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Old 04-10-2008, 05:57 PM
 
Location: The Conterminous United States
22,553 posts, read 47,241,467 times
Reputation: 13382

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Oh, okay, jbravo. You be funnin' with us.

Unfortunately, I think that the OP is deadly serious.

No wonder that we are considered idiots across the world.

Oh, and the "k" is silent.
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Old 04-10-2008, 06:20 PM
 
374 posts, read 1,493,606 times
Reputation: 134
I guess with all of the foreclosures, short sales, deed in lieu of foreclosure. Vacant homes. Homeowners soon to be ex-homeowners. Families in distress feeling there is no way out. Flipping houses is probably the last thing a Floridian wants to hear about. I would never say never. But it will probably be a really cold and snowy day in southern Florida before Flipping will be the in thing to do. (if ever) The property will have to be DIRT CHEAP! Even with doing the work yourself, you will Still catch hell trying to sell it for a halfway decent price. So what is the point??? Do lots of research!!!
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Old 04-10-2008, 06:43 PM
 
Location: US
3,092 posts, read 3,443,993 times
Reputation: 1639
LOL - it's Muggy on HBB too.

Quote:
Originally Posted by jbravo View Post
Common, what's your HBB screen name?
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Old 04-11-2008, 08:36 AM
 
183 posts, read 1,044,229 times
Reputation: 107
Default Contractor ???

So.....a "contractor" who purchases a home in poor condition, renovates it, and sells for a profit and in doing so vastly increases the value of all the other homes in the neighborhood is either uninformed or insensitive while the typical "investor" who purchases real estate and holds it till it can't be depreciated any further while performing no maintenance or upgrades to maximize his profits is informed and sensitive ? Even Mr. Spock would find that type of logic laughable.

Quote:
Originally Posted by hiknapster View Post
Someone that comes onto this forum and asks Floridians for advice on flipping is either insensitive, has no idea about this country's housing market, or both. Either way, they have no business investing in real estate.

A contractor is not an investor, obviously.

I can't build a house but I know how to make money. Two entirely different things.
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Old 04-11-2008, 08:54 AM
 
Location: Championsgate, Fl
986 posts, read 3,197,496 times
Reputation: 289
Default hi

I dont want anyone to think i am taking sides, because im not. What i would say is that alot of problems have been created by people who have simply bought a property and done no work to it then sold it a month later for a higher price. If they could do it and get away with it, then good luck to them. But whether we like it or not it was THIS type of investor that helped to create the situation we are in now. If the gentleman who posted wants to buy a property to do it up and sell it, then yes, that can only help other properties and that is a good thing, but the market is very fragile at the moment, and with the amount of homes on the market, yo uwould have to get the property at a really knocked down price to be able to renovate it and sell it.
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Old 04-11-2008, 12:30 PM
 
Location: Florida
479 posts, read 1,307,221 times
Reputation: 2294
Quote:
Originally Posted by newteacher View Post
So.....a "contractor" who purchases a home in poor condition, renovates it, and sells for a profit and in doing so vastly increases the value of all the other homes in the neighborhood is either uninformed or insensitive while the typical "investor" who purchases real estate and holds it till it can't be depreciated any further while performing no maintenance or upgrades to maximize his profits is informed and sensitive ? Even Mr. Spock would find that type of logic laughable.

The deal is NewTeacher that there are so many homes on the market now, you'd be hard pressed to sell anything. Prices are plunging so unless you buy for well under market and expect to hold the house for 2 -3 years, it's just not likely to work out.

In case you're considering central Florida, the Orlando area has a 28 month supply of homes on the market right now. Speculators/investors are going bankrupt because they bought those "flipping" houses that they can't sell now. Developers are having auctions to try to sell those that they still hold.

You do realize Florida is #1 in the nation in foreclosures don't you? It really doesn't matter if you have a house for sale that's been renovated, it's the price you put on it -- which would have to be very low at this point compared to other "for sales" in the general location.
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Old 04-12-2008, 12:04 AM
 
Location: America
6,985 posts, read 15,454,757 times
Reputation: 2067
Quote:
Originally Posted by jbravo View Post



I tried to give you a positive rep point but wasn't able to (could someone else do it for me)
And that's even after I got censured for my replies to your posts!

_
I gave him some love on that one! lol

Man I don't even know what to say about the OP. Interesting indeed. Best of luck to him.
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Old 04-12-2008, 07:25 AM
 
960 posts, read 1,353,833 times
Reputation: 409
I think the OP is a troll.
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Old 04-12-2008, 08:15 AM
 
Location: Somewhere in northern Alabama
17,751 posts, read 53,891,961 times
Reputation: 30011
"So.....a "contractor" who purchases a home in poor condition, renovates it, and sells for a profit and in doing so vastly increases the value of all the other homes in the neighborhood is either uninformed or insensitive while the typical "investor" who purchases real estate and holds it till it can't be depreciated any further while performing no maintenance or upgrades to maximize his profits is informed and sensitive ?"

Renovating a home in poor condition vastly increases the value of all the other homes in the neighborhood??? I think I sense a wee bit of inflation in that statement. So, are you suggesting a McMansion on every corner will turn the Florida market around? Or that the folks in Overtown and Hialeah will be ripping their security bars off in joy, and dancing in the streets when you renovate a home there? When you finish that, do you plan to run for President? Because if you were to pull that one off, I'd vote for you.

The wise folks here are saying that the market here had inflated prices that have crashed. Homes worth $100K were valued and sold for $300K or more at the peak of the frenzy. Everyone still owning a home dreams of selling at those inflated prices, while mortgage money is tight, and few people dare to buy. A lot of people have negative equity in their homes and literally can't afford to sell them for reasonable prices.

Your coming in and buying a property without selling it quickly means you'll be paying high taxes and high insurance costs for windstorm, so any profit in extended ownership will be largely wiped out by ongoing costs.

The chances of coming into a market like this, finding an undervalued property in an undervalued area with no drug or crime problems, spending time and money on renovations to make it sparkle, and then quickly selling it are nil. You won't find the property, you won't find a decent neighborhood where people aren't still trying to market their homes at twice actual value, you won't find the financing, you won't be able to afford the basics like taxes and insurance, you won't get permits without certification of hurricane worthiness, or a $ign-off by an engineer, you won't be able to do the marketing required to convince a buyer to even come and look at the house, and ultimately you won't find a buyer willing to buy your self-described "best house in the neighborhood" at a premium price when there are other distressed properties in good condition that can be snatched up for less.

Other than that, your plan is sound.
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Old 04-12-2008, 08:54 AM
 
374 posts, read 1,493,606 times
Reputation: 134
Quote:
Originally Posted by harry chickpea View Post
"So.....a "contractor" who purchases a home in poor condition, renovates it, and sells for a profit and in doing so vastly increases the value of all the other homes in the neighborhood is either uninformed or insensitive while the typical "investor" who purchases real estate and holds it till it can't be depreciated any further while performing no maintenance or upgrades to maximize his profits is informed and sensitive ?"

Renovating a home in poor condition vastly increases the value of all the other homes in the neighborhood??? I think I sense a wee bit of inflation in that statement. So, are you suggesting a McMansion on every corner will turn the Florida market around? Or that the folks in Overtown and Hialeah will be ripping their security bars off in joy, and dancing in the streets when you renovate a home there? When you finish that, do you plan to run for President? Because if you were to pull that one off, I'd vote for you.

The wise folks here are saying that the market here had inflated prices that have crashed. Homes worth $100K were valued and sold for $300K or more at the peak of the frenzy. Everyone still owning a home dreams of selling at those inflated prices, while mortgage money is tight, and few people dare to buy. A lot of people have negative equity in their homes and literally can't afford to sell them for reasonable prices.

Your coming in and buying a property without selling it quickly means you'll be paying high taxes and high insurance costs for windstorm, so any profit in extended ownership will be largely wiped out by ongoing costs.

The chances of coming into a market like this, finding an undervalued property in an undervalued area with no drug or crime problems, spending time and money on renovations to make it sparkle, and then quickly selling it are nil. You won't find the property, you won't find a decent neighborhood where people aren't still trying to market their homes at twice actual value, you won't find the financing, you won't be able to afford the basics like taxes and insurance, you won't get permits without certification of hurricane worthiness, or a $ign-off by an engineer, you won't be able to do the marketing required to convince a buyer to even come and look at the house, and ultimately you won't find a buyer willing to buy your self-described "best house in the neighborhood" at a premium price when there are other distressed properties in good condition that can be snatched up for less.

Other than that, your plan is sound.
I think that the OP should get the point by now! Good Post Harry!
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