Find out how Josh flips a bank owned property in the latest episode of the Real Estate Investing Made Easy Podcast.
Here are the details on this property:
INITIAL EVALUATION REO FROM MLS After repaired value (A.K.A. List Price) $144,900 Sell price (90% of List) $130,000 Net proceeds (90% of Sell Price) $117,000 Profit -$40,000 Repairs -$28,000 Max Offer Price $49,000 Initial Offer Price (25% of Max) $36,750 None of our own cash or credit and without doing any of the work. ACTUAL INVESTMENT AND RESULT REO FROM MLS Purchase Price $56,904 Cash to Close $56,011.92 Improvements $26,000 Total Investment $82,011.92 Private Money Funding from IRA $87,000 Cash In Pocket up front $4,000 Projected Sell Price $144,900 List Date 7.1.13 Gross Profit Potential $62,900 Goal $40,000 Actual Sell price $132,000 Sold Date 8.16.13 (46 Days on Market) Net Proceeds after closing costs $119,200 Adjusted Gross Profit $37,188.08 ($119,200 – $82,011.92) Private Lender Interest @ 12% over 7 months $5,810 Net Profit after all expenses $31,378.08 None of our own cash or credit and without doing any of the work.