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There are few easier ways to make a quick buck in America today than flipping houses. The real estate market is red hot, profits on flips are at a record high — some $66,000 on average per home — and throngs of HGTV-inspired wannabes have been piling into the business for months.
Rest of the article. Banks are throwing money at flippers because the interest rate for home construction and remodeling is so much higher than mortgages (more than double).
There are few easier ways to make a quick buck in America today than flipping houses. The real estate market is red hot, profits on flips are at a record high — some $66,000 on average per home — and throngs of HGTV-inspired wannabes have been piling into the business for months.
Rest of the article. Banks are throwing money at flippers because the interest rate for home construction and remodeling is so much higher than mortgages (more than double).
You’ve watched way too many house flipping shows and I’m guessing you’ve never flipped one yourself. In which case I’m wondering why you would post on this.
This is indeed a "nice" home, on a nice large lot (1.7 acres and favorable layout, etc.) But it is "only" $178 per sf, which doesn't seem outrageous to me in a hot market (it may even have a basement not included in the sf, I didn't look that close). A cousin recently paid $450K for a 2000 sf home on a "minimal" lot near St. George, UT, which works out to what, $225/sf? I think that is even eclipsed in Scottsdale, and let's not even discuss CA. With so much wealth concentrated in the DC area, I'm surprised housing there isn't even more expensive. As badly as I want to live somewhere like St. George - again, I don't want to buy into what I see as a bubble.
You’ve watched way too many house flipping shows and I’m guessing you’ve never flipped one yourself. In which case I’m wondering why you would post on this.
It is the lead paragraph in the article. By easy, the author is talking about the risk of loss versus potential profit in a white hot market, not about physical effort. It is a very different environment than I've been involved with. You have to learn to read articles, not just the headline or the lead. The article is talking about the flood of money coming into the flipping market, while so far, Wall Street firms have been absent. It would be very tough now since the months inventory in a lot of the markets are below 1 month. The quotes for remodeling have also gone stratospheric in the area of 300,000 for our house. The neighbor across the street is spending that much.
There are few easier ways to make a quick buck in America today than flipping houses. The real estate market is red hot, profits on flips are at a record high — some $66,000 on average per home — and throngs of HGTV-inspired wannabes have been piling into the business for months.
Rest of the article. Banks are throwing money at flippers because the interest rate for home construction and remodeling is so much higher than mortgages (more than double).
while I have truly appreciated your posts regarding the USPS, here's an area you don't understand.
I can't speak to other markets, but there are 2 types of "flippers":
Those that have their contractors' licenses and file permits, and do the job the right way
Those who work hard to avoid permits because they may be experienced, but are unlicensed, and are essentially doing a cosmetic job following yes, the latest HGTV trends.
the Banks are NOT lending to #2. Are there "finance companies" involved? The kind that helped contribute to the 2006-2008 problem? Sure.
Foreclosures/Walk Aways riddled with flippers 12 years ago in my area...
those are type #2.
They've heard "there's no better way to make a quick buck than flipping houses". They may have paid a $1000+ to some seminar "how to make money in real estate with no money dpwn".
It was clear in 2006-2008 with the explosion of home-flipping shows (locations all over the US) where many times a majority of the profits relied on the market itself rising 10+% during the time they owned the house, not the quality of the work they did/any vaue-added performed.
It is the lead paragraph in the article. By easy, the author is talking about the risk of loss versus potential profit in a white hot market, not about physical effort. It is a very different environment than I've been involved with. You have to learn to read articles, not just the headline or the lead. The article is talking about the flood of money coming into the flipping market, while so far, Wall Street firms have been absent. It would be very tough now since the months inventory in a lot of the markets are below 1 month. The quotes for remodeling have also gone stratospheric in the area of 300,000 for our house. The neighbor across the street is spending that much.
which is why you should quote it, not just copy/paste it.
There is only 2 ways for a true flipper (no changes involving expanding the size/requiring a permit) to "make a killing":
1. Prices are rising so quickly that just by owning a property for 6 months you've earned 10%+
2. Convince somebody (all those letters some of you get) to sell below actual market value.
If a $500K house requires $100K of "updates", then an individual is happy right now to buy the house, spend the $100K, and be thrilled their house is worth $600K at the end.
Tell me how a flipper "makes a killing" paying $500K + 80K cost over 120 days and selling for $600K and making an easy living.
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