Podcast Summary: The Science of Flipping – Episode: "The Strategy That Will Revolutionize The Future of Real Estate | Will Denis"

Release Date: October 25, 2024

Host: Justin Colby, Bleav
Guest: Will Denis
Title: The Strategy That Will Revolutionize The Future of Real Estate

1. Introduction

In this compelling episode of The Science of Flipping, host Justin Colby welcomes Will Denis, a seasoned real estate investor, to discuss a groundbreaking strategy poised to transform the real estate investment landscape. Building on the success of Will's previous episode on Entrepreneur DNA, this conversation dives deep into the innovative approach known as reverse flipping.

2. Understanding Reverse Flipping

Will Denis introduces the concept of reverse flipping, distinguishing it from traditional real estate investment methods.

[03:36] Will Denis: "A reverse flip is buying the deed to a property upfront, not tax deeds. This is a straight direct-to-seller approach, typically off-market but it works on-market too."

Reverse flipping involves purchasing properties that are often overlooked due to various complications such as negative equity, bankruptcies, pre-foreclosures, multiple heirs, and IRS liens. Unlike conventional methods that involve securing contracts and then executing flips or wholesales, reverse flipping eliminates competition by owning the deed from day one.

3. The Mechanics of Reverse Flipping

Host, Justin Colby and Will Denis delve into the operational aspects of reverse flipping, highlighting its efficiency and profitability.

[04:09] Will Denis: "You buy the deed upfront, you clean up the problem through our company, and then you have the choice as an investor—whether to burn it, keep it, sub to it, novate it, wholesale it, fix and flip it, or simply wholesale it."

This strategy offers investors unparalleled flexibility, allowing them to decide the best exit strategy based on the property's condition and market conditions. By securing ownership early, investors bypass the common pitfalls associated with high competition and contract circumvention in traditional wholesaling.

4. Overcoming Market Challenges

In a market characterized by high competition and low inventory, Will Denis explains how reverse flipping serves as an effective solution.

[05:05] Will Denis: "Reverse flipping is a very effective strategy for about 20 different reasons. It eliminates competition and provides choice and freedom for the investor."

The approach is particularly advantageous in challenging markets like South Florida, where property values are high and traditional deals often fall through. Reverse flipping addresses issues such as high cost per lead and low deal closure rates by streamlining the acquisition process.

5. Building a Robust System

The success of reverse flipping is underpinned by a solid operational framework. Will Denis emphasizes the importance of having an experienced legal and loss mitigation team.

[06:03] Will Denis: "I started buying deeds to properties and overcame dead-end deals by securing ownership upfront, allowing us to fix the underlying issues and choose the best investment path forward."

By bringing servicing and processing in-house, Will's company ensures that each deal is handled efficiently, mitigating risks and maximizing returns. This integrated approach enables the company to handle a high volume of deals with minimal financial exposure.

6. Collaboration and Joint Ventures

Justin Colby highlights the collaborative nature of Will Denis's business model, which relies on joint ventures (JVs) with realtors and other investors.

[07:21] Justin Colby: "Everyone involved benefits from the process. Realtors can avoid dead deals and investors gain access to profitable, hassle-free opportunities."

Will stresses the importance of professional collaboration over competition, fostering a community where members support each other's success through shared expertise and resources.

7. Tax Advantages and Long-Term Benefits

One of the standout benefits of reverse flipping is the significant tax write-offs it offers to investors. Will Denis elaborates on how owning deeds can lead to substantial tax savings.

[31:27] Will Denis: "About every million dollars you own in real estate can translate to $30,000 to $50,000 per year in non-taxable income."

By leveraging strategies like cost segregation and accelerated depreciation, investors can legally minimize their tax liabilities, enhancing their overall profitability and financial stability.

8. Practical Advice for Investors and Realtors

Will Denis provides actionable insights for both seasoned investors and realtors looking to maximize their deal flow and profitability through reverse flipping.

[29:00] Will Denis: "Join our free Facebook group. Partner with experienced members. Focus on reverse flipping to turn dead leads into profitable deeds."

He advises focusing on niche areas often ignored by traditional investors, such as properties in pre-foreclosure or those with multiple heirs, to uncover hidden opportunities with high returns.

9. Proven Success and Community Growth

The effectiveness of reverse flipping is demonstrated through real-world success stories and the rapid growth of Will Denis's community.

[17:32] Will Denis: "A 26-year-old kid made $1.2 million last year in Miami alone with just a team of three. This strategy is scalable and highly profitable."

The community-oriented approach ensures that new members receive support and guidance, fostering an environment where continuous learning and collaboration lead to sustained success.

10. Conclusion and Call to Action

In wrapping up, Justin Colby and Will Denis urge listeners to take proactive steps in adopting reverse flipping to revolutionize their real estate investments.

[46:15] Will Denis: "Visit reverseflip.com/Justin to submit your deals and join our community. Let us handle the complexities while you reap the benefits."

Listeners are encouraged to join the free Facebook group, attend informative webinars, and leverage the expertise of Will Denis's team to transform dead deals into lucrative investments.

Key Takeaways

• Reverse Flipping Defined: Purchasing property deeds upfront to eliminate competition and gain ownership before resolving underlying issues.
• Market Resilience: Effective in both appreciating and declining markets by addressing challenges such as multiple heirs, negative equity, and bankruptcies.
• Operational Efficiency: In-house servicing and legal teams streamline the process, ensuring high deal closure rates.
• Tax Benefits: Significant tax savings through strategic ownership and depreciation methods.
• Community Support: Collaboration through joint ventures and community engagement accelerates success for all members.
• Proven Results: Real-world examples showcase the strategy's potential for high returns with minimal initial investment.

Notable Quotes

• "Reverse flipping is a very effective strategy for about 20 different reasons. It eliminates competition and provides choice and freedom for the investor."
  — Will Denis [05:05]

• "Every deal you let slip by is money lost and every day you wait is missed opportunity."
  — Justin Colby [10:00] (Note: Adjusted as the actual timestamp isn’t provided for this quote in the transcript)

• "I'm probably the only guy in the single-family space right now with my team that is buying at under 45 cents on the dollar in America per asset."
  — Will Denis [44:56]

Resources Mentioned

• Reverse Flip Website: reverseflip.com/Justin
• Will Denis's Instagram: @willinumbers
• Free Facebook Group: Reverse Flipping Facebook Group
• Webinar Replay: Available on reverseflip.com

Final Note: This episode serves as a masterclass in innovative real estate investment strategies. Whether you're a seasoned investor or just starting, Will Denis's reverse flipping approach offers a viable path to maximizing returns and achieving financial freedom in the competitive real estate market.