Is this a FLIP?

[CA renter]

I’ve also seen a number of flips, and have run into plenty of “investors” at open houses.

The bubble mentality is alive and well in San Diego. It is not over yet.

[peterb]

I think that hard money guys like Bruce are going to flip because they’ve got cash and the discount allows them room for profit, if they can turn the property quickly and he’s chosen them well. Time is a huge risk factor in this market. I think that’s why he flips far more than rents and holds. It’s going down, so he makes money getting in and then out asap.

Granted, when rents are more than purchasing, it probably makes more sense to own. Given all the financial analysis. But rents could come down in this cycle as they did in the 1990’s. Also, prices could keep falling and thus put you in a “financial lock” with the house. Where it would be hard to sell without taking a loss. Or you could go upside down as well. And then how long will it take to recover?

We’re in uncharted waters here for foreclorures. We’re starting to hit 1800 a month in SD County. The worst it got inthe 1990’s was around 600 a month.

Just something to consider.

[peterb]

I think that hard money guys like Bruce are going to flip because they’ve got cash and the discount allows them room for profit, if they can turn the property quickly and he’s chosen them well. Time is a huge risk factor in this market. I think that’s why he flips far more than rents and holds. It’s going down, so he makes money getting in and then out asap.

Granted, when rents are more than purchasing, it probably makes more sense to own. Given all the financial analysis. But rents could come down in this cycle as they did in the 1990’s. Also, prices could keep falling and thus put you in a “financial lock” with the house. Where it would be hard to sell without taking a loss. Or you could go upside down as well. And then how long will it take to recover?

We’re in uncharted waters here for foreclorures. We’re starting to hit 1800 a month in SD County. The worst it got inthe 1990’s was around 600 a month.

Just something to consider.

[peterb]

I think that hard money guys like Bruce are going to flip because they’ve got cash and the discount allows them room for profit, if they can turn the property quickly and he’s chosen them well. Time is a huge risk factor in this market. I think that’s why he flips far more than rents and holds. It’s going down, so he makes money getting in and then out asap.

Granted, when rents are more than purchasing, it probably makes more sense to own. Given all the financial analysis. But rents could come down in this cycle as they did in the 1990’s. Also, prices could keep falling and thus put you in a “financial lock” with the house. Where it would be hard to sell without taking a loss. Or you could go upside down as well. And then how long will it take to recover?

We’re in uncharted waters here for foreclorures. We’re starting to hit 1800 a month in SD County. The worst it got inthe 1990’s was around 600 a month.

Just something to consider.

[peterb]

I think that hard money guys like Bruce are going to flip because they’ve got cash and the discount allows them room for profit, if they can turn the property quickly and he’s chosen them well. Time is a huge risk factor in this market. I think that’s why he flips far more than rents and holds. It’s going down, so he makes money getting in and then out asap.

Granted, when rents are more than purchasing, it probably makes more sense to own. Given all the financial analysis. But rents could come down in this cycle as they did in the 1990’s. Also, prices could keep falling and thus put you in a “financial lock” with the house. Where it would be hard to sell without taking a loss. Or you could go upside down as well. And then how long will it take to recover?

We’re in uncharted waters here for foreclorures. We’re starting to hit 1800 a month in SD County. The worst it got inthe 1990’s was around 600 a month.

Just something to consider.

[peterb]

I think that hard money guys like Bruce are going to flip because they’ve got cash and the discount allows them room for profit, if they can turn the property quickly and he’s chosen them well. Time is a huge risk factor in this market. I think that’s why he flips far more than rents and holds. It’s going down, so he makes money getting in and then out asap.

Granted, when rents are more than purchasing, it probably makes more sense to own. Given all the financial analysis. But rents could come down in this cycle as they did in the 1990’s. Also, prices could keep falling and thus put you in a “financial lock” with the house. Where it would be hard to sell without taking a loss. Or you could go upside down as well. And then how long will it take to recover?

We’re in uncharted waters here for foreclorures. We’re starting to hit 1800 a month in SD County. The worst it got inthe 1990’s was around 600 a month.

Just something to consider.

[SD Realtor]

The class of flippers that I am talking about have no cares about rents and such. They have cash and because of that they scope out good deals and purchase them and put them back on the market immediately. Smaller groups of investors that can raise enough cash to make small portfolio purchases from banks can do the same thing.

The trick to making money in this style has much more to do with insight into the local market, how much the first mortgage is with respect to valuations of that local market, demand for that local market, and simply running the numbers to see if they will work. It is all about getting the home at trustee sale and getting it back on the market immediately. This is not about holding a property at all but it is about moving it and moving it quickly. Also one hopes that you can sneak this purchase by the bank at the trustee sale with respect to the bank doing thier own due diligence on the home and hoping they are dumb enough to sell it to you at the price you want it to go at. In certain cases the amount of that first mortgage is well below the market conditions for given homes.

I am not saying this is easy but I am saying it is being done and is more then likely beyond the scope of how people view markets here on Piggington. Money can be made and IS being made by investors doing this. IF you are diligent and do it for the right property at the right time you can do well.

[SD Realtor]

The class of flippers that I am talking about have no cares about rents and such. They have cash and because of that they scope out good deals and purchase them and put them back on the market immediately. Smaller groups of investors that can raise enough cash to make small portfolio purchases from banks can do the same thing.

The trick to making money in this style has much more to do with insight into the local market, how much the first mortgage is with respect to valuations of that local market, demand for that local market, and simply running the numbers to see if they will work. It is all about getting the home at trustee sale and getting it back on the market immediately. This is not about holding a property at all but it is about moving it and moving it quickly. Also one hopes that you can sneak this purchase by the bank at the trustee sale with respect to the bank doing thier own due diligence on the home and hoping they are dumb enough to sell it to you at the price you want it to go at. In certain cases the amount of that first mortgage is well below the market conditions for given homes.

I am not saying this is easy but I am saying it is being done and is more then likely beyond the scope of how people view markets here on Piggington. Money can be made and IS being made by investors doing this. IF you are diligent and do it for the right property at the right time you can do well.

[SD Realtor]

The class of flippers that I am talking about have no cares about rents and such. They have cash and because of that they scope out good deals and purchase them and put them back on the market immediately. Smaller groups of investors that can raise enough cash to make small portfolio purchases from banks can do the same thing.

The trick to making money in this style has much more to do with insight into the local market, how much the first mortgage is with respect to valuations of that local market, demand for that local market, and simply running the numbers to see if they will work. It is all about getting the home at trustee sale and getting it back on the market immediately. This is not about holding a property at all but it is about moving it and moving it quickly. Also one hopes that you can sneak this purchase by the bank at the trustee sale with respect to the bank doing thier own due diligence on the home and hoping they are dumb enough to sell it to you at the price you want it to go at. In certain cases the amount of that first mortgage is well below the market conditions for given homes.

I am not saying this is easy but I am saying it is being done and is more then likely beyond the scope of how people view markets here on Piggington. Money can be made and IS being made by investors doing this. IF you are diligent and do it for the right property at the right time you can do well.

[SD Realtor]

The class of flippers that I am talking about have no cares about rents and such. They have cash and because of that they scope out good deals and purchase them and put them back on the market immediately. Smaller groups of investors that can raise enough cash to make small portfolio purchases from banks can do the same thing.

The trick to making money in this style has much more to do with insight into the local market, how much the first mortgage is with respect to valuations of that local market, demand for that local market, and simply running the numbers to see if they will work. It is all about getting the home at trustee sale and getting it back on the market immediately. This is not about holding a property at all but it is about moving it and moving it quickly. Also one hopes that you can sneak this purchase by the bank at the trustee sale with respect to the bank doing thier own due diligence on the home and hoping they are dumb enough to sell it to you at the price you want it to go at. In certain cases the amount of that first mortgage is well below the market conditions for given homes.

I am not saying this is easy but I am saying it is being done and is more then likely beyond the scope of how people view markets here on Piggington. Money can be made and IS being made by investors doing this. IF you are diligent and do it for the right property at the right time you can do well.

[SD Realtor]

The class of flippers that I am talking about have no cares about rents and such. They have cash and because of that they scope out good deals and purchase them and put them back on the market immediately. Smaller groups of investors that can raise enough cash to make small portfolio purchases from banks can do the same thing.

The trick to making money in this style has much more to do with insight into the local market, how much the first mortgage is with respect to valuations of that local market, demand for that local market, and simply running the numbers to see if they will work. It is all about getting the home at trustee sale and getting it back on the market immediately. This is not about holding a property at all but it is about moving it and moving it quickly. Also one hopes that you can sneak this purchase by the bank at the trustee sale with respect to the bank doing thier own due diligence on the home and hoping they are dumb enough to sell it to you at the price you want it to go at. In certain cases the amount of that first mortgage is well below the market conditions for given homes.

I am not saying this is easy but I am saying it is being done and is more then likely beyond the scope of how people view markets here on Piggington. Money can be made and IS being made by investors doing this. IF you are diligent and do it for the right property at the right time you can do well.

[socrattt]

There are still a number of current buyers out there that are going to get burned by this market. You would think the simple prediction of the interest rates rising to curb inflation would keep many buyers from purchasing in this market. I agree that many people can still afford to purchase a home and maybe everyone does not have the same idea that a home purchase is an investment. I personally believe this next year is going to get nasty with all the negative news still yet to affect the market.

Buying a flipper is a very speculative move in this market because when those rates start moving over 7% and 8% we will really start seeing a stagnate market. We are in the age of the paid programs and million dollar dreams. Everyone thinks they are more educated about RE purchases than ever before. The educated investor only knows what they have seen, but fear the unknown. The truth is no one has witnessed what will occur when this market really crashes and it is coming soon.

[socrattt]

There are still a number of current buyers out there that are going to get burned by this market. You would think the simple prediction of the interest rates rising to curb inflation would keep many buyers from purchasing in this market. I agree that many people can still afford to purchase a home and maybe everyone does not have the same idea that a home purchase is an investment. I personally believe this next year is going to get nasty with all the negative news still yet to affect the market.

Buying a flipper is a very speculative move in this market because when those rates start moving over 7% and 8% we will really start seeing a stagnate market. We are in the age of the paid programs and million dollar dreams. Everyone thinks they are more educated about RE purchases than ever before. The educated investor only knows what they have seen, but fear the unknown. The truth is no one has witnessed what will occur when this market really crashes and it is coming soon.

[socrattt]

There are still a number of current buyers out there that are going to get burned by this market. You would think the simple prediction of the interest rates rising to curb inflation would keep many buyers from purchasing in this market. I agree that many people can still afford to purchase a home and maybe everyone does not have the same idea that a home purchase is an investment. I personally believe this next year is going to get nasty with all the negative news still yet to affect the market.

Buying a flipper is a very speculative move in this market because when those rates start moving over 7% and 8% we will really start seeing a stagnate market. We are in the age of the paid programs and million dollar dreams. Everyone thinks they are more educated about RE purchases than ever before. The educated investor only knows what they have seen, but fear the unknown. The truth is no one has witnessed what will occur when this market really crashes and it is coming soon.

[socrattt]

There are still a number of current buyers out there that are going to get burned by this market. You would think the simple prediction of the interest rates rising to curb inflation would keep many buyers from purchasing in this market. I agree that many people can still afford to purchase a home and maybe everyone does not have the same idea that a home purchase is an investment. I personally believe this next year is going to get nasty with all the negative news still yet to affect the market.

Buying a flipper is a very speculative move in this market because when those rates start moving over 7% and 8% we will really start seeing a stagnate market. We are in the age of the paid programs and million dollar dreams. Everyone thinks they are more educated about RE purchases than ever before. The educated investor only knows what they have seen, but fear the unknown. The truth is no one has witnessed what will occur when this market really crashes and it is coming soon.

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