You Can Flip in This Market
Posted on May 5th, 2011
An article this past week at CNNMoney.com was titled “Vulture investors flipping their way to profits.” While some of us may not be thrilled with the reference to this less-than-revered bird, there are profits to be made in a market drowning in foreclosures and short sales. In the article, one real estate agent and investor in Austin, Texas gave an example of one of his investor clients buying a 3 BR, 2 BA REO for $138,000, putting $10,000 into rehab, and selling it for $188,000. Even after transaction costs, this investor pocketed around $20,000 in just a few weeks. However, it’s not just in Texas, where employment is improving and home prices have done better than in many states. Believe it or not, Florida is a market that is yielding profits for flip investors as well. Dealing mostly in inner city properties selling at deep discounts, investors are buying properties that sold for $200,000 in better days for as little as $30,000 today. Real estate investors are finding opportunities in just about every market area in the country. It’s just a matter of understanding the local market and carefully selecting the properties to purchase. Quotes from a couple of these successful vulture investors share their strategies: “I prefer ugly, beat-up homes that have sat on the market or old houses that somebody’s grandma lived in for 40 years and never did any improvements. Now she’s passed away, and her family wants to sell quickly.” OR “Flipping doesn’t describe what we do. We buy the biggest eyesore on the block and turn it into the best looking house there. We’re helping pull up values in the neighborhood.” These quotes and the number of investors profiting in today’s market clearly show that real estate investment can be profitable in any market at any time. It’s not where you are, it’s what you know.
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Tags: Flip, Flip Market
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