Wholesaling Properties: F2F Robinson Aries Interview (Part 2)

Wholesaling Properties

This is a continuation of the Flip2Freedom podcast with Sean Terry. In this episode, Sean interviews Robinson Aries and finds out how wholesaling took him from bankruptcy to making bank.

Robinson: So, I started selling a lot of pre-construction properties. I jumped into buying used properties, tidying them up with a little money. Back in that time,100% loans were available, and I started pulling some money from other properties that I gained some equity from over time. As you remember, back in those times, they worried that the properties were going up about 20-25% per year. So, let’s say you got a property for $100,000. Next year you have a property value of $125,000. Doing nothing. Probably buying with no money. So that was the way I was doing it, which was not the best way. Now, I understand that much better. But, that was the way to go back in that time. Buying with little money. Putting a little 3-5%, 10% at the most, in buying those properties, tidying up those properties. In good construction, and after a year, the developer delivers a property and you can sell the property for 30-40% above the price that you got it.

Sean: Right. So what happened when the market crashed?

Robinson: Well, here in Florida, we were at the top of the market. The same way that the property went up; the same way it went down. And, of course, back in that time, I had like ten properties. I was holding those properties. I basically rented them out, because I was told the market was going to change. I was going to pull some equity from those properties, which was available to do back then. I thought, this is going to pass. I’m just going to hold it. I’m going to rent it out. I was renting those houses in the range of $1,500 – $1,700 a month. But what happened was that the market started crashing in those areas and people that were renting my houses were losing their jobs. Suddenly, my property that I had rented for $1,700, I had to lower to $1,000.

So, my negative equity, my negative cash flow was growing every month. So, I said, “Oh my God. This is going nowhere.” I got a stock. I got six properties in that area and I had a couple of pieces of land that I bought in the west coast, Tampa. I said, I cannot hold it any more. That was back at the end of 2008. So, I called the banks first, “I cannot hold these properties. I’ve always paid on time, but not anymore. I need help.

Sean: Now remember, in 2008, that’s when Washington Mutual crashed. Remember that?

Robinson: Right.

Sean: You know, they got pounded. They were done. The market was crashing, 500 to 700 points a day. People were up in arms. What the heck was going on? And, a lot of people just walked away. But you actually called the bank, which was good.

See “F2F Robinson Aries Interview” Part 3…

Click the Join Now Button Below to Get Your 30 Day Risk Free Trial of Flip2Freedom Academy