$19k Profit with no money down flip! - Posted by IB (NJ)

Posted by Kristine-CA on October 14, 2003 at 24:04:36:

Hi IB:

Actually, the same is true of boarded up properties where I am in CA–the majority were boarded up by the bank. I have to go through a lot of dead leads to get to the good ones. And many people who call me have delinquent or about-to-be delinquent mortgages. You know, finding deals in CA isn’t exactly like shooting fish in a barrel. :slight_smile:

Were getting ready to go back to CA this week. I’m hoping to get one more visit out to NJ but not sure if I can fit it in. If I don’t get to meet you this time, I’ll be back after the new year.

Thanks for sharing your deal. Sincerely, Kristine

$19k Profit with no money down flip! - Posted by IB (NJ)

Posted by IB (NJ) on October 10, 2003 at 17:11:48:

Closed on our first no money down deal today. Every other deal we’ve done in the last 3 1/2 years since we started in this biz required some of our own money to take title to the property. This one took none of our own money up front and about 2 mos. time (could have taken less time had we given this more priority). It was our first double close flip.

It was a boarded up duplex that was under tax foreclosure for back taxes of about $32k. It had a delinquent first mortgage for $9k and a delin. 2nd mortgage for $31k. I negotiated the 1st at $5k and the 2nd down to $7k which brought the total price to $44k. Next I found a rehabber/buyer at $65k cash (could have gone for $75k but I needed to move fast based on the stage the tax foreclosure was in). Minus about $2k for legal fees and title searches and was able to walk away with $18,919.00 to be exact. Not bad for an investment that didn’t require any of our own money.

We made a few mistakes with this one but still did okay in our opinion. It wasn’t our first flip but it was the first time we came across a seller who didn’t want any money from the deal and only wanted to get the delinquent mortgages off his name. That made it easy.

Just wanted to drop a note of encouragement to some of the folks out there who feel like giving up.

Re: $19k Profit with no money down flip! - Posted by Kristine-CA

Posted by Kristine-CA on October 11, 2003 at 08:47:33:

Nice job IB! I love to hear about these kinds of deals. By the way, I’m in your neck of the woods these last few weeks…supposedly on vacation and staying with friends in Brooklyn. But I’ve found myself on the hunt–guess I’m addicted to abandoned properties. Not to worry. My efforts in NJ are confined to Jersey City. And I’ve been checking out East Harlem and part of Brooklyn too.

I put two properties in CA into escrow from here last week and that made me feel like I could work anywhere. But I was wrong. Working in an area without all the comforts of home is tough. I don’t understand the title companies here. I don’t understand closings. And most of the data I’m looking for isn’t available online like at home. It’s been good for me discover how good I have it in CA.

Do you feel like telling us what mistakes you made on this one?

Here’s to lots more of no money down flips. Sincerely, Kristine

Re: $19k Profit with no money down flip! - Posted by RichV(FL)

Posted by RichV(FL) on October 11, 2003 at 08:39:38:


Glad to see you are doing well. Congrats!

Great Success,


congrats nt - Posted by michaela-ATL

Posted by michaela-ATL on October 11, 2003 at 07:02:04:

nice deal! congrats. - Posted by mattc - mi

Posted by mattc - mi on October 10, 2003 at 23:32:48:

IB, very nice deal. congrats, and thanks
for posting for all of us.
mattc - mi

Nice job, IB - Posted by Marc NJ

Posted by Marc NJ on October 10, 2003 at 20:14:27:

It is hard to find deals in NJ. But with time and persistance it can be done. I did a double closed short sale using none of my own funds and that was a accomplishment in it self.
Keep up the good work.
Marc NJ

Re: $19k Profit with no money down flip! - Posted by Dan

Posted by Dan on October 10, 2003 at 19:46:23:

Just wondering … where or how did you locate this property? We are moving to foreclosures and any info would be greatly appreciated.


Re: $19k Profit with no money down flip! - Posted by IB (NJ)

Posted by IB (NJ) on October 13, 2003 at 16:55:34:

Jersey City!!! Tht’s right up the street! Just kidding. One thing I can say about the northeast. We have more properties with delinquent mortgages attached than we do free and clear properties. In addition, it’s the bank that usually boards up the properties once they buy it back at the auction. So all the board ups in a jersey city neighborhood can be somewhat misleading as far as opportunities go.

I found it a little harder to understand a different market myself when I visited FL a couple of months ago. It’s just too damm hard dealing with $30k and $40k houses when we pay $100k for a house that needs rehab and located in the inner city.

As far as mistakes I made on this:
we didn’t give it enough priority because we were dealing with more profitable flips (that required money out of our pocket by the way). So we didn’t give ourselves enough time to find a backup buyer in case our started acting funny with time running out (which he did).

We should have prepared our buyer a little better about the fact that the property was under foreclosure. This f/c factor scared him a little in the end and we had to jump through hoops to comfort him.

The actual price was $72k but included a $7k assignment fee paid by the buyer to the guy that brought him to us. My Brother/business partner (who’s in charge of rehabbing and selling the properties - I’m in charge of buying) didn’t market the property adequately which required us to use someone who wanted to assign his position (a newbie who was pretty professional - another lesson to newbies out there as this one made $7k for simply assigning his position). I don’t usually mind dealing with someone who wants to assign his/her position but probably wouldn’t have on a double close situation for a property headed to foreclosure. This deal actually took everything we knew about REI to close.

Hey if you’re ever in JCY, Kristine and have time for lunch, hit me up. Email me at eeb88@yahoo.com and I’ll give you my cell number.

Re: $19k Profit with no money down flip! - Posted by IB (NJ)

Posted by IB (NJ) on October 13, 2003 at 16:57:35:

Thanks Rich. Yes things have been quite good since leaving my job and going full time. I actually walked out of the closing thinking it was perfect timing to leave when I did.

Re: Nice job, IB - Posted by IB (NJ)

Posted by IB (NJ) on October 13, 2003 at 16:58:24:

Thanks Marc. Yes the NJ market is VERY tough.

Re: $19k Profit with no money down flip! - Posted by IB (NJ)

Posted by IB (NJ) on October 13, 2003 at 16:37:31:

Dan, it was an abandoned boarded up property. Found it scanning my neighborhood one day.