Be a Smarter Flipper

[flip_it_fast]

The good old days are gone. Risks were always involved when house flipping but now the risks are even riskier! With the hard economic times upon us, it is more important than ever to do your research and watch what you are spending while flipping a house.

In the early part of the decade, people were flipping houses with the same ease and success as the stock daytraders of the 90s. There was no shortage of homes to fix and flip, and in a staunch sellers market, the ROI on even a modest mid-market home could net huge investment returns for novice flippers.
Now, the market has changed. Many areas are flooded with properties for sale and residential lots are not moving as fast as once did. Mortgage rates, although still at an all-time low, are higher than they were in the flip-centric heyday. Consequently, many analysts and real estate watchers have declared the end of the fix to flip, resulting in the exodus of many of the “make-a-quick-buck” rehabbers from the market.

Fix to Flip

It is very important to do your research, find out what people are looking for in the area before spending the money. Having a partner to share the costs is a good way to go. Lastly, patience is a must. You have to realize the selling of the home may take some time, there are less people out there who can afford to buy a home now than there were before.

Be a Smarter Flipper

[JaredfromIndiana]

I think a huge thing for flipping houses right now is buying it right and knowing who your buyers are. Finding deals before they hit the MLS or become foreclosures are key for buying right. Sure, you can get lucky and pick up an REO here and there that is a deal, but the best deals aren't on the MLS.

[flippinout]

Hi there Jared, weve missed ya here.

Anyway, thanks for the additional information. For the ones new at house flipping, could you put the initials, like REO then the actual name, cause some of them might not know exactly what you mean. Thank you so much for taking the time to do that.

Ive taken the real estate course and sometimes I have to stop and think myself what it stands for lol.

[Lady Flipper]

I think it depends on funds and time available.

I see several types of properties here that are really interesting.

One is - lol- flip houses the flipper can't sell on time. They can be picked up at purchase price+improvement cost - the flipper wants out because it's not selling at a profit. If you can wait for the profit and rent out in the meantime, you're good to go.

There are also some really run down houses being reposessed - my bank owns a couple they don't want to be caught dead with and is willing to sell really low. No one wants them, least of all the bank. Thats actually a new one on me - I was just opening an account and sitting there bored and looked at the bank's balance sheet for investors and saw a bunch of repos there. So I asked about them and it's actually a way of buying I never thought of.

I don't see any upper end repos worth looking at, they are way too leveraged out. For a while they were interesting at times, but not now.

I think it's a time of great opportunity - if you have money and time.