Bob Diamond often gets asked how the overages business compares to flipping houses. He obviously believes overages is the superior model. They’re easier deals to get into. You don’t need near as much money. Your typical overage deal costs between a hundred and two thousand dollars to process. Compare that to buying, renovating, and relisting a home, which could easily cost you tens of, if not hundred of thousands of dollars. Okay, what else? Continue down the page for more advantages of Bob Diamond’s Overages Blueprint process.
Bob doesn’t know about you, but ten out of ten times he’ll pick the lower investment, less risky option that overages provides. “And I’ll tell you,” he says, “with an overages business, you’re gonna sleep better ’cause you’re not obligated on a lot of loans and you don’t have a lot of money out on any deal.” Another benefit to overages is you don’t have to deal with pain-in-the-butt contractors.
“Remember, that the root of the word contractor is ‘con.’ Every renovation I’ve ever been involved with has gone over budget and over time. Overages deals do not involve any contractors, ever. And I think that’s a really good thing. How about you?” Bob adds. Plus, overages is a true win-win business. You’re making big money helping former home owners get some of their money (and dignity) back.
Whereas, with house flipping, it’s just math. You have to pay a homeowner thirty-five percent under market value to leave enough room for you to make a profit. Frankly, it’s hard for a lot of people to feel good about earning a living that way. Another thing Bob says is that overages are a lot less time consuming that fix-and-flips. With overages, you work from the comfort of your own home. An average deal, start to finish, takes about eight hours of actual work.
In house flipping, you have to go check out the house, negotiate, meet with contractors, babysit their crew, meet with brokers and buyers, and constantly be present for the deal to go through. Bob prefers to make more doing less. He also loves that, with overages, you know your profit potential up front. Other than minor adjustments due to the cost of processing the claim, you know what you stand to make before you even reach out to the prospect.
House flipping is a different story. It’s impossible to predict your future profit with any sort of precision. Unexpected renovation costs and market fluctuations provide too many variables. You dump your money into a project and hope for the best. “To recap,” Bob says, “the overages business features a low cash investment, no loans, no contractors or renovations, you work from home, and you know your profit going in.”
“In the house flipping business, you have to make a large cash investment up front. You have to clear out your savings or take out a big loan to get the property and renovate it. You deal with contractors and unpredictable renovations in terms of both cost and time. You need to be on the work site to make sure things are going well. And you have uncertain profits. In my view, overages are clearly the winner. And I think you’ll agree with me,” he says. So do you? Or do you think he was overly cynical about house flipping? Or maybe too biased about overages?