-
Quick Tour
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.- Explore the world's largest storehouse of real estate knowledge
- Access free training on ActiveRain University
- Share the experience of life in the real estate industry
- Grow your business through real estate blogging
- Blogs
-
Resources
Product Reviews Curious as to what others in your profession think about a certain product or tool? AR's community takes the time to leave honest and transparent reviews of their experiences so you can be a bit wiser about your purchase.
- Broken down by categories and subcategories for easy finds
- Get an unfiltered look at what real users are saying
- Leave a review yourself for others to benefit from
- Add new products as you use them and gain points for doing so
|
You would think that when there is an investor involved in a transaction, escrow times would run like clockwork. After all, time is money. But with one exception, that is not the experience my clients have had over the past several years. These transactions are taking much longer while we work through a myriad of problems, such as:
Posted by 
;)
;)
;)
Find CA real estate agents and Livermore real estate on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2013 ActiveRain Corp. All Rights Reserved
43 Comments on Those Flippin' Flips
The diligence if done would lead you to the the few reputable Flipper Groups that you speak of at the end of your article. These groups will guard the reputation of there companies with good and quality work.
Karen, I've seen many flips in my area that had many cosmetically covered flaws (defects). A buyer sees the new carpet, new appliances, and smells the fresh new paint. It's what they don't see that harms them. This is a great post and well deserved Feature!
Karen, there's a house down the street from me that sold in May for $590k. Now it's pending at $875,000. Looks like it was done with an architect's supervision and all permits in place. Sometimes the job gets done right.
Karen, the phrase "putting lipstick on a pig" comes to mind. The problem with the sub-par flippers is that everything they do lowers their profit. The good ones do things the right way.
There are flips that turn into flops very quickly. A realistic look at the possibility of getting a flop without some very good and thorough due diligence. Why Buyer Agency is very important, IMHO.
It makes me wonder if some of those Hollywood set builders are doing the work. I get the image of the fake town from Blazing Saddles.
how about this, buyer buys a tax lien on the property only to learn that they did not research the property and they now own a larger mortgage than the house is worth in the open market! (thankfully I was not their agent at the time!)
Peggy - that's it in a nutshell. They have to care, and some obviously do not. It's all about the bottom line, not a job well done.
Dale - those shows have done our industry a disservice. They make it appear that everything is easy, and that we're all rolling in the dough.
Robert - Because someone has financial backing and a real estate license, they don't automatically become expert investors, yet some are trying. Do a good job or your reputation will take you down.
Andrew - crazy indeed. Some are likening this to the Wild, Wild West!
Wayne - you're right. Some of it is Fool's Gold!
Chuck - I wish it were that easy. I can choose properties for my buyer's based on who's flipped them. They choose by city, school district and price range.
Kathleen - Hey there lady. Nice to see your lovely face. Yes, neat, clean and staged can hide a multitude of sins.
Part of the responsibility that we live with and part of the value that we bring as experienced Realtors is to know of the issues that may potentially be found in a “flip” property. It is important that we not allow our clients to be overly awed by the eye-candy attractiveness of the new appliances, carpet and paint of the flip property. New paint and carpet can cover serious deficiencies in the property. Additionally, seller disclosures will be woefully inadequate since the sellers never lived in the house and are not required to provide the same level of disclosures as a seller/resident. Inspections are a must!
Karen - There can be issues with flips though I've had many that worked out pretty well.
seems like more and more impediments to a successful flip...better days ahead and the process will get better
It seems that one of the main issues is the flippers try to maximize their revenue by hiring cheap cheap cheap labor who really don't know what they are doing. The classic example of being penny wise and pound foolish!
Great blog, Carl's re-blog brought me here. As for repairs and lipstick on a pig cosmetic fixes, I really strongly suggest to any buyer client to get a first inspection and then a RE-inspection after asking for repairs on any home including flips. Investors usually go the cheapest route. They also have in my experience failed to repair things requested in hard to access places for clients like crawl spaces or low ceiling attics.
John - that sounds like a flip that gave value to the property, the buyers and the neighborhood in general. Great!
Eric - that's the phrase indeed. And pay they do - in getting the work corrected, and in lost time.
Carla - Flip to Flop. How appropos.
Jim - Don't remember that scene, but I believe you!
Melissa - I can't believe you haven't either, with all the blogs you've written :)
Mark - probably wouldn't have had that problem if you'd been helping them.
John - inspections are important on brand new houses too, but after what I've experience, flips most of all.
Christine - we always get them worked out. It just doesn't need to be this complicated if work is done correcly from the start.
Paddy - I like your optimisim.
Kathyrn - my sentiments exactly.
Andi - you bet. Re-inspection planned for roof, home and pest after my current one gets repairs.
Excellent post Karen...I think real estate investors that flip foreclosures for the most part are doing good for neighborhoods by putting people back into homes that would otherwise be vacant.
It is unfortunate that some flips are poorly done but a majority of the ones that I have been in here in Chicago look good.
With all the hype around investing in homes the last several years we are seeing a lot of the new bottom line investors putting crap on the market. I have been investing since I turned 16 and have never seen such a crop of poor rehabbing as I have seen the last few years, and not every border jumper standing in front of Home Depot can do fix up work but even the contractors are getting these inexperienced workers to pad their profits and hoping for the best.
Thank god 80% of the investors have integrity, but that leaves the 20% you have to watch out for. So as a Realtor just assume that the investor resale your looking at has a good chance of being done by someone in the 20%.
One other thing, even new homes are subject to the poor workmanship and hidden poor quality. I remember a spec builder in central contra costa county that would build million dollar homes with flash and style surfaces but if you had been able to see beyond the surfaces you would have torn the places down. He eventually moved to fresh territory to do it again when the agents quit showing his stuff.
Karen, i always tell a buyer we need to look carefully at these houses when i don't know the flipper...it pays off...
Thank you Goran. Here too, the majority are good, as they're tried and true, local investor groups. But everyone with a real estate license and cash doesn't necessarily know how to do things the right way. And they are paying for that ignorance in the long run.
Brian - I guess my clients are gravitating towards the 20% unfortunately. Some of the workmanship (hmm, probably shouldn't call it that) is so amateur, that I would presume a 5th grader did it with Tinker Toys!
Ginny - yes, know who you are working with....
Karen - "But a lot may be lurking beneath the surface" I could not agree with you more and a majority of the flips I've seen or sold have a great visual appeal, but a lot of issues underneath.
Login or register to leave a comment