Realtor Just Told Me Flipping Would Be Impossible

[Darrin Russell]

I was just told by my realtor that flipping without 100% cash was impossible in my area. He said there is not enough REO inventory and too many flippers. He tried to talk me into looking at some but and holds because the rental market is "red hot". I have no reason not to trust him but I am wondering what others think. Is it possible that the market in south Alabama is that saturated with investors????

[Jay Hinrichs]

@Don Konipol  not to mention the BP effect... creating huge amount of competition in certain markets.

The west coast has and is extremely competitive.. There are meetings and REIA's etc.. however the practice of teaching your competition your tricks of the trade is quite muted.

Last thing your going to do is educate a newer person on how to go out and beat you to your deals.

I suspect this is starting to happen in these other markets.

Along with price points... lower the bar of entry to a given market the more folks can enter.

And I think what most folks realize after time that as you state this is a mid level corporate or business enterprise if one is to make any serious money at it.. other than the occasional flip they stumble into.

One of the reasons turn key is so dog gone hot in most markets is investors will generally learn that anyone can get into the rental game.. but most have a very difficult breaking into the flipping game unless they are well capitalized and knowledgable on all aspects of lead generation.