Author Topic: Did someone flip this house to another investor?  (Read 960 times)

Bearded Man

  • Handlebar Stache
  • *****
  • Posts: 1142
Did someone flip this house to another investor?
« on: July 12, 2015, 07:54:54 PM »
I'm seeing this house that was easily worth 175k. It foreclosed for 65K left on loan. It sold for 45K a couple months later. Then a couple months after that, it sold for 70K. I saw construction crews working on it at some point after the foreclosure but not sure if it was before the first sale or after. In any case, considering the price at which it was first bought, then later sold, and it's value, I suspect the house was purchased by one investor, who then decided to flip it to someone else, possibly another investor. I find it unlikely that the occupant bought it for that price and fixed it up to live in.

In any case, if this is indeed the case, how successful is this, and what are the risks? Do you buy the houses at bargain basement prices and put them back on the market untouched to flip to another investor at a reasonable profit for you but still low enough that it's a deal for another investor (almost like wholesaling except it actually sold twice in the above scenario).

sammybiker

  • Bristles
  • ***
  • Posts: 292
    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Did someone flip this house to another investor?
« Reply #1 on: July 13, 2015, 12:55:04 AM »
If the numbers still work, especially in a market like yours (Seattle area, right?), go for it.

I've purchased a couple of houses the exact way you mentioned (as the second investor buying it) - the first investor still made a few bucks on it but he was short of cash on a couple of his on-going flips and I was able to close within a couple of days - cash talks.  Did I get the best deal possible?  I think so.  Did I buy at the bottom?  No, he did, in 2012...when I came along in early 2014, it was still an excellent deal and well below market.


NoNonsenseLandlord

  • Bristles
  • ***
  • Posts: 396
  • Age: 59
  • Location: Eagan, MN
    • No Nonsense Landlord
Re: Did someone flip this house to another investor?
« Reply #2 on: July 13, 2015, 06:43:27 AM »
Sometimes a bird-dogger/investor might actually acquire it and not have the cash for the rehab.  The hard part is getting/finding the deal, and the deal is worth something.

The more money into a property, the more risk.