REIF Investors Make Quick Profit Buying at the Foreclosure Auction
“Can we really make money in this real estate market flipping houses?”
We hear that question quite a bit around our office. Usually it comes up on Tuesday during our weekly workshop for new clients & investors on “How to buy foreclosure auction homes, short sales and bank owned/REO’s”.
The answer is most definitely YES! With accurate property research and due diligence combined with a keen knowledge of current market conditions and throw in a little luck for good measure you can make consistant and sizeable profits time and time again.
Below are the details on a recent foreclosure auction purchase made by an investor working with Real Estate Investment Firm, LLC.
Rosario Place, Renton WA
REIF foreclosure purchase
This property was purchased on March 27th 2009 at the King County Foreclosure Auctionfor $1.00 over the lenders opening bid of $364,650.00. When this property was reviewed in our Auction Investor Meeting the night before, the REIF Auction Specialist told the group that a cash buyer could purchase and flip this property in under 90 days and make a net pre-tax profit of approximately $40,000.00. In the end it only took 67 days from the purchase date until escrow closed on the re-sale. When all the costs for acquisition, fix-up, holding and re-sale were calculated, the net profit to our client was $39,463.00 Below is a breakdown of those figures and a chart that shows the ROI (return on investment) for this transaction.
|
Rosario Place Breakdow |
|
|
Purchase Price |
$364,651 |
|
Purchase Comm. |
$10,940 |
|
Fix-up costs |
$3,500 |
|
Total Purchase Cost |
$379,091 |
|
Sale Price |
$454,950 |
|
Sales Costs |
$36,396 |
|
|
|
|
Net Sale Price |
$418,554 |
|
Minus Purch Cost |
$379,091 |
|
|
|
|
Net Profit |
$39,463 |
|
Return on Investment Calculation |
|
|---|---|
|
|
|
|
Amount Invested?: |
$379,091.00 |
|
Start Date?: |
03/27/2009 |
|
Amount Returned?: |
$418,554.00 |
|
End Date?: |
06/02/2009 |
|
Gain or Loss: |
$39,463.00 |
|
Percentage Gain or Loss (%): |
10.4% |
|
Annualized Return on Investment %: |
56.7% |
If we extrapolate this data out to a 12 month time-frame, it would roughly work out to an anual net income before taxes of $240,000.00. Keep in mind as well that the investor who bought this house only spent approximately 30-40 hours of his time working on the property.
If you would like to learn how you can help secure your financial future by investing in foreclosures and distressed real estate then I encourage you to attend one of our free foreclosure investing workshops. They are held every Tuesday at 5:30 pm at our downtown Redmond office
Categories: Buy Distressed Real Estate, Featured, Foreclosure Auction, Foreclosures Tags: Buy Distressed Real Estate, flipping houses, Foreclosure Auction, foreclosure investment, Foreclosures, King County Foreclosure Auction
Contractors Board up House with Former Owner Still Inside
A man in Minneapolis, MN recently became a prisoner in what was formally his home after it was foreclosed on by the lender. As Ted Poetsch was working to get his pet cat into a pet carrier workmen were busy outside his home securing sheets of plywood over the windows and doors.
Luckily, Mr. Poetsch was rescued by his former attorney before long.
If you would like to read the story in its entirety please click the following link.
http://www.upi.com/Odd_News/2009/06/08/House-boarded-up-with-resident-inside/UPI-85621244492422/
Categories: Bank Owned/REO Property Tags: Distressed Home Owners
How to buy foreclosures, bank owned and short sale properties
Buying or investing in properties that are in the foreclosure process is your wealth building opportunity!
Did you know that NOW is the best time to invest in foreclosure properties?
Many people are interested in investing in properties that are in the foreclosure process, but are unsure of the steps to take to get started.
The market conditions of today have converged to create a “Perfect Storm” of opportunity for the savvy real estate buyer or investor. The opportunity is there to purchase your next property at discounts of 20-50% under today’s market value. Never again will the same market conditions exist that precipitated our current liquidity crisis, stock market crash and subprime mortgage meltdown. The opportunity to take advantage of this unprecidented market is now! If you are qualified, committed and motivated we will provide you with an inventory of efficient and profitable assets to meet your short and long term financial objectives.
Our wealth-building services help you confidently invest in properties facing foreclosure
Our dedicated team of investment & foreclosure specialists can help you build an intelligent real estate portfolio that capitalizes on current economic and market conditions to create long term and lasting wealth for you and your family.
Real Estate Investment Firm’s core purpose and mission is to become the industry leader in helping people create true financial success through the acquisition of real estate. We maximize efficiency and profitability for our clients through strategic systems and processes. We are leaders, innovators and educators. We help clients implement the strategies that will ensure they reach their financial goals and objectives.
Come and learn how to “Never Pay Retail” again and purchase real estate at 50-80 cents on the Dollar!
Some of what we will cover in the workshop
- The foreclosure process and timeline
- Recent sales data and market statistics for the region
- Foreclosure trends and market analysis
- Lien priority in Washington State
- Investment Strategies to maximize your return on investment (ROI)
-
The importance of establishing an exit strategy before you buy!
