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How to Flip Apartments for 6-Digit Profits | Episode 20

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How would you like to know the LITTLE SECRET to doing HUGE, six-figure flips in a simple, predictable, HIGHLY REPEATABLE way? If four- and five-digit profits just aren’t big enough for you anymore, then you’re going to love today’s episode. I’m Carole Ellis. This is Episode 20.

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Seriously guys? Four- and five-digit profits aren’t enough anymore? Okay, okay, I get it. If you could make $100,000 or MORE every time you did a deal, you’d certainly have to do fewer of them, and I imagine we could all find great things to do with that time, like spending time with our loved ones or pursuing passions outside of real estate. But let’s face it: the majority of the deals you do in residential real estate are going to net you profits with four and five digits, not six or seven. If you want those bigger numbers, then you’re going to have to do something that today’s guest refers to as “becoming someone’s JOB.” I’ll explain what she means by that and how it can – and should – revolutionize the way you think about your involvement in real estate today.

First, however, I’ve got some other HUGE news that has a much smaller price tag – just about three digits. According to the American Society of Landscape Architects – did you even KNOW there was such a society? That’s what I love about real estate – there is a society or data giant out there for EVERY TOPIC! Anyway, according to the ASLA, this spring’s homebuyer is loving the outdoors more than ever, and that means that adding a small upgrade to any home can, in effect, add the entire square footage of the yard TO YOUR LIVING SPACE! Want to know more? Head on over to the News & Networking section at www.REI.Today and check out the “Lesson Learned” section in our Must-Have Upgrade for 2016 report.

Now, back to what I know has you drooling…those six-digit profits. To talk about buying TRULY BIG in real estate, I brought in a lady who knows the big business of real estate – and don’t get scared, but I’m going to go ahead and tell you these types of profits require investments with the word “commercial” in the title – inside and out. Her name is Sue Nelson, and when I asked her for a headline that encapsulated her real estate investing experience, she came up with this beauty: “Struggling art teacher turned real estate investor purchases 2,000 apartments so she can stay home with her toddler and infant children. If she can do it, so can you.” That’s a good summary of her bio in less than 30 words, but I’m going to give you just a little bit more. This commercial real estate dynamo’s name is Sue Nelson, and she started investing in commercial real estate when her daughter was born. Sue’s daughter had some serious health complications as a baby and, like any parent, Sue knew that she would have to do whatever it took to take care of that little girl (oh, and her 18-month-old at the time brother as well). Unlike most people, however, Sue thought much bigger than you might expect. While a lot of us might think “I need to learn to wholesale three-bedroom/two-bath houses,” Sue decided she’d start with a 104-unit apartment complex.

Here’s why that made sense, and why Sue was successful in her own words from an exclusive Q&A Interview with Real Estate Investing Today:

“I actually thought originally that I’d buy a three-family triplex,” Sue says, adding that this deal quickly turned into “a nightmare.” She explained that she quickly discovered that managing the small property was going to be very difficult because, in her words, “it was nobody’s job but mine!” Essentially, Sue discovered on her first foray into real estate investing that for her, the key was going to be investing SO BIG that someone ELSE’S LIVELIHOOD depended on her deals. Pretty gutsy, huh? But hey, it makes sense! So Sue starting thinking and looking for cash-flowing deals that were bigger – about 101 units bigger, to be exact. “An apartment complex is someone’s job,” she explained. “The manager, the maintenance crew, those people have to CARE about the property because if they don’t, then they don’t have a job anymore. So if a property is cash-flowing” (and I should note here that Sue has a unique cash-flow analyzer that helps her identify the right types of deals that matter in the right way to the people involved in that cash-flow process and to future buyers of those deals) “then I know that it’s a deal I can do whether I’m nearby or far away.”

So Sue plugged this 104-unit apartment complex into her cash-flow analyzer and decided it was big enough to be important and that the cash-flow was such that she’d be able to find a buyer. She took the deal to her attorney to have some paperwork drawn up and the guy took one look and said hey, why don’t you just sell this thing to me and I’ll pay you $120,000 for it. And thus, Sue was hooked and her commercial real estate career was born. I’ll let her tell you about that part, because I couldn’t possibly say it any better.

Sue said, “Oh my God. Well, that launched me, because I realized if someone would buy these deals from me, I could stop right there. That was actually five years of art teaching! So I closed it, and I just kept replicating the process.”

Now, since that time, Sue has done more than just “replicate the process.” She’s been a commercial buying MACHINE, and she’s got a pretty great system down pat that has enabled her to, well, let me just give you a few more quick examples:

*Help a student buy 242 units for $7 million without laying out any of his own money

*Work with a stay-at-home grandmother to “Flip” an entire apartment complex for a fast $180,000

*Close on a $2.3 MILLION CA PROPERTY WITHOUT TAKING OUT A LOAN.

If those numbers are sounding “IMPORTANT” enough to you, then you’ll want to hear EVERYTHING Sue has to say, including the details on those and lots more deals that she’s done over the past decade. Can’t wait to hear more? Head on over to www.rei.today/IMPORTANT to get the full scoop right now. That’s www.rei.today/IMPORTANT, because IMPORTANT is our word of the day. Admit it: now you’re feeling like six-digit profits are the ONLY WAY TO GO, so head over to www.rei.today/IMPORTANT right now to take this IMPORTANT TRAINING right away.

When you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country in addition to having the chance to interact directly with Sue herself.

REI Nation, thanks for listening in. Now, more than ever, please remember this:

Your best investment is ALWAYS your own education.

 

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About the Author

Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.

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