Bridger Pennington explains the syndication loop, where investors pool money to buy and flip houses fast. Successful flippers use this track record to raise capital once and deploy it across multiple properties instead of chasing new money each deal.
Chapters
This is what I like to call the syndication loop. This is fantastic for building a track record, and one of our guys was doing this. Actually, we have a few people doing this. They go out and they find a house. They put the money together. They have 30 days. They're calling up people on Friday nights and they're trying to get money. We gotta wire the money in, trying to call hard money lenders, the bank, or get lines of credit, and they're flipping these houses, okay? This is a great model to build a track record. It's a really great model to get started. Now, what's funny is most people that are successful in this end up in 2 areas. Number one is they end upā I got a buddy and he just keeps doing the same thing, and I said, dude, you should think about option number 2, which is most people successful in this loop end up running funds. They get into the fund model. What the fund model is, is you find money once. You raise capital once. You get the documents all set up once and you can flip as many houses as you want.