Comments on: Flipping Phoenix Foreclosures- A Case Study http://housingdoom.com/2008/09/08/flipping-phoenix-foreclosures-a-case-study/ Sat, 11 Feb 2012 07:12:54 +0000 hourly 1 http://wordpress.org/?v= By: DealMakers http://housingdoom.com/2008/09/08/flipping-phoenix-foreclosures-a-case-study/#comment-13953 DealMakers Thu, 29 Jan 2009 00:27:26 +0000 http://housingdoom.com/?p=1615#comment-13953 Here is an update on this deal. The seller sold the property on 10/31/08 for $190,000. He bought the property for $156,500 as mentioned above. Total gross profit was $33,500, now take out renovation cost, holding cost, realtor comm. and any other expenses the investor most likely maid $10K. That is probably not what he was expecting when he purchases the home back in July but a $10K profit is nothing to be ashamed of. Doing 3-5 of these a year is a good part time income. Lesson learned? Look at the pending sales, active listings, pre-foreclosures and bank owned properties in the subdivision to determine the future value of the property and make your decision off that number not today's sold comps. Thanks for the article, Sean Here is an update on this deal. The seller sold the property on 10/31/08 for $190,000. He bought the property for $156,500 as mentioned above. Total gross profit was $33,500, now take out renovation cost, holding cost, realtor comm. and any other expenses the investor most likely maid $10K. That is probably not what he was expecting when he purchases the home back in July but a $10K profit is nothing to be ashamed of. Doing 3-5 of these a year is a good part time income. Lesson learned? Look at the pending sales, active listings, pre-foreclosures and bank owned properties in the subdivision to determine the future value of the property and make your decision off that number not today’s sold comps.

Thanks for the article,

Sean

]]> By: Asset Hunter http://housingdoom.com/2008/09/08/flipping-phoenix-foreclosures-a-case-study/#comment-13952 Asset Hunter Mon, 08 Sep 2008 19:40:04 +0000 http://housingdoom.com/?p=1615#comment-13952 SteveC - that's a brutal drop. Using that model, a property sold for 1,200,000 in '05-'06 could sell for $ 300,000 before we're done with this mess. I don't doubt it at all. The percentage is the same... but the raw dollars could be staggering! (Good thing those dollars aren't worth much, heh?) Anyone hear how the big foreclosure auction in Phx went that has been advertised relentlessly on television for the last few weeks? SteveC – that’s a brutal drop.
Using that model, a property sold for 1,200,000 in ’05-’06 could sell for $ 300,000 before we’re done with this mess.
I don’t doubt it at all.

The percentage is the same… but the raw dollars could be staggering!
(Good thing those dollars aren’t worth much, heh?)

Anyone hear how the big foreclosure auction in Phx went that has been advertised relentlessly on television for the last few weeks?

]]> By: stevec http://housingdoom.com/2008/09/08/flipping-phoenix-foreclosures-a-case-study/#comment-13951 stevec Mon, 08 Sep 2008 18:10:37 +0000 http://housingdoom.com/?p=1615#comment-13951 I have been a broker for 35 years. At one point, I was one of the top new home salespeople in the state. However, I started a computer company about 20 years ago because I became tired of my income being a victim of the economy. I live in a nice neighborhood by Encanto Park, indisputably one of the cities most consistent neighborhoods. In the 80's, homes in my neighborhood were selling in the $120's. When the crash came, they dropped into the $30's. What seems like a bargain today might seem way overpriced in a month. We are in an adjustment in our economy that will take years to play out. Home prices are going to drop much, much further. The Realtor in the video most likely will be either moved in with his parents or selling shoes at Penneys. We are a long ways fromt the so called bottom. I have been a broker for 35 years. At one point, I was one of the top new home salespeople in the state. However, I started a computer company about 20 years ago because I became tired of my income being a victim of the economy.

I live in a nice neighborhood by Encanto Park, indisputably one of the cities most consistent neighborhoods. In the 80′s, homes in my neighborhood were selling in the $120′s. When the crash came, they dropped into the $30′s. What seems like a bargain today might seem way overpriced in a month. We are in an adjustment in our economy that will take years to play out. Home prices are going to drop much, much further. The Realtor in the video most likely will be either moved in with his parents or selling shoes at Penneys. We are a long ways fromt the so called bottom.

]]> By: stuffingmonkey http://housingdoom.com/2008/09/08/flipping-phoenix-foreclosures-a-case-study/#comment-13950 stuffingmonkey Mon, 08 Sep 2008 16:27:56 +0000 http://housingdoom.com/?p=1615#comment-13950 My wife and I have been (very) casually searching through listings lately. We realize that anything we buy now needs to have tremendous value built into the price considering the downside risk, and we have the luxury of sitting on the sidelines waiting for that. Some of the houses we've toured in the past and we now shake our heads as they become the "foreclosures of tomorrow," already losing tens of thousands as the next wave of bank properties is listed. One of the agents who showed us a house in southeast Gilbert pointed out that it had sold in late 2006 for 580k, and if we bought now, we would walk into 200k+ in equity. At this point, I'm not sure if they're flat out lying for the sale or just ignorant. My wife and I have been (very) casually searching through listings lately. We realize that anything we buy now needs to have tremendous value built into the price considering the downside risk, and we have the luxury of sitting on the sidelines waiting for that. Some of the houses we’ve toured in the past and we now shake our heads as they become the “foreclosures of tomorrow,” already losing tens of thousands as the next wave of bank properties is listed.

One of the agents who showed us a house in southeast Gilbert pointed out that it had sold in late 2006 for 580k, and if we bought now, we would walk into 200k+ in equity. At this point, I’m not sure if they’re flat out lying for the sale or just ignorant.

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