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Can somebody please help me? I keep hearing about "flipping" REO's. Any advice?

By Shannon Kessler

Real Estate Agent with South County Realty

April 01, 2008 09:48 AM

"We need $20,000.00 by Friday in order to get in on this deal," she said, over the phone. The sense of urgency made me nervous and I imagine I am not the only one. The subject is, flipping REO's. Now, I know you can do well buying and selling real estate, I am after all, in the business. However, in this market I find it hard to beleive that you can sell a house that fast. And what about the appraisal? Will it be high enough? What about the buyer finding a loan? There are too many factors involved to allow a quick transaction especially when banks are part of the equation.Has anyone reading this heard of investment groups buying large numbers of properties and then rapidly selling them? Apparently there are seminars out there advising people on how to make money in real estate. Are these legit? I am calling on my fellow agents to help me understand what seems to be a hot topic right now. Donald Trump's name has been mentioned along with the fact that all the foreclosures are making this a good time to be a real estate "flipper," (sounds like a dolphin to me), Your wisdom is appreciated.

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Johnny Huang

Pleasant Hill, CA

Insurance and Real Estate Broker

Flipping involves assignment of contract and if your purchase agreement allows assignments then it's doable. Most REO's lenders have a non-assignability clause. Check with your attorney on the contract.

Apr 01, 2008 10:04 AM

Daniel Seider

BTRE Big Trees Real Estate - Arnold, CA

If the area supports the sale of the home at a higher price than you purchased the home with maybe a few inexpensive changes to the home then the market could support a flip. Most areas are difficult to flip property right now, although there are opportunities. everywhere. Just do the numbers and know what is selling.

Apr 01, 2008 10:08 AM

Frank Schulte-Ladbeck

Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX

Welcome to Active Rain Shannon. You really jumped into the game with this post. You already have some good answers. I think that the most important statement is does your area support this activity? The seasoned investors that I work with are waiting for some improvement in the market. Houston's median home price is going up, but buyers are not there.

Apr 01, 2008 10:41 AM

Keith Elliott Jr

KEIRE Realty Group - Manassas, VA

Principal Broker/Owner

Hello Shannon,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Apr 01, 2008 05:26 PM

Dorene Shirley

The Mortgage & Property Connection - Campbell, CA

Silicon Valley Real Estate

Shannon - Welcome to the Rain, make sure that you browse the site and become familiar with everything this site has to offer. The more you browse the more you will learn. I have found this site to be really helpful to me. If you have any questions, please don't hesitate to email me, I will do whatever I can to help.

http://www.doreneshirley.com/

Apr 02, 2008 12:40 AM

Benjamin Clark

Homebuyer Representation, Inc. - Salt Lake City, UT

Buyer's Agent - Certified Negotiation Expert

Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points

Happy blogging and good luck!

Apr 05, 2008 05:08 PM

Erin Newington

5305573559 - Grass Valley, CA

Sierra Foothills Realtor

Here in Sacramento it is tough to do a flip unless you get a great deal. Not to say it is not being done. I know of one person who is getting OK deals and then flipping them to unsuspecting San Francisco folks who may not understand our market. But from whta I hear this shady character is making tons of money.

Apr 20, 2008 03:24 PM

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Shannon Kessler

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