Is this a FLIP?

[SD Realtor]

Jordan you are absolutely correct that this is not for the average person. Not by a long shot at all. As far as the risks involved with purchasing at trustee sale we have gone over that before and once again, not a good idea for pretty much most everyone here.

As sdr said, there are a few savy people who are “making a killing”

Peterb no I cannot give you any specifics at all. To be quite honest this topic is of high interest of me for potential business and personal reasons so I prefer not to. I never said these opportunities are easy to find, just that they are out there. One resource you can use to learn more about trust sale history in various zip codes is fidelityasap.com.

[peterb]

Wow, SD Realtor. I just asked you to tell me in very vague terms what discount you’re paying on properties from current market prices. Bruce Norris has said on the radio that he’s paying 30 to 40% off the loan amount to lenders. A very well known guy in a very specific market. Not govt secrets here.
Can you verify if this is what you’re paying?
I cant understand how this is risking anything for you? But maybe I’m missing something?

[peterb]

Wow, SD Realtor. I just asked you to tell me in very vague terms what discount you’re paying on properties from current market prices. Bruce Norris has said on the radio that he’s paying 30 to 40% off the loan amount to lenders. A very well known guy in a very specific market. Not govt secrets here.
Can you verify if this is what you’re paying?
I cant understand how this is risking anything for you? But maybe I’m missing something?

[peterb]

Wow, SD Realtor. I just asked you to tell me in very vague terms what discount you’re paying on properties from current market prices. Bruce Norris has said on the radio that he’s paying 30 to 40% off the loan amount to lenders. A very well known guy in a very specific market. Not govt secrets here.
Can you verify if this is what you’re paying?
I cant understand how this is risking anything for you? But maybe I’m missing something?

[peterb]

Wow, SD Realtor. I just asked you to tell me in very vague terms what discount you’re paying on properties from current market prices. Bruce Norris has said on the radio that he’s paying 30 to 40% off the loan amount to lenders. A very well known guy in a very specific market. Not govt secrets here.
Can you verify if this is what you’re paying?
I cant understand how this is risking anything for you? But maybe I’m missing something?

[peterb]

Wow, SD Realtor. I just asked you to tell me in very vague terms what discount you’re paying on properties from current market prices. Bruce Norris has said on the radio that he’s paying 30 to 40% off the loan amount to lenders. A very well known guy in a very specific market. Not govt secrets here.
Can you verify if this is what you’re paying?
I cant understand how this is risking anything for you? But maybe I’m missing something?

[SD Realtor]

Peter sorry if I misunderstood your question.

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.

[SD Realtor]

Peter sorry if I misunderstood your question.

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.

[SD Realtor]

Peter sorry if I misunderstood your question.

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.

[SD Realtor]

Peter sorry if I misunderstood your question.

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.

[SD Realtor]

Peter sorry if I misunderstood your question.

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.

[peterb]

thanks. That’s all I was curious about. Sounds like you’re looking for indicators that the property is headed for default of the loan. Which suggests to me that the deals are short sales. But it’s also occured to me that lenders may avoid paying property tax after they’ve taken the property. So you could get an idea of an REO before the lender has taken any action on it. Kinda like seeing into the shadow inventory.

15% at 4 times a year annualizes out at roughly 60%. Nice work.

For all the people out there that are wondering about the better areas of SD County and whether or not the zip code they’re interested in is showing any signs of weakness….tax roll data could prove to be a very useful indicator as to future problems and opportunities. Getting lender data real-time is all but impossible, but county tax records are a different story. Smart!!!

[peterb]

thanks. That’s all I was curious about. Sounds like you’re looking for indicators that the property is headed for default of the loan. Which suggests to me that the deals are short sales. But it’s also occured to me that lenders may avoid paying property tax after they’ve taken the property. So you could get an idea of an REO before the lender has taken any action on it. Kinda like seeing into the shadow inventory.

15% at 4 times a year annualizes out at roughly 60%. Nice work.

For all the people out there that are wondering about the better areas of SD County and whether or not the zip code they’re interested in is showing any signs of weakness….tax roll data could prove to be a very useful indicator as to future problems and opportunities. Getting lender data real-time is all but impossible, but county tax records are a different story. Smart!!!

[peterb]

thanks. That’s all I was curious about. Sounds like you’re looking for indicators that the property is headed for default of the loan. Which suggests to me that the deals are short sales. But it’s also occured to me that lenders may avoid paying property tax after they’ve taken the property. So you could get an idea of an REO before the lender has taken any action on it. Kinda like seeing into the shadow inventory.

15% at 4 times a year annualizes out at roughly 60%. Nice work.

For all the people out there that are wondering about the better areas of SD County and whether or not the zip code they’re interested in is showing any signs of weakness….tax roll data could prove to be a very useful indicator as to future problems and opportunities. Getting lender data real-time is all but impossible, but county tax records are a different story. Smart!!!

[peterb]

thanks. That’s all I was curious about. Sounds like you’re looking for indicators that the property is headed for default of the loan. Which suggests to me that the deals are short sales. But it’s also occured to me that lenders may avoid paying property tax after they’ve taken the property. So you could get an idea of an REO before the lender has taken any action on it. Kinda like seeing into the shadow inventory.

15% at 4 times a year annualizes out at roughly 60%. Nice work.

For all the people out there that are wondering about the better areas of SD County and whether or not the zip code they’re interested in is showing any signs of weakness….tax roll data could prove to be a very useful indicator as to future problems and opportunities. Getting lender data real-time is all but impossible, but county tax records are a different story. Smart!!!

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