Is The Market For Flipping A House Dead?
Saturday, February 20th, 2010
Chris Chico asked:
In today’s market, we’re watching the values of properties and portfolios hemorrhaging before our very eyes. We look at the value of the Dow, and then moments later we look at it again, the numbers can be dramatically different. Everything, it seems, is sliding down.
Remember when times were good? You could turn on the TV and it seemed like every channel had at least one or two or ten shows about house flippers who would buy homes, fix them up, and sell them again. But with today’s turbulent economy, is that even possible?
If you are curious about real estate investing, you probably have questions going through your mind like “Can I make money flipping a house in this market?”, “Aren’t housing prices off?”, or, “Won’t it cost way too much to repair?”. In today’s economy, these are valid questions. And the answer is: Flipping a house in this market is possible, house flipping isn’t dead. If done correctly, there are ways that you can grow a successful flipping practice even in an economy that is in meltdown.
In fact, with the right system, it’s possible to make great money even in down markets. That’s because the down market itself is helping you. Here’s how:
In good times, people can sell homes for top dollar so flippers are forced to buy homes at high prices then fix up the home to be even nicer and sell the home again, thus “raising the bar” and making the home a high value home. Let’s use an example of a home selling for $200,000 in a neighborhood of homes going for $180,000 to $220,000. The flipper buys the home for $200K and fixes it up really nice and puts it back on the market for $220K to $250K. Their profit is made in improve the value.
In tight times, many people are facing foreclosure and just want to get out of a bad situation where they cannot afford their home. Perhaps they’ve lost their job, or perhaps their mortgage rate adjusted to a higher price than they could handle. Either way, they may be willing to part with their home at a discount. So, for flippers in tough market conditions, the secret is to get homes at a discount and sell them quickly at a discount to someone else. For example, if a home is valued at $200K, the flipper might be able to buy it at an extreme discount – say $100K – and then turn around and sell it for $120K to someone else with very little work in between.
That’s the secret to flipping a house when the market is down. People facing foreclosure are motivated sellers and willing to sell for massive discounts just to get out of a home they can no longer afford.
Of course, there are many other tips, tricks, and techniques to real estate investing in times when the market seems disastrous, but the bottom line is: flipping is not dead. Good money can be made easily with the right system in place.
In today’s market, we’re watching the values of properties and portfolios hemorrhaging before our very eyes. We look at the value of the Dow, and then moments later we look at it again, the numbers can be dramatically different. Everything, it seems, is sliding down.
Remember when times were good? You could turn on the TV and it seemed like every channel had at least one or two or ten shows about house flippers who would buy homes, fix them up, and sell them again. But with today’s turbulent economy, is that even possible?
If you are curious about real estate investing, you probably have questions going through your mind like “Can I make money flipping a house in this market?”, “Aren’t housing prices off?”, or, “Won’t it cost way too much to repair?”. In today’s economy, these are valid questions. And the answer is: Flipping a house in this market is possible, house flipping isn’t dead. If done correctly, there are ways that you can grow a successful flipping practice even in an economy that is in meltdown.
In fact, with the right system, it’s possible to make great money even in down markets. That’s because the down market itself is helping you. Here’s how:
In good times, people can sell homes for top dollar so flippers are forced to buy homes at high prices then fix up the home to be even nicer and sell the home again, thus “raising the bar” and making the home a high value home. Let’s use an example of a home selling for $200,000 in a neighborhood of homes going for $180,000 to $220,000. The flipper buys the home for $200K and fixes it up really nice and puts it back on the market for $220K to $250K. Their profit is made in improve the value.
In tight times, many people are facing foreclosure and just want to get out of a bad situation where they cannot afford their home. Perhaps they’ve lost their job, or perhaps their mortgage rate adjusted to a higher price than they could handle. Either way, they may be willing to part with their home at a discount. So, for flippers in tough market conditions, the secret is to get homes at a discount and sell them quickly at a discount to someone else. For example, if a home is valued at $200K, the flipper might be able to buy it at an extreme discount – say $100K – and then turn around and sell it for $120K to someone else with very little work in between.
That’s the secret to flipping a house when the market is down. People facing foreclosure are motivated sellers and willing to sell for massive discounts just to get out of a home they can no longer afford.
Of course, there are many other tips, tricks, and techniques to real estate investing in times when the market seems disastrous, but the bottom line is: flipping is not dead. Good money can be made easily with the right system in place.