Don't House Flippers Deserve A Profit?
I agree with Karen Fiddler in Orange County, California; if someone is willing to put the time, money, effort and most of all risk into a financial project like house flipping they do deserve the profit. In my opinion by buying distressed properties and flipping them the buyer is not just making a profit for themselves but also keeping a piece of property from deteriorating and diminishing it's neighbor's property. In a way the house flipper's perceived "greed" is actually a safeguard and benefit to the property value of everyone. No one likes a block or for sale signs. Thanks Karen for this thought provoking article!
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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