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Old 08-05-2019, 07:37 PM
 
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Best case scenario we will see an improved housing stock that becomes more affordable when the market corrects itself. But short term, it really is harming our communities. I have been seeing this trend for quite a while now.
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Old 08-05-2019, 07:42 PM
 
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Originally Posted by massnative71 View Post
https://www.msn.com/en-us/lifestyle/...ket/ar-AAFkRBt

Best case scenario we will see an improved housing stock that becomes more affordable when the market corrects itself. But short term, it really is harming our communities. I have been seeing this trend for quite a while now.
Wait until flipping really gets going. There are tons of flipping crowdfunder websites. Flippers without money can get it pretty easily.

However, I really do feel they serve a purpose. So many just horrible homes I have seen investors turn into magic. Doing something the government could never do. A lot of my investments on the crowdfunding sites have taken a well rundown foreclosure and made it new again.

The real danger is these people who buy the home and then don't flip it and bog down the foreclosure process.
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Old 08-05-2019, 07:47 PM
 
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Originally Posted by Arya Stark View Post
However, I really do feel they serve a purpose. So many just horrible homes I have seen investors turn into magic. Doing something the government could never do.
Sometimes such occurs which I guess is a positive, it's too often not the case however. Modest perfectly fine homes a family could occupy and give it a basic "fresh coat of paint", that are taken off the market for a lengthy time and then manipulating that same market when they come on line again.
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Old 08-05-2019, 08:26 PM
 
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Originally Posted by massnative71 View Post
Sometimes such occurs which I guess is a positive, it's too often not the case however. Modest perfectly fine homes a family could occupy and give it a basic "fresh coat of paint", that are taken off the market for a lengthy time and then manipulating that same market when they come on line again.
This has been the standard the east-central MA. The high capital investors are largely focused on new builds which can command a premium - necessary given land value and cost of improvements. The flips seem to be the domain of small/solo investors and the work I've seen to date has been mixed, at best. The typical approach is to throw the cheapest components at the home (i.e., the lowest or low contractor grade), update only the failed systems, and hire the lowest bidder.

It pains me to see these guys take a slightly dated, but well built home, and gut functional high quality installs. They then chuck shaker cabs in, a tile-look shower insert from HD, smear everything in matte-white Behr paint, and slap 100K premium for their time. No leveling, open miters, hollow core doors, 20 year old boilers primped with a spray can, etc.

Someone trying to flip a cape in my neighborhood and cabinet door gaps range from "interference" to 1/2". The windows, of which there are maybe 10x, are still single pane and show signs of bondo rot repairs. The build quality is atrocious, but I have no doubt some buyers will be drawn to the "turn key" appeal, only to find out in 5 years the home will require just as many updates as my highly discounted short-sale, which will be worth 30%+ more with 25% less capital.
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Old 08-06-2019, 02:35 PM
 
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Originally Posted by Arya Stark View Post
Wait until flipping really gets going. There are tons of flipping crowdfunder websites. Flippers without money can get it pretty easily.

However, I really do feel they serve a purpose. So many just horrible homes I have seen investors turn into magic. Doing something the government could never do. A lot of my investments on the crowdfunding sites have taken a well rundown foreclosure and made it new again.

The real danger is these people who buy the home and then don't flip it and bog down the foreclosure process.

Huh. Would you please point me to some of these sites? I'm curious. Thanks.
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Old 08-06-2019, 04:15 PM
 
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Groundfloor is a real estate crowdfunding site. A flipper wants to flip a property. Groundfloor solicits money from investors (as small as $10) and gives it to the flipper. No need to go to a bank.The investors get their money the flipper gets his. What chance do regular folk have to get a place ?
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Old 08-06-2019, 06:35 PM
 
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REITs are an easy way to get exposure to housing without having to actually buy the house.

I've noticed a 5-15% decline in housing across Mass.

First I noticed Springfield. Now there's been a ton of renovations out there that don't reach the news because of everything else but stainless steel appliances, granite countertops, decks, new roofs etc. Ok it's springfield but then I checked where my folks are on the south shore. Their house probably is 425-450K. No one claims it's worth 600K. I think the highest on the street *might* go for 500K. Anyway some moron put a huge addition on and put it for sale for 650K. 650K being sold when the houses literally two houses away at 450K is a bit much. So it dropped...and dropped. First to 625K then to 600K and is now 575K. That's 75K of a drop in less then three months.

I'm not against buying homes but too many people think it's 2008 all over again. Everyone is in agreement on the block that the addition and putting it on the market was a huge mistake. Now you have a higher property tax, energy costs and it's harder to sell the house.

I have a feeling we haven't yet felt the longterm ramifications of the trade war. Not that farming is that huge is mass but if manufacturers start cutting back and tourism from Asia slows.... We have already seen a pullback in school enrollment. https://www.cnbc.com/2019/07/17/fore...yers-flee.html

If you don't have a birth rate and if we continue to have this fortress america mentality on foreigners it's going to lower the number of buyers in some markets.

The job market is hot but it doesn't mean that everyone wants to move. I'd argue that anything near transit or can accommodate aging in place is a good sell (i.e. is it all on one floor)
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Old 08-06-2019, 08:03 PM
 
Location: Michigan
5,463 posts, read 6,077,519 times
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Quote:
Originally Posted by Arya Stark View Post
Wait until flipping really gets going. There are tons of flipping crowdfunder websites. Flippers without money can get it pretty easily.

However, I really do feel they serve a purpose. So many just horrible homes I have seen investors turn into magic. Doing something the government could never do. A lot of my investments on the crowdfunding sites have taken a well rundown foreclosure and made it new again.

The real danger is these people who buy the home and then don't flip it and bog down the foreclosure process.
I agree they serve a purpose when done right. I bought a flipped condo in Somerville years ago and it was really great. The person who flipped it was a real estate agent and knew what he was doing. I alos lucked out in having areal estate agent of my own whose husband was a general contractor so she could help me sort through the good flips and the opportunistic ones.

I moved down to Florida for a while from Massachusetts and am back again. But when I first got there flipping wasn't as big as it is here (or as it is there now). When I was house hunting I saw a lot of properties that I could tell had great potentail and could become really great homes. But even with me seeing it, it didn't mean I had the time, capital or ptience to oversee such a project myself. Flipping is a way to get some properties that are really bad to get fixed and on the market. But the downside is defintely the flippers that are cutting every corner and just trying to do everything on a cosmetic level.
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Old 08-07-2019, 04:27 AM
 
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What has more long term potential is house hacking. Buy a two family, live in one and pay no rent. College towns are easier for this.
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Old 08-07-2019, 05:28 AM
 
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Quote:
Originally Posted by CrowGirl View Post
I agree they serve a purpose when done right. I bought a flipped condo in Somerville years ago and it was really great. The person who flipped it was a real estate agent and knew what he was doing. I alos lucked out in having areal estate agent of my own whose husband was a general contractor so she could help me sort through the good flips and the opportunistic ones.
Yes, I recently invested in a flip in Danvers and it was really well done.
https://www.redfin.com/MA/Danvers/9-.../home/11288628

When done right, I think flippers serve a valuable purpose. Taking older housing stock and renovating it is a noble purpose. In this case the house sold for 100K more than the original price, but sometimes flips really do nothing to push the price up.

But this poor guy is struggling to sell this home - it is too bad as this was a burned out husk prior to the renovation.
https://www.redfin.com/MA/Lunenburg/.../home/16546375
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