Ugh oh, Monster Profits in the House

Posted July 4th, 2007 by Joe Kaiser

And, if you want to know the whole truth, I walked out of escrow (as the buyer) with a couple thousand dollars to boot.

Dear Rob,

I think I might have done it this time.

We bought a little house a few months ago from a guy in foreclosure, flipped it and whew boy, this check showed up today.

Check

$59,360.32 . . . a monster profit deal in the house. Gulp.

I suppose I might as well fire up the copy machine because I’m sure your gal Rene will want to look into this one, too.


I’m an investor

Here’s a picture to help her get started.

House Pic

It’s a place I bought this February in a very straightforward deal: I made a cash offer, he accepted, and we closed through escrow soon thereafter.

And the property was immediately listed with a local agent.

I snagged a buyer right away, got the thing closed (a few title problems had to be handled along the way) and this check, my profit, arrived a short time later.


I’m an investor

How much did I pay for it?

Something like $48,000, which I figured was around 50 cents on the dollar. It’s a property I wasn’t able to see much of prior to buying so had to buy cheap to make it worth the risk.

I should probably come clean and let you know I didn’t put up a dime of my own money to buy it, either (a private lender paid for the whole thing).

And, if you want to know the whole truth, I walked out of escrow (as the buyer) with a couple thousand dollars to boot.

Fix-up work?

Never touched it. The agent said it was good enough so I just sold it “as is.”


I’m an investor

If you’re keeping score, the short story looks like this . . .

  • Foreclosure deal.
  • Bought pretty much sight-unseen.
  • Paid well below wholesale.
  • Received cash at closing as buyer.
  • Didn’t do a thing to fix it up.
  • Flipped and closed within a few months.
  • Pocked over 60 thousand dollars.

Seems like that about sums it up. If Rene needs additional information about it, please do not hesitate to let me know.


I’m an investor

Respectfully,

Joe Kaiser


3 Responses to: “Ugh oh, Monster Profits in the House”

  1. David Zemens responds:
    Posted: July 4th, 2007 at 11:50 am

    I have been following your blog with interest, Joe. I wish I had the guts to take a chance on property like you do.

    Keep up the good work and good luck fighting city hall!

  2. Joe Kaiser responds:
    Posted: July 4th, 2007 at 6:52 pm

    David,

    This is what investors do. So, what’s stopping you?

    Joe

  3. Steve Whitehair responds:
    Posted: July 14th, 2007 at 4:27 pm

    Joe,
    This was your reward for the knowlege you have obtained and put into practice. I bet there were some times when you got an “education” but lost money on the deal! Those really hurt!
    Steve


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