How to Make Easy Money in Real Estate Investing

March 20, 2009 | By | 7 Replies More

Flipping Homes for CashThat’s what everybody wants, right? Well, I’m excited to introduce Jamel Gibbs of How to Flip for Profits. He’s here to tell you how to make easy money in real estate investing . . .

Have you been trying to invest in real estate, but don’t know which way to go?

Flipping houses is by far the easiest and simplest way to make money in real estate investing … especially in today’s market. Many people have gone from rags to riches in a reasonably short period of time by getting involved in flipping houses. The reason for this is because house flipping provides large sums of money within a very short time frame if you know what you’re doing. The key is to be educated on how to do it, then take massive action. The rest is history!

So how can you get involved in flipping houses? How can you make the kind of money that others are making in the real estate business?

In this article, we will discuss some easy to follow, basic strategies on what is needed to profit as a real estate investor. If you apply the information in this article, you will increase your chances of making money in the real estate business.

Making money in real estate investing all boils down to one thing, and that’s working with motivated sellers! If you don’t know how to target motivated sellers, then you will never make money in this business. I’m just being honest!

What is a motivated seller?

A motivated seller can be anyone who is in distress financially, or physically. An example of a motivated seller is someone who is getting a divorce, going into foreclosure, paying 2 mortgages, needing to rehab their property but doesn’t have the cash, going bankrupt, and so on. Therefore, in order to get a great deal when flipping houses, you have to find someone that falls within this category. You can find these sellers using various forms of advertising.

Some forms of advertising can be bandit signs, newspaper ads, cold calling, billboards, etc. The idea is to always be in the seller’s face. Everywhere they look, they should see your advertising. Aggressive advertising breeds aggressive results.

When the calls are starting to flood in from the different advertising methods, the next thing you have to do is get the right information from the seller. You can do this by asking the seller for information on their property. You want to find out what type of condition the house is in, as well as the asking price of the property, but the most important question you need to know is … “Why is the seller determined to get rid of their property?”

Once you have all of the information that you need from the motivated seller, the next thing you need to do is run comparable sales to see if the deal will be a good house flip. You can do this by going to sites like RealQuest,, and Bank of America has a home value estimator. You can also use sites like InvestorCompsOnline, or consult with a Realtor. There are many ways to run comparable sales when you’re looking to find out what a house is truly worth.

After you get the comps for the house, the next thing you need to do in order to flip a house is work the numbers. You can do this by understanding the MAO formula. The MAO formula is as follows: You take the ARV (After repair value) and you multiply it by 70% and that leaves you with the amount that you’re willing to pay for the house. Then you subtract the rehab cost, closing cost and overhead and that leaves you with the MAO or (Maximum Allowable Offer) that you can make on the house.

Once you have the Maximum Allowable Offer, the next thing you do is make the offer. Your offer should be less than what your maximum allowable offer is. The best thing to do in this case is to subtract an additional 10% off of the MAO and start you’re bidding with the motivated seller from there. Negotiations can make or break your deal when it comes to flipping houses so make sure that you’re sincere and very clear with the seller from the very beginning.

After it’s all set and done, you need to find a buyer in order to flip this house. You can do this by running newspaper ads, building a buyer’s list, auctioning the property, selling below market value for a quick sale, rehabbing the property and then selling it, and many other ways. The best strategy to use if you ask me would be to sell the property less than the market value without rehabbing it. This is called wholesaling the property.

If you want more quality information on house flipping simply go to There, you will find out how to take advantage of the current real estate housing crisis and make boat loads of money in real estate investing.


Jamel Gibbs owns one of the fastest growing real estate investment businesses in Pennsylvania. He’s originally from Brooklyn, New York. He became a real estate agent at the age of 21 years old and a broker shortly after. Jamel started buying real estate when he moved to Pa, and he now has a successful real estate investment business. He also coaches others who are interested in making massive profits in real estate. Check him out at

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Category: Marketing, Negotiating, Real Estate Investment Buying Strategies, Real Estate Investment Selling Strategies, Tips and Tricks

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  1. Chris says:

    Aggressive marketing… I like that term! Unfortunately in my target market the bandit signs are taken down in HOURS. They have “volunteers” to help take them down. A goal of mine for the end of the year is to have a billboard. That certainly would get attention.

    By cold calling do you mean calling semi-cold leads like For Rent signs or For Rent classified ads or do you mean just picking up the phone and calling people?

  2. Jamel Gibbs says:

    Hey Chris,

    I’ll give you 2 ideas for Bandit Signs.

    1. If you have rental properties in the city… hang the signs on the property. If you have rental properties in the suburbs, put your signs on the front lawn.

    2. Ask your neighbors with corner properties if they are willing to allow you to hang a sign on their property or put one on their front lawn for a small fee.

    Both work great or me.

    In reference to cold calling, I recommend calling FSBO’s, For Rent Signs, etc.


  3. Patrick Riddle says:

    Hey guys,

    Jamel is the real deal and just so happens to be younger like me … Only 28! He started from scratch too sooooo that just goes to show that you don’t have to have money to make money.

    Anyway, thanks for the insights Jamel! You’re welcome to contribute anytime man …

    Thanks for answering Chris’ questions.

  4. Dave says:

    I am testing out the waters with bandit signs here in Dorchester County (just put up today). We’ll see what happens. Hope to get some leads before they’re removed, destroyed, etc. And I hope I dont get a fine. I tried to put mine up around others’ (hoping these spots are ok). I do know in Chas county, you get a nice fine for posting…

  5. Nice site. What city are you practicing in? I may want to connect with you.
    .-= Jason Wheeler´s last blog ..Five Ways to Get Good Karma Everyday =-.

  6. Omar Johnson says:

    Great post I agree. It’s the combination of motivated sellers and motivated buyers that will make you in real estate.

  7. Chris B. says:

    I my area, bandit sign are prohibited. I think that you need to decide on an area that you want to farm and then do a direct mail campaign to get leads.
    .-= Chris B.´s last blog ..Kitchen Cabinet Styles Choose Either Face Frame Or Frameless Kitchen Cabinets =-.