SEATTLE – Paul Endzell, of Dream Home Real Estate, has held five open houses at a 1941 home in Renton he listed for $525,000. If the same house were in
How do you make money with real estate (and without a license)?
The most popular way as of 2014 to now, July of 2018, is wholesaling houses, which is done in cities with huge price jumps over the last 8 years from a $200,000 to $2M and more.
You need to be able to put your sense of ethics and morality aside to make this work however, because the the favourite target is the senior homeowner, preferably a widow with no close family who bought the house back when it cost $16,000.
The house is now worth 2M or more in Vancouver, and probably Seattle, San Francisco, San Diego etc. as well.
First you have your offshore buyer lined up, and in Vancouver that’s normally a wealthy Chinese person.
Second You give the old senior a handwritten note that you will buy his/her house for $800,000 and save the senior all that horrible real estate paperwork and commissions and WOW!.. $800K is a huge sum to people who really did buy 25 cent beers back in their day.
(I remember those days too, although I was just a kid and had to sneak a beer from the old man’s supply :)) Funny that I’m the old man now and beer gives me gout. Oh well, there’s always Scotch & good old Canadian Club Whiskey)
Third You make the Buy.
The Senior Seller is ecstatic as you drop him/her off at the Senior housing Centre and so are you and your Finacial backer, as you flip the house for at least $1.4K making 600K gross a day later before splitting with your backer
because you will instantly sell to another retail house Flipper for 1.8k, who flips it to a final buyer, who is usually another real estate investor who will BUY & HOLD for a year or more as prices keep going up towards the 3M mark.
It was in the Vancouver media in 2017 about a seller’s house that was “Shadow Flipped” 9 times, and the final buyer paid 1.6M from an original sales price of $80K, and this was not even wholesaling, this was regular Realtors® flipping the house without any money changing hands between the sale price to the Seller and the “Beneficial or Shadow Buyers .
It wasn’t until the final closing day that the last and REAL buyer paid the final 1.6M Selling price.
That Shadow Flipping event got so much notoriety that the law was changed to the seller of the property must be paid the final selling price.
However, the “Wholesaling” or arbitrage of houses owned by the aged and uninformed keeps going, no license required.
However Rochelle, there is in my experience a much better and more sustainable way to make a lot of money in Real Estate, a LOT and you get to keep your honesty and ethics too.
Back in 2010 when I set up my first digital real estate business, helping people buy and sell online, I found the less I worked the more money I made.
At that time I owned and operated a nice small boutique Real Estate Company doing sales, property & rental management.
Unfortunately, my best friend and partner in life got Dementia and finally I had to stay home to hold her hand to help her in her journey down to the comfort of her insanity, where she now resides in a very nice home with a great staff.
My issue while being her caretaker along with some in home nurses, my issue was, “How do I run my real estate company?”
My responsibility was sales and my friend and Strata Manger Doris ran the property and Rental management part.
So I put on my thinking hat, purchased a software program and created a crude clone of myself and sent it out over the internet offering online MLS listing and sales.
WOW! suddenly I found myself with WAY MORE business than I could handle and became the top small real estate office in my real estate board area.
Unfortunately the Real Estate People were not amused, as their were complaints from all across BC that I was selling homes in other Realtor’s territories and my Real Estate Council changed the rules to stop online sales and myself.
That was a few years ago now, as I finally retired in 2014 and looked after June full time until I moved here and she went to a home.
To keep busy I went back and looked at my old clumsy real estate agent CLONE and started to do a serious upgrade.
Today, I finally finished the last Quality Control test and stacked 18 virtual agents in their virtual shelves in my virtual real estate office.
I read your request for How to make money without a license which inspired me to share my progress with you and if you have 6 minutes here is where I am going next
hy do we need real estate offices
elling from the online real estate office
The New Digital Real Estate Market
aking the switch just like the banks did
SHOW ME THE MONEY
Since making these videos 3 months ago Rochelle, I did another upgrade that embedded a Real Estate Agent into the Interactive Contracts themselves and now you don’t have to watch any videos, as there is now NO Learning Curve as you can choose the tutorial versions of the Virtual Agent /Interactive Contracts and they all come with ULL or universal Legal locators allowing you to buy and sell from anywhere.
The Virtual Agent/ Interactive Contract is operated and negotiations between buyer and seller are done “ON SCREEN” with a touch or click.
The entity creates it’s own Conveyancing Page and can be signed on or from any screen, including your big screen TV making real estate negotiations a family affair:))
Of course, this is also another giant advertising play as referred to in the video, as buyers and sellers need to buy real estate related services between the time the Acceptance is signed and closing and moving day.
NOW THAT’s TARGET MARKETING :))
By pegging the ads to postal codes or a grouping of postal codes, we will soon see 5M a month just from the ads, and we haven’t even touched the product placement revenues from new appliances, furniture etc being placed in new homes we are selling online for developers using Facebook New Home sales Events.
Buyers will download contracts to their smart phones and make and negotiate offers online while watch our video stream which shows all the new and shiny brands while we are negotiating on line from the show suite.
We’ll make OPEN HOUSE Cool again :))
However, as these virtual agent / contracts replace the Realtor® brand agent, the Realtor® brand must FINALLY leave 1985 and join the rest of us in 2018 or DIE.
I am still in shock that they let both their brands die back in 2014 when the Realtors® in Quebec Canada voted to leave the brands rather than be continually screwed over by the Realtor® and MLS™ brands by their policy of having Realtors® selling the same MLS Listing for $500 in the FSBO market and charging 5% or $20,000 for the same MLS Listing in the Realtor® Agent Market
Because of the Realtor Brand’s intransigent, both MLS & Realtor® brands were killed off in a market of eight million people, who are now happy using Kijiji, Craigslist, a rump “full service only” 5% Brokerage Group and a big popular FSBO site, as the Realtor® brand would rather stay in 1985 to protect it’s 1935 BIG bureaucracy rather that join the 21st century.
So Rochelle, how good are you at Social Media?… as that is where the future of Real Estate Sales are, and the to my experience of taking down the telephone monopolies back in the 1980s WOW!
I never thought I would see this kind of business opportunity in my life again and here it is.
I LOVE THESE GUYS as they are a huge opportunity for a happy little old technology disrupter like myself :))
Cheers and if that was too much information or more than you bargained for, my apologies.