I am not paying anything on the properties as I have not participated in any of these sales. I have mined alot of tax roll information to see what properties that are in default have as first mortgage amounts and then correlate that to the local market conditions of where they are located to see if they would be candidates for an investment flip. I have done this for a couple of local markets that to me, offer possible returns for this methodology.
In terms of profit margin on some of the ones I have watched and know about, the net return is about 10-15%. This is after closing costs. What I do not know is the cost of any rehab work prior to putting it on the market. Not bad for only having the money tied up for 2-3 months. To me it doesn’t matter if the investor bought it for above or below the default amount. I am not measuring that, only what the end result is. Bruce Norris may very well be paying what he has claimed and then respinning the properties and doing well and it would not surprise me. He also has access to large sums of cash so he is in an excellent position to take advantage of the current conditions.
