North park flips… relatistic prices?

[CA renter]

Just want to add that it’s not only the flippers at the auctions that I’m talking about.

There have been a number of homes that have either been short sales or REOs and they are listed as “contingent” or “pending” upon listing. These often seem to be flippers as well (though not all are flips).

The other aspect is the open-market homes that need a lot of work but are still overpriced for an organic buyer with cash/high down payment. They are priced for flipping/speculating, and they get that price because the flippers later sell them to the FHA crowd mentioned above.

[jpinpb]

Yes, CAR. I think the one on Villa Terrace was already a bank owned, not courthouse steps.

[jpinpb]

Yes, CAR. I think the one on Villa Terrace was already a bank owned, not courthouse steps.

[jpinpb]

Yes, CAR. I think the one on Villa Terrace was already a bank owned, not courthouse steps.

[jpinpb]

Yes, CAR. I think the one on Villa Terrace was already a bank owned, not courthouse steps.

[jpinpb]

Yes, CAR. I think the one on Villa Terrace was already a bank owned, not courthouse steps.

[blahblahblah]

It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.

Those fools! Paying high mortgage insurance premiums in order to buy homes to live in. Don’t they know that they’re hurting the cash investors who want to buy and then rent those same homes back to them? Someday they’ll learn.

Seriously though, your point is valid for the silly flips at $500+/sf. But there are probably some people using those FHA loans that won’t default and will eventually be in good shape 5-10 years from now.

[blahblahblah]

It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.

Those fools! Paying high mortgage insurance premiums in order to buy homes to live in. Don’t they know that they’re hurting the cash investors who want to buy and then rent those same homes back to them? Someday they’ll learn.

Seriously though, your point is valid for the silly flips at $500+/sf. But there are probably some people using those FHA loans that won’t default and will eventually be in good shape 5-10 years from now.

[blahblahblah]

It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.

Those fools! Paying high mortgage insurance premiums in order to buy homes to live in. Don’t they know that they’re hurting the cash investors who want to buy and then rent those same homes back to them? Someday they’ll learn.

Seriously though, your point is valid for the silly flips at $500+/sf. But there are probably some people using those FHA loans that won’t default and will eventually be in good shape 5-10 years from now.

[blahblahblah]

It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.

Those fools! Paying high mortgage insurance premiums in order to buy homes to live in. Don’t they know that they’re hurting the cash investors who want to buy and then rent those same homes back to them? Someday they’ll learn.

Seriously though, your point is valid for the silly flips at $500+/sf. But there are probably some people using those FHA loans that won’t default and will eventually be in good shape 5-10 years from now.

[blahblahblah]

It’s not just the flippers…it’s the clueless buyers of these flips, with their 3.5% FHA loans (and seller concessions!) who are mesmerized by granite and stainless steel-wrapped junk appliances, who are screwing up this market.

Those fools! Paying high mortgage insurance premiums in order to buy homes to live in. Don’t they know that they’re hurting the cash investors who want to buy and then rent those same homes back to them? Someday they’ll learn.

Seriously though, your point is valid for the silly flips at $500+/sf. But there are probably some people using those FHA loans that won’t default and will eventually be in good shape 5-10 years from now.

[SD Realtor]

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.

[SD Realtor]

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.

[SD Realtor]

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.

[SD Realtor]

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.

[Author]

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