All Forum Posts by: Mark V.

I've never staged a flip but I'd probably consider it if it met a few criteria.  These are just some of the things I'd consider:

1. If the ARV was at least 250k... Preferably more.

2.  If I had a comfortable enough profit margin.

3.  Would you stage the whole house?  You could get by just staging the living room, dining room, and master bedroom.

4.  What's the market like in that area?  If it's a hot market it may not be necessary.

5.  If your asking price is at the top or above the comps in that area. 

6.  Would you pay a designer to stage it or do it yourself?

7.  Does the house REALLY need to be staged or was it rehabbed well enough to get the attention of a buyer as is.

Like I said.. I've never done it but under the right circumstances I may consider it.

@Account Closed

Nice!  If what you say is true then I'm impressed!  I thought anything less than 70% was a myth.  Hell.. These days even 70% is pretty much a myth as well.

 I totally agree.. And I think it'll happen more sooner than later.

I'm curious to know where you're finding these properties at 65% ARV minus repairs in this market. Finding deals like that these days would be like spotting a bigfoot riding a unicorn. Even a good 75% property is tough to find.

I am not a market expert but I have seen some changes. I have my real estate license for investment purposes and I've been following the markets on about 15-20 zip codes in parts of Harris and Galveston counties. The data that I pulled from MLS just a couple days ago shows that the average DOM has increased by about 1 month since I started keeping track of it earlier this year. What does this mean? I have no idea. The current DOM for those particular zip codes (which covers everything from Texas City to Clear Lake to Pasadena and everything surrounding) still shows that we are still in a strong seller's market. Maybe it's a seasonal thing? Maybe it's a post-Harvey thing? I have no clue.

However, I have also been keeping track of the average price per square foot of houses being sold in those same zip codes.  What is alarming to me is that the average price per square foot on most of those zip codes has gone up by about $30 over the past 5 years... Some were even closer to $40.  That means that a 1500 sf house that cost $105,000 in 2013 now costs $150,000 to $165,000 today and still rising.  Like I said, I'm not a market expert but you have to ask yourself if wages have gone up to keep with the pace.  I don't have the figures but I would say probably not even close.  In 2013 the market was bouncing back from the housing crash so you have to figure that into the equation.

Earlier this evening I read this article:

https://www.cnbc.com/2018/07/24/southern-californi...

What does this mean for Houston?  Maybe nothing.  We have a fast growing population that needs housing as well as a fairly good economy and lower costs of living so it may not impact us like California or even the rest of the country.  However, you can't ignore this line from the article:

"In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country."

Like I said, I'm not a market expert but it does kinda make you think.

I just watched the story on the local news about this type of business.  One of the companies they focused on was called OfferPad.  I read some of their complaints on their Facebook page and the Better Business Bureau website and some of them were pretty bad.  They claimed on the news story that they weren't flippers but that's obviously not true.  It seems that they buy houses, do shoddy repairs, and then try to sell them.  One of my favorite complaints was how they replaced a light fixture with a smoke detector which would only work when the light switch was turned on.  Someone else complained that the company attempted to sell a flip that had mold which was discovered by the home inspector... And even painted over parts of it to try to conceal it!

You just can't make this kind of stuff up.

From what I read in the article, Zillow has a group of investors who make the offers.  Zillow just gets some sort of fee for bringing them leads.  Like @Ray Johnson said, wholesalers may take a little hit from this.  However, I seriously doubt that Zillow will be researching and contacting these distressed sellers to get their business.  They do have name recognition though.. Much like Homevestors.  

I'm not a wholesaler but I'm curious to see how this plays out.

Anyone ever hear of "iBuying"?  I saw a news clip about it on TV and looked it up.  Apparently, companies like Zillow and Redfin (among others) are buying distressed properties.  It doesn't look like they've expanded their markets to Houston yet but that's bound to change.  

Here is an article I found on it.

https://www.disruptordaily.com/6-ibuying-startups-...

Any thoughts?

Ahhh... I get it now.  Thank y'all very much!!