Is anyone out there buying with cash and then reselling right away??

[Joel Owens]

Was curious if anyone was buying cash and closing and then reselling to another cash buyer who wants to rehab and flip or hold for a rental etc.

My commercial real estate business keeps me very busy with clients but I do see deals that I can take down with cash and probably resale and make a quick 10k to 15k. The end purchaser I would only sell to  a cash buyer with proof of funds in their bank account. No hard money, no conditions, they buy as-is, no double close, simultaneous etc.

Keep it clean and simple and do velocity. Not interested in turn key and offering property management and all of that. Just  a pure buy and resell.

Just looking for something with little pops in between my commercial closings. Looked at buying a Steak N Shake, other businesses etc. but it's just too time consuming etc. 

[Mark Freeman]

@Joel Owens I have done two of those in the last 6 months. Found off market deals, bought them for cash, and immediately listed them with my agent. I held out for top dollar on them as apposed to leaving meat on the bone the way the wholesalers try to do. I sold the first one, as is to a hard money flipper for a $35k profit.  There was a little drama with the hard money situation and it took almost 2 months to find a buyer. I ended up holding the property for about 3 months. (I bought a three month insurance policy and was glad it worked out).

The second one was in a class D neighborhood and had some light fire damage. Between the neighborhood and the fire damage it was tricky finding a buyer. In the end I sold it to a cash buyer for a $14k profit and ended up holding it for 2 months total. (I didn't negotiate as well on this one on the buy side and if I'm in the same situation again I think I could pull in an extra $5k to $10k).

We have a lot of competition on the buy side for listed fixers in my area. I have gotten sick of missing out on properties to people who miss calculate the ARV and overpay for everything. It makes it super difficult to get flips off of the MLS. I decided to use this to my advantage and let these people bid up my fixers too. For example, the first one I sold needed a lot of work and I figured I could have sold it for about 35,000 to 40,000 dollars more if I had gone to all the trouble to fix it and market to an owner occupant. After expenses, I wouldn't have made much more money, with a lot more trouble. The flipper I sold it to listed it for $100k more, after rehab, than what I sold it to him for. It's been on the market for months and will NEVER appraise even if they find a willing buyer.