Can someone answer this?

[Account Closed]

Hi, BP!

I'm getting into a career as a realtor, and was wondering, does the real estate market crashing effect those who flip for a living?

I'd assume business is better during a down market, because many people are forced to sell their homes at a cheaper price.

The only investor I can imagine being effected are the ones that rely on bank loans for their flips, because banks don't trust too many real estate investors in a down market.

[Russell Brazil]

In a falling market you dont want to flip because by the time you are selling prices could have continued to fall and the profit might have disappeared. In a steady market after a decline you are ok, but you dont want to be in the middle of the project during the fall.

During down markets there is less competition as well which is a good thing. 2010 It was much easier to flip. These days everyone and their grandma thinks they can flip a house, so increased competition shrinks margins.