How to Make a Million Dollars a Year Flipping Houses

By Jerry Norton

If done correctly and with the right system, flipping houses should be a million dollar a year business. After doing hundreds of deals, the nation's most highly sought after expert reveals his exact system to find, analyze, renovate and sell houses earning $25,000 (or more) per deal. From construction worker to millionaire, Jerry not only shows you his comprehensive, step-by step system to flip 40 deals (or more) per year in any market, regardless of expertise or experience, you will also learn how to:

-Set up follow a step-by-step systematic approach to each aspect of the business
-Beat the competition to the best deals
-Consistently find deals each and every month
-Accurately estimate repair costs on any deal in 15 minutes or less
-Identify the ideal property and area to flip houses
-Sell your properties in 30 days or less
-Renovate a home with no delays even if you have no experience
-Select the exact materials and the design to attract the ideal buyer
-Organize and maintain a budget
-Effectively find and manage the best subcontractors to do all the work
-Determine the precise after-repair value (ARV) of any deal
-Find unlimited sources of other people's money (OPM) to fund your deals
-Put the system and team in place to leverage your time (remove yourself from the model)

Finally a practical, easy to follow approach to flipping houses. With dozens of examples and case studies, you finally have the blueprint to make a million dollars a year flipping houses...

• Language: English
• Publisher: eBookIt.com
• Release date: Apr 26, 2016
• ISBN: 9781456623470

Book preview

Chapter 1:

Introduction to Fix and Flip

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Introduction: Hello, this is Jerry Norton, real estate expert, fix and flip guru, mentor and coach. In this book I’m going to explain my entire Fix and Flip system. It is the exact model I use and my students follow to achieve very high success and very high profits flipping houses. I want to commend you for taking action and reading this book. Before getting started, if you are an audio learner like me, then go here to get this entire book in audio format for FREE.

Let me tell about myself. I’ve been a full-time real estate investor since 2004. I currently live in Alpine, Utah, with my wife and six kids. I’ve completed hundreds of fix and flip transactions just in the past few years alone. I have a bachelor's degree in business and I am a licensed real estate broker. I sometimes have 10-15 deals going on at a time. My average net profit per deal is $25,000 to $50,000 and I’ve taught thousands of investors from all over the country my proven systems for flipping houses.

My Story: I started out working in a family business that specialized in utility contracting. I started at the very bottom as a laborer. My job was to dig holes. Those were long and grueling days. I remember coming home from work so dirty and muddy that I had to take my clothes off outside before coming in the house (imagine what the neighbors thought). After years of hard work, I finally took over the family business with a brother. However, I soon found out that I went from working at a job to even worse, owning a job. I was working harder and longer than ever before and it just wasn’t providing the lifestyle (or money) I wanted.

Then I had one of those pivotal moments in life. I read an article that said, No other industry has created more millionaires then real estate has. And I thought to myself, Why not me too? So I began investing in real estate part-time while still working 50 hours per week in the family business. At the time, I thought I wanted to own rental properties. I happened to know a real estate wholesaler and over the course of one year I acquired 8-9 rental properties from this wholesaler. At the end of that year I took a look at what I had done and I thought to myself, "I’m getting some cash flow and this is great, but where is the money? Where is the real money?" I had a small family and bills to pay and needed money now not someday in the future. I took a look at this wholesaler who had flipped me these deals. On average, he had profited $8,000 per deal that he flipped to me and realized that he made some good money over the past year and that was just with the deals that he did with me.

Then I did something that if you do too, will separate you from the masses. I TOOK ACTION! I attended a wholesaling seminar and upon returning home, in my first month as a wholesaler, I wholesaled 6 deals and made $52,000! I was sold on wholesaling. In 2005 I became a full-time wholesaler and continued wholesaling several houses each and every month.

In 2006 the real estate market nationally started to decline. In the market where I was living at the time in Michigan, it really dropped. In fact, values declined so much so that Michigan started attracting out-of-state (and even foreign) buy-and-hold investors. As a wholesaler I saw this as a great opportunity and soon started wholesaling to these out-of-state investors. Before long, I ran into an obstacle. These non-local investors would buy a distressed property from me at a discount and then struggle to renovate and lease the property from a long distance. Often, they wanted to buy more properties from me but wouldn’t until they renovated and rented out the previous one that they’d just acquired from me.

By default, I started managing the rehabs for these investors. Not because I wanted to but because the sooner they renovated and rented their properties, the sooner I could sell them more houses. I soon learned a valuable lesson about flipping houses to investors: The more value you provide, the more they will continue to buy. Soon I was also assisting them with property management services and eventually began selling completely turnkey properties. I would find the houses, renovate them, put property management and tenants in place and sell the properties done for you. In 2007 alone I sold around 70 turnkey rental properties to investors from all over the U.S., Canada, Australia, the UK, and even Israel.

I became so efficient at finding, fixing and selling homes that I decided to start doing the same in the suburbs. The difference was now I was selling to end buyers (homeowners) in nice areas and not investors in rental areas. I started earning on average $25,000 net profit per deal. With every deal that I did, I would ask, How can I do this better, faster and get someone else to do the work for me while at the same time making more money?

Through trial and error and after flipping hundreds of houses, I perfected a system that I believed could be duplicated. Not only did I start to show other people how to follow my system but I also began using it to do deals in other markets all over the U.S. Click here to find out how you can earn a $10,000 finder’s fee for each deal you bring me.

I’ve since taught thousands of investors my proven system for flipping houses. This system will show you how to flip 40 houses a year, earning $25,000 (or more) net profit per deal. That is a million-dollar-a-year house-flipping business that has transformed my life and the lives of many others, and it’s the system that I will teach you right here.

**Note: Before I get started, please excuse any typos, misspelled words, incorrect abbreviations, punctuations and/or incorrect sentence structure. In addition to how to create a million dollar-a-year house flipping business, consider them my gift to you.

Learning Objectives: Let’s review what you can expect from this book. You’ll gain a thorough understanding of how to fix and flip single-family residential properties that earn on average $25,000 (or more) net profit per deal. You’ll gain the skills and the knowledge to immediately begin implementing this exact system in your market. This book is laid out in chapters that are in sequential order. I recommend you read though the chapters in order to fully understand the system and then refer back to specific chapters for further clarification. This book was designed to be hands-on and has examples, case studies and breakout sessions to help you fully grasp the concepts. Like anything, you get out what you put in it. The purpose of the book is to give you my exact model to follow. From this book you will gain the following:

• A step-by-step systematic approach to each aspect of the business

• Beat the competition to the best deals

• Consistently find deals each and every month regardless of what market you’re in

• Accurately estimate repair costs on any deal in 15 minutes or less

• Identify the ideal property and area to fix and flip in any market

• Marketing strategies to sell a property in 30 days or less

• Perfect the rehab process and timeline to renovate a home with no delays

• Select the exact materials and the design to attract the ideal buyer in any market

• Organize and maintain a budget

• Effectively find and manage the best subcontractors to do all the work

• Determine the precise after-repair value (ARV) of any deal and any market

• Find unlimited sources of other people’s money (OPM) to fund your deals

• Put the system and team in place to leverage your time (remove yourself from the model)

Throughout this book I will also be giving you several free tools that are critical to your success flipping houses. Watch for links that will allow you to download these tools.

Importance of Focus: Before we get started I want to talk to you about the importance of focus. Most of you are familiar with the Pareto Principal, often called the 80/20 Rule. The 80/20 Rule basically states that 20% of our actions give us 80% of the results, and therefore 80% of our actions give us only 20% of the results. So let me ask you a question – what if you focused on the top 20% of your actions? What would happen? Obviously, you results would go through the roof. So, as I’ve taken this fix and flip process and outlined it here, I’m going to share with you the top 20% of actions that have brought me the greatest results, that 80%. Really what this is about is focus. I believe that focus is the key to great success and is even more important than effort, experience, or even natural talent. And I believe this wholeheartedly...the key to success is taking action and as you take action, an amazing thing starts to happen. You start to build momentum and as that momentum builds and builds, it’s phenomenal the results that you accomplish.

Understanding Today’s Market: First of all, I want to talk about real estate market trends. Often in real estate, we refer to the market as either a buyer’s market or a seller’s market. A buyer’s market simply means that supply (inventory of houses) is up and demand (buyers) is down. So if we have more supply (homes) on the market, than we have demand (buyers) in the market, what happens? Price goes down. A seller’s market simply means that inventory (houses) is down, but the demand (buyers) for houses is up. What happens in a seller’s market? Price goes up. What’s important to understand is that whether it’s a buyer’s market or a seller’s market, the concept of finding a distressed property, making improvements and selling it for a profit does not change. The strategies for doing it may change based on the market demands, but the concept of finding a distressed property, making improvements to it and then selling it to a homeowner is a consistent and lucrative strategy.

Understanding Market Trends: The market we’re investing in will dictate the strategies we implement. For that reason, it’s important that we understand what type of market we are dealing with, not only on a national level but also on a local level.

Macro: For example, is it possible for a certain neighborhood, city, or even county to be a seller’s market while surrounding areas are a buyer’s market? The answer is yes. A successful fix and flipper is very aware of the market trends and shifts very quickly with the market, both on a macro and micro level. On a macro or national level it’s important to look at the FHA and other federal lending guidelines, federal laws such as the tax credit and other government programs and regulations that can affect the market. Also, the economy, interest rates, unemployment and job growth greatly affect the