Posted almost 6 years ago

Why doesn't 2+2 = 4? It doesn't. It's all screwed up.

Something is going on. I can't figure it out. Maybe you can help.

I use to buy home at the court room steps and flip them. We would purchase them at a 70 - 80 % of comp value. Put them on the market and make some cash.

BUT THIS IS NOT WORKING ANY MORE.

Today the homes at the court room steps are selling for and even above the comp values. People seem not to care what the price is. It's getting crazy. I've heard rumors that there are billions of dollars in the market scooping up all the homes and turning them into rentals.

There are three price levels, auction, wholesale and retail. If flippers are buying at the court room steps are paying auction prices, then what is the retail price? 30% more? It seems that it is and our current method of determining value based on prior sales is wrong.

So 2+2 really equals 6 in today's market.

If this continues I expect to see lines and lotteries at new home sales.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.