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 firstname.lastname@example.org and I’ll give you my cell number.