House flipping still offers opportunity

thohome · #1 04-08-2008, 01:48 PM

Quote:

House-flipping still offers opportunity
Fad fading, but smart, patient investors can make a profit

updated 9:48 a.m. ET, Mon., April. 9, 2007
Has the house flipping bloom finally fallen off the rose? HomeSmart LLC in San Juan Capistrano, California, which tracks real estate deals in 150 metro areas coast to coast, found that in every region, the proportion of home sales for properties owned six months or less has fallen dramatically since hitting a peak in 2005.

read more here
http://www.msnbc.msn.com/id/17985804/

Things have slowed down abit because everyone is uncertain what the economy has in store for us next. Those of us that did have a few dollars in our pockets are finding that it is being spent on higher cost of surviving

JaredfromIndiana · #2 04-09-2008, 03:51 PM

I'm drooling at the discounts I am going to be able to buy houses at. Flipping is alive and well and the same rules apply now that did in 2005... you have to buy the property right.

There are still buyers out there, there are still programs for buyers to get funded (FHA loans are everywhere), and there are still ways to make money on flipping.

My two cents, keep the change.

badmomma · #3 04-09-2008, 04:20 PM

Hey Jared, are the discounts normally available or are they
offered more so now? I'm just curious, I know that HUD and
FHA are always available for help. Hud seems to have alot of
offers on the table right now and hope to find something for
the kid soon.

JaredfromIndiana · #4 04-09-2008, 11:10 PM

Quote:

Originally Posted by badmomma

Hey Jared, are the discounts normally available or are they
offered more so now? I'm just curious, I know that HUD and
FHA are always available for help. Hud seems to have alot of
offers on the table right now and hope to find something for
the kid soon.

You have to find or create the discounts. We have been advertising a lot lately, from WE BUY HOUSES bandit signs to lettered trucks to direct mailing. We are doing this to find discounted properties.

We are also making offers on bank owned properties on the MLS and HUD props. Most of them are listed way too high so we shoot out low offers to see what sticks. HUDs are almost giving away houses these days.

thohome · #5 04-10-2008, 01:50 PM

Quote:

I'm drooling at the discounts I am going to be able to buy houses at. Flipping is alive and well and the same rules apply now that did in 2005... you have to buy the property right.

I'm glad you said that Jared to me it means people that are in the buisness of flipping houses aren't being scared off. People still need aplace to live right.

JaredfromIndiana · #6 04-10-2008, 02:54 PM

Right, everybody needs a place to live. I wanted to throw something else out there too. To me flipping always looked like me buying the house, fixing it up real nice, and then selling to people that are going to move right in. My mind was opened a little bit to flipping to landlords. If you buy the house at a deep enough discount then you can fix it up inexpensively and it can still cash flow for the landlord.

flippinout · #7 04-10-2008, 03:56 PM

Jared do you find that the materials that you are using when flipping a house are much less expensive than they were, say, 5 years ago?

I had read where drywall, and plywood is like 40% cheaper than it has been for years. This would be a plus for people that are flipping houses and so on.

But on the other hand, with the economy the way it is and fuel prices so high, eventually it will trickle down to effect the way prices go because there will be a lack of trucks that haul products to the stores.

So, basically, stocking up on building materials now, while the prices are lower, would be a good idea.

JaredfromIndiana · #8 04-10-2008, 05:28 PM

I personally haven't noticed much of a difference in cost but I haven't been looking that close either. I'm also not equipped to stock up on too much, don't have any place to store it! I guess if you did have a place to store it then it would be a good thing to stock up. If I see lights or faucets and stuff like that on sale I'll buy them and put them in my basement, but as far as bigger things like plywood and sheetrock I just don't have the space.

flippinout · #9 04-11-2008, 05:15 AM

In our area, building materials are going down. What is sad is that we dont have a place to store materials either.

I build birdhouses so storing the smaller sheets of plywood is not a problem but when it comes to the larger stuff my husband would use, that would be a definite problem.

And its too bad that more of us cant take advantage of prices while they are down for future use.

Lady Flipper · #10 04-11-2008, 01:12 PM

Drywalling is still an expensive proposition.

I am currently building from scratch and nearing the end phases, and drywalling was one of the more expensive items, both the material and the labor.

Overall, it's a great time to build or remodel. Both materials and labor are down, and good, qualified labor is much more available than in the past.