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Hey, it smells so good in here. Yep, that'd be the coffee. I know.
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It's just I've had nasal polyps for so long.
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Congestion and breathing are much better.
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I'm pretty jazzed about it.
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A
Welcome back the science of flipping family to another amazing episode. Now, here's the key on this one. Will Dennis has revolutionized how we do real estate investing. And his episode over on the entrepreneur DNA did so well and had so much engagement. We are introducing that episode right here. If you are a real estate investor, an aspiring real estate investor trying to figure out how to get your very first deal. My guest, Will Dennis will change everything you know about real estate and how to get your first deal, your next deal, and consistently do deals each and every month. This episode is phenomenal. I'm super excited. Make sure you follow Will Dennis everywhere. He goes by Willie numbers. Now, let's jump into this episode. Let's go.
B
So if you've been in this space at all, if you've been wholesaling. If you've been breaking your brain up against a wall, Right. And you, oh, my God, the seller has 20 other people, which is true. Especially in an area like South Florida, dude, How would you like it to speak to a seller that not only has no other option.
A
Right.
B
No one else can figure out the problem. You're the only person standing in front of them. And usually what their response is to that person. When I was doing this face to face with sellers was, well, you can't buy this. Everyone is trucked. When I hear that, I get excited and I'm like, oh, but I can. And I can figure it out.
A
That's right.
B
So that's typically the conversation that you're having.
A
Yeah.
B
And then of course, we brought it in house. We brought the servicing in house. Right. And all that. And that's why our entire model is JV ing with people. Like, all you gotta do is go find these things, get them under contract, or buy the deed with a limited POA and you bring them to us. And then you just put on your seatbelt, dude, and get paid.
A
What's up, the entrepreneur DNA family. I am back with another incredible guest. If you are in real estate in any shape, whether you're a realtor or you're an investor, you are going to want to know who he is and you are going to want to know what reverse flipping is. Will, Dennis is in the house. What's up, bro?
B
Appreciate it, bro. I'm excited to be here.
A
Let's do this. So, bro, you blew my mind about two weeks ago. I've been in this space for 17 years.
B
Long time.
A
Two weeks ago. You're like, colby, I got. This is it. This is it. I'm murdering it on this. So let's just tell the people immediately. What is reverse flipping?
B
All right, so basically, you know my story. I got started about eight years ago. And a typical wholesaler, what a reverse flip is, it's buying the deed to a property upfront, not tax deeds. This is straight direct to seller, typically off market, but it works on market, too. So you buy the deed to the property and you fix all the hair.
A
Right.
B
For lack of a better term, this is basically your dead deals, your dead leads, et cetera. You know, no equity, negative equity, upside down, reverse mortgages, bankruptcies, pre foreclosure, multiple heirs to a situation, IRS liens. Right. Those kinds of things. You buy the deed up front, you clean up the problem right through. Through our company, and then you can choose your exit after the fact. So I called it reverse flipping because, as you know, being in the business, you typically close on the deal, then you do the work, and then, God willing, you make a profit if it's a fix and flip four or five months down the road. If a wholesale, maybe it's a double close, maybe it's not. In this scenario, you're buying the deed, so you eliminate all the competition right there. There's no more contracts, there's no more circumvention. Right. And now you're fixing the problem, and then you have choice as an investor. That's what we want. Right. It's choice and freedom. Right now you have the choice to say, do I want to bur this? Do I want to keep this? Do I want to sub to it? Do I want to novate it, Do I want to wholesale it? Do I want to fix and flip it, or do I just want to wholesale it?
A
Yeah.
B
Yeah.
A
So the challenge everyone is feeling right now in the real estate space. Competition market is tough. No inventory tough.
B
Yeah.
A
I would say this seems like the obvious answer.
B
Yeah. So, you know, even going back to 0708, which I wasn't around in the space, but. But you were right. And talking to a lot of my mentors back then, doing deals became extremely difficult. Equity was on the downward. Right. There was no buyers and all that stuff. So the deals that work best in a market like that are a downward market or in a tough market is creatives. Yeah. Luckily for me, I had a mentor that taught me a variation of this about five years ago. So I started buying deeds to properties. And, you know, we'll kind of get into the story of. Of how the whole reverse flipping thing came out. But basically I was already doing that for five years, and anytime I'd run into a property that was just like a dead end that nobody wanted, and we just couldn't figure it out. The one that was the one.
A
Yeah.
B
And. And we just started buying the deeds, and we're talking about. And keep in mind, I'm in South Florida. Right. So very expensive values, as, you know, 2,000 bucks, 3,000 bucks, thousand bucks to.
A
Buy the deed for $2,000.
B
So you have ownership in this property. A lot of my deals, man, get done with zero dollars. Right. And you can even tie in the sellers to the background, you know, to the back end of the deal. Heirs work as well.
A
Yeah.
B
So this is a very effective strategy for like 20 different reasons. Right. And you're.
A
When you say you're tying in the heirs or the owners to the back end, meaning you share some revenue with them on the back end. Sale of whatever happens.
B
Not revenue. But, for example, if an owner wants. I'm just going to make up numbers. But if an owner wants, Well, I want 10,000 bucks, that's fine. So as an investor, we're trying to mitigate our risk. Right. So I'll give you a thousand upfront, and I'll give you nine. Once I fix that. Can I curse on the show? Yeah, Once I. Once I fix this pile of shit, then I'll give you the nine.
A
Yeah.
B
And now you're into this deal for a thousand bucks, but you own it. Day one.
A
Oh, this is brilliant. This is why I'm excited. This is so you can even give an upside to the seller to incentivize them. You want to work with me so you can get your number. Might get a little creative. This is, again, this is like a creative finance strategy. And that's why, you know, there isn't one right way or wrong way to do creative financing.
B
No, there's not. And, you know, that's the beauty when, you know, having wholesale, like, 600 transactions. Right. And a lot of the. The typical stuff, I. Five years ago, I just. I don't know why, but I'm pretty good at solving complex. Yeah, I like them. You know, it helps that we have the best team in Florida from a legal perspective. Right. The title side, all that kind of stuff. And then we can get into the servicing company and the processing company that we ended up buying in the process.
A
Well, so, you know, for the average person watching this, whether they're a realtor or investors, works for both, Right. Anyone who's in the real.
B
Absolutely.
A
All Realtors, by the way, should be an investor. I don't understand why it doesn't make sense to me. Doesn't. You're doing the same thing we're doing, but you're taking, like, the lower value sticker price, which is the 3%.
B
Yeah. They. So realtors work with us a lot, and now we have a huge network and it's only growing by the day.
A
Yeah.
B
Where I always tell realtors, I'm like, don't fall into the myth and the bullshit that they fed you at, you know, Gold coast schools and all this crap that. Oh, it's 3%. I mean, the gnar just told you that you're not worth 3%. That's pretty much what it is.
A
So.
B
I would love to be in a business, and I always wanted to be in business where I dictate the terms and nobody can come along and just say, well, you're not making that anymore.
A
Hey, real estate hustlers. Are you sick and tired of seeing potential deals fall through the cracks? You know the ones. They're looking promising, but now they're just dead leads sitting there collecting dust. Well, it's time to change that. And it starts with the science of reverse flipping. Imagine if you could breathe life into those deals, save on taxes and boost your real estate portfolio like never before. With the science of reverse flipping, you get exclusive access to our in house legal team, the country's top loss mitigation pros, and three live weekly calls with investors who've closed over 3,000 deals combined. These are the guys who know how to make the impossible possible and they want to help you do the same. You either want every unfair advantage or don't. Every deal you let slip by is money lost and every day you wait is missed opportunity. But with the science of reverse flipping, you can turn those no's into yeses and those dead listings into deeds. Visit the science of reverse flipping.com now to join the community of serious investors who are taking action. Don't wait for deals to come to you. Go out there and take them. Visit science of reverse flipping.com today and let's get those leads working for you. If you're like me in the real estate game, you know how wild things can get. Managing leads, marketing, sales operation, it's a constant hustle. But let me tell you about something that has been a game changer for thousands of investors out there. Resimpli. It's an all in one software that truly is a lifesaver for anyone serious about the real estate investing game. What's crazy about Resimpli is how much it packs into one platform. You've got absolutely everything you'll need from list stacking, driving for dollars, automated drip campaigns, a cold calling dialer, a full phone system, email management, speed to lead buyer management, automated task systems, accounting features, literally the whole nine yards. It's like they built the powerhouse software just for us investors. No more juggling different subscriptions and trying to integrate a million different tools. So if you're anything like me, and if you are ready to streamline your investing business and close more deals, you've got to check out Resimpli. Head over to resimpli.com pod that is R E S I M P L I.com pod and get 50% off your first month. Oh, and they're also throwing in a free 30 day trial. So jump on while you can. Trust me, you don't want to miss this. Yeah, well, so a realtor should effectively. How many? I mean, I'm just kind of thinking immediately, if you're watching this and you're a realtor, you should be thinking, how many people have I put a listing on the market that could never really get there? Because maybe it was a short sale, maybe it was a probate. Maybe you had seven different heirs, and we couldn't get them all lined up. So people would make offers. The heirs would always argue you couldn't get the deal closed. Realtor should be the one coming in and either doing it themselves or finding you. Finding me. People that know how to do this and say, hey, guys, I have a deal that this will never sell. The regular mls.
B
Yeah. So we do a couple things on that. So we do get a lot of deals from realtors. Yeah. Either through our own efforts or usually now and again, we can get into the details. I haven't done marketing in 14 months, so not an ounce. I. So that should tell you everything.
A
Right.
B
So realtors come to us, and it's typically when they hit a dead end and they're like, hey, got no idea. Right. How to do the short sale, et cetera. They're mostly largely tied around debt to some way. That's a great trigger for your audience. But these realtors, they should absolutely be finding these deals. And if I was a realtor or even a wholesaler. Right. Wholesaling right now sucks.
A
Yeah.
B
I mean, you know, you've been in the game. I've been in the game. I mean, cost per lead sucks. Cost per deal sucks. Especially in a market like Phoenix or South Florida.
A
Yep.
B
Dude, the cost per deal in South Florida is seven to eight grand.
A
Terrible.
B
I mean, that's. That's like, if you're good and you're.
A
Going to spend a lot to get there. Well.
B
And you might bankrupt yourself in the process just to go get the first.
A
Deal so you can get some momentum going.
B
You also have 25 dipshits to every deal that's offering your seller 2,000 more, 5,000 more. Right. Then even if you get the contract, you got 25 dipshits going around your back to talk to the seller. Right. So now you got to sue the seller, et cetera. If any of this sounds familiar, you know what I'm talking about. Ask me how I know. So once you buy the deed, it's over. You own it, it's done. They will. I think it's hilarious. My attorney is usually the guy listed on the deed, they actually cold call and skip trace him and try to cold call him. And I'm like, he owns it. There's no circumvention.
A
So what is the first, first of all, go to reverseflip.com, justin, if you're a realtor or an investor, reverse flip. So they all know that you came from here. But start getting the deals done that you're already working. That is first in Paramount. Easiest way, just buy that website, go there immediately, start going. Now let's start talking about the bigger picture, what you have actually working. This isn't just, hey, go find a hairy deal and that's the deal you want. You actually have like two loss Mitt reps that have had 20 years of experience in negotiating. This is all in house, in your office, working every day.
B
Yeah. So again, short, short version of the story. Necessity is the mother of all invention, right? I had a business divorce in 2022. When I did that, I asked myself one very, very important question. I said, do I want to rebuild out a massive operation like what I had for wholesaling? And the answer was a resounding no. I just didn't want to do it again.
A
Totally.
B
You get a little older, you're like, no, dude, this is brain damage.
A
It's a lot.
B
So at that time I had about 23 deeds that we had bought, right? And thankfully I bought all my ex partner. And this is where the whole story kind of ties in. So as I was resetting and restarting my career, my life and all this stuff, I didn't, I think I took like a week to think about it and if that. And the idea was, okay, let's start working these deals. And as we started to work these deals, started making 100k a deal, 150k on a deal, 90k on a deal. Kept seven of those rentals right at, still own them till this day. Didn't pay taxes for three years because I had over $10 million worth of real estate. That's what happens when you own the deed, by the way. You could buy a deed for $0. Now you have all the tax appreciation, so we can get into that. But as we were solving these issues, we were using these consultants and it was referred to me by a good friend. And these guys had multiple years of experience, right, working for hud. And all they did at HUD was write the HUD guidelines.
A
Oh, that's it, that's it.
B
So, so basically any hud, Fannie Mae, Freddie Mac, Jenny, all that stuff they wrote the guidelines for those things. So nobody understands how loss mitigation or how these mortgages works. And I will give that tip to anybody. The reason why I went from the wholesaler, right, Even though I was in the 1% of the 1% of wholesalers, you know, making 8 million bucks a year to transcending that to holy shit, now I'm a real investor. And now, you know, we make tens of millions of dollars. The reason why that was able to happen was because I educated myself. And if you understand the game and you understand the rules to the game, AKA debt, legal, et cetera, you can write your own ticket, no doubt, you know, and that's. So once we did that, they were so good at what they were doing that after about the 10th one, we decided to buy the company and we literally rolled them in house, we made them partners and we said, look, you guys are doing about 90 deals, 70 deals a year.
A
Yeah.
B
We're thinking a little bit bigger, maybe 700 to a thousand a year.
A
Just a little bit bigger.
B
And we're going to expand this. And I also knew by being an educator in the space and being in all the masterminds, right, for years and years and years, I never you could tell me this because you've been in it longer than me. Have you ever heard anyone at any of our masterminds talk about this kind of stuff, like in detail? So I knew that the marketplace had a big ass opportunity for it. But more importantly, as putting myself in the shoes of that person who was once the wholesaler trying to come up, right. And chasing that dangling carrot, how do you make more money? Well, you got to spend more money in marketing, right? That bullshit, which is a myth, by the way. I knew that the marketplace needed it and I knew that my students needed it. So then I taught it to my students and I was like, all right, well, I can do it, but can they do it? And then they started doing it. And a 26 year old kid made 1.2 million last year in Miami alone.
A
That's correct.
B
With a team of three, two VAs and him. So that this is like, it's 25 deals, man. I mean, that wasn't a lot of volume. Right.
A
And so specifically to give people like he's 23, 6 6. Where was he finding these deals?
B
So the deals are just hairy deals.
A
Yeah.
B
And he was already doing some marketing. So these were typically his dead deals.
A
Dead deals.
B
Yeah. So dead, Leo, dead, we call it. We're turning dead leads into deeds. That's. That's our slogan. That's what it is. It's pretty catchy. I'm not going to lie.
A
I like it.
B
Probably take credit for that one. But you know, and it works. Right. So again, there's no competition. And that's the other thing too.
A
That's a big, big thing, by the way.
B
No, it's massive. So if you've been in this space at all, if you've been wholesaling, if you've been breaking your brain up against a wall, right. And you've, oh my God, the seller has 20 other people. Which is true. Especially in an area like South Florida. Dude. How would you like it to speak to a seller that not only has no other option.
A
Right.
B
No one else can figure out the problem. You're the only person standing in front of them. And usually what their response is to that person. When I was doing this face to face with sellers was, well, you can't buy this. Everyone is trucked. When I hear that, I get excited and I'm like, oh, but I can. And I can figure it out.
A
That's right.
B
So that's typically the conversation that you're having. Yeah. And. And then of course, we brought it in house. We. We brought the servicing in house. Right. And all that. And, and that's why our entire model is JV ing with people. Like, all you gotta do is go find these things, get them under contract or buy the deed with a limited poa.
A
Yeah.
B
And you bring them to us and then you just put on your seatbelt.
A
So when they go to reverse flip.com, justin, that's them just giving you the deal to do a jv.
B
Correct.
A
I would tell you guys listening and watching do that because for you to try to learn what these guys are already doing, it's going to take you the seven years of beating your head against the wall.
B
It would be impossible because these. You'd have to duplicate 21 years of loss mitigation experience and working at HUD for eight years. So it would literally be. I mean, the way that we understand as a company how the loss mitigation and the short sale works. And that's just one aspect. Right. Bankruptcy works, how probates work. Our attorney who's in out. Right. The way that we understand that is what gives us the competitive edge. And by the way, the average sword sale, if, if this is a real statistic for your audience, about 53% of all short sales in America fall out. They never get completed. That is a fact. Feel free to fact check.
A
Is there a Reason? Do you know the reason?
B
Bad documentation is the first one. And bad processing, meaning that they didn't submit the documents in the right form.
A
Yeah.
B
And they didn't know what department to go through.
A
Interesting.
B
Yeah. So I'll give you a. Can I give a quick example?
A
Yeah.
B
So if you're watching this and you're in Miami Dade, so Cutler Bay, Miami Dade county, very hot market. This Property has an ARV of 800. There was a guy who I personally know, awesome investor, right? Realtor brought him a short sale. Yeah, Standard, right. Was on the market for about three months. He calls me one day, this is maybe two, three weeks ago, and he's like, hey, dude, I got this deal. We got to the closing table and we got the payoff for the first position. But turns out that there was a second position mortgage. Yay.
A
Right.
B
And nobody could find it. And he said, do you guys think you could find it? And I said, I guarantee you we could find it. So within 48 hours, my guys found the second position. Not only did they find it, but they moved the second position underneath the first position. So now they combined it into one payoff. By the way, that second position was $150,000 mortgage. Okay? Now a total payoff of 4:30 has been negotiated for both. Because the second new. Well, if the first goes to foreclosure, that's it. I'm shit out of luck.
A
That's right.
B
So nine grand is better than no grand, which is what they're getting. We are wholesaling this deal now for 590 without swinging a hammer in less than 30 days. That's 150k spread. Okay. On a wholesale deal off of that.
A
And it was only because the agent didn't know how to get it through.
B
Didn't know how to get it through. Also did not know how to find the second. And by the way, they're was a short sale specialist that was helping them to do this. Couldn't do it.
A
So do you guys ever get like pushback from agents or is this where. Because I can. I can hear agents already. Oh, I already know how to do that. I already know how to do that. Did you say? All right, well then go do it and come back to me when it doesn't happen.
B
So I have two things to say on that. Number one, I don't chase any deals. Yeah, you're either going to do a deal with me or you're not. I'm not here to convince you of my value. I'm certainly not here to waste Your time. We're buying two to three deeds a day. Yeah, we don't have that time. So I think when you approach people that way, they feel that energy. And let's be honest, part of that is not going to work out. Yeah, I've. I've been comfortable with that for years now, as I'm sure you are. Totally. So that's one, two. There's no reason for that agent not to work with you. And it's very simple. Hey, listen, I see it's been sitting on the market now for 300 days, right? Yeah, it has. Okay, let's take ego out of the way for a second, all right? You're still going to make your commission. Why? Because by federal law, the bank's gonna pay you the 3% anyway.
A
That's right.
B
We will guarantee you the 3%. Let our team take a crack at it, and I promise you we're gonna get this done. I haven't seen a realtor that said no. And if they do, that's not a realtor I wanna work with anyway.
A
That's right. And so is there any, like. Is this a crazy amount of paperwork people need to come up with? Is it, like, over the top?
B
No, no, that's the crazy thing. So there's two ways to really do these deals, right? And each way has two documents.
A
Okay?
B
Very simple. First way is your typical wholesale contract. All right? Use whichever one you want. If you're in Florida, use mine. Consult with an attorney, but use mine. And a limited poa. Yeah, a limited power of attorney. Second way is my favorite way. Get a deed, quick claim deed from the seller or the heirs, and get the limited poa. So those are the two ways to do it.
A
The first question I'm having, if I'm listening or watching this.
B
Sure.
A
Why would they give you a deed? Why would the owner of the home give you their ownership of the home?
B
It's a great question. So, number one, they have tried and tried and tried probably 15, 20 times to sell this deal. And they're at a point where they're like, they got no option.
A
That's right.
B
So that's where you're negotiating comes into play. You can structure. I've structured deeds with $0. Right. Structured them all the way up. The most I've ever paid for a deed, by the way, is $15,000.
A
15,000 is the most.
B
$15,000 for an asset that was made 300. I made 111.
A
I mean, I want everyone to understand, even pure economics, if you invest 15,000 into something you make 100 grand back, it's like a seven times roas. Right? Like your return on your investment.
B
Yeah. And even the better question after that, what was my rot. My return on time because it took 63 days. Wow. Yeah. So annualized, it's compounded at like tens of thousands of percents or whatever.
A
This is so genius. Like I can't, I'm pretty geeked up. So again, reverse flip dot com. Justin. Yeah, I mean to me this is the thing right now that like this is the game changer.
B
It is.
A
Because by the way, there's no economic time where it doesn't work.
B
No, actually we're not going to get into politics or anything like that, but where the market is, where the interest rates are, where the affordability, all the crazy shitshow, propping up the market that we've seen in the last four years, I don't give a shit if it's Kamala or Trump or whoever the hell, right? Or the fucking tooth fairy that gets into office. It's irrelevant. Like the market will shift. It already is cooling off. We're seeing it even in South Florida. Days on market are higher. Right. So as an economy goes into a downward economy, and I can prove it to you, in the state of Florida alone, bankruptcy filings year over year are up 33%. So that just tells me that's one metric, right? Defaults are up by another 25%. We bought one in Jacksonville the other day that was literally a 2024 construction six month old loan. Seller just walked away, gave us the deed, we're taking it over sub 2.
A
That is wild. And so, and this goes into. You can also even structure just more different creative finance deals from where you already have it. You keep it as a rental, you take it over sub 2 because the loan's good. I mean there's so many options. This is why I'm saying investors and realtors alike, they need to be giving you these deals. I mean, they have to start filling out those forms to give you the deals because they're everywhere. And you're talking about a downward market, right? Because that's where we're at. I'll make the argument and I know you're going to agree. In a appreciating market, they're still divorced, they're still bankruptcy, they're still death. Right? There's still bad loans. They over leverage themselves into a tsunami. It doesn't matter. It's basically recession proof. For lack better way of saying it.
B
It is, because I'll give this simple Analogy. If you're already doing this business, whether it's a realtor, wholesaler, flipper, I don't care. Right. Sub 2, or whatever the hell you want to call it, you are using a screwdriver, manual crank. I'm coming to you with a power drill with all the drill bits you need to go. And the work that takes you an hour.
A
Yeah.
B
You can get it done in 20 seconds.
A
Yeah.
B
Why wouldn't you do that?
A
Why wouldn't you? Yeah, I mean, I'm thinking of my database this second and saying my entire team to scrub this database to go over dead leads and the reason of why they were dead. I'm just going to say here's the five things we're looking for. Go find all the, you know, divorce or inheritance, short sale, whatever the case, and I'm just going to go have them give you all my leads.
B
There's so many myths. I mean, look, we could talk about it if you'd like. I mean, I chimed into your community, right? What was it? Two hours later somebody got a deed in your community. And then the next day there was another two guys that got deeds. So again, taught it to newer people.
A
Yeah.
B
More experienced people. It's not rocket science. Right. You just change how you're doing the deal. But you're also talking to the right people. This business, and this is more like a personal thing for me. And you've been in it, seen them all come and go, right? All the educators that we're talking about.
A
Right.
B
The shit that's been peddled in our business, it's trash.
A
It's just, it's redundant. It's the same thing, dude.
B
Everybody's just saying another variation, Right. Novations were a hot topic. Right. We know who was the biggest guy in them. He's a good friend of mine. He's a beast. And then all of a sudden there's 10 guys. Oh my God. And there will probably be 10 copycats out and that's great, but they'll never have the sauce that we have and the servicers and that company. Right? And we. When I got into education, my model from the very beginning was I want to create a community that's we're jving with each other. I don't want a pump and dump and one and done with you.
A
That's right.
B
Most of my students stick rate their community members is over a year.
A
Yep.
B
Right. So we're doing deals again and again and again because they get it. They say, well, I go find this, I bring it back. My job is done. And I'm always making double, triple the average deal size, even on a jv.
A
A hundred percent. So what is the first thing that you would say? Someone needs to start thinking about how to think about it, where to go. What would you advise someone today, right now, like I use this podcast is how is will Dennis going to change someone's life today? You have a huge story. And by the way, if you haven't seen his first podcast, we did together go to the Science of Flipping podcast show. We did a straight up hardcore full story blown out story. The business divorce, the 7 million, almost 8 million in a year wholesaling. That is on another episode. You'll find that somewhere in the comments section below. But what would you tell someone right now, even if they haven't even thought about real estate, like, oh, I want a piece of this.
B
Sure.
A
What would you tell them to go do?
B
Well, first things first, join our free Facebook group.
A
Yeah.
B
It's a community that grows by the day. There's already people in there that are doing deals. Right. And asking questions. So you could partner with somebody and somebody that's already doing it.
A
Right.
B
There's already reverse flipping. Secondly, you could just download a list. Right. Just like you would in the regular wholesale, but just make it, you know, go after reverse mortgages. Right. Go after things that nobody's going after. Right. And you don't need much money to get started on.
A
That's the key. There's so many things I want to bring up. So. Yeah, this isn't like some big marketing budget. Go do $20,000 a month PBC.
B
No.
A
Go rip 10 grand a month in TV.
B
No, that is not what I teach. Right. That is not what I teach. This is, look, this is coming to you from a guy that did that for seven years. Multiple six figure a month marketing budget.
A
Right.
B
Almost.
A
And you have the scars.
B
Crazy. Oh, hell yeah. Right. But. And I was proud that I did that.
A
Sure.
B
But this is smarter, not harder.
A
Yeah. Why is it a volume? You know, people, especially on Instagram, in our space as educators. Oh, I did 38 deals this month.
B
Do you really give a. I don't care. That's a vanity metric.
A
Yeah.
B
I stopped tracking that a lot.
A
If you did three and you made $300,000 doing three, pretty cool.
B
Although through, through our market and you know, well, our JV structure, we're. We're buying, you know, about 60 homes a month. So, you know, that's not to say that we're not doing high volume, but this is what I'll challenge any other guru or whatever in this space. Show me 50, 60 deals a month with an average deal size of 70k and I'll wait.
A
There's no way I'll wait.
B
You'll be here for a while. Yeah. And show me how you're building a eight figure rental portfolio through this process with little to no money. Because I'll wait again. And then show me a community that you've taught that can do that and that is doing that. And I'll wait again. So again, that's, that's maybe my fuck you piece to the whole community of the educators. And I got no problem with them. But the thing is, the same regurgitated shit has been peddled and man, I'm sick and tired of it because there is a better way to do it and to be a real investor.
A
So there's. You said something right there that I wanted to hit on. This is really real estate investing. And wholesaling is fine. It has this place. Right. I still wholesale blah. We talked about your wholesaling one. Great. Sure. But there's a bigger upside of why you want to be a real, real estate investor. Yeah, yeah. The big thing is the tax write off.
B
It's massive.
A
Let's talk, talk to us about how this could be a utility for all those people who are like, great, I make a lot of money, but I need more tax write offs because I also am paying that money out.
B
Yeah. So high level, about every million dollars that you own in real estate, depending on your tax filing and all that is probably 30 to $50,000 per year in non taxable income. Right. Straight to your bottom line on your taxes. So if, let's just. Would you agree that the average property value in America is 300 right now?
A
Yeah, a little higher.
B
But about that, let's be conservative. 300 across the country.
A
Right.
B
Cool. So if you bought a deed to a property for a thousand bucks, which we do every time we did two of them yesterday. Thousand bucks and it's worth 300,000. You just bought $300,000 worth of depreciating income in a real estate asset.
A
That's right.
B
So do that 10 times a year. That's 3 million. You're not paying taxes. You have $120,000 give or take per year tax credit. Every. That's per year.
A
That's right.
B
On a 27 and a half year schedule. Don't even get me started on going creative and going cost seg and accelerating depreciation because now you're capturing way more than That I haven't paid taxes in three and a half years. Legally, by the way, Mr. IRS. And that's the reason why.
A
That's why everyone needs to be in real estate. Even for those listening as a W2 employee, this is one of those strategies that if you just did for a year, one quarter. Yeah. And you do it the way you're exactly saying. And they just held it.
B
Yeah, I got it. I got a lot of guys that are in our circle.
A
Yeah.
B
That come to me and they're like, do you guys buy one of these and just hold it? I'm like, absolutely.
A
Sure.
B
And by the way, this also works on a million dollar property. You'd think, oh, I can't.
A
So that's another part. This isn't segmented into the price of the home.
B
No.
A
And to the point, it could be an apartment, it could be a storage facility, it could be a commercial mall strip. It could be anything.
B
Yeah. And that's what I was going to say. This is not segmented to just residential real estate. This happens on the commercial side.
A
Totally.
B
Right. There's receiverships, there's all that stuff which a receivership is basically a bankruptcy sale with a trustee on the commercial side. The commercial guys will know what that is. Dude, this happens all the time. People think that sub twos can't happen on commercial. Yeah, it can. And you can reverse flip every single one of them.
A
Right.
B
And another couple things, like good. I want to leave, you know, the audience with like some good tangible things. Reverse mortgages, we have been taught in our business. Oh, you can't do anything with them. They suck. They're amazing. I'm telling you, in this strategy, in this strategy. Unbelievable. And you can reinstate reverse mortgages. It does not just have to go into.
A
And this is the secret sauce is you have guys with 20 years of loss made experience.
B
Correct.
A
That know exactly to the nats. Ass. How to negotiate this time.
B
I like that expression. Yeah, that's ass. I'm going to use that one.
A
But this is why people need to work with you. If you don't know, go to reverseflip.com Justin, start working with Willie immediately. Because if you have these deals in your pipeline, if you're working these deals, doing any marketing or even just want to get started.
B
Yes, yes.
A
I would tell everyone I'm working with you. Like everyone should be working with you.
B
Yeah. And so many, you know, community leaders like you and I have had a great friendship for years. Right. But there's, there's a lot of our friends that have communities too.
A
Yeah.
B
That now have me going into the communities.
A
Right.
B
And we're teaching this stuff. And now their students and community members are coming over here and doing these types of deals. Because again, if we're being honest, the industry as a whole has a lot of pain right now. Yep, there's a lot of pain. Then there's a lot of people making it look pretty and that's cool. Right. And you can rent all the Lambos that you want. But the reality is there is a lot of pain and there's not a lot of real people doing real deals.
A
That's right.
B
And the cost per lead, the cost per deal keeps going up. Dude. And look, again, do you want to talk to a thousand people to do a deal or do you want to talk to ten to do two deals?
A
And so again, kind of, and you've already said it, but the, a couple lists that they could go kind of target, right?
B
Yeah.
A
Short sale, divorce, short sales on market.
B
Or off market by the way.
A
Right.
B
You could pivot them from a realtor on market. Those are free leads right there. There's a free nugget for you right there.
A
100.
B
Go do a search in your local market, ping all the active pendings and active with contracts with short sales, filter out 200 plus days. By the way, we process short sales in 30 to 45 days.
A
That's insane timing.
B
So if a short sale, if you see a short sale on the market with a realtor that has 150 plus days, just remember my face and my voice. Somebody fucked up. And that is an opportunity for you to go and convert that and just give the realtor their commission.
A
That's right.
B
It's a free fucking lead in Miami Dade County, Broward county and Palm Beach County. So South Florida alone. I did the search yesterday with my team. There's 149. This is just sitting there. And these things have 400 days, 300 days, 600 days, we're picking them up. I mean, you know, you're putting in.
A
Offers and saying let us. But the conversation still has to be we got to do the negotiating.
B
Of course, 100%. Which they will not say. You will have some dipshit realtors. Of course you will. There's dipshits in every, you know, there's clowns in every service. Right. But the majority of them are going to be like, what the fuck do I have to lose?
A
Right.
B
I'm tired. Because how does a realtor make money? They only make money when the deal closes.
A
That's Right.
B
So if you're sitting there with a listing for 300 days and you're like, oh my God, what am I going to do? This guy comes along and says, hey, we can figure this out. We got the best short sale specialist in the country at that point.
A
Do you just need the power of attorney?
B
Yeah.
A
Do you even need a purchase purchase?
B
You do need a purchase agreement.
A
So is there a percentage that you start to offer on these short sales just to keep it a short sale so it's below the bank loan? Or do you, do you treat that a little bit more normal when you go after the short sales where it's like, all right, where would this deal make sense?
B
So that's, that's part of what our team does. And they, you know, we do have deal analysis for you and we're coming out now with a report if you're in our community, where if you have. We don't work with, with leads, we work with deeds.
A
Right.
B
Or with deals. So you have to have something on their contract. I'm not the guy you're going to come to and be like, hey, I got the seller. Go into the community for that.
A
That's right.
B
And the community will answer those questions and then you can convert them.
A
That's right.
B
Now our team is available for you. Right. You mobile notary. This, that, that's part of the, the JV structure. But if I had to give it a percentage, probably 75 to 80% of what that property is listed for.
A
Yeah.
B
Basically, that's where you want to be. You. You know, another common mistake of a short sale is they submit way too low of an offer in and they just. And it gets kicked right back. You have to remember too, man, a lot of these short sale servicers, the way that it works in the country is Fannie Mae is like, Jesus, okay? Sits on top of everybody. Fannie Mae has 30 million loans, okay. They're the big daddy.
A
Yeah.
B
And that's Uncle Sam. Okay. That's Uncle Sam's daughter. She's hot and she's got a lot of money because she doesn't fuck around.
A
Yeah.
B
And she doesn't put out for anybody. That's right. Just for lack of a better term. Beneath that, there's about 60 servicers, okay? These are pH, Mr. Cooper, Shell Point, Ocwen. I mean, the list goes on and on. Right. All these servicers have different investors behind them. Private investors, public fund, pension fund. I mean, not to get so nitty gritty.
A
Sure.
B
All of those have different processes for submitting short sales and for submitting last minute. Right. Which is why the fuck it's so goddamn difficult to do and why we're so good at it. Because we have the experience of 20 plus years to do that.
A
That's right.
B
So what I'm saying by that is you just need to figure out where. When you tie up the deal, just bring it to us. We figured out where that deal fits.
A
That's right.
B
And what the highest we have about a 70 aspiration, by the way. 70 of all these deals go through.
A
Yeah.
B
The wholesaling market and industry doesn't even have a 30% fallout rate. Like, you're a stud if you have that 100%. And by the way, I'll urge any realtor or wholesaler seeing this right now, if you do your fallout contracts are these fucking deals.
A
That's right.
B
The 30%, they usually fall out because of this shit.
A
They're hairy.
B
They're hairy.
A
Yeah.
B
So look, no, I picked a niche that nobody wanted to deal with. And I said, fuck it, I'll be the janitor. I'll clean up the shit. Turns out shit makes a lot of money.
A
Well, and you put a system behind him and don't, don't, you know, fool yourself. You took something and said, okay, a lot of brute force to start.
B
Sure.
A
But let me. How do we systemize this? How do we put a structure behind it so it's a repetition where you can just rinse and repeat all the time. That. That's why you're able to do what you're able to do now.
B
And I appreciate that. You know, I think, you know, relationship capital is something we talk about all the time. Right. It. I always say this, dude, to all my students and anyone I meet. I'm like, amateurs compete. Professionals collaborate. So if you want to be a dipshit, go ahead, go out there and compete, no problem. And you might get to the corner. You want to be a professional like me, like you, and collaborate. We collaborate totally. You JV, you go 50. 50, right. Or whatever. That looks like you go so much further that way. Why would I want to? Look, could I go out and build a podcast? I'm sure. But I call it something else that are DNA. I'm sure. Yeah, but you already fucking did it. Yeah, I'd rather come on your show.
A
Come online and get going fast.
B
And you got the best audience. Right. Why would I do that? I would just collaborate with you. Right. And the same thing on the real estate side. You'd be like, well, I've Never really done a lot of these. I don't like hairy deals. I already lost my hair.
A
Yeah.
B
Don't need to lose more. Let me just pivot them all over to you.
A
Yeah.
B
And that's what we do. And we service your community. Right. We're servicing other people's community. And again, I just want to see people win. Dude.
A
That's it.
B
It doesn't have to be that hard.
A
Love that. Yeah.
B
And, and I'm 100% convinced that based on the feedback and the overwhelming deals, you know, volume that we're getting, this is the future of real estate.
A
Yeah.
B
And somebody's going to watch this a year from now and be like, holy, you know, they said this a year ago. And reverse flipping is 1000%. This episode is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy. Just drop in some details about yourself and see if you're eligible to save money. When you bundle your home and auto policies, the process only takes minutes and it could mean hundreds more in your pocket. Visit progressive.com after this episode to see if you could save. Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states. The new way to do real estate.
A
Yep.
B
It, it's just what it is.
A
Do they have to in the purchase, in the example of the purchase agreement, is it your entity, is it their entity? Who needs to do that?
B
That's a great question. So when it's a deed, we put it in a land trust.
A
Okay.
B
The beneficiary to the land trust is our llc, one of our entities. And then the trustee is their entity.
A
Okay.
B
On the poa. And this is a great point. Poas always have to go to a natural born person, not an entity. So you know another reason why short sales get kickbacked.
A
Yeah.
B
Because they all want to do 3 Main Street LLC. There's no such thing. Right. So it has to go from John Smith to Joe Smith. Right. So it's usually a member of our team. That's, that's. Who's the poa. Why do we need the poa? We didn't really talk about that. We need the POA so we don't have to go back to the seller and or heirs 67 times if we needed anything signed.
A
That's right.
B
That's why guys, we're doing a lot of the work on the front end so that you don't have to. And this is. Ask me how I know. There's a lot of Brain damage of trying it the wrong way. And this is exactly what works. So another reason why a lot of these transactions don't close is time kills all deals. So the faster you can get the documents, the faster you can go back, the less amount of times you have to fix a mistake. You're going to the front of the line. Yeah, last thing I'll say on this. Speaking of the front of the line, because we ended up purchasing the servicing firm, we now sit at what's called a Fannie Mae preferred vendor. Most people that's going to drop like a silent bomb. No one's going to know what that means. Just know that it takes three years of a process to go through that and our files go bloop to the top of the pile at Fannie Mae and all the other servicers. So again, we're not just making this shit up. We actually have real tangible assets and intellectual property behind this. And that's why we're able to do the deals at the pace that we're able to do them.
A
Oh my God. I mean, again, guys, reverse flip dot com, forward slash. Justin, what would you really want to kind of leave every. Like if someone wanted to buy. Let me give you another question.
B
Yeah.
A
Let's say you get it negotiated. If they wanted to buy the deal after you guys got it, how would that work for you guys?
B
You mean the, the jv?
A
Yeah.
B
So we would have first ride refusal, right. To buy it. Because obviously we're buying and we would buy it at fair rate with them. They could wholesale it to us, not a problem. Right. A lot of the times what happens is somebody will bring a deal and it'll be, you know, again, let's say, let's use the average 70k. Right? 70k profit.
A
Yeah.
B
That's what we can wholesale it for, let's say on the open market. And let's say they're like, hey man, we. I would say, hey, I want to keep this as a rental. Well, I'll give you the 35k assignment.
A
Got it?
B
That's not a problem. Yeah. So it would be simple. If they wanted to keep it for a rental, that's fine. The same inverse, right? You can buy it from us, give us our portion, that's fine. And you're still getting, by the way. Dude, this is crazy to say, but I am, I'm going to say this right now on camera and I don't give a shit. Anybody can fact check me on this. I am 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. I'd believe it 100%.
A
Yeah.
B
And I'm doing it largely in South.
A
Florida, which is borderline impossible.
B
Which is like saying 10% nationwide, cuz. It's wild. It's wild. But that is our average. It's about 43%. 43 cents on the dollar in layman's terms, right. That's what we're buying. So the deal, even if you did a JV with us and you were to buy it from us or vice versa, you are so well below in terms of margin equity.
A
You have all of it, dude.
B
It's wild. It's wild. The average equity that we're walking into is a buck fifty. Wow. I mean, it's a lot, dude. It's a lot you're talking about. I've seen younger guys come in here and they were wholesaling for two, three years and you know, God bless them, right. Busting their ass and door knocking and this and that. Dude, a couple of deals, they're like, what the, like their life is just. They buy rentals through it like they do. They got rentals for life. I mean they don't have to pay taxes. Like I don't know about you, but I've stroked a six figure check to the IRS before. It happened to me one time and it never happened again because I like my butt.
A
Yes, do exactly right. How do you want to leave with the people? What are some things that you just want to say? Guys, here's what to look for, here's what to do. Yeah, go check out reverse flip dot com. Yeah. All that.
B
Yeah. So of course our main page is reverseflip.com I recently just did a free webinar for about an hour where I go really in depth here. And the replay is available on that site. We have an intake form which is also on the reverseflip.com site. You click right through it and you literally can submit your deal right there. Our team is going to send an email right away. Then a member of our team is going to be in contact with you again. You, you're not, you don't have to do anything else past the point of here's the deal.
A
Yep.
B
Thank you. Now you're going to be in contact with us and of course you have full transparency throughout the entire transaction. Totally. But your involvement stops. You don't have to deal with the seller, you have to deal with showing to buyers. Right. 20, 30, I got my contractors coming. Wow. There's 16 contractors. Yes, yes. You don't have to deal with that shit. You don't have to deal with circumvention. Nothing like that. So reverse flip.com is the main page. The Facebook group is also listed on there as well. It's reverse flipping Facebook group. Yeah, that. I think it's a couple hundred people now. And we just opened it up a week ago, so it's growing, you know, by 30, 40 people a day. My Instagram Willie numbers, right. Yeah. That's where I talk all this content about it, right. I post a shit ton of testimonials. And not just testimonials, like, hey, I did this and it's great. And Willie's an awesome guy. No actual HUDs. With deeds and with profits and with wire transfers. I like to post wire transfers. I don't post videos inside a property, touring it. I post fucking money. Because that's what I want to see from gurus, right? Show me what you're making. Don't show me what you're driving.
A
Yeah.
B
Shit about your Rolex. I care about the money that's coming in, right? And yeah, our community is just growing, man. That. That's what I would say.
A
The Love it.
B
The Hairy Dead deals, that's what you want to go after.
A
Guys, Willie numbers on Instagram. Will Dennis is his name. Reverseflip. Com. Justin, give them the deals. JV with them now. I appreciate you being on, bro.
B
I appreciate you, dude.
A
Guys, if this helped at all in the real estate space or in business, make sure you share this with two of your friends. I'll see you on the next episode with another great guest.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
"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]
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.