Our First Successful flip under Pacific Servicing, LLC!
On November 30th, 2009 we bought this property located at 504 Cheyenne Circle, Banning Ca 92220. We paid $34,694.01. We bought it at the Riverside court house steps through a trustee sale. We paid cash, got a receipt, and that was it! There was no escrow period, no inspection period; we in essence are buying it blind, with nothing more than a drive by assessment of condition for us to go off of.
On January 11th, 2010 we closed escrow on 504 Cheyenne Circle, Banning Ca 92220. We sold it for $55,000 to a cash buyer, and it was a quick close (less than 2 weeks). The property had a built in tenant who had been in the property for 5 years, paying $800 per month in rent, so the end buyer got a great deal with a cap rate over 12%!
Overall, we made a 44% profit on the home with a hold time of less than 45 days. This is already taking into consideration commissions, holding costs, closing costs, etc. This is an extremely high return but typical on properties priced this low.
My question to agents and investors out there; with the competition on the MLS so great, why not turn to a company that purchases homes 20-40% below true market value. It’s a fairly complex process, but once the system is perfected, it works like clockwork. We have that system, we have that team in place, and we will close on several dozen in 2010! As we did on this one, we will always post each property when we buy and when we sell, along with showing what we made. We have the actual breakdowns available for review to anyone who wishes to see them.
Typically we shoot for 15-30% profit on each property (after all costs, commissions, etc). Again, because of the low dollar amount on this one, the return is much greater.
My final comment: I am currently making .75% interest per year in my money market account at Chase Bank… I just made (as an actual investor in this project) over 20% interest on my monies in less than 45 days. That is unheard of!!! Can you beat that with anything out there??
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