Posted by Scot - SoCal on June 29, 2001 at 17:04:52:
Quick Flip leads to $500K in New Financing - Posted by Randall Porter
Posted by Randall Porter on June 29, 2001 at 16:34:58:
About 2 months ago, I posted a message about a house we pulled out of foreclosure and flipped in about 2 weeks for a $13K profit.
After we actually purchased the property and stopped the sale, I went to the Sheriff’s Auction just to verify that the sale had been cancelled. I was talking to one of my investors friends at the sale about this house, the fact that we had just closed on it the day before, etc. A guy sitting behind me at the sale taps me on the shoulder and asked me about the house. He overheard my conversation, and asked me if we really had purchased it the day before. I confirmed that we had, and I asked him if he would be interested in buying it. Since he was at the sale to specifically bid on this house, he said yes. It turns out that he was an appraiser who had done several appraisials for a bank where we had refinanced some of our houses. I had talked with him on the phone, but had never met him in person. To make a long story short, we agreed on a price, and he said he could close the deal in a week or less. He told me he had a bank that could get the deal done very quickly. As soon as he said the word “Bank”, sirens went off in my head. I asked him how he was going to get the bank to loan him 100% of the purchase price on a non-owner occupied property that also needed some repairs. Then he dropped the bombshell on me. He said his company had a good working relationship with this bank, and that one of his staff appraisers was doing the appraisal for this deal. In essence, he was appraising his own deal for the bank where he was borrowing the money. He said it would be a " slam dunk", and not to worry. The deal closed like he said, which turned out great for us. We made a quick profit, and after the closing, we talked to the Commercial Loan officer that got this deal approved. We invited him out to lunch a week later, gave him our financials, etc, and we just got approved for up to $500,000 in permanent financing on the houses we are buying.
All I can say is " Only in America, Baby!"
Re: Quick Flip leads to $500K in New Financing - Posted by dewCO
Posted by dewCO on June 30, 2001 at 20:44:29:
Wow, great Randall. Q-was this a smaller, local type bank, not part of a giant “chain across America” types?