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Alright time for my first twitter thread on how I flipped my first house at 19. Some serious game is about to be dropped folks
1. For anybody who is not familiar i do something called wholesaling it’s something that gives you the ability to get into real estate without cash or credit. So with that being said i was found this house doing something a lot of investors do which is called driving for dollars.
2. Driving for dollars is the process of looking for vacant/ distressed property that kinda look like this high grass, broken windows, built up mail, just obvious eye sores. With that being said we compile a list of said properties go the counties tax site 
3. We go to the counties tax site type in the address and find who owns the property after that we go and find the owners information though free sites like truepeoplesearch.com or paid sites like needtoskip.com and we call or text the numbers
4. I called the lady for the house i was interested in 3 times but she never answered so i decided to send a text and this is the exact text i had sent. She called me and we made a appointment for me to take a look at the house my original plan was to wholesale it.
5. However after taking a look at the amount of work that was going to be needed I realized I couldn’t wholesale it because any cash offers would come in lower than the seller’s mortgage balance. So we decided to buy the house another route which is subject to
6. Subject to In simplest terms is taking over the person’s mortage payments and making it on their behalf you can purchase a house this way, however full disclaimer banks have a due on sale clause on every mortgage contract that have that states if the house
7. If the house transfers title at any point that constitutes as a sale and in that the bank has every right to call the mortage due so basically they have the right to say pay us our money back now since you transferred title. The person who had to pay it the person
8. On the mortgage so you have to be careful the one benefit though is that most banks are not in business of owning real estate so if you make the payments on the time they’ll just let it be. However to provide a little protection on this transaction i place the house in a
9. LAND TRUST and the trust held the title of the property now people do this to own a property anonymously and also avoid the probate system since you can set up beneficiary’s of the trust my LLC was the beneficiary of the trust i set up.
10. FYI if you’re going to go that route please realize a Trust is a entity in the governments eyes so it must have its own EIN number that you can get from the IRS for free on their website, and set up a bank account in the trust name as well. But now we move to the sale
11. I structured it to where i would do the subject to deal so I would get the warranty deed transferred to my name and make the payments on the sellers behalf from my business account. While I would give to $2,000 upfront and another $5,000 down upon the sale of the house.
12. Which was a very generous offer with the condition the property was in after that we did the closing, and i took over title to my first home. Now the fun part starts. Just a little tip if you’re going to start a flip learn how to identify mold you’ll thank me later for that
13. Have a target price and a exact exit plan, because my original plan was to fix the house up to where it was rental ready and just rent it out for $1300 since the mortgage payments were close to $900 it would’ve been a decent amount of cash flow then we sell it rent to own
14. However due to market changes we changed the plan with that being said the money that we used for this was a mix between the money i made from wholesaling, some money i borrowed from friends and family. If you’re going to do that get a promissory note signed so they feel
15. Protected since we still had the mortgage in the sellers we got away with filing the roof on her insurance which is why I won’t post the address so these mfs don’t find out. Got a brand new roof for $2,000 then from there i paid contractors $5000 to do some things i couldn’t
16. After that we did everything ourselves paint, junk out, cleaning, light fixtures, flooring, trim etc
17. Check the air duct system for mold, before you close on a hour learned the hard way and had to spend 8 hours in a tyvek suit and a respirator mask trying to get that shit out of a crawl space and let me tell you that is the nastiest and hottest shit you’ll do in your life
18. Also find a realtor to list the house for 1% of for a flat fee don’t pay 3% or 2% cause these realtors are lazy and shouldn’t even be paid that much. If you have a target price in mind make sure you’re rehab fits that target price.
19. You’re first rehab will always be tuition to the game, shit will go south so quick you’ll want to give up, don’t give up regardless of situation see it through to the end. Cause trust me shit will always go south on your first one.
20. Don’t accept a blind offer from a investment company they are hoes who will tie up the property and knock down their offer multiple times two days before closing.
21. When looking for contractors check references, and honestly just hire subs because general contractors will just be doing the same thing. Get three quotes from multiple subs, ask to see their work, ask about their experience and how often they’re booked.
A busy sub contractor is the sign a of a good one sometimes somebody who doesn’t have any jobs there’s a reason why they don’t. They’re all salesman at the end of the day do not go with the first and cheapest. Get multiple quotes and ask them for references
23. Ask other investor and flippers for their subs they’ll usually have good recommendations if they’re willing to give them up. Remember everything is negotiable contractors prices, realtors, commission, sellers asking price, buyers offer, everything is negotiable!!
24. And that pretty much sums it up we closed on the house last Friday didn’t make what we wanted but it comes with the game I learned so much on it that I know the next one will be a amazing ass deal and opportunity
