I was at a dinner with a friend and his friend a few nights ago. The conversation got to investments and the one gentlemen started discussing his work. He “represents” a pair of wealthy overseas clients thru power of attorney buying real estate. All cash, no financing. He was doing it all too. Flips, buy and hold in select areas, rentals, section 8….the works. He has his real estate license and property management team and said he was getting good pricing thru foreclosures. His main 2 clients are trying to build a portfolio of 100 houses in the south Florida (Miami beach) area.

I asked a few questions, but played dumb for the most part. He said a lot of agents are forming back end LLC’s and buying the foreclosures themselves, which they then flip for a slightly discounted price so they make their cut. He claims he was just charging a modest fee for his time in getting clients the foreclosure. He said the next year is going to be the time to start moving and he mentioned shadow inventory as a new wave of foreclosures are going to hit the market.

He had that appearance of real wealth too. Wrinkled polo, shorts, flip flops, regular watch…but when the check for dinner came it was a money clip with a wad of 100’s, and a 7 series BMW in the parking lot (not new though). I’ve always been under the assumption that the people who try to appear wealthy are the ones who aren’t, and the real ones tone it down.

There are quite a few homes that were purchased at the end of last year that are now back on the market. They have a slop of fresh paint and an extra 100K added to the price

Stupid F'ing idiots — I don't know what makes them think they will sell for 100k more when they wouldn't sell for 100k less

Seriously these 'investors' are knife catchers

Vegas, I am seeing a lot of lip stick on a pig fips in Cali. However as long as they are priced within government loan limits, they are making money. It is sick. I watch houses, and when they finally drop the price to FHA or conforming limits it sells. The best values are all high end, if you want to spend 600k you will get a much better value than at 300k. Thanks FHA, FHFA.

They are just betting on the current galactic level of corruption continuing. Going with the trend, so to speak.

Matt Bear wrote-

Quote:

He said the next year is going to be the time to start moving and he mentioned shadow inventory as a new wave of foreclosures are going to hit the market.

I've been saying summer 2013 as a bottom since early 2009. Not sure if that shadow inventory will work through by then or not. And if we get another downdraft in the market that doesn't V-bottom, it could well be later as boomers are forced to sell primary and retirement properties.

Not investment advice.

I just saw a flip listed in North GA where we used live (next street over). Bought for $65,000 and now listed for $165,000 3 months later. "new roof, new granite counters, total renovation"

NOT worth that price IMO since I know the area and saw the pics. A tiny kitchen is still a tiny kitchen, even with granite. The area is pretty good, but not exactly in demand. I'm going to watch this one just for fun to see if they are able to unload this flip.

The early flippers might get out of dodge if they are fast. The late ones will eat a **** sandwich.

I know a flipper and he made a tiny chunk on a couple of condos and is down in another. Flipping is not back in any substantive way imo. If it is, it will be very brief.

Exactly quim, it is a risky gamble.

Here's a flip in Fort Myers FL - 6135 Plumosa Ave, Fort Myers, FL 33908



03/16/2012 Sold $289,500


11/10/2011 Sold $162,700

Was a short sale, I am pretty sure the kitchen was the same, baths redone, maybe floors, landscape complete overhaul with new pool, and no additions. Supposedly this flipper has contractors do the work but will only get paid after closing, he has done a few in the area. I am surprised the buyer could get a mortgage right after the short sale.


Here is the zillow http://www.zillow.com/homedetails/6135-P....

I think it certainly depends on the area you're in. There are plenty of flips around here.. Heck, you could argue flipping never even died around here, except for maybe a brief period (less than a year). It is what it is. The best "flips" are places you either get a great deal on (not too common these days), or ones that are really run down and in need of some serious TLC. These sort of places you can definitely net a good profit, but of course then you're talking about investing a decent chunk of money for doing serious renovations. The people who do "flips" these days tend to be more serious vs. everyone and their mom 6+ yrs ago who thought they could buy anything and make money on it.

People have to remember that flips are about making money NOW vs. sitting on it and holding risk. People flipping short sales is not uncommon around here, because most people who are serious about buying, can't afford to wait around forever on the bank, and thus the places MUST sell at a discount to whoever is buying. Turning over a property in a few months is the plan, where there's limited risk to downside (assuming you're conservative with your numbers).

The house flipping shows on TV faded away a few years ago. I noticed that reruns of "Flip This House" have reappeared the last few months, as well as a couple of new "flipping" shows.

I doubt house flipping ever completely disappeared but thought it was interesting that shows focused on the subject have reemerged recently.

I live on the north side of Atlanta and have been following the market fairly closely since last summer.Our agent would send me lists of foreclosed homes to view the day they became available to investors.I watched foreclosures that made it through the initial owner/ occupant period sit for months at a time(depending on condition and location) last summer.It was rare that that we would see other potential investors while at the properties and we were seeing four to six each week.We are now averaging one lead every 10 days or so and when we got to view the property it is rare we are alone.i have had as many as five other investors there at the same time.There is a lot of interest in these homes now as people are chasing returns.

There has been a lack of new foreclosures and short sales to hit the market since last fall.My agent joined in a conference call involving Pimco discussing the changes in upcoming foreclosure process.They are planning to begin releasing the foreclosures that have been building since the moratorium last year.They are planning on speeding up the process by offering an owner occupant period of 30 days and then it is open to investors.If it is not sold within 60 days it goes to absolute auction.In the past they would reduce the property 10% per month until it sold.The only number my agent mentioned as far as houses was that they had been averaging releasing over 3000 per month before the moratorium and now they were going to begin disposing of the backlog.No idea yet as to how they plan to release them as far as time/quantity as I haven't had time to discuss it with her in greater detail.

My agent has been busier this spring than she has been in years.Foreclosures and short sales obviously make up the majority of her sales,but it is a tremendous difference in volume.I try to keep up with other investor flips in our area and they are moving quickly compared to last year.

The bottom will drop out for a period of time in the former bubble markets as a new foreclosure wave hits the market. It'll start sometime this summer. How long it lasts is anyone's guess right now, but I'll wager it'll be over by fall 2013.

Seems so. A developer is buying units in our Lake Geneva (WI) condo building with the intention of upgrading all fixtures and finishes and flipping. Our unit wasn't up for sale but they made us an offer we couldn't refuse. We sold our unit to them for 50% more than what we paid for it in 2001. The main living area has 28 feet of floor to ceiling windows on one side and large windows on the adjacent side to the right overlooking the beach and municipal piers. I couldn't even get all 28 feet in the photo. There's much more than you can see here. The master bedroom also has a 16 feet long wall of floor to ceiling windows with the same view.



We just don't use it as much as we used to when the kids were little and before we got so heavily involved in our motorsports hobby, so we took the offer. Includes a deeded boat slip.

I just heard a commercial on the radio today for "free tickets" that will "disappear quickly" to a seminar by the host of "flip this house" to learn what it takes to make $10-40,000 per deal flipping houses with "no money down."

Boston/Providence radio, BTW.

Yes, the flipping is back. I'm keeping an eye on some properties that have been on the market and are now not on the market but vacant. I see people moving out of high-dollar places like Newton and Wellesley to cheaper suburbs while they can. A dozen or two houses are going up right next to a friend of mine, while other properties languish for MONTHS on the market.

Shenanigans.