I understand but I think the picture you have painted is lacking a bit.
Fundamentally you CAN get the home. You can go get a bridge loan from any one of the zillions of hard money lenders out there. You CAN go to the auctions. You CAN do all the homework that is involved, the title work, the legwork, and the risk. You CHOOSE not to.
Second, the numbers are indeed staggering if you really look at them, again, simply go to the websites and look at what actually even gets SOLD, do that for a month daily and look at the true statistics and you will see. Perception is one thing but real numbers are another. Finally flippers are not all looking for a POS home like you implied, not the pros. Yes a guy like Don Rady does that and others but if you talk to the guys at the auctions (which are mostly runners) flippers (the big guys) are agnostic about it. What they look for is the risk/return ratio. Indeed alot of the fixers you speak of tend to give better numbers but that doesn’t tell the whole story. A home in decent condition that will cost more but move faster may be more appealing. Tenant occupancy factors in, liens, neighborhood, desireability, FHA rules and seasoning, just a whole lot of stuff. You bundle it all together, and I am being sincere, then you make the assessment.
There was a home on Arroyo Grande in Torrey that went for 676k the other day! Are you kidding me! I will be surprised if the flippers make money on it or perhaps it was a buy to own person.
Anyways I understand what you are saying and the point. My argument would still be out of 100 fixers I would be surprised if flippers have 5 or more of those homes and the other 95 were postponed infintely, returned to the bene, short sold, and modified. Whereas those other 95 SHOULD have gone back to the bank immediately.
