Newsflash: (Update) Closed on my NNN flip: 42% ROI in 70 days

From closing to closing: $615,000 cash out of pocket $875,000 net at sale closing ($930,000 sales price) 70 days total from cash to cash.Lessons: Our cash on cash would have been tremendously higher if we used leverage, even 3/10 hard money, but my investor wasn’t interested and he had the cash. Agents can make a lot of money for very little work, but they can make or break your deal. I had interviewed three other agents who wanted to list the property for $100,000 less. I chose one that was most aggressive and sensible in his pricing and approach to position the property to potential buyers. He found a buyer within 2 days of listing it and helped negotiate him to within a couple points of our listing price. I paid my investor a 10% return on their money, then 50/50. This is annualized but I was “large” and did not calculate annualized. The rest of the year we will be splitting all profits 50/50. I earned $100,000 within 70 days, using other people’s money, and I spent MAYBE 10 hours on the deal.Most importantly, focus on adding value. I presented myself as an opportunity to a seller who was highly motivated, who needed to unload of this property in haste, then I was able to patiently find a buyer.Keep your eyes open, money is out there!

Read more at https://www.reddit.com/r/RealEstate/comments/6kfn52/update_closed_on_my_nnn_flip_42_roi_in_70_days/?utm_source=ifttt

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s