Don't House Flippers Deserve A Profit?
There will always be fraud, but corporate fraud will always be much larger than small business fraud (Enron, World Com, CountryWide, Merrill Lynch).
Free Enterprise is under attack for Real Estate Investors.
To buy and resell a car or a boat for whatever prices is the entrepreneur's business choice. Are houses any different?
Barney Frank and Christopher Dodd are at the heart of the housing crisis, for allowing crap financial products to exist.
10 - 20 percent down with reasonable underwriting would have avoided all of this. No stated income or 125% loans.
You only need to look at Canada. Did they have such a loose underwriting criteria? Look at their repossession rate. Pleeze!
I would like to see 2 kinds of bank appraisals....
1. Distressed.
2. Non Distressed.
Give non short sales and non foreclosures for comps of true value.
Keep out the distressed.
Most 50-55 yr olds have all their wealth in their house. Less than $50K in all their retirement accounts, so they might just have to work at Wal Mart to pay for housing and food at 65 - 75.
Best to all tat AR,
Brian Gibbons, Real Estate Investing Coach at http://REISkills.com
I was out with a home buyer. This was not their first time, we had sold their home a year ago and they have been traveling, visiting family, and RVing across the country....needless-to-say these are my kind of people :). But while I relate to them personally and greatly enjoy their perspectives on life, I was surprised to find a prejudice against "flipper" homes.
Because of my respect for this couple, I asked them if I could blog about this issue on Active Rain and make the conversation public. So beware....this is public.
The couple expressed that they felt that there was something wrong with an investor making money off someone else's tragedy and they didn't want to contribute....fair enough.
But then as I pondered this, I wondered what's wrong with someone taking advantage of a financial situation to create wealth?
It must be made clear that these are not people who bought short sales and are flipping them without any improvements, we were looking at home which were purchased at auction (I can tell because of the way our MLS shows the title) and then spruced up and re-listed. Normally these homes have fresh paint and carpet, the yards have been tidied up or replanted and often....the kitchens and bathrooms have had granite or tile installed. They are lovely homes!
So if an investor purchases the home, takes the financial risk, creates value and reaps a profit....all while providing an easy escrow and quality home....why is this wrong? I don't think it is!
Karen
Karen Fiddler
Broker/Associate
www.great-western-realty.comServing all of Orange County, California Real Estate!
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