The problem with flipping is finding a buyer. You might do it. Then again you might not. If no buyers appear (how long is the average listing in the mls before it sells?) how will you handle the payments until they do?
Usually the person giving the seminar realizes they make more money talking about something than in doing it. Otherwise they would not do the seminar.
Fixing and Flipping is NOT the typical get rich quick scheme that promises that little skill, effort, or time is required to make millions while you sit home in your pajamas. There's a science to it and many experts who utilize a specific formula are doing extremely well in this arena. But the newbies need to know upfront about their silent partner. He's the guy who doesn't cough up any money for down payment or repairs and he never swings a hammer, tiles a bathroom, changes a light bulb... yet he walks away with a nice chunk of change...his name is Uncle Sam.
Speak with an accountant. Structure your business wisely.
Look into tax implications...Do your homework.
How long you own the property determines your tax rate.
If you hold a property for less than 1 year - short -term capital gains can be as high as 35%.
If you hold the property for at least one year - long -term-capital gains:15%.
The IRS is closely scrutinizing whether Rehabbers are Investors or self-employed business people.
"If the IRS decides your investment is a business; that you're doing this to earn a living, the property changes from a capital asset to a means of producing income that's subject to ordinary tax rates, plus the additional burden of another 15.3 percent in self-employment taxes. " OUCH!
Is there money to be made? Yes!
Will most people lose money? Yes. They are the one's who did not do their homework before taking the test.
Hope this helps!
You feel "like a money making machine"?
.........and you've made how much thus far?
Oh right...........that would be NOTHING!
ps just realized this question was asked wayyyy back in 2010 - wonder if he is still in business
I loved the bus tour! You must have an open mind to "networking" in order to make it big with his the info he equips you with. I am projected to make over $500,000 in the next 6 months. I come from losing two houses, my job and obviously my credit. Yet, I was only a "guest" to Armando's bus tour and I gained tons of hope! My friend, a real estate agent, paid the money for his program. I was his guest.
I HIGHLY recommend it! follow me under facebook. my profile name is legallylatin
I will posting my progress there.
Honestly, I haven't tried his products, though I've tried a number by various different real estate gurus. And I've seen pitches by many more.
My biggest frustration with many of these is that the promised "mentoring" never occurs. You get a seminar, some CDs, access to a web site, and so on. But often you're also promised 1-on-1 "mentoring." Or you're promised that you can call with any questions on a possible transaction. And that's really where the rubber meets the road. You can read all you want about flipping, but when you're under pressure to determine if something's a good deal, or whether a hard money lender will lend, or whether the "partnering" offer from the guru is good, you need answers quickly. Even with some quite legitimate gurus, a lot of times it seems you're left to twist slowly in the wind.
Most of the gurus mean well, and most (from the few times I've done it) seem to stand behind their "money back guarantee." However, in this case, I do urge that you check out the web site recommended by Lindsey.
A few other comments: All the gurus show these checks from their students who've supposedly followed their instructions and done well. And the checks (as far as I know) are real. In fact, I know some investors whose checks are displayed in such programs, and they're legit. However, look at the check's date. If it's from a deal 3 or 4 years ago, be very careful. Doesn't the guru have anything more current? Maybe the guru was using a strategy that worked great 4 years ago but doesn't work nearly as well today. (Buying preconstruction, for instance.)
And while the gurus claim that their techniques will work anywhere, that's only partially true. Most techniques generally will work in most places. But there are local differences, customs, and expectations. True story: For a while, I was being coached by someone out in the Midwest. Where I live, an average "bread and butter" house sells for about $400,000. Her instructions to me were to call ads in papers, focusing on medium-priced homes. So that's what I did. When we talked about the details of my calls, she severely criticized me for calling all those upscale ($400,000) properties. Well, where she was, $200,000 was "bread and butter" and $400,000 would buy a mansion.
Another example (same "coach"): She had a specific script for me to read. One question, after asking the basics, was "What is the financing on the house?" Well, that question may have made sense where she was, but I invariably got one of two answers when I asked it: "I don't know" or "The loan is not assumable." And despite asking the question again, I couldn't get any farther.
So, try to find someone familiar with your area and your customs.
Also, you identify yourself as an agent. Recognize that most of these programs are written for non-agents. And there are some things that some of these programs--admittedly, I don't know about the ones you're asking about--that are legal for non-agents to do, but not for agents. For example, there are effective investor techniques that resemble net listings. Another example: some of these programs rely heavily on the investor making the point that: "I'm not an agent, so if you sell to me you avoid the commission." That's equally applicable if you're an agent buy investing on your own behalf. But then it gets confusing when you disclose: "I'm a Realtor licensed in Connecticut. However, as an investor, if you sell to me you don't have to pay a commission." It actually helps, sometimes, to explain that you're an agent--it adds some credibility to your pitch. But my point here is that some programs are constructed on the premise that the investor isn't an agent. And some "gurus" (one of my friends, in fact) are really openly hostile to Realtors.
So, after all that, I haven't answered your basic question. But I hope that helps.
Correct market valuation as well as type and quality of improvements and cost of improvements are all obviously crucial for success.
REALTOR- Keller Williams Greater Athens
Most of those products aren't worth the price. And, despite what they all claim, market conditions in different parts of the country DO affect the success or failure of a program.
Hope that helps.
I flip in Grand Rapids. I do 2-3 flips a year. I make $10k-20K per flip. Not exactly a millionaire yet.
You need discipline and a burning desire, and determination, and NEVER GIVE UP!! Then you can succceed, but if you don't get out there and do it, then nothing will happen.
With his course, you get mentoring, and you get in his network. This is very valuable, so. you can stay in contact with other. highly successful students. This will help you to success.
Not everyone is cut out for Real Estate investing and Flipping.... Just like not everyone is cut out for playing football or driving a race car.
They want to make you think that you can do Real Estate on a professional investing level and take all your money to teach you how it can be done and when the classroom days are over you will be back to the beginning and Im sure they will try to sell you more products to fix everything. Everyone in this world has a skill that they can do better with or out perform others with. Tiger Woods its golf and Donald Trump is Real Estate.
They brain wash these people in the class thinking its so easy and everyone can do it and make 100's of thousands of dollars if not millions....
I have to say that I was so sick watching them hard sell people into a program for over 30 grand that will never make them a RE Invester. Its like giving you a bat and telling you that if you give me 30 grand I will send you to the batting cages and in a week you should be ready for major league baseball. Oh and by the way if you cant do it just call me on the phone and Ill mentor you how to swing the bat. ITS A JOKE.
Not everyone can do this business.. Armando Montelongo Seminars needs to stop hard selling people that have no reason being in the business... They are smart enough to know which people that is..... The 3 day seminar was a joke. All it was is a Vocabulary Lesson and a Story telling session for the speakers....
Stay away for this!!!!
There may be some markets where those conditions exist, but I am pretty sure those markets are the exception, not the rule.
I think a seminar, books and a $1500 "product" will not be enough to change market conditions.
Google his name and the word "scam" or ripoff or lawsuits. Below is a top rated website for ALL scams (from internet, door to door, consumer products, etc).
You will see how Armando is making money since its obviously not by flipping houses as he claims. If you want to Google his flipping success...do that too. You'll see he's not what he boasts to be.
Buyer beware: You'll see this guy is a vulture and uninformed people are his prey.
Surely you knew they were going to try an sell you something.
Well, I always think why is this guy trying to sell me a book, a course, a whatever that promises to make me so very much money instead of using it himself? but that's just me.
do a google search.
also see if you can find the book, the course or whatever it is they give you on ebay at a greatly reduced price.
Mine for instance is http://www.reintn.org/
Find mentors to work with within your local group, and of course network with the members. These are the people that are doing it everyday whether it be flipping, buy and hold, lease options, subject toos, warehousing, etc, etc. Within these groups you can find private money, hard money lenders, people who loan money via their IRA's, etc.
Some mentors will partner with you on deals, or will charge a fee to mentor you and still partner with you on a deal, etc. Yes there are national speakers that attend these group meetings and offer to sell from time to time a $600 course in something. Personally I have found it never hurts to further your education.
Speaking from experience, the HARDEST-PART is finding the deal!!
I am a former FULL-TIME Realtor, turned investor. Then got out completely for a few years due to the market crash, and just NOW starting to "ease" back in to it.
And Carleton sheets was selling tapes in the 90's.,,,doing the same thing.
I'm glad I saw your post on yahoo search.....I was thinking of going to Arm.'s seminar ,,,,I already had something to do in town but won't waste the gallon of gas to go,,,4/10/2013,,,,,,I guess Armando does the US tour of house flipping seminars,,,,,hmmm,,,he should open up for Van Halen,,,,
You need market knowledge to help make sound decisions. Partner with a local expert Realtor, one that knows the areas you are looking in, that can show you what the average sales price is as well as how long it takes, in general, to sell a home in that area. If they are willing to take you around to look at prospects then better and better. They may also put you in touch with a great contractor that you can gain knowledge from.
Hope that helps
My over all opinion- I am an A+ and Network + If i wanted to I could of read all the books on my own and passed the course. I believe the same rules apply. Just this morning I picked up one of my flipping books and it talked about flipping suing your directive ira, the same thing i learned in with this. But what Amando or his speakers preach is the "AMONDO WAY"
Both schools worked in a similar fashion., so this is an indurstry wide protocal. The weight loss industury works the same way. You pay $20,000 for inpaitiant program or 5000 for an out patiant program when in reality all you need to do is follow a diet.
I don't like any program that get's you into a lecture and then says if you want to do it right then you have to pay for another one. I don't like the carrot in front of the wolf say of doing things. Rendus did not hide the $15,000 they said it on the first meeting so it was better.
I think I'd like to reaserach out other ways in learning this. without spending so much money. I don't get something though I'd say 80% of the class signed up for this I don't understand how this crowd can afford this. in anycase I know I can but I'm not going to follow the crowd. Amondo will always be there if I so choose to give him $50,000 later on I will but for now I'm on my own
and learn how to spot or detect a BS artist.
Please send an email to Bigbrybasser@aol.com
We are going to one of tthese seminars in a week
Send him an email after december 15th to find out his evaluation on this program.
If you even have to think about Armando's courses, you probably don't have The brain power figuring to go through with any of it.
If you are reading this !!!!! my recommendation would be to spend $300 and take one Business course at your local community college.
I just hate seeing Armando's fat scaming overweight ugly ass on TV. Even in the show it's quite apparent that he doesn't know what he's doing construction Wise. Just telling people to cheeply slap stuff back together. If you're ever buying a house do your research and make sure it wasn't fixing flipped by Armando. anything looks good with a fresh coat of paint.
i am a single parent and do not make alot of money and can not afford the gas and expenses for this.
i have been trying to get this solved, but just keep getting the run around.
if i would of known about the way the seminars and training area were, i would of not be interested in this company, there word is not true...
my contract is up in august and i have been calling, and calling, and get no response, so the next step will be better business burel or small claims court.
this is not good business.........................................by armando took me!!
follow all the good advice already offered here..........run for the hills..................or take that 1500 and go on a nice vacation.....
If the flipping game is so lucrative, why has he ceased his flipping opperation in Texas and now diversified into this? It's not because he want's to create thousands of competitors copying him, it's because the flipping business is sinking fast and he wants to protect his income.
My experience (to my detriment) is that it's just one seminar after another, with so called millionaires telling you nothing about flipping, but setting you up for the next sell for just another $1497...$10,000 and $24,000 if you're really gullible. Why are they there donig it? because it's far more financially rewarding and less risky than flipping homes in a depressed market. Best of all, you never even get to see the man himself! It's just a succession of illiterate, uneducated, bully-boy flunkies telling well rehearst stories!
I just wish I could upload some of the forms they want you to complete with your most intimate personal financial detail, including how many credit cards you have and what is your spending limit on each. Yes, you've guessed it; you're then encouraged to max out ALL your credit cards (which includes paying their seminar fee's), and they deem you a weak, negative person if you don't!
These seminars are for easily led dumbo's who have more money than sense, and/or people who believe there is a magic way to create wealth without actually working. Armando Montelongo's seminars come close to doing both these things for him personally, more and more mugs keep lining his pockets with their hard earned cash or credit, but be assured, the seminars won't teach you anything about flipping houses, that's for sure!
From something as simple as the way you word your offers to the banks on a cash offer. Adam Sachs clearly states that you put in "subject to inspection" However, on page 46 of Volume Two under escape clauses Armando says "subject to partners approval...then two paragraphs further down..."One thing the bank DOES NOT want to see is a clause reading subject to inspection..." So here is a CLEAR example where the speakers at the $1500 seminar are not plugged into Armando's material.
On day 1 I ate lunch with Tiffany Barnes, and a person at my table asked her about the 65rule. (Again the free "teaser" seminar claimed we would learn the 65rule in FULL DETAIL at the 3-day seminar) SHE HAD NO IDEA WHAT THE 65-RULE WAS!!!!
She went on about the 72 rule, which is about how long it takes to double your money... This was not an impressive 3-day workshop. As with all seminars there are surely some nuggets to learn here. Absolutely!! However you have to sift through many many embellished stories and flat out contradictory information from The Master Course to the Seminar presentation that its hard to know what to believe and what not to.
When we asked Tiffany at lunch that the 65-rule is what Armando claims works so well in order to succeed. She went on about that the mentors can not teach the literature and information in the books, because so many people who come to the 3-day workshop do not read the material before hand and they would be lost.
Chis Sanders was a complete joke! MAX OUT YOUR CCARDS EVERYONE!!!!!!!!! RUN YOUR LIMITS TO THE MAX. DON'T WORRY WE JUST DON'T HAVE TO PAY. Credit score means nothing!
It was very poor indeed! He did teach a way to purchase property on EBAY! EBAY PEOPLE!!!!! I sign up to learn the Armando system, and he is teaching us how to buy and sell on eBay! Complete garbage.
Remember, I didn't come on here to be pessimistic. I truly didn't. This isn't poor me, or how I got swindled. As, I honestly feel that if they would have just been brutally honest with me.. For example. I have a method that will make you filthy rich, and you have to pay to learn my skills. SIMPLE! Sold!!! I don't want to hear 20 complied hrs of B.S. stories and lies about how to sell, ccards, sandwich options, eBay deals, PayPal tricks... If you don't know how to sell or speak, then take another seminar! I was here to learn the Armando System to Flipping! Period! It was extremely unprofessional!!
Simply put; people think about this! PLEASE if for nothing else, lets wrap our LEMMING brains around this. That PayPal trick he teaches to save you 3% convenience fee charges on cash advances...WHY DO I CARE ABOUT 3%??? WHEN IN THE ARMANDO FLIPPING MACHINE you make a return of 20%??????? BUT...we waste 2hrs of a day on saving us 3%... I wont say scam...but they CLEARLY DO NOT teach you anything about Armando's Flipping System, nor do they care to take time to teach you both sides of the deals. They show you one side at a time ONLY. They will never give you the whole picture until, AND ONLY until you purchase the mentor-ship.
My dilemma is however, that lets say you purchase the bus tour and diamond packages....when you get to the bus tour do they sell you a $100,000 something else??? When does it end? When do you ACTUALLY learn the Armando system??? I assume that answer is NEVER.
Take my review if you want or not, I could care less. But, the fact remains this seminar is a joke, and does not deliver on the promises made in the initial seminar. Just teach the system and I will be more than happy to pay for advanced training. I guess I wasn't a Lemming enough for them....I just couldn't get my mind in the right mindset to get completely ripped off. How unfortunate!
Those of us who try to educate others in real estate and try to give out truthful answers are not, in your words, "pessimistic, unhappy with your jobs, and make crap up like "flipping houses screw people over."
There are so many variables to flipping.
Las Vegas Flippers are in the market here now and some appear to be doing well and others are not.
Lots of risk with potentially lots of reward too.