U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Florida > Sarasota - Bradenton - Venice area
 [Register]
Sarasota - Bradenton - Venice area Manatee and Sarasota Counties
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-30-2011, 03:50 PM
 
29,965 posts, read 47,150,315 times
Reputation: 15873

Advertisements

@SoFLGirl--so investors are buying homes in North Port, paying cash, and then selling back to people who mainly are living /working in the area but who can't get a regular bank mortgage and the investors are carrying the notes?
Is that what your response was?
Reply With Quote Quick reply to this message

 
Old 09-30-2011, 05:00 PM
 
518 posts, read 1,041,476 times
Reputation: 213
I bought a waterfront lot from BOA this year and the loss they took on this one lot would tell me you are right on about there worth and value.Zero!! The lot went for 10 cents on the dollar.
Reply With Quote Quick reply to this message
 
Old 09-30-2011, 05:29 PM
 
Location: Palm Island and North Port
7,486 posts, read 19,878,591 times
Reputation: 2804
Quote:
Originally Posted by loves2read View Post
@SoFLGirl--so investors are buying homes in North Port, paying cash, and then selling back to people who mainly are living /working in the area but who can't get a regular bank mortgage and the investors are carrying the notes?
Is that what your response was?
Some investors do hold the note. I would say that most don't. They want to reinvest their money.

They usually get a very good deal on the home and they fix it up-change out the carpet, repaint, put granite in, etc. Often there are back taxes, HOA dues etc. They (the investor) pays them as well.

There are many people who walk in a home and they either don't want to spend the time fixing a home up, they have no vision of what it could be, they don't know the costs involved, etc

If you walk in a home and there is cat pee all over the carpets, 50 holes in the walls, the home has 4 different colors throughout the home (the don't match at all), A/C missing, etc sometimes it's hard to see past that.

The investors provide a finished product for those who are interested.
Reply With Quote Quick reply to this message
 
Old 10-03-2011, 07:28 AM
 
29,965 posts, read 47,150,315 times
Reputation: 15873
I am not saying that flippers don't deserve a return on their money--
but you know that some homes require minimum rehab and get max return

I just wondered who they were selling the flipped homes to and why someone who could not buy that property before it was flipped can qualify for a mortgage afterwards
which seemed to be part of the info coming through the thread--
that investors are buying because "regular" people might want to buy a home but can't qualify for mortgages...
Reply With Quote Quick reply to this message
 
Old 10-03-2011, 05:26 PM
 
Location: West Coast of Florida
1,439 posts, read 2,481,337 times
Reputation: 2165
Quote:
Originally Posted by loves2read View Post
I am not saying that flippers don't deserve a return on their money--
but you know that some homes require minimum rehab and get max return

I just wondered who they were selling the flipped homes to and why someone who could not buy that property before it was flipped can qualify for a mortgage afterwards
which seemed to be part of the info coming through the thread--
that investors are buying because "regular" people might want to buy a home but can't qualify for mortgages...
IMHO, there are plenty of "regular" people who are out there with conventional mortgages ready for them to use to buy a house. The problem is that regular buyers are up against cash buyers...and we all know a flipper with cash is going to win out when in comes to a foreclosure or short sale.

Don't buy into the idea that flippers are doing a service for the "regular" Joe. Plain and simple its all about the profit. A lot of people have good credit, are willing to put in the time to fix up a home....but you can't get in the game if the cards are stacked in favor of cash buyers.
Reply With Quote Quick reply to this message
 
Old 10-04-2011, 08:41 AM
 
21 posts, read 45,432 times
Reputation: 19
Quote:
Originally Posted by Col.W.Deering View Post
IMHO, there are plenty of "regular" people who are out there with conventional mortgages ready for them to use to buy a house. The problem is that regular buyers are up against cash buyers...and we all know a flipper with cash is going to win out when in comes to a foreclosure or short sale.

Don't buy into the idea that flippers are doing a service for the "regular" Joe. Plain and simple its all about the profit. A lot of people have good credit, are willing to put in the time to fix up a home....but you can't get in the game if the cards are stacked in favor of cash buyers.
This is exactly the problem that we were up against when we were trying to buy a few months ago here in NP. The investors were making me so mad because we couldn't compete against their cash offer as a financed buyer. Even worse, we actually wanted to LIVE in the house and be part of the community whereas to them it is purely about money. They snap up all the great foreclosure deals, flip them (even though in one house we looked at it was a Fannie Mae foreclosure and supposedly only open to owners who would occupy it for offers for the first 7 days or something, our realtor found out there was already 12 offers on the 3rd day so we didn't bid. Guess what happened? The house was bought, flipped, and put back on the market $50k higher than the foreclosure listing price. I find it hard to believe that the bank turned down all 12 + intial offers and were forced to accept offers from investors.)

Then all of these investors from up north with money, who don't want to do the work on a house they won't be living in full time and are paying cash and therefore don't need to worry about appraised value, come in and buy these flipped houses. This is good in some ways because they help to increase property value (they are paying more than the house is worth in market value) but several of the investors who flip the houses refused to even accept an offer from us unless it was a cash offer. So, as a financed buyer you can't buy flipped houses, you can't buy the foreclosures, you can't buy "regular" sale houses because most of the time they are not priced at market value and the owner won't budge...it becomes extremely frustrating. Thankfully we lucked out and found a short sale that needed quite a bit of work and probably scared other buyers off. Investors probably don't go for short sales because of the wait, but our short sale had been previously approved and the deal fell through so it went relatively quickly for us. We were able to fix it up with a renovation loan and now we have almost a brand new house and it was a great deal. Worth all of the stress but I definitely sympathize with those buyers trying to navigate through the NP market right now...no fun at all!
Reply With Quote Quick reply to this message
 
Old 10-04-2011, 09:04 AM
 
Location: West Coast of Florida
1,439 posts, read 2,481,337 times
Reputation: 2165
Quote:
Originally Posted by NPMomof2 View Post
This is exactly the problem that we were up against when we were trying to buy a few months ago here in NP. The investors were making me so mad because we couldn't compete against their cash offer as a financed buyer. Even worse, we actually wanted to LIVE in the house and be part of the community whereas to them it is purely about money. They snap up all the great foreclosure deals, flip them (even though in one house we looked at it was a Fannie Mae foreclosure and supposedly only open to owners who would occupy it for offers for the first 7 days or something, our realtor found out there was already 12 offers on the 3rd day so we didn't bid. Guess what happened? The house was bought, flipped, and put back on the market $50k higher than the foreclosure listing price. I find it hard to believe that the bank turned down all 12 + intial offers and were forced to accept offers from investors.)

Then all of these investors from up north with money, who don't want to do the work on a house they won't be living in full time and are paying cash and therefore don't need to worry about appraised value, come in and buy these flipped houses. This is good in some ways because they help to increase property value (they are paying more than the house is worth in market value) but several of the investors who flip the houses refused to even accept an offer from us unless it was a cash offer. So, as a financed buyer you can't buy flipped houses, you can't buy the foreclosures, you can't buy "regular" sale houses because most of the time they are not priced at market value and the owner won't budge...it becomes extremely frustrating. Thankfully we lucked out and found a short sale that needed quite a bit of work and probably scared other buyers off. Investors probably don't go for short sales because of the wait, but our short sale had been previously approved and the deal fell through so it went relatively quickly for us. We were able to fix it up with a renovation loan and now we have almost a brand new house and it was a great deal. Worth all of the stress but I definitely sympathize with those buyers trying to navigate through the NP market right now...no fun at all!
Exactly what we have gone through too!

We saw a lovely house, good bones, needed some paint, carpeting and appliances, and the perfect location. So what happens...
We get out bid by $5k to a cash buyer. One month later house is on the market for $50k more than what they bought it for. They put new carpeting in, fresh paint and appliances....that is all. They took it off the market, and low and behold it is now a rental.

Hey if I had cash, I would probably make it work for me in much the same ways as the investors...but it really stinks being on this end of the market.
Reply With Quote Quick reply to this message
 
Old 10-04-2011, 09:36 AM
 
15,112 posts, read 31,005,993 times
Reputation: 18209
Well, I certainly sympathize and understanding what some of you are saying (competing with the investors). As it happens we bought a "flipped" house in 2008. The investor who had bought it got it for a steal, and did some nice things to it, but really not that much expense. But the bottom line is, this is the house we wanted - there were only three in our price range in the neighborhood we wanted to live, and of those, this one was EXACTLY what we were looking for. So we gladly bought it, I still thought it was a fair price even being almost double what he paid (not counting the upgrades). And we even ended up doing a lot more like an expensive new roof and some other things.

What I'm getting at is that while I would have liked to have gotten the house at the pre-flip price, we weren't cash buyers, and there is no way it would have qualified for a conventional mortgage in the state it was in. I don't think people should be too hard on the investors that fix them up. I do think they perform a good service in a lot of cases. If you see a home you want that an investor fixes up and it is in your price range, just go for it. We have never had any regrets about buying our perfect little home. And no, we are NOT investors/flippers/realtors, etc. just two people who are happy and comfortable where we are!
Reply With Quote Quick reply to this message
 
Old 10-04-2011, 10:33 AM
 
Location: Palm Island and North Port
7,486 posts, read 19,878,591 times
Reputation: 2804
I completely agree with this and as pointed out previously, most investors have a 14 day waiting period before they can offer on a property. For this reason, I would say, the vast majority of investors do not pick up properties off the MLS. Some do but I would say most do not.

At this point I think it's very frustrating for regular home buyers, investors and anyone else looking for property in North Port. There are fewer and fewer properties by the day and it seems more and more buyers looking to purchase. Most homes that are in decent shape have multiple offers with in 24 hours.

Quote:
Originally Posted by gypsychic View Post
Well, I certainly sympathize and understanding what some of you are saying (competing with the investors). As it happens we bought a "flipped" house in 2008. The investor who had bought it got it for a steal, and did some nice things to it, but really not that much expense. But the bottom line is, this is the house we wanted - there were only three in our price range in the neighborhood we wanted to live, and of those, this one was EXACTLY what we were looking for. So we gladly bought it, I still thought it was a fair price even being almost double what he paid (not counting the upgrades). And we even ended up doing a lot more like an expensive new roof and some other things.

What I'm getting at is that while I would have liked to have gotten the house at the pre-flip price, we weren't cash buyers, and there is no way it would have qualified for a conventional mortgage in the state it was in. I don't think people should be too hard on the investors that fix them up. I do think they perform a good service in a lot of cases. If you see a home you want that an investor fixes up and it is in your price range, just go for it. We have never had any regrets about buying our perfect little home. And no, we are NOT investors/flippers/realtors, etc. just two people who are happy and comfortable where we are!
Reply With Quote Quick reply to this message
 
Old 10-04-2011, 11:56 AM
 
21 posts, read 45,432 times
Reputation: 19
Quote:
Originally Posted by gypsychic View Post
Well, I certainly sympathize and understanding what some of you are saying (competing with the investors). As it happens we bought a "flipped" house in 2008. The investor who had bought it got it for a steal, and did some nice things to it, but really not that much expense. But the bottom line is, this is the house we wanted - there were only three in our price range in the neighborhood we wanted to live, and of those, this one was EXACTLY what we were looking for. So we gladly bought it, I still thought it was a fair price even being almost double what he paid (not counting the upgrades). And we even ended up doing a lot more like an expensive new roof and some other things.

What I'm getting at is that while I would have liked to have gotten the house at the pre-flip price, we weren't cash buyers, and there is no way it would have qualified for a conventional mortgage in the state it was in. I don't think people should be too hard on the investors that fix them up. I do think they perform a good service in a lot of cases. If you see a home you want that an investor fixes up and it is in your price range, just go for it. We have never had any regrets about buying our perfect little home. And no, we are NOT investors/flippers/realtors, etc. just two people who are happy and comfortable where we are!
I get what you are saying too, we saw the flipped houses listed by investors and were very tempted thinking it would be so much easier than doing the work ourselves, however it isn't that simple. When you are getting financed the bank obviously does an appraisal and you will not get financing unless the property appraises for at least the amount you have offered. When a property is bought at foreclosure for $70k for example (realistic recently in many areas of NP) and the investor puts $20k into it fixing it up (hypothetically) and then turns around and lists it again for $140k...I get that they are trying to make a profit but if all of the recent comps show that the market value is only $80k no bank will lend you $140k to buy the house. So, you either have to make up the difference in cash yourself or not qualify for the financing and not buy the house. I personally, even if I was paying cash, would not be comfortable paying almost double the price a house is worth in this economy. The investors that we contacted were stubborn about the listed price also, not willing to get it down to anywhere near market value and also were extremely picky about types of offers they would accept (ie. cash only, maybe conventional, definitely no FHA).
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Florida > Sarasota - Bradenton - Venice area
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 01:31 PM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top