How I Evolved My Flipping Business

I want to tell you about the evolution of my flipping business.

If you’ve ever purchased a property, you know that qualifying for the mortgage and getting all the paperwork in order for the lender is a lot of work! AND it’s a pain in the butt!

And if you’ve ever renovated a property… Again, it’s a lot of work!

I got tired of flipping properties for other people and decided that “Flip to Yourself” was a better strategy for me!

Flip to Yourself allows you to regain access to your capital and gives you the ability to use your money over and over again!

Most people flip properties to make money. For example, some investors will flip three properties and hold one, flip three more and hold one, etc… And what that means is going through the qualification process over and over, and completing a renovation over and over.

That’s a lot of hard work – and now you’re going to sell it?!!

That’s YOUR sweat equity! Why not keep it FOREVER?!

How about this? You buy a property, add value, and then refinance for up to 80% LTV, aka “Flip to Yourself“. This way you keep the property and earn rental income forever and you can continue to reuse your capital. Brilliant!

To learn more about this, check out this clip from when Jas Tahkar (from REC Canada) and I sat down to talk about real estate.

Check out the transcription of this video below!

Now off air, you were talking to me about, an investor that you were just dealing with not too long ago, in terms of… when they refinanced, they were able to refinance and pull out more money. How did that whole process work for some of our guys that have never done that before?

Yeah. It’s something that we call Flip To Yourself.

Okay. I love that term.

Keyspire Flip To Yourself. I learned this really early on and when I was working with my editor writing my first book, we came up with this idea together. I love naming things.

Okay.

Like Flip To Yourself, is this way that we can find…

The 4 Ways to Win.

Yeah.

We’ve got the Income Analyzer, that’s how we figure out income. My editor. And I told my editor, I said, look, I love this concept where I don’t want flip to other people.

Okay.

And my editor was a flipper.

He was a flipper.

I said, well, why? Right? Everyone likes to flip. Cause That’s what the shows say.

Yeah.

But hold for and buy and hold. So, you know, I will caveat it with… You have to flip to raise money.

Right.

And hold, right?

Yes.

That’s your ultimate goal?

Yes.

Right. So you might, you might flip three, hold one.

Yes.

Flip three, hold one. Everyone’s has a different ratio based on their, their, Performa but, but anyway, flipping.

Yeah.

So here’s what you do. You spend all of this time and effort up front.

You qualify for financing, you get financing, which is really difficult.

Right.

Doesn’t matter how much money you have or what your income looks like. It’s, it’s hard work. It’s, it’s a pain in the butt. And then you do a renovation which anyone who has done a renovation knows that, that is not easy either.

Right.

It’s a pain in the butt and all the other steps in between. Fill it with tenants, qualified them, get them all in there. You do all this hard work and you mean, you tell me you’re going to just sell the property. You’ve done all of the hard.

All that sweat equity.

Keep it 20 years…

Yeah.

Keep it forever because the rest of it is just ongoing maintenance. It’s the little stuff.

So that’s what I learned about flipping is that I’m doing all the work, cause I did a number of flips in the first few years.

Okay.

I did all this work. I gave it to somebody and then I would drive by the property six months later, I’m like this new landlord is making all this rental income that I should be making.

So that was your aha moment. You did all the work.

So after that, I said, I’m not gonna flip it to somebody else anymore. And I just said it I’m like, I can flip it to myself. And 16 years later, 15 years later, we still use that term. So you flip to myself.

I love it.

This means I’m gonna buy it…

Right.

I’m gonna add value.

Yes.

And instead of giving that to somebody else, I’m gonna just flip that value to myself. And that often means refinancing.

Right.

A refinance at the higher amount, which is what you were saying. I take out the money at new 80% load of value. Sometimes you get all the money you put. Tax free, cause you’re not selling it, it doesn’t trigger any disposition.

Right.

You get the cash and you have the rental income forever.

And now with that cash, you can go to Vegas and spend it. Obviously that’s probably not the smart thing to do. You can go buy more and now you’re essentially coining what you said at the start using other people’s money using other people’s money.

Right.

And you know, I even say, look at it this way. Say, people ask me how’d you get the down payments for the first 15 properties.

Yes.

I say easy. It was one down payment. I used it 15 times.

That’s awesome.

I just flipped to myself. I’d take it I’d be like, let’s buy another property.

Right.

Now I did a lot of the work myself, got in there, learned how to hang drywall, learned how to do all those things.

Right.

So that saved some of the costs of buying is down payment every time. Yeah.

But yeah.