Author Topic: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events  (Read 1401 times)

haflander

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Over the long weekend I randomly saw an infomercial regarding "snap flipping." I can't remember the last time I saw an infomercial that I paid attention to for more than 2 seconds. Anyway, snap flipping involves finding/locating houses for real flippers to buy and renovate. Snap flippers do not need to contribute any money in any way or help renovate. All you do is find the house and pass it to a flipper. It wasn't explicitly stated, but I suppose the snap flipper makes a small finder's fee at the very end of the flipping process, after the renovated house has been sold and the profit determined. I guess at the events (my area this week), they educate you on how to find properties online "before they are even listed!" Also, they made it obvious from the infomercial that you have to drive to the house, take pictures with your phone, send them to the real investors/flippers.

As you can imagine, the infomercial was full of all the buzzwords and testimonials from "success stories"...totally free to attend! no $ is required! make $ instantly! Attend a free event near you to learn the secrets!

I'm interested for two reasons, but obviously skeptical for the same reasons as you. I'm wondering if this is something like those "make $ in real estate" seminars where they try to get you to buy a timeshare. My biggest ? is wouldn't the legit flippers know how to find these houses themselves? The infomercial addressed this by saying they're too busy or don't live in the same place. So the suckers' logic is that I should go and learn how to make money doing this (not likely). However, the more practical reason is that I was wondering about going so I could learn how to find cheap properties for myself in the future. Btw, I know absolutely nothing about real estate whatsoever, buying or flipping. If I learned a few techniques on how to find cheap properties before they're listed (for the future), I'd consider it a net positive even after having to listen to all of the bs and trying to get you to drink the Kool-Aid that is sure to be had at the seminar.

Thoughts? Think it's too fishy or some sort of scam? I know there are many landlords around here and a few that flip houses, but not on such a large scale of flippers who would use snap flippers to find houses. Mustachians would do that work themselves! Link below for those curious...

https://snapflip.com/

CNM

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #1 on: May 29, 2018, 12:05:46 PM »
Interesting idea.  Most of the house flippers I know are highly, highly price sensitive, so I would have a hard time imagining them willing to pay a % of the sell price to a scout.

robartsd

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #2 on: May 29, 2018, 12:15:28 PM »
My guess is that it is legit, but the compensation is not worthwhile.

tralfamadorian

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #3 on: May 29, 2018, 03:20:01 PM »
Snap flipping, lolz.

This is actually called "wholesaling". It's illegal in some states (ex: Ohio), looked down upon by many in the industry, seen as helpful by others and extremely difficult to do consistently in a hot real estate market.

Basic steps:
1- Yellow letter, call or knock on doors for properties that meet your criteria in your farm area.
2- Get yelled at and/or hung up on many, many times.
3- If an owner shows interest, make an offer <60% of ARV-repairs with an earnest money deposit <$500 and long inspection period. For this piece, make sure you are an amazing can-sell-ice-to-Eskimos kind of salesperson.
4- Get yelled at and/or hung up on many, many times.
5- If a contract is signed, pitch your "deal" to investors at biggerpockets/your local REIA/craigslist for (contract price + $5k-$10k)=<70% ARV-repairs.
6a- If you find a buyer, do a blind closing so the seller will not know that you are not the end buyer (very occasionally wholesalers are upfront about this). Sometimes title companies are uncomfortable about being involved since it's unethical and a legal grey area in many states. There is a legal way to do this but it involves paying closing costs twice and the wholesaler would need to be able to float the full purchase price in cash for a short period of time, which most cannot do.
6b- If you cannot find a buyer, walk away from that tiny earnest money deposit.

Rinse and repeat.

Here is a biggerpockets search, where the topic has been discussed frequently and thoroughly.
« Last Edit: May 29, 2018, 03:23:22 PM by tralfamadorian »

haflander

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #4 on: May 29, 2018, 03:39:10 PM »
@tralfamadorian there's a good chance you're right, but that really wasn't my impression. I'm trying to remember the exact language...something about finding houses "before they're listed" which would make me think they weren't normal people with existing mortgages. Of course, you could be right and I've already been hypnotized. If I went and found that was the case I'd have no problem simply getting up and walking out, exactly at the moment of learning that there was any kind of knocking, cold calling, or salesmanship involved.

tralfamadorian

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #5 on: May 29, 2018, 04:46:26 PM »
I mean, it's your time @haflander but this kind of real estate guru scam is as old as the hills. First presentation will be light on information and try to bait you into the next level. Maybe that one will cost $500-$1000 $1,300. This one will "teach" you how to call your credit card company to get your limit increased so you can pay $15k$38k for the next level "boot camp".

Finding properties in the way you describe, off market and without finding them yourself, is not really a thing except through networking with wholesalers, real estate agents (pocket listings) or your own personal network. There's no magic formula that these people can teach you. All the information you need is free from books at the library.

update: I found some real numbers in snap flip's bbb reviews.
« Last Edit: June 01, 2018, 08:18:26 PM by tralfamadorian »

haflander

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #6 on: May 30, 2018, 07:46:53 AM »
Again, maybe you're right. On the other hand, "no money or credit needed!!"

Car Jack

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #7 on: June 01, 2018, 12:19:44 PM »
Yah, yah, yah, I know all that stuff.  Can I skip the free seminar and go right to the seminar that costs $10k where I can learn the secret secrets that make mere mortals into gods of income?  Here's my money, please take it all.

Blindsquirrel

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #8 on: June 01, 2018, 07:49:56 PM »
   I have bought a couple houses from wholesalers in Ohio. Have got some good deals. They have their place but it is not road paved with gold jackwagons who sell seminars portray it as.

aasdfadsf

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #9 on: June 03, 2018, 11:24:49 AM »
Basic steps:
1- Yellow letter, call or knock on doors for properties that meet your criteria in your farm area.

God, I hate those people. I bought an investment property several years back that somehow got me on their lists, and scarcely a day goes by that I don't get a piece of mail or even a cold call asking if I would like to sell my property. If I wanted to sell it, I would list it for sale. I'm not about to entertain some novice wannabe who hopes I'm stupid or desperate enough to part with my property for a fraction of its worth.

Another Reader

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #10 on: June 04, 2018, 10:09:23 AM »
Get letters, postcards, calls and texts everyday.  It's gotten to the point I don't answer the phone if I don't recognize the number, especially if it's an Arizona area code. Took a call yesterday by mistake from an especially obnoxious woman who was practically shouting her pitch in my ear.  Told her she was an equity thief and hung up on her.

Skip the free seminars and the sales pitch.  If your market is hot, the competition will be brutal.

Cwadda

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Re: "Snap Flipping" Infomercial and "Free" Dinner/Lunch Events
« Reply #11 on: June 04, 2018, 10:22:52 AM »
Snap flipping, lolz.

This is actually called "wholesaling". It's illegal in some states (ex: Ohio), looked down upon by many in the industry, seen as helpful by others and extremely difficult to do consistently in a hot real estate market.

Basic steps:
1- Yellow letter, call or knock on doors for properties that meet your criteria in your farm area.
2- Get yelled at and/or hung up on many, many times.
3- If an owner shows interest, make an offer <60% of ARV-repairs with an earnest money deposit <$500 and long inspection period. For this piece, make sure you are an amazing can-sell-ice-to-Eskimos kind of salesperson.
4- Get yelled at and/or hung up on many, many times.
5- If a contract is signed, pitch your "deal" to investors at biggerpockets/your local REIA/craigslist for (contract price + $5k-$10k)=<70% ARV-repairs.
6a- If you find a buyer, do a blind closing so the seller will not know that you are not the end buyer (very occasionally wholesalers are upfront about this). Sometimes title companies are uncomfortable about being involved since it's unethical and a legal grey area in many states. There is a legal way to do this but it involves paying closing costs twice and the wholesaler would need to be able to float the full purchase price in cash for a short period of time, which most cannot do.
6b- If you cannot find a buyer, walk away from that tiny earnest money deposit.

Rinse and repeat.

Here is a biggerpockets search, where the topic has been discussed frequently and thoroughly.

Basically this. Also, putting up bandit signs "we buy houses" taped shittily to telephone poles and illegal by town laws.

It's an extremely unethical business practice. It's a business that thrives on people taking advantage of others with bad situations/unfortunate circumstances.  i.e. Buying a house from an incompetent person with Alzheimer's.  Wholesalers love to tell stories to justify what they're doing. The fact of the matter is it's unethical and wrong. There is NO counter argument.

Unfortunately on Bigger Pockets, Brandon and Josh don't see it like that. They see it as a good thing for the real estate business, and celebrate the practice when interviewing wholesalers who are closing hundreds of deals a month.
« Last Edit: June 04, 2018, 10:24:52 AM by Cwadda »