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Location: Formerly Pleasanton Ca, now in Marietta Ga
10,347 posts, read 8,564,711 times
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Quote:
Originally Posted by JR_C
Probably. It's not that hard for the average DIYer to clean, paint, and even tackle a few minor handyman type jobs like replacing light and plumbing fixtures, or patching drywall. And, maybe they'd rather live with that old, but functional 1980s kitchen and/or bathroom, instead of adding another $100k to their mortgage, for a Home Depot makeover?
Basically, my argument is that flippers are, generally, stealing the opportunity for the average homeowner to build sweat equity.
I know flippers that couldn’t normally afford to buy a house but after flipping they were able to buy. They are just average folks that took initiative rather than sitting on their butts whining about how they can’t afford a house.
I know flippers that couldn’t normally afford to buy a house but after flipping they were able to buy. They are just average folks that took initiative rather than sitting on their butts whining about how they can’t afford a house.
It really depends where you live and how much inventory there is. Canada’s biggest cities are all rapidly growing and the “fixer upper” type houses still cost around the million mark because of what the lots are worth. I’m sure you’ve noticed newer subdivisions have smaller yards and bigger houses, this is why there’s so many tear downs that get replaced with large newer houses. There’s nothing left to flip here. You can’t elbow grease your way into homeownership anymore in many places.
I know flippers that couldn’t normally afford to buy a house but after flipping they were able to buy. They are just average folks that took initiative rather than sitting on their butts whining about how they can’t afford a house.
I don't get it-if they could afford to buy a house to flip, they could afford a house. Right? What am I missing?
Probably. It's not that hard for the average DIYer to clean, paint, and even tackle a few minor handyman type jobs like replacing light and plumbing fixtures, or patching drywall. And, maybe they'd rather live with that old, but functional 1980s kitchen and/or bathroom, instead of adding another $100k to their mortgage, for a Home Depot makeover?
Basically, my argument is that flippers are, generally, stealing the opportunity for the average homeowner to build sweat equity.
I disagree. IMO, flippers take inexpensive houses that could use a little elbow grease and make them more expensive. Flippers making an uninhabitable house habitable again is more of an exception.
That is not really accurate at all. Most of the homes on the Wholesale sites are non-financeable, meaning only cash or hard money loans with large down payments. 95% of the traditional financing will not finance a home with these issues.
If they are selling for 70% of Afrtsr repair value (ARV) they are in need of major work. Investor do not buy the need carpeting and paint homes as there is not enough room to make a profit. I see them every day I am in the business, I wish they only needed carpeting and paint, 98% of the home's flippers buy are not as you would think. Investors don't buy the homes over 70%-75% ARV, and homes needing just some paint and carpet and not selling for 25-30% off the market. I wish they were; I would be a millionaire 100 times over, but they are not.
Last house I ought to have a failed septic system, leaking roof and a hoarder house with trash up to the ceiling. No lender would lend on these, and no insurance company will allow someone to insure such a property, cash only and you fix it quick to get insurance on it ASAP.
Most have issues that make them not salable to the transitional buyers, I have dozens of off market wholesales send me deals, most are not financeable in the traditional since.
Considering there is a housing shortage, flipping is needed and very good. Most often it takes a vacant unlivable home and makes it into a livable home again and we need them badly.
Supply and demand, when you have a home shortage housing gets really expensive and to think we have new people moving into the USA every day, and the gap becomes larger and larger.
CNN said the home shortage is around 6.5M could be closer to 7 million today.
Any vacant home needs to be sold to a flipper and made into a livable dwelling again, it is desperately needed.
You are telling yourself BS. I get postcards every week on inhabited homes. I get postcards for my own home! The postcards say: are you tired of being a landlord? so they know it is occupied.
It's a predatory business and the flippers will throw the renters on the street because all they care about is their culture of greed.
The "wholesalers" are taught to lie to owners. I hear it all the time if I happen to pick up the phone but that's another issue.
I have no problem with flippers who take a dillapidated home and make it serviceable.
I have no problem with flippers who take a base home and make it into a luxury/executive home.
In both cases, they are adding content that was not there before. Yes, in both cases they are taking more affordable homes and making them less affordable, but at least they are adding content.
I hate flippers who take a home that only needs a little bit of updating, and they use the cheapest, crappiest products while doing inferior work and hiding it behind moulding and new paint. You still get a crappy home, but they fool some people into thinking it is nice. Then the new owners find out 5 years down the line, it is not so nice.
I also hates speculators, but we have a capitalist society and there is no law against it.
I also hate the big corporations that can use the full weight of their massive investor capitol to snag thousands of homes and flip them for a huge profit. I would rather see those fixers going to mom and pops or people who are not going to flip them, but rather live in them.
What can I say. Unless they are engaged in illegal or predatory practices, or are a monopoly, they have the legal right to flip homes.
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