Trustee sale profit numbers
Hello welcome to Todd Miller TV. We did a Trustee Sale flip recently and I wanted to go over the numbers. I’ve been asked by couple people: “Hey, what are the numbers?” So, it’s one that I did a video of, where we walked through the house and I kinda give you the info and I’ll post a link on a video blog for it. so we’ll go through the numbers here. Purchase price on the house is 167,200 that was the raw price paid that to Trustee sale. And then we have some acquisition cost here. The first one’s $3,000 that’s the cost to use our service, to get the property for you with tile, recording and cash for keys. So the title, recording is when you own the property. You have to go to an Escrow process and there’s some/maybe some liens, things like that. Normally this number’s a little bigger, on this one it wasn’t ’cause it’s not an HOA. There weren’t any delinquent HOA Fees. We did have to pay a cash for keys though to the people to move out. And we did some repairs. We did $8,100 worth of repairs. It was Carpet, paint and a bunch of other things but it was a big house. It was 2,600 sq.ft. so it was quite a bit. So our total acquisition cost was 180,500, that’s what it really cost us to take the house and put it in a condition where we could market it and put it in the MLS. We sold it for 240,000. Our total closing cost for the investor were 9,300. That included 3% to the buyer’s loan, ’cause the buyer had a loan and they contributed the money to that. As well as some other closing cost, title and Escrow fees, transfer taxings like that. Commission of $14,400. And then the number I don’t have in here is the Net profit the investor. That profit was, I’ll put it right here, was $34,050, and I’ll put a big box around that. So net profit after was $34,050. That was the profit the investor got from there. Investment of a $180,500. So, you’re probably saying “well that’s not a bad profit.” I mean you’re risking a bit of money. But here’s the real magic in it: This property was acquired in August, in about 3 months later to the date in November read, it was sold and the money was given back to the investor. The net proceeds was given back to the investor. So that’s a flat ROI of 18.9% but that’s only for three months. Meaning, in three months they got a raw 18.9%. If you do that same thing, if that money immediately goes back to Trustee sale, another property is bought, and this process is done, 4 times in a year because that was 3 months so we can take that same money and roll it 4 times. Annually that’s a 75.6% return. Which is very good return. Now, ofcourse you’re not gonna get that on everyone’s. Some will be more, some will be less. One of the reasons why this worked is ’cause the price range this property is in. you know, There’s no a lot of people down there, I mean the bidding started like 120 or 130. People start giving up when you get in to big number ’cause A: some of them don’t have enough money. There are guys down there with 150 grand, they’re out of it. So the price range it’s in. lot’s of investors aren’t willing to take the risk. What if they mess up the price? We knew, going in to it, it was worth between 220 and 260. So we knew that range, we stuck it right in the middle of the price and got what we’re asking for the investor. So, these are the numbers. They’re pretty sweet. And I just wanted to share these with you. They’re not all gonna be like this. Some will be better, some will be worst. But this is, This was clearly done at the Trustee sale. Good return in investment for Investor. Investor here didn’t have to do anything. Meaning they just provided the cashier’s check to us, and when we said “pay us this, pay us this, pay us for this” they just paid us the money, and then we made it all happen for ’em. So they just have to basically sit back and get status report so didn’t have to do any work, didn’t have to go select the property, we have some investors who do that. They want to drive to all the properties, look at them and all that and we get it. Some people who aren’t that way and that’s fine if you want to participate the way. It’s not gonna change the fees or anything, you’re still gonna pay the fees and everything. So, Anyway I wanted to share that with you. That’s my update for today, and hope to see you on another video. Thanks!
HI Todd
How do I find out more information on the flipping of properties at the trustee sale in Vegas, and do you think the AB 284 will impact on the supply of proeprties, thanks greg