North park flips… relatistic prices?

[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.

[andymajumder]

[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.

Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]

SD, what really is happening here? Are the banks making these many loan modifications, has loan modification become so common or are the banks just holding on to these homes (shadow inventory?) and hoping to gradually dump them sometime later. I am still don’t understand what’s the end game here and how long the banks can hold back with more and more people defaulting on their loans or walking away.

[andymajumder]

[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.

Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]

SD, what really is happening here? Are the banks making these many loan modifications, has loan modification become so common or are the banks just holding on to these homes (shadow inventory?) and hoping to gradually dump them sometime later. I am still don’t understand what’s the end game here and how long the banks can hold back with more and more people defaulting on their loans or walking away.

[andymajumder]

[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.

Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]

SD, what really is happening here? Are the banks making these many loan modifications, has loan modification become so common or are the banks just holding on to these homes (shadow inventory?) and hoping to gradually dump them sometime later. I am still don’t understand what’s the end game here and how long the banks can hold back with more and more people defaulting on their loans or walking away.

[andymajumder]

[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.

Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]

SD, what really is happening here? Are the banks making these many loan modifications, has loan modification become so common or are the banks just holding on to these homes (shadow inventory?) and hoping to gradually dump them sometime later. I am still don’t understand what’s the end game here and how long the banks can hold back with more and more people defaulting on their loans or walking away.

[andymajumder]

[quote=SD Realtor]CAR the flippers have little if no impact whatsoever on the pricing. Don’t take it from me. Go to any of the sites, fidelity or priority posting and pick any random day of auction. Then look at the number of homes scheduled for sale on that day and then look at the number actually sold. Today for instance there were originally over 350 homes downtown. As of now there are maybe 40 that are even for sale, all the rest are pushed out. By the end of the day maybe of those 40, I bet more then half will be pushed out. Thus out of those 20 left maybe 10 will be bid on.

Honestly the impact of the flippers is much less then people make them out to be. The impact of the banks behavior with the loan mods DWARFS the flipper impact with respect to available inventory.[/quote]

SD, what really is happening here? Are the banks making these many loan modifications, has loan modification become so common or are the banks just holding on to these homes (shadow inventory?) and hoping to gradually dump them sometime later. I am still don’t understand what’s the end game here and how long the banks can hold back with more and more people defaulting on their loans or walking away.

[sdrealtor]

CAR
Got a challenge for ya. From your posts it sounds like you are a frustrated buyer losing dozens of houses to flippers. Can you please post the addresses of 3 houses that you lost to flippers that you would have bought? You can also include REO and Short Sales listed contingent or pending as long as you you would have paid the fair market value and not the undermarket sale price an unscrupulous agent might have slipped it through at.

I havent seen any that I think you would have bought and am curious if this is based on real experiences or conjured up due to frustration.

[sdrealtor]

CAR
Got a challenge for ya. From your posts it sounds like you are a frustrated buyer losing dozens of houses to flippers. Can you please post the addresses of 3 houses that you lost to flippers that you would have bought? You can also include REO and Short Sales listed contingent or pending as long as you you would have paid the fair market value and not the undermarket sale price an unscrupulous agent might have slipped it through at.

I havent seen any that I think you would have bought and am curious if this is based on real experiences or conjured up due to frustration.

[sdrealtor]

CAR
Got a challenge for ya. From your posts it sounds like you are a frustrated buyer losing dozens of houses to flippers. Can you please post the addresses of 3 houses that you lost to flippers that you would have bought? You can also include REO and Short Sales listed contingent or pending as long as you you would have paid the fair market value and not the undermarket sale price an unscrupulous agent might have slipped it through at.

I havent seen any that I think you would have bought and am curious if this is based on real experiences or conjured up due to frustration.

[sdrealtor]

CAR
Got a challenge for ya. From your posts it sounds like you are a frustrated buyer losing dozens of houses to flippers. Can you please post the addresses of 3 houses that you lost to flippers that you would have bought? You can also include REO and Short Sales listed contingent or pending as long as you you would have paid the fair market value and not the undermarket sale price an unscrupulous agent might have slipped it through at.

I havent seen any that I think you would have bought and am curious if this is based on real experiences or conjured up due to frustration.

[sdrealtor]

CAR
Got a challenge for ya. From your posts it sounds like you are a frustrated buyer losing dozens of houses to flippers. Can you please post the addresses of 3 houses that you lost to flippers that you would have bought? You can also include REO and Short Sales listed contingent or pending as long as you you would have paid the fair market value and not the undermarket sale price an unscrupulous agent might have slipped it through at.

I havent seen any that I think you would have bought and am curious if this is based on real experiences or conjured up due to frustration.

[meadandale]

[quote=pemeliza]
So maybe there is a 10-15% premium right now for north mission hills. Personally I would pay that premium and get a fixer. You can always fix the house.[/quote]

You can’t fix square footage. And I’m not about to pay north of a half million for an outdated house that requires north of $50k in ‘fixing’.

[meadandale]

[quote=pemeliza]
So maybe there is a 10-15% premium right now for north mission hills. Personally I would pay that premium and get a fixer. You can always fix the house.[/quote]

You can’t fix square footage. And I’m not about to pay north of a half million for an outdated house that requires north of $50k in ‘fixing’.

[meadandale]

[quote=pemeliza]
So maybe there is a 10-15% premium right now for north mission hills. Personally I would pay that premium and get a fixer. You can always fix the house.[/quote]

You can’t fix square footage. And I’m not about to pay north of a half million for an outdated house that requires north of $50k in ‘fixing’.

[meadandale]

[quote=pemeliza]
So maybe there is a 10-15% premium right now for north mission hills. Personally I would pay that premium and get a fixer. You can always fix the house.[/quote]

You can’t fix square footage. And I’m not about to pay north of a half million for an outdated house that requires north of $50k in ‘fixing’.

[Author]

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