Is The Era of Get-Rich-Quick Real Estate Dead?

By
Real Estate Agent with Coldwell Banker Dynasty

  This morning I saw an article at Yahoo Finance that said that the era of get rich quick real estate is dead and was pondering if that is true. It could be true depending on the area because it is hard to flip the property and the value of homes went down by 40% or more. In that case it would take time for the home values to go back up.

  I was told that smart agents/investors make money no matter what market. This is similar to the stock market where people make money going up or down. During the dotcom era, many employees became paper millionaires before the bubble burst. Who knows, this could happen again.

  Is the era of get-rich-quick real estate dead? For me, I am hoping not since I have a lot of buyers and investors that would like to make a quick buck or two in real estate.

Comments (8)

Shirley Soforic
F. C.Tucker co. - New Palestine, IN

I do not think it is dead.  But, I believe it is much riskier, than in the -past.  In the past if we made a mistake, we could wait a few years and unload it.  Now I am not so sure.  Flipping is pretty dangerous in Indy right now.

Dec 30, 2010 05:52 AM
Sue Carrell
Sue Carrell & Associates - Santa Rosa, CA
Santa Rosa Property Manager

Hello,

I don't like to associate "Get Rich Quick" schemes with real estate. It smacks of scams and thoughtless investing. I think there is money to be made in a relatively short time in careful and diligent residential real estate turn arounds. I am seeing it happen in Santa Rosa for sure. People are making a profit buying off MLS; they don't have to go through REO or Short Sales to do it.

Dec 30, 2010 05:54 AM
Bryan Robertson
Los Altos, CA

It's not dead but it's harder to make profits flipping.  In Silicon Valley, it's relatively easy when you can find worn down homes in high-demand areas.  I see this all the time in Los Altos, Palo Alto, or Menlo Park.  You find a home that needs a lot of cosmetic upgrades and landscaping, priced at an even $1 million.  You put $100K into cleaning it up (max) and sell it 2 months later for a $50-100K profit.

The issue in this market is that there are so few of those deals to be found and getting backers is much harder.

Dec 30, 2010 05:57 AM
Anita Slaven
Reliant Realty - Nashville, TN
Real Estate Broker - Nashville TN

I would think it will be a long time before this era will return.....sometime after everyone has forgotten about the losses from the last bubble breaking.

Anita

Dec 30, 2010 06:05 AM
Kathy Judy
Tri-Cities Real Estate retired - Ontario, OR

I have watched my partner Brent King over the years make money in any market.  He has been a realtor since the 70's.  He buys very carefully then when he sells he makes a decent profit not a killing.  He also has rentals and is a good landlord, doesn't goldplate the properties but fixes things when they are broken and keeps his properties in very decent condition. 

Dec 30, 2010 06:05 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

You make a good point...I think there's still the opportunity...you just have to look a little harder to find them. Happy New Year!

Dec 30, 2010 11:33 PM
Song San
Coldwell Banker Dynasty - Rosemead, CA
Broker, MBA

Shirley:  True, it does take time to make flipping profitable these days. Working with a few investors these days and hard to get them to realize that.

Sue:  I don't believe in "Get Rich Quick" schemes also yet if we can make some good money flipping houses in real estate, that is nothing wrong.

Bryan:  I am looking forward to those days too.

Anita:  There are still great deals out there, just need to spend time finding them.

Jan 02, 2011 06:00 PM
Song San
Coldwell Banker Dynasty - Rosemead, CA
Broker, MBA

Kathy:  Your friend seems to be well establish. That is great.

Rob: Totally agree. Happy New Year also.

Jan 02, 2011 06:01 PM