Too many projects not enough time

By
Commercial Real Estate Agent

Do you believe that everything happens for a reason?  We can only hope so.

 

I purchased two homes in July and due to poor contractor work have been unable to finalize the "flips" until just a few days ago.  During that time I have witnessed the market lag and fall, and try to climb and lag again.....hopefully my delays are part of a larger plan.   Worst case scenario means rent until I am comfortable with an estimated selling price or sit on stagnant product waiting for the right buyer. 

Have you had similar experiences?  Where, when?  Are you still in it?

Who's got predictions?  When will the market rebound? Will it?  Will it falter until we make history with a minority or female president?  Will it pick up on it's own?  What are the odds?  Do we want to form a pool?

 

Comments (6)

Vincent McKamy
Samson Properties - Fredericksburg, VA
Realtor Fredericksburg Virginia

Ryan,

I'm an active agent in VA and looking at the housing market here I think we have a few years of a down market.  I think we need to weed out all the forclosures and short sales out there.  In 2005, loan officers where giving out loans to everybody and their dogs - and they talked up the interest only and ARM's now these things are coming back to haunt us.  I believe we have until about 2010 before we see an up market.  (Need to weed out all those crazy loans) 

Don't want to be all negative - If you decide to rent - I think you could be in a good boat.  With all these people losing their homes they are still going to need a place to live so they are going to become renters.  With more renters out there it becomes a supply and demand theory.  This in turn will raise the amount of rent that landlords can charge.  (the good side of things) 

Good luck  

    

 

Oct 27, 2007 06:45 AM
Chris and Berna Sloan
Group 1 Real Estate - Tooele, UT
Tooele UT

Ryan ... I compliment you on being a "real" investor. ie: being in it for the long haul if need be. We have seen the problems caused by those folks that could not or did not know that sometimes things, (even real estate) can loose value. Flipping was the game plan, and that was the entire plan.

As to your other questions, I don't know your market, so can't really answer . I do know that I have been in and around the business for 30+ years, good markets and bad, Real Estate ALWAYS bounces back.

Good Luck ... Hang in there!!!

Oct 27, 2007 06:48 AM
Brenda & David Wakeman
Russell Realty - Strongsville, OH

Ryan,

 

I think we are all dealing with this situation in one way or another.  Although the value of homes may be correcting, there are still plenty of homes being sold.  Not knowing your numbers or your financial situation, I can only say be fair and realistic in pricing your flips and you will get them sold.  The best approach is to price your properties 2 or 3% under current market values and get them sold quickly.  Get your profits out and find better more dependable contractors for future projects.

 

Good Luck! 

Oct 27, 2007 07:05 AM
James Gordon
Sibcy Cline Realtors® - Cincinnati, OH
REALTOR, PBD SFR SRS
Ryan you guys are supposed to be in a good market there. I look for a turn around in 2009
Oct 27, 2007 08:46 AM
Abe Do
Olympia, WA

Vincent - good insight, appreciate your thoughts.

Chris - Thanks for the compliment and I will hang in.

Brenda & Dave - I agree with you and we will be pricing ours roughly 5% under market value.  "never heard of anybody going broke making a profit"

James -  We are in a good market, but 7 mos of inventory versus the 2-3 is quite a drastic difference even though other markets have rougher statistics.

Oct 28, 2007 06:35 AM
Brandon Causey
Coastal Palmetto Realty LLC - Loris, SC
Realtor, Coastal Palmetto Realty LLC
Want to share the comment love.  Good blog we see eye to eye on a few things.  Keep up the good work.  I'll be stopping back in.  It is important that you experience a flip before you advise someone to do one.   I have been through a few rehabs before rehabs were popular.  It is sooooo hard now because prices are over inflated and everyone thinks they can "flip that house"
Oct 29, 2007 03:41 AM