, which is highly probable, since they acquired the problems and signed a contract to sell the house to get out of the problems? Well then the authors have 3 solutions for you, the buyer, and they all start with "Sue".

1. Sue for specific performance
2. Sue for damages
3. Sue for return of the earnest money

So unless you're a lawyer, which Bronchick is, you can kiss your prospective profits goodbye just prior to signing and sending a check to the lawyer of your choice. No one you see is smarter than he.

Not surprisingly, the authors recommend doing business as a corporation, since we "live in a litigious society...Eighty million lawsuits are filed every year." Scandalous. In addition, Bronchick and Dahlstrom provide timely and comic advice for keeping your marriage together as you make the transition to flipper: "If you are married, make sure your spouse reads this material with you and participates in the fun process of making money."

I just received Flipping properties two days ago. The good news is that it is a very easy book to read and comprehend. I have already read it cover to cover twice. The book provides some excellent forms and is very good in defining basic Real Estate 101. It gives some good ideas and theories, Gee, it seems a lot of the reviews in RE are very generous.

I see some holes in the theory of "Flipping Properties". The major theme of Bronchick & Dahlstrom is to go out and find (or hire someone, " a scout") a distressed house with a motivated seller, make an offer, approximately 80% of the value of the home, Make a small deposit, ( $500-$1000) ,while promising the current owner they can close within a short period of time. Then, or concurrently, find an investor, ( retailer) to purchase the property and while giving yourself a profit.

This sounds good an very easy to do, but how many people or contacts would you or could you find to finance 80-100K? I am talking about the average person. The only suggestion is joining an investment club? And networking? Great, I am going to front money to trust people on the Internet? Also, even if you can flip the property, why would an investor continue to use your services on a double close? Lastly, the Flipper is required to have an exit strategy . The answer is if the investor backs out, then just purchase the property yourself. Great, I am sure I will get bank funding when I am already holding a note on my house for 300K! The book does not give enough info on how to finance, HUD, foreclosures, Etc, Also, the tiny little adds in newspapers doesn't sit well with me, as you will see.

Overall , the book is interesting, and I believe you can get an idea of the theories behind flipping properties but this book is not the total answer, I am going to take some of the info and combine it with info from other books and financial institutions.

This book reads very well and contains a lot of practical ideas. I have been investing in real estate for about 10 years and have read a lot of books, most of them hype and fluff. You won't find anything but solid, good advice here, despite the "instant riches" hype in the title.

The book starts out by covering the difference between legal and illegal flipping, an issue commonly misunderstood by real estate brokers and lenders. It then goes on to cover real estate law, finding motivated sellers, drafting contracts, negotiating, estimating rehabs, and funding deals. It wraps up with a nice chapter on the real estate business, going full-time vs. part-time, etc. Lot of bang for the buck.

I've done quite a bit of flipping of properties, and this book really hits the highlights of the process right on the mark. Keep in mind that some lenders (particularly FHA) are not as cooperative in lending on properties that have been flipped recently. This is backlash on the dark side of the business, the fraudulent activities of a few bad seeds. This book, however, will keep on you on the straight and narrow - definitely a must read.

I am an experienced real estate broker, and I was looking for a good text to recommend to my beginning investor clients - this is it! The book reads very well, considering the vast amount of technical information about deeds, contracts, escrow, title, etc. No hype in this book, just practical, ethical information about the "quick turn" real estate business. Some very good sample forms are included in the appendix as well. If you are getting started as an investor, this one should be on your list of MUST-READ books!

This book literally made me $10k.

I have spent thousands of dollars on real estate courses, seminars, etc, and this book contains 90% of what I learned in those courses and seminars. the info is laid out in clear, easy to understand language, and Bronchick goes into detail on all the various strategies so I could go out and use them.

Whenever a buddy of mine sees how much money I am making in real estate and wants to get in the business, I buy him or her this book. I consider it the BEST and least expensive way to get a really detailed overview on property flipping.

Back to the $10k. Before reading this book I never really understood how to buy a house "subject to" the existing financing. People had always told me it couldn't be done. Well, this author was smart enough to tell it like it is. I bought 4 houses subject to the existing financing in the last 6 months, and I saved OVER $2500 on EACH house doing it that way (as opposed to getting a new loan or needing to use expensive hard money loans). That made the downpayment on my new BMW!

Everybody wins when I buy a house subject to: the lender gets their back payments made up, the seller gets some cash to get on with their life, and I save on all the costs of getting a new loan. It really works great.

FYI - I'm not a rank beginner. Even though I've only been in the business 2 yrs, I have made cash profits of over $95,000 since January 1 of this year.

Loved the book, Mr. Bronchick - THANK YOU!
Jason