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Old 01-11-2009, 10:22 AM
 
146 posts, read 478,589 times
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How are the house flippers doing in this market are you still making money or is it starting to get difficult.
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Old 01-11-2009, 12:50 PM
 
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They just take a little longer to sell, is all.

I've been flipping for 30+ years....before the term was coined, LOL.

I just do it for recreation, though...I'm retired from the US Government, so I never quit my "day job" to flip.

What I've always done is find structurally sound, but rundown SFHs in decent neighborhoods. I do all, or most, of the renovations myself and I don't go overboard on the fancy stuff.

So, the tons of foreclosures these days makes for great pickings...the best I have ever seen!

My last flip (last year) was a vacant foreclosure in a neighborhood of mid $300K SFHs. Kids had broken in and trashed the place including starting a fairly serious fire. I got it from the bank for $125K cash....put about a $100K into it and sold it for $330K (I price 'em to move!).

It's fun, and gives me something to do and turn a pretty good coin to boot!

The BIG thing is don't pay too much for them and don't overimprove. I have low-ball bids in now on 4 houses and I don't care if I get them or not, there will be plenty more. Also, I have the advantage of paying cash...I can settle in hours, and distressed sellers like that!
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Old 01-12-2009, 07:55 AM
 
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Car 54's post could have been written by me, except for the government pension and the numbers on the last deal.

Good times or bad, people that KNOW WHAT THEY'RE DOING make money. People who think they "know what they're doing" because the attended a seminar or spent money on some CDs do not.

golfgod
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Old 01-12-2009, 08:09 AM
 
2,214 posts, read 1,802,169 times
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Quote:
Originally Posted by golfgod View Post
Car 54's post could have been written by me, except for the government pension and the numbers on the last deal.

Good times or bad, people that KNOW WHAT THEY'RE DOING make money. People who think they "know what they're doing" because the attended a seminar or spent money on some CDs do not.

golfgod
I think you nailed it right there!

You've gotta know what you're doing.
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Old 01-12-2009, 09:13 AM
 
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I have no problem buying a flipped house, from a flipper. I'm just not on board with paying someone $70,000 for buying a foreclosure, painting it, and putting it back on the market. I mention this, because these are the flips I see in my area.
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Old 01-12-2009, 06:49 PM
 
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Flips in my area (Chicago suburbs) are sitting and taking price reductions. So far, I've only personally seen one drop its price to no-profit (and probably a loss) land. It still hasn't sold.

Like rubber_factory, my impression of these is that they bought homes that were pretty darn good to begin with and then either 1. Painted, 2. Put in granite counters, 3. Took better pictures. Seriously.
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Old 01-13-2009, 07:53 AM
 
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hey everyone,

i'm right there with you all... especially car 54. i'd like to get into "retail" real estate, real soon. notice i did not say speculation... dirty word and/or people (IMO). "speculation gone wild" is exactly what got us in this overall mess in the 1st place! that being said, this is a great time (probably the BEST ever) to find those "diamonds in the rough" BUT... just as rubber and cohdane said, you have to know what you're doing!

i'm new to this (21) and just purchased my 1st home cash/outright. i paid about 1/3 of it's ACV but this particular property is NOT for resale. zoned village commercial it consists of a 4 br 2400 sq ft house, 2 br 800 sq ft cottage and 2 car garage, it's perfect for me... i can rent the cottage, have a couple roommates (house) AND build my professional recording studios, on the 1st floor. moreover, i just purchased landscape equipment and will be running my landscape co from the property too.

once i'm finished with renovations, i'd like to dive into the (current) market. as i see it, today's market IS chock full of "little" diamonds (in plain view) and the beauty is... everyone's (presently) afraid of real estate and/or running away from it. just as fast as real estate went up (artificially IMO) it's coming down and down hard! what car 54 is/has been focusing on, (IMO) IS where today's money can and/or will be made.

what's happening?... people are loosing their... jobs, benefits, 401k's, investments, marriages, mac mansions, housing, etc. therefore owning a BIG house is (now) officially out and/or stupid! where will everyone (soon) be looking and/or lining up for?... to purchase lower $ and/or smaller more moderate homes. IMO, what you all may see in the next few years, is these "monsters" and/or "mac mansions" BULLDOZED... just as what happened (here in morris county nj) immediately following the great depression. a mile long stretch of multi-million $ mansions known as "millionaires mile", were built by the original and/or REAL "fat cats" of nyc and/or wall st. unfortunately, all but 2-3 (now owned by corporations) had been leveled and replaced with smaller homes because people could no longer afford to "keep" them.

this is a very interesting topic and forum... i'm looking forward to hearing more from you all. hope all is well. have a good one.

Last edited by bruno_rs; 01-13-2009 at 08:07 AM..
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Old 01-13-2009, 08:42 AM
 
26,669 posts, read 40,690,994 times
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Many people should be grateful to flippers because they have the headache of workers not showing up or things that can go wrong...that is all incl. in the gains they make...if you don't want to pay more than do it your self or don't buy.

Some flippers bought houses with 100% mortgages and had no clue what they did and that is the risk they took.

I have bought houses and flipped them but never fixer uppers...but it sounds nice if you succeed to do so!

In a few years it will happen again...history has proven it.
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Old 01-13-2009, 08:59 AM
 
1,989 posts, read 4,024,164 times
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Quote:
Originally Posted by bentlebee View Post
if you don't want to pay more than do it your self or don't buy.
That seems to be exactly what buyers are doing-- especially the "don't buy" part. The *** is up on flips.
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Old 01-14-2009, 03:56 PM
 
93 posts, read 236,815 times
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Quote:
Originally Posted by cohdane View Post
That seems to be exactly what buyers are doing-- especially the "don't buy" part. The *** is up on flips.
hey cohdane,

hope you're right, too many short order cooks in the kitchen... damn near burned the place to the ground! now guys like car 54 can back to business as usual.

personally, i can't wait to get into the field... i'd much rather work where everyone is afraid and scattered like roaches when the light switch turned on.

IMO the market is still correcting itself however a lot of great deals out there right now... wish i had more cash on hand, it's the ONLY way to negotiate and/or close the deal.
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