Alive and well sdres. There are a few sources of these sorts of transactions. First off you have smaller time guys doing it. This would be like the guys that a client of mine purchased from last summer. This group purchases onesy, twosy homes at trustee sale, then resells them. They don’t need any hard money lenders because they have raised the cash within the investment circle they have. So that is one source of purchasers at TS sales. Another group would be large portfolio purchasers but these guys don’t generally buy to flip immediately. They usually have longer term forecasts. They also do not buy from the TS but directly from lenders for extremely reduced prices but they buy homes in bulk to receive these discounts. So it is likely that the Spruce Run condo was of this type of purchase. I am seeing a pretty strong number of listings like this. I would bet we have more flips now then we have had in 2-3 years.

Alive and well sdres. There are a few sources of these sorts of transactions. First off you have smaller time guys doing it. This would be like the guys that a client of mine purchased from last summer. This group purchases onesy, twosy homes at trustee sale, then resells them. They don’t need any hard money lenders because they have raised the cash within the investment circle they have. So that is one source of purchasers at TS sales. Another group would be large portfolio purchasers but these guys don’t generally buy to flip immediately. They usually have longer term forecasts. They also do not buy from the TS but directly from lenders for extremely reduced prices but they buy homes in bulk to receive these discounts. So it is likely that the Spruce Run condo was of this type of purchase. I am seeing a pretty strong number of listings like this. I would bet we have more flips now then we have had in 2-3 years.

Alive and well sdres. There are a few sources of these sorts of transactions. First off you have smaller time guys doing it. This would be like the guys that a client of mine purchased from last summer. This group purchases onesy, twosy homes at trustee sale, then resells them. They don’t need any hard money lenders because they have raised the cash within the investment circle they have. So that is one source of purchasers at TS sales. Another group would be large portfolio purchasers but these guys don’t generally buy to flip immediately. They usually have longer term forecasts. They also do not buy from the TS but directly from lenders for extremely reduced prices but they buy homes in bulk to receive these discounts. So it is likely that the Spruce Run condo was of this type of purchase. I am seeing a pretty strong number of listings like this. I would bet we have more flips now then we have had in 2-3 years.

I’m seeing people buying REOs for 50% off peak, planning to be flippers in 2-5 years. Its hard to flip now because values are falling so fast. So, people are buying and renting. Problem is they are planning their investment strategy on today’s rents.

When I look at an REO I ask myself if I could cash flow if I needed to undercut the cheapest rental in the hood in order to attract a renter in a a down market. Even at today’s REO prices the numbers going forward don’t work.

In the IE they are still building new homes (lots, oddly) and there is a huge shadow inventory of empty homes that do not show up in the MLS. Rents are going to fall a lot. There are too many houses now, they are still building more and people are leaving CA in droves. Landlord is not a growth industry.

Wait until the coming tax increases take effect and start to hit home.

I’m seeing people buying REOs for 50% off peak, planning to be flippers in 2-5 years. Its hard to flip now because values are falling so fast. So, people are buying and renting. Problem is they are planning their investment strategy on today’s rents.

When I look at an REO I ask myself if I could cash flow if I needed to undercut the cheapest rental in the hood in order to attract a renter in a a down market. Even at today’s REO prices the numbers going forward don’t work.

In the IE they are still building new homes (lots, oddly) and there is a huge shadow inventory of empty homes that do not show up in the MLS. Rents are going to fall a lot. There are too many houses now, they are still building more and people are leaving CA in droves. Landlord is not a growth industry.

Wait until the coming tax increases take effect and start to hit home.

Please note that the groups that are flipping successfully are not rookies. These guys are quite savy and have done thier homework. It is not even close to the class of speculators we saw in the middle and later bubble stages.

Please note that the groups that are flipping successfully are not rookies. These guys are quite savy and have done thier homework. It is not even close to the class of speculators we saw in the middle and later bubble stages.