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Old 02-22-2019, 08:31 AM
 
Location: Bloomington IN
6,231 posts, read 7,432,205 times
Reputation: 15142

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Quote:
Originally Posted by crystalys View Post
Is this the post?

Looking for feedback on house

Looks like it had several price drops over an 8 month period, the last of which was 1/31/19 at 45K less than the original list price and went pending status on 2/11/19.

https://www.realtor.com/realestatean...3_M30099-94034
Yes, that's it. Most people here told the OP it was overpriced. Looking at the sales history, this flipper won't make much given improvement, carrying costs for a year and a commission to the agents.
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Old 02-22-2019, 08:32 AM
 
2,653 posts, read 3,184,990 times
Reputation: 5158
Quote:
Originally Posted by keraT View Post
Is everyone flipping house now? Is it too late to get in real estate investment because its saturated and better to wait it out
A lot of people that have no idea what they are doing but think they do because they have watched HGTV are trying to flip houses. Most are losing their savings they invested and some are ending up in bankruptcy because they borrowed money from the bank to start they flipping venture and then can't repay the loans.
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Old 02-22-2019, 09:32 AM
 
955 posts, read 519,388 times
Reputation: 3251
Quote:
Originally Posted by MikeJaquish View Post
It is common.
Not only do they watch HGTV, but they often PAY for scam "Get Rich Flipping Houses with Other Peoples' Money" seminars.
It really is sad to see gullible people taken so badly.

Here's the thing with the myth of "OPM". Anyone with money would just do it themselves. Why allow some sorry brokewad access to your money, at a whole heck of a lot of risk, for a venture that would mostly benefit them? It just doesn't make sense.


It's along the lines of "owner financing" or "rent to own" real estate. Sure those situations do exist, but they are FAR from the norm. Maybe they constitute less than 0.01% of transactions, but the myth is out there that these things are plentiful.


But back to the original post, it's been said time and again: one can definitely over-build (aka, over-remodel) for the neighborhood. Materials are roughly the same cost no matter where you go, and while a contractor and laborers might be slightly more expensive in some areas the cost differences are negligible.



Demographics matter more than the building and land does, so when it comes to low end areas it's best to just get it to basic habitability standards and either sell it or rent it from there. When it comes to high end areas, don't bother because anyone moving in is just going to pay to remodel it themselves. The sweet spot is in middle class areas with truly average properties (just above starter homes) that may have been a little neglected and need cosmetic work, but are otherwise fine. Good luck finding that unicorn though, especially at a price that makes flipping profitable.
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Old 02-22-2019, 10:02 AM
 
Location: Cary, NC
32,447 posts, read 56,712,456 times
Reputation: 31191
Quote:
Originally Posted by InchingWest View Post
Here's the thing with the myth of "OPM". Anyone with money would just do it themselves. Why allow some sorry brokewad access to your money, at a whole heck of a lot of risk, for a venture that would mostly benefit them? It just doesn't make sense.


It's along the lines of "owner financing" or "rent to own" real estate. Sure those situations do exist, but they are FAR from the norm. Maybe they constitute less than 0.01% of transactions, but the myth is out there that these things are plentiful.


But back to the original post, it's been said time and again: one can definitely over-build (aka, over-remodel) for the neighborhood. Materials are roughly the same cost no matter where you go, and while a contractor and laborers might be slightly more expensive in some areas the cost differences are negligible.



Demographics matter more than the building and land does, so when it comes to low end areas it's best to just get it to basic habitability standards and either sell it or rent it from there. When it comes to high end areas, don't bother because anyone moving in is just going to pay to remodel it themselves. The sweet spot is in middle class areas with truly average properties (just above starter homes) that may have been a little neglected and need cosmetic work, but are otherwise fine. Good luck finding that unicorn though, especially at a price that makes flipping profitable.



"OPM" as taught in the scam schools is too often hard money.
And, for the average Joe, hard money is the road to ruin.


Worst of all are the scam schools that take money from wannabes and offer them hard money so they can foreclose on properties and fleece the wannabe for their equity and effort.
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Old 02-22-2019, 11:14 AM
 
Location: Raleigh
7,678 posts, read 5,657,198 times
Reputation: 10562
Quote:
Originally Posted by JimG2 View Post
An extra grand here, an extra grand there. Next thing you know you spent an extra $10-$12,000 that didn't need to get spent and with the flipper markup on that it turns into $18,000 more onto the asking price.
Cut corners here, cut corners there, next thing you know you aren't going to have enoguh sizzle to sell the steak.
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Old 02-22-2019, 11:28 AM
 
Location: Cary, NC
32,447 posts, read 56,712,456 times
Reputation: 31191
Quote:
Originally Posted by JONOV View Post
Cut corners here, cut corners there, next thing you know you aren't going to have enoguh sizzle to sell the steak.
I showed a lipstick flip in SE Raleigh.
Fresh paint.
Refinished wood floors.
SS Appliances.
Cheap granite on KD cabinets.

60 amp electrical entrance, with almost no outlets in the house.

"Gorgeous to the studs renovation." Yeah....
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Old 02-22-2019, 12:40 PM
 
Location: New Britain, CT
630 posts, read 215,943 times
Reputation: 845
Quote:
Originally Posted by JONOV View Post
Cut corners here, cut corners there, next thing you know you aren't going to have enoguh sizzle to sell the steak.

If you knew the region this would make sense. No matter how much you spend making a house to West Hartford or Farmington standards (wealthier towns than New Britain and just adjacent), it's still New Britain.



Remember the demographic in my original post: NB median family income is $41k


Farmington, 2 miles from my house to cross the town line median family income is $91.7k
West Hartford, where my fiance works 15 minutes away to downtown WH, median family income is $93.7k.


You can't buy steak if you have chicken thighs and rice income, so sizzle doesn't factor in.
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Old 02-22-2019, 03:31 PM
 
5,704 posts, read 6,412,703 times
Reputation: 14581
"Reality" shows don't actually reflect "reality". They are scripted and the film is shot over and over again until it is deemed to suck in the greatest number of eyeballs.
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Old 02-22-2019, 05:23 PM
 
4,047 posts, read 8,900,600 times
Reputation: 3270
There are a lot of idiots around here who will way overspend on a house just because of some simple HGTV upgrades and new appliances. Although the schools are good so that’s not an issue.

I don’t get it though.
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Old 02-22-2019, 06:39 PM
 
836 posts, read 563,809 times
Reputation: 715
In my area same size lots and sq footage. Would sell for 425k and would be torn down and a new 3200 sq ft colonial would go up and sell for 980k-1.1m.
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