With $2,060,000 in loans past due including a first for $1,460,000, a second for $250,000, and a third for $350,000, last month 3322 Market street (the top two floors above) was purchased on the courthouse steps for $1,017,000 cash.
Yesterday, the 2,496 square foot condominium hit the market listed for $1,375,000.
And as a plugged-in reader reports, the resale of 3322 Market Street has closed escrow with a reported contract price of $1,375,000. Yes, cash remains king.
∙ 3322 Market: The View From Behind The Scenes (And Building) [SocketSite]
Well done and yes,……..cash is certainly king.
Even after whatever costs were associated with the re-sale, including fix-up if any, staging, commissions and transfer tax, they made some change. As I undertand the tax law now as it relates to resales of foreclosures, the gain is treated as regular income and taxed accordingly. Any CPAs out there with something different ?
Great game to be playing if you are truly liquid…
Assuming the flipper paid about 1% transaction costs on the purchase and 6% on the sale, and had no fix-up costs, pre-tax profit would have been $265,330 (25.8%) in less than 2 months. Given the risk involved with tying up a large chunk of money in a potentially illiquid asset, I’d say it’s a fair return.
Anyone who’s seen the reality show “Flipping Out” knows that one failed flip can eat more than your lunch. Unless you know the market really well and avoid money pits, it’s not an easy or risk-free way to earn a living.
Saw the place. Had extensive elevator work. Floors, paint, intercom system, alarm system, all redone. Nothing is free. A lot of cash to risk. When buying on the steps you do not get in first. You buy “blind”. No refunds, returns or exchanges. Employed local trades in the process. Keep it up.
I don’t know who bought this house but they made a nice profit.
If he uses his own money ie family money cheap money free money he did real good.
some of the guys have to pay 10%-12% use fee for the money to buy these from the rich uncle investor who is making bank on a quick flip.
I am lucky I only pay 3%-4% on my money so I get it cheaper then what the mortgage rates are. I have not done that many quick flips lately cause the numbers have not just been there.
I pay them a rate higher then the cd rate and most are being kept for long term holds.
Is flipping out the guy Jeff who has the lil cute greek girl assistant Poulos? I think her name is Jenny?
I have seen some high dollar foreclosures picked up on the court house steps.
Quite a few over 500k
3 over one mil
and 4 over 2 mil
also saw 20 mil worth of commerical get purchased for about 20 cents on the dollar
^ is that commercial in SF? 20 cents on the dollar could be interesting. What have you seen?
foreclsoure pricing + renovation & upgrades + Arthur McLaughlin staging =
a quick flip … cash sale? bonus!
As I understand it, the flippers paid in cash. The current owners did not.