Special offer

HOUSE FLIPPING

By
Real Estate Agent with Southern Homes of the Carolinas 254679

WHEN WORKING WITH CLIENTS WHO WANT TO VENTURE INTO THE MARKET OF FLIPPING HOUSES....REMEMBER ...

ALWAYS REMEMBER YOUR TARGET.  TOO MANY TIMES, NEW HOME FLIPPERS ARE ENCHANTED WITH TV SHOWS PROMISING LARGE RETURNS FOR THEIR OVER THE TOP FLIPS.....

IF YOUR CLIENT IS FLIPPING A HOME IN THE 100K RANGE... REMIND THEM TO KEEP IT SIMPLE, CLEAN, OPEN AND THAT THEY DON'T NEED FANCY GRANITE, SINKS, FIXTURES ETC... THEY ALL TO OFTEN FORGET THAT MANY OF THESE FLIPS ARE BEST IF KEPT SIMPLE.....

RECENTLY I HAD A CLIENT WITH BIG DREAMS OF THE "PERFECT FLIP"... THEY INVISIONED GRANITE COUNTERTOPS, CERAMIC TILE, EXCITING FIXTURES, UPGRADED HIGH END BATHROOMS AND MORE... THE ONLY PROBLEM, IT WAS A 130K HOME..... THEY SPENT OVER THE TOP, HOPED TO BREAK THE BANK WITH A HUGE RETURN AND FOUND THEMSELVES ON THE MARKET FAR TOO LONG... FAILING TO GET THEIR DREAM PRICE AND IN THE END ..... WINDING UP TAKING A HEAFTY LOSS.

REMEMBER, MOST FLIPS, IN THE MODERATE RANGE ARE JUST THAT... MODERATE... GOOD ROOF, EXTERIOR, CURB APPEAL, CLEAN, WELL APPOINTED BUT SIMPLE AND BASIC.... THESE HOMES SELL AND THE RETURN IS BEST IF THE HOME IS DONE QUICKLY AND PRICED TO SELL.....

THEN YOU ARE OFF TO ANOTHER FLIP AND BEFORE YOU KNOW IT YOU ARE ON YOUR WAY TO A SUCCESSFUL CAREER IN FAST, AFFORDABLE FLIPPING WITH GREAT RETURNS.

THIS IS NOT TO SAY THAT THERE IS NOT ROOM FOR THE OVER THE TOP OR HIGH END FLIP... YOU JUST HAVE TO ALWAYS REMEMBER YOUR MARKET, YOUR TIME FRAME AND IF IT TAKES TOO LONG OR COSTS TOO MUCH YOU PROBABLY HAVE MISSED THE BOAT.. LOST THE PROFIT AND IN THE END.... FORGOTTEN THAT THE QUICK, SIMPLE FLIP BRINGS HIGH RETURNS.

DON'T GET GREEDY OR CAUGHT UP IN YOUR OWN IDEA OF YOUR DREAM HOME AND YOU WILL FIND THAT FLIPS WILL TAKE YOU FAR.  GOOD LUCK AND HAPPY FLIPPING.

Posted by

    

Sarah Moore, CRS, CDPE, SFS, e-Pro, Broker/REALTOR ®

RE/MAX EXECUTIVE REALTY  ~  7752 Gateway Lane, Suite 204  ~  Concord, NC   ~  28027

www.WeOpenMoreDoors.com

 

Lee Walsh
SecurityNational Mortgage - Lake Mary, FL
Executive Talent Scout for Mortgage Professionals

Sarah,

Like a lot of us in the business I watch the "property flip" shows. I have not seen one instance where the flipper gets a real estate agent to help them determine the market price for the property before they go to work on it.

You example of the big dreams for the 130K home  is the point. There is a high mark / price that the property will not go beyond no matter what they do to it. 

Feb 28, 2008 03:37 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
They should understand the tax consequences befoore doing so...the IRS may be their silent partner!  Reality is very different that TV!
Feb 28, 2008 03:40 PM