I chronicled some of the parties buying houses at Trustee’s Sales and then flipping them a while ago in The Investors Club. Most are still active on the courthouse steps, one crashed and burned with multiple foreclosures. Many of their flips have been astonishingly profitable, though there have been a few missteps and near misses along the way. In my opinion, if the banks truly understood the value of their properties going into the Trustee’s Sales (assuming these deals are clean), there should not be huge opportunities for profit in these sort of transactions. Well there are, and that bugs me.
There is a new big dog on the foreclosure flip scene. Page Ventures LLC / National Real Estate Services has picked up at least 21 properties at auction since November, and their activity is increasing dramatically. In chronological order and in round numbers, here are their transactions – the number in parentheses was the amount due at the Trustee’s Sale:
UPDATE: 1780 Desert Mountain closed Friday for $285,000, and 6309 Park Place closed yesterday at asking of $179,900. Since people seem to be interested in the timing of the deals, I have updated the the property information with the actual Trustee’s Sale and resale dates instead of the recording dates when I can easily find the information. In at least 90% of the cases, the recording date was at least 2 weeks after the Trustee’s Sale date. Updated data is in red :
5525 Wedekind – Purchased for $228,000 in November 2008 from lender. Sold for $299,000 26 December 2008.
7655 Corso – Purchased for $152,000 (276) 19 November 2008. Sold for $157,000 15 May 2009. (Corso has a huge number of foreclosures on it, which has cratered prices).
14061 Stead – Purchased for $72,000 (182) 19 November 2008. Sold for $85,000 22 June 2009.
1656 Spring Vista – Purchased for $165,000 (165) 1 December 2008. Sold for $215,000 30 January 2009. (There was a huge second mortgage / HELOC on this one),.
3764 Big Dipper – Purchased for $159,000 (309) 17 December 2008. Sold for $215,000 6 February 2009.
5136 Palo Alto – Purchased for $152,000 (297) in January 2009. Sold for $215,000 24 April 2009.
2640 Starr Meadows – Purchased for $270,000 (362) 31 December 2008. Sold for $310,000 24 June 2009.
4445 Cobra – Purchased for $277,000 (498) in January 2009. Sold for $350,000 3 March 2009.
8475 Castlehawk – Purchase for $310,000 (590) 11 February 2009. Sold for $455,000 23 March 2009.
3065 Markridge – Purchased for $186,000 (494) 18 March 2009. Status unknown.
1364 Northview – Purchased for $120,000 (275) 15 April 2009. Listed at $179,900 (back on market).
481 Shire – Purchased for $252,000 (482) 29 April 2009. Sold 2 July 2009 for $320,000.
1595 Bethal – Purchased for $223,000 (431) 6 May 2009. Sold 26 June 2009 for $304,000. $224K new loan.
1780 Desert Mountain – Purchased for $204,000 (193) 13 May 2009. Listed at $289,900. Sold 26 June 2009 for $285,000. $100K new loan.
7618 Desert Plains – Purchased for $272,000 (442) 6 May 2009. Listed at $344,900. Sold 16 July 2009 for $335,000.
465 Sawyer – Purchased for $53,000 (211) 13 May 2009. Listed for $99,900 (pending, loan). Sold 7 July 2009 for $100,000.
8564 Timaru – Purchased for $305,000 (568) in May 2009. Listed at 399,900.
1601 Emerald Bay – Purchased for $186,000 (385) 6 May 2009. Listed at $269,900 (pending, loan).
6309 Park Place – Purchased for $116,000 (286) in 26 May 2009. Listed at $179,900. Sold 29 June 2009 for $179,900. $135K new loan.
3818 Allegrini – Purchased 27 May 2009 for $170,000 (434). Listed at $219,900 (reduced).
2635 Friesian – Purchased for $305,000 (736) 10 June 2009. No status yet.
One of the "status unknown" properties sold yesterday, but the information has not posted on the Recorder’s site yet. Remember, these sales will show up as "organic" sales in the MLS database. The spread between the amount owed on the first loan and the amount paid at the Trustee’s Sales is truly amazing in many cases. This is providing the window for successful flips, even in this market.
Update 20 July 2009 – Page ventures has sold three more properties that have shown up on the Recorder’s site – 481 Shire, 7618 Desert Plaines, and 465 Sawyer. They are updated above in green text. They have also been on a buying spree:
1233 Lawton – Purchase for $101,000 (292) 10 June 2009. NL.
6563 Bloomfield – Purchased for $$193,000 (359) on 18 June 2009. NL.
7781 Big River – Purchased for $66,000 (207) 24 June 2009. Listed at $114,900.
3251 Rockwood – Purchased for $80,000 (235) 1 July 2009. NL.
1086 Tiller – Purchased for $892,000 (1,662) on 1 July 2009. NL.
The Tiller property in Incline is way out of modus operandi for this buyer. I’m sure InclineJJ, smarten, and Paul know this property. Can you add any intelligence?
Reno Ignoramus
Mike this is a great thread. Super job. It raises in my mind an appraiser question. When an appraiser is appraising a property, does he/she just ignore the price paid at a recent foreclosure sale? In all of these examples the price paid by the buyer from the “foreclosure flipper” represented a still big decline from what the original foreclosed out owner paid. But in comparison to what the foreclosure flipper paid, they represent a sometimes substantial increase. When working up the appraisal for the sale from foreclosure flipper to buyer, does the appraiser just disregard the price paid at foreclosure sale?
Any appraisers out there care to share some info?
inclinejj
Mike..Excellent job with this
Some of the property resales are a little “thin in the skin” for me
So have they been rehabing the properties or putting them back on the market right away??
DownButNotOut
Good question IncJJ – left out often is costs of even peripheral improvements made to property to facilitate a sale (or resale) Most bank sale houses have been left unattended for some time, and usually require a minimum of a few dump runs, irrigation maintenance and white washing.I suspect getting the sales they’ve had they’ve invested a few bucks.
Not every home buyer is comfortable or knowledgeable when buying on the the courthouse steps,and paying a few percentage more for a cleaned up unit, with clear title for financing may make more sense. Although the difference this particular flipper is making – less fees – might be profitable, it seems to be chancy.
Joe
I’m well aquainted with Mr. Page. A few months ago he was telling me about when he started buying forclosures on the courthouse steps. He said the other handful of bidders didn’t like him at all; thought he was some punk kid (he’s not even 30) moving in on their game. He’s a nice guy, but it sounds like it’s more of the challenge/risk that got him involved. And he’s got millions to throw at it.
Martin
8475 Castlehawk. Foreclosure Flipper buys it at auction for $310K on March 4. 19 days later, on March 23, sells it for $455K. New buyer gets a mortgage for 80% of the purchase price. Does anybody here think that flipper can buy at auction, put the house on the market, attract a buyer, buyer can arrange an 80% loan, and the whole thing start to finish is completed in 19 days?
Maybe it can, but I have to believe that flipper and buyer didn’t meet each other for the first time on March 5.
big baby
I’m good! I will keep my 500k+ in the bank getting a comfortable 4.35% interest…
only sad part is that my cd’s mature next year..
DownButNotOut
Some of the sales seem contrived, that’s for sure. That doesn’t necessarily make it underhanded though.
Around ’90-’93 I was buying distressed houses then lease optioning them to pre-screened buyers that couldn’t get a loan but were willing to gain some equity through higher rents,or sweat equity and I got lucky as all of them went hard and bought when the option came due.Maybe this guy has his buyer and loan already lined up,who knows?
When I did it I was about ‘Mr Page’s’ age and nothing bothered me. I’m more conservative now as I’ve seen how ugly non-liquid assets can get.
inclinejj
. But in comparison to what the foreclosure flipper paid, they represent a sometimes substantial increase. When working up the appraisal for the sale from foreclosure flipper to buyer, does the appraiser just disregard the price paid at foreclosure sale?
Any appraisers out there care to share some info?
Well, there is a part of the appraisal which lists all transactions recorded on the property within the last 24 months..If I was the underwriter I would question this..Hey these people are flipping the property so lets take a look long and hard on what the value really is..why did the buyer on the courthouse steps buy it for so cheap and flip it right away?
SkrapGuy
It seems obvious that the appraiser on Castlehawk did not consider the price paid by the flipper at the foreclosure auction in rendering his/her appraisal. Unless this whole thing is bogus, and I am not suggesting that, then quite clearly the appraiser did not consider the $310K auction sale price when appraising the house literally just a few days later for $455K.
How does one get a mortgage approved in less than 19 days in this market? I’m wondering if this appraisal wasn’t done BEFORE the house sold at auction for $310K.
Sean
Speaking of Castlehawk which is the same street Diane’s house is on. Her house is now shown on the MLS as “price raised” to 565k(from 525k) and is no longer pending….
SkrapGuy
I suspect that the bank is unwilling to accept in a short sale the price that Diane was asking. So her buyer walked. Now she has to increase the price to something the bank will accept.
Just out of curiosity I drove by that house the other day. It appears to be unoccupied.
At some point very soon it is not going to make any sense for Diane to continue to feed this alligator. If Diane has already moved, the only reason to keep paying the mortgage is to preserve her credit score while she hopes to attract a new buyer who will pay something the bank will accept in a deal that will net Diane nothing. We have had this discussion before, maybe too many times before, but at some point it just makes financial sense to walk.
Raymond
If Diane has moved, then SkrapGuy is right. I have no idea what Diane’s monthly payment is on that house, but given what her mortgage is, I suspect the payment is around $3500 a month. Now she has rent to pay on the house she is living in in Calif. A pristine credit score is a nice thing, but $3500 or so a month can really come in handy for other things. Like rent on the new residence, and groceries, and clothes for the kids.
Ok, now all the defenders of morality and ethics and responsibility can come in and blast me for suggesting that walking from a mortgage just might be the only sensible financial thing to do in these circumstances.
daily
Raymond-et al
I’m a strong advocate for personal responsibility, etc. etc. However, when it comes to taking care of one’s family, especially children and a future? Never thought I’d agree,
but some circumstances warrant folding up the tent. Sometimes we spend 99% of our
energy beating the problem into the ground and only 1% toward the solution.
I’d walk. And, yeh, yeh, out there in blog land…easy for me to say.
big baby
lol I wouldn’t buy a house I couldn’t afford to pay for!
but that’s just me ! What a concept!
DownButNotOut
It’s nice to say we’d stick in there, but I suspect most of us, including my self, would walk if we were in a situation Diane may be in.
As to the flipping, something seems out of place when you look at the prices and the dates. I’m not suggesting inappropriate actions are taking place, but like IJJ says, how do you even find a buyer, let alone close in that time frame (19 days) unless you’ve already have that person lined up. And maybe that’s the angle.
‘I will buy you a house on the courthouse steps and sell it to you for 90% of it’s value’
Anyone seen that add running?
smarten
Sean said, “Diane’s house is…now shown on the MLS as ‘price raised’ to 565K (from 525K) and (it) is no longer pending.”
Let me share what happened [similarly] to 346 Winding Way in Incline Village.
When the seller’s agent first admitted her asking price of $1.6M was in excess of the total encumbrances against the property, she begged for ANY offer so it could be presented to the bank and she’d receive some feedback. The agent received a lowball offer; submitted it to the bank; and, WAMU eventually came back/countered with a price it purportedly would accept…$1.2M.
Well Mr./Ms. lowball didn’t take the bait; the home came back on the MLS; now with the reduced sales price of $1.2M.
This is what I suspect has happened with Diane’s former offer.
To carry the story a bit farther, Winding Way eventually sold for $925K. In other words even though WAMU told the listing agent it wouldn’t consent to a sale for less than $1.2M, it ultimately agreed to take 23% less [actually it too a greater haircut with costs of sale, agent commissions, transfer taxes, etc.]! Again, this is what I suspect Diane’s lender will ultimately agree to.
And I’ll bet you dollars to donuts that when everything’s said and done, Diane’s lowball offer which was rejected by her bank may very well turn out to total more than what her bank ultimately agrees to accept.
Let’s not all forget that Diane gave up her burgeoning business as a Reno real estate sales professional; she decided to list her Reno residence for sale [with her eyes open] in an absolutely terrible seller’s market; and, she rejected the opportunity to offset some of her monthly debt service by renting out the home; all because her husband’s Bay Area electronics business was going gang busters! So I suspect that when everything’s said and done, Diane and her husband will come out way, way ahead of the game, even if her former Reno residence sells for appreciably less [either as a short or trustee’s sale] than its current sales price.
If they don’t then IMO, it was a mistake for her/her husband to leave. But as I said before, and assuming Diane choses to share, we’ll eventually learn the road Diane has traveled. But in the interim, I continue to wish Diane and her family the best.
BanteringBear
With the ad Down points out as evidence, there are a lot of “investors” in the market right now, trying to make money in a variety of ways. Some are, no doubt, paying cash for homes on the steps of the courthouse, then carrying the loans for the buyers they place in the homes, oftentimes at exorbitant rates. I would guess that many of these people believe that they are getting properties for a good price, which they don’t mind owning long term, and subsequently could care less if the people they “sell” them to default (they expect it), as they’ll just take back the property and find another sucker to overpay (risky). This has been going on forever.
While it’s hard to get an accurate figure, it appears that “investors” are rife in the Reno market, and that’s just not a good sign of health. Furthermore, vacancies, and falling rents will put a crimp on cash flow, weeding out the weaker hands. It’ll be interesting to watch this all play out.
BanteringBear
“And I’ll bet you dollars to donuts that when everything’s said and done, Diane’s lowball offer which was rejected by her bank may very well turn out to total more than what her bank ultimately agrees to accept.”
I’m more than inclined to agree with this. The banks just aren’t into short sales. More often than not, it comes back to haunt them, but they seem all too willing to foreclose. Honestly, if I were in the situation Diane is in, I’d just walk away. In order to even qualify for a short sale, you need to be late on payments, so the credit is already shot. It seems a pointless waste of time, money, and mental resources to play that short sale game the banks enjoy. “Take these keys and shove ’em.”
Walter
In all of these cases, Foreclosure Flipper bought the property for well below what the bank was owed. Why aren’t the banks just bidding in the amount of their unpaid debts and taking the properties back? Is it because the banks have too much REO already and just don’t want anymore?
I would love to know if Foreclosure Flipper actually had to competively bid to obtain these 21 properties at auction. Was he the only guy who showed up at the auction? In most cases he paid so much less than what was owed, it’s hard for me to imagine that some other bidder didn’t offer a dollar more more.
Interesting questions are raised. There are some big deficiencies being created here, and yet banks don’t sue for a deficiency judgment. I’m still not sure I understand exactly why.
Maybe Diane will default on Castleridge and Flipper can go buy another house on that street at auction.
MikeZ
big baby said,
I’m good! I will keep my 500k+ in the bank getting a comfortable 4.35% interest…
$22K on $500K? Agagagaga!
I made more than that already this year on less than $50K. Go climb back under your rock, Einstein.
inclinejj
As to the flipping, something seems out of place when you look at the prices and the dates. I’m not suggesting inappropriate actions are taking place, but like IJJ says, how do you even find a buyer, let alone close in that time frame (19 days) unless you’ve already have that person lined up. And maybe that’s the angle.
I don’t think you can get an appraisal report and fund in 19 working days..
Wait, did the buyer at the court house steps carry back financing on all these resales?
Back in the good old days we could close a hard money loan in less then a week, but the good old days are long over..
I have been at trustee sales at the court house that go on for over an hour..The cryer has had to make a rule and go in 100 dollar increments and the bidders keep bidding till they are out of money..Last person standing gets the house
smarten
And assuming Baby and his wife are in a hefty combined 12% tax bracket, that $22K/year of interest income is really only about $19.8K. Pretty savvy! Are you taking your interest this year Baby, or will it all be payable next year [thus deferring your tax liability]?
GratefulD_420
Foreclosure Flipper – Is not robbing the bank, however he is in the neighborhood of running a sucessful business.
FF is Grossing 33.6% over 4.3 Months with a current leverage of 2,170 k. Cash made since Nov-2008 is $876k with a total rolling sum of $3.9 M in play.
Big Baby…. why would you prefer your 5% over FF’s 35% ? Would you not enjoy the 600% difference?
Is it safer but less profitable?
Property
Forcl-Sal Purchase Flip Sold Dat month to sell
5525 Wedekind Nov-08 228000 299000 Dec-08 1
7655 Corsi Dec-08 152000 157000 May-09 6
14061 Stead Dec-08 72000 85000 Jun-09 7
1656 Spring vista Dec-08 165000 215000 Jan-09 2
3764 Big Dipper Dec-08 159000 215000 Feb-09 3
5136 Palo Alto Jan-09 152000 215000 Apr-09 5
2640 Starr Meadows Jan-09 270000 310000 Jun-09 7
4445 Cobra Jan-09 277000 350000 Mar-09 4
8475 Castelhawk Mar-09 31000 455000 Mar-09 4
1595 Bethal May-09 223000 304000 Mar-09 4
Purchase Flip
SUMS 1729000 2605000 43
AVRGE 172900 260500 4.3
CASH MADE $876,000
% Gross Margin 33.6%
AVG Time 4.3 Months
MONEY in the HOLE
3065 Markridge Mar-09 186000
1364 Northview May-09 120000
481 Shire May-09 252000
1780 Desert Mountain May-09 204000
465 Sawyer May-09 53000
8564 Timaru May-09 305000
7618 Desert Plains May-09 272000
1601 Emerald Bay Jun-09 186000
6309 Park Place Jun-09 116000
3818 ALLEGRINI Jun-09 170000
2635 Freisian Jun-09 305000
2169000
total= 3898000
big baby
mikez
I have “other” investments besides the 500k IDIOT!
here is a taste. I hope you like
BCS: +123
GS: +92%
GD: + 38%
AMD: + 39%
UL: + 14%
all in the last 6 months ..
now go buy a box of tissues!
big baby
deferring smarten…
DownButNot Out
GR420- I agree it’s a successful business up to this point. In fact IF it keeps going like it is it I would imagine it will be one of the most successful flipping in a down market that Reno has seen.
As my dad would say ‘if it’s too good to be true, then somethings up’.My gut tells me we don’t have all the facts.
But I like seeing someone be successful in this market.
3niner
I’m entertained by all of the speculation about how someone can buy a property from a bank and resell it for a profit.
I always look first for a free market explanation. When you buy something, the purchase price is not the full cost of the transaction. There are associated hard costs (commissions, fees, etc.), inconveniences, and risks, which make the real cost higher than the purchase price.
In the case of banks, many are simply not good at selling real estate. They do many things to increase these costs. Someone, who specializes in dealing with these fools, can gain the expertise (and have the leverage) to minimize many of these costs, while someone, who merely wants to complete a single transaction, will often simply decide to not get involved.
This means that the banks need to lower selling prices to attract buyers. The expert buyers can perform minimal cleanup, turn on power and water, and generally be less of a pain in the ass to deal with, thus attracting fair market offers.
I have heard that there are eBay professionals, who look for products which are posted incompetently, buy many of them for low bids, then resell the items for a profit, after posting them for sale more competently.
Carleton
This is a very interesting thread. Apparently if one has $2.2 million and a savy understanding of the game, one can do pretty well buying at foreclosure and flipping.
A hat tip to the Foreclosure Flipper.
Too bad that about 40% of his profits have to go to the Treasury to be handed out to thiefs in $2000 suits, but that’s another issue.
Tom
Could this economy be developing a new type of occupation? –Something like an arbitrageur of foreclosed houses, who attends foreclosure sales, or cherry-picks REO’s, does some inexpensive cosmetic work, than quickly re-lists and markets aggresively for resale.
If it works, I give them credit for being creative. Seems like a risky occupation, in which you would really need to know your market very well.
billddrummer
To Tom,
I agree with you that you need to know the market well to succeed at this. The corollary is that banks putting properties up for auction typically don’t know the market well–all they want to do is get out of the property with as little pain as possible.
So the banks will lowball bids at Trustee’s sales to unload the properties, investors will bid on them (to the banks’ delight), and then the investor will resell the properties at handsome profits.
I’m guessing that not all properties offered at auction get bids from investors–only those that have the potential to be flipped fast.
Risky? Sure. Lucrative? You bet.
The banks end up leaving the money on the table that the investors pick up.
I say keep it up.
billddrummer
And to big baby,
Congrats on your investment returns. Mine are upwards of 400%, because I’m paying off some high interest debt.
BanteringBear
C’mon, wake up guys. “big baby” derrick is a bartender earning less than $15k per year +tips. You guys are way too impressionable.
billddrummer
To BB,
Could be true. Doesn’t make any difference in the long run.
In the long run we’re all dead.
billddrummer
And the reason I said for the investors to keep it up is because big banks need to be brought to their knees, and losing $15K–$50K per deal, multiplied by thousands of deals, could very well do it.
I believe we’ve reached a day of financial reckoning in the US, and the government and Wall Street are still attempting to prop up a broken business model.
Until the rot is exposed and excised, the duplicity will continue.
And having banks leaving millions on the table when they could have done some research on local markets and kept the proceeds for themselves is one way to do it.
At the bid, the bank will take a writedown equal to the difference between the winning bid and the outstanding loan balance. This will tend to erode capital ratios much faster than keeping REO properties on the books and continuing to pay for upkeep and maintenance.
As ratios erode, the big banks will be exposed for what they are: self serving Ponzi masters.
And the rubric “too big to fail” will lose its credibility.
big baby
“earning less than 15k/year + tips”
now THAT is hilarious!
sorry BB but my after tax income was roughly 50k last year.
BanteringBear
“sorry BB but my after tax income was roughly 50k last year.”
While I don’t believe anything you type, and for good reason as you’ve proven to have zero credibility, let’s assume, for argument’s sake, it is factual. The idea that you will be buying in Montreux on a paltry income such as this is more hysterical than words can describe. Yeah, uhm, uh, suuuure big baby, riiiiiight…
DonC
Some room for “flipping” seems baked in. From what I understand, banks don’t want to deal with loans, so buyers making cash offers will get a better price. Also, the banks may not be very good at evaluating market prices, that shouldn’t surprise anyone.
But inclinejj has a good point about how you flip a house to someone getting a loan in a couple of weeks, especially in this climate. From what I’ve heard from people buying houses the loan process is quite the ordeal these days.
In a darker vein, I do know of one person who was recruited to participate in a scheme wherein the buyer of the foreclosed property fronted them the loan and some cash so that they could “buy” the property. He knew of several others who had participated and seemed nonplussed when I mentioned he would probably be committing a felony. The idea seemed to be that the phony purchases would increase later appraisals.
billddrummer
To DonC,
So straw buyers are still out there, eh?
I thought they had been wrung out of the market.
You’re right about the felony part of it, and you could also be charged under RICO, mail fraud, wire fraud and some other statutes I’ve forgotten about.
Just goes to show that not everyone is honest.
bondstevenbond
i find it shameful how so many people on this blog are willing to drag Diane’s personal life through the mud and rehash time and again whatever mistakes she did or didn’t make. And to think all she gave to build this blog. you reward her efforts with your gleeful bloviating over her misfortune. Sheesh! unbelievable!!! or maybe i missed something????
DownButNotOut
BSB- your definitely missing something – in fact your the one bringing it up after every recent post has been about something else. But since you brought it up and feel it’s your responsibility to defend her – I have to ask, why don’t you just let her speak for herself? For all you know this is a healing process for her being able to say in public what she went through. If it were me I wouldn’t announce what I was doing if I didn’t expect some posters to put it down. Maybe she’s OK with it.
smarten
Besides the fact you just DON’T find bona fide purchasers to buy your foreclosure finds within the time parameters outlined by Mike [especially in the market we’re in (because the only things that are selling are for steal pricing)], am I the only one who questions how incredibly “lucky” this flipper must be? WHENEVER, and I mean WHENEVER you purchase something at a trustee’s sale you’re taking a risk. Maybe it’s the state of title you think you know but you don’t [what are you going to do; order a title report on every property you intend to bid on whether or not it actually goes to sale]? Maybe it’s the condition of the property you think you know but you don’t [because you haven’t had the opportunity to tour all, if any properties that actually go to sale]? Maybe it’s the hateful former owner who intends to take it out on the house, to your detriment? Maybe it’s the occupant who’s not going to leave unless you pay him [as IJJ points out, some of the margins Mike has reported are pretty thin]?
I could go on and on but if you play this game long enough and you’ve never been burned…it’s NOT because of your skill set.
There’s something fishy here with Mr./Ms. Flipper. Also I’d be curious who, if anyone, represented him/her in the various resales reported by Mike? Also I’d be curious if the “so called” purchasers of these properties have secured purchase money financing and if so, from who?
Here’s something else to consider. When you buy at trustee’s sale, it’s for all cash. I did a quick total of the purchases this flipper made just in the months of November, December of 2008 and January of 2009. Forget about everything else – that’s about $1.04M of cash expended in just 3 months – with no losses!
As I said. There’s something fishy here.
inclinejj
This is a very interesting thread. Apparently if one has $2.2 million and a savy understanding of the game, one can do pretty well buying at foreclosure and flipping.
A hat tip to the Foreclosure Flipper.
Too bad that about 40% of his profits have to go to the Treasury to be handed out to thiefs in $2000 suits, but that’s another issue
Actually we have a lot more cash then this in our partnership Bank account to be used to purchase foreclosed or distressed loans and real estate..
Do I want all my cash to be out at one time..Hell Fking NO!!!
I just picked up a Commerical Property for about 1/3rd of Construction Costs..In the process of leasing one of the spaces and renewing a win-win lease for everyone to the existing tenant..
3 building lots next to this property for future development
Donald Trump said it best..Cash Is King!!!!
Reno Ignoramus
Speaking of foreclosures, with one day to go in the month, there have been 344 trustees’s deeds recorded in June. This figure totally obliterates the numbers from recent months. I doubt that there have been 344 REO properties sold this month, but I can’t say for sure since that info is only available to an MLS insider.
Also, 880 NOD and 650 NOS.
Bottom?. What bottom, Lucy?
billddrummer
to RI,
You can probably extrapolate the number of REO sales for June, if trends hold the way they did for May:
416 total sales in May, 57% REOs=237 REO sales
Figure 437 sales for June (up 5%)
If 57% are REOs, then 249 REO closings happened.
That’s nearly 100 units less than the number that entered the pipeline in June. And it doesn’t address the number of units that remain listed.
No bottom here.
LandLawyer
In the clear majority of cases, the TD is to the bank. Yes there are a few people out there like Foreclosure Flipper, but most all foreclosures go back to the bank. So in June we may see that the banks take more properties into REO than they sell through the MLS.
This does not suggest that the bottom is at hand. People have to stop looking to sales volume as an indicator that the market is improving. Almost 90% of all the sales are banks peddling REO and short sellers trying to get out of Dodge. They are not contributing to stabilizing prices. In fact, they are contributing to the opposite.
LandLawyer
Nobody bats a thousand. Not if you stay in the foreclosure game long enough.
So if Foreclosure Flipper is about to go 21 for 21, then I agree with Smarten. Something is fishy here.
Raymond
Smarten, Foreclosure Flipper is picking up the pace. Just THIS month, has has paid $1,084,100 at trustee’s sales.
GreenNV
Great comment string! Since the timing of the deals seems to be of interest, I have updated the post with the actual dates of the Trustee’s Sales and resales. There was a delay of at least 2 weeks (instead of 1) before recording the Tads.
The second home that sold on Friday was 1780 Desert Mountain for $285,000. 6309 Park Place closed yesterday for $179,900.
Sully
Speaking of something fishy – I had a serious interest in the first property on the list. I mentioned it on a post back in Nov. The for sale sign was hardly dry and the house was “pending/no show”.
Loan was VA; buyer was local. Lien was held by Western Thrift. I thought at the time this was a set up – as nothing was selling that fast back then.
The only info I could get on Page at the time was a Minden address. I suspect this guy has some inside connections and maybe him or the wife are RE agents or has a deal with one for discount commissions.
BanteringBear
Most likely just another “pocket listing” Sully. The general public has no chance with these properties. Get friendly with a banker, or someone else in the know.