Flipping future

[Levi Gale]

Another thread brought up the best cities to flip in, and some of the responses pointed to the areas that were hit hardest by foreclosures. My question is where do you guys see the future of flipping business in those areas going when the level of foreclosures decrease? Several top contributors on this site operate in those heavily distressed areas, and do 10, 20, or 30 deals per year. Well when foreclosure levels decrease do you expect your amount of deals completed to decrease as well?

How do you plan to combat those issues, will you expand your network, move to a new location, expand your marketing, or some other innovative strategy?

[Mark Yuschak]

The market is already changing in Michigan. Going "shopping" on the MLS for the next best flip is all but behind us. The competition is more fierce and the deals aren't as lucrative.

As a result, I'm changing how I acquire properties. The REOs were good to me, but there are other avenues. Since I don't plan on changing markets, I have to change my acquisition strategies. (besides, in talking with several BP members at the Summit, I get the sense that these challenges are virtually nationwide).

The next best strategy, as I see it, is to direct market to private owners. These would be distressed owners who have building code violations, out of town landlords, driving neighborhoods to find vacant homes, owners who have filed for divorce (work with local divorce attorneys), Sheriff Sale properties which are in redemption with equity, and target homes which are tied up in probate.

These are just some of the ideas I've come up. As long as the rehabbers adapt to the new landscape, flipping will still be lucrative.