Deals still being done?

Question

With the current economic crisis and slumping housing market are any deals still getting done? Are flippers still flipping? Investors still buying? And if so, what segments? Low income areas, apartments buildings, etc.

Thanks.

Douglas Christian · Answer

Tim B

I am not a closet flipper, but if that is what you want to label me then that's okay to.

The difference between a wholesaler and a flipper is that you actually have to purchase the property that you are trying to flip.  I just assign my contract for a higher fee than my original agreement with the seller.

You say that you deal with higher priced home to me that is a waste of time and money especially in todays market.  You go and purchase a home for 200k that is supposedly worth $350 by the time you finish the renovations several have come on the market that can be purchased for cheaper than yours.

The truth to the matter the flippers are the ones that created all of this MESS.  Now many of them are stuck with properties that they never had any intentions of maintaining.

Thanks for the feedback and continued success if that is what you have.

SUCCESS BREEDS SUCCESS

No Name · Answer

Tim, are you still flipping now even with home sales down as much as they are?

Tim B · Answer

Douglas - people are still flipping houses and making a living doing it.  
I've flipped houses my entire working career and have made a very nice income.

You stated that you just wholesaled a property last week - how is that any different then flipping - it's buying low and selling high,  maybe its a matter of symatics or maybe your a closet flipper and just don't want to admit it!   :lol:

You wholesaled a property and made a "fast buck"  - whats wrong with that - congrats!

Buy and holding is good - so is buying and selling - as long as you make a profit, its all good - not everyone wants to be a landlord !

Tim B · Answer

Yes I am flipping with one caveat - if I can find the right property to flip.

Sold my last flip in August and after many offers have not purchased another property yet.

I specialize in higher priced homes (300k-500k) because I've found that the profit margins are greater.  However my renovations are more extensive and holding times are longer - while values in this market are declining.  When it's time to sell I'm competing with REO's -  and priced with normal sellers - who's houses aren't selling.

This is a personal choice for me - nearing retirement age (53) and perhaps getting a little tired of flipping houses.  I enjoy selling RE and negotiating deals - not so much dealing with contractors.  Planning to work as an agent - specializing in investment property.

I've read on this forum about current successful flippers - the profit margins seem really thin.  I've decide to focus on another aspect of RE.

Will always do at least one flip every 2 years - tax free!

Douglas Christian · Answer

Yes, NY Invest

Many deals are getting done.  It is all about how you positioned yourself.  Those that like apartments, SFH, duplexes or Nice expensive homes.  I like the lower end, but still in nice working class neighborhoods.

Flipping to me was and should not be a part of your real estate portfolio.  You make money when you buy, not when you sell.

Just ask all the investors in Cali, Vegas, AZ, FL, and other prominent locations for the famed FLIP THIS HOUSE.  Where are they now.  See it is hard to FLIP when you can buy and hold like it should be for the long haul.

This is why the economy is messed up right now because everyone wants to make a FAST buck instead of a SLOW .50 Cents.

Well that is my take on this.  Oh by the way I did purchase two homes in the Detroit area where I am from and wholesaled another all last week.  So hopefully that counts for something.  If not it does for me.

SUCCESS BREEDS SUCCESS