Comments on: Are We Facing The End Of The Fix And Flip Market?

By: Daniel Doran

Daniel Doran — Tue, 04 Sep 2012 22:53:11 +0000

Hi Donna,

The point you make about wholesaling properties to another investor is very true. Because of the increase in buy and hold investors and the higher prices being paid for distressed homes there is barely enough of a profit margin for one investor, never mind two.

By: Donna Robinson

Donna Robinson — Mon, 03 Sep 2012 18:14:06 +0000

Dan you make some great points. The issue here is that the pricing fundamentals are changing, and that change is being driven by the lack of returns on other investments.
The fact is that investors must shift strategy to keep pace with changes in fundamentals. The buy and hold investors are doing just that. The fix and flip crowd can still make money but with prices edging higher, the flip has to be to a retail owner occupant buyer rather than another investor to maintain a larger profit margin. But the handwriting is on the wall, buy and hold is hotter than ever with today’s low prices and large inventories of unsold homes.

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Wed, 29 Aug 2012 10:15:10 +0000

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By: Daniel Doran

Daniel Doran — Mon, 27 Aug 2012 19:37:57 +0000

Hi June. I work the South Florida market and the lease-option sale is very strong here as well. Rental prices have been going up every month which make it a more attractive option and, as you stated, the investor has a large, non-refundable down payment as security. I have seen the scenario where the lessee makes significant upgrades to the property and then when the time comes can’t complete the closing and now the investor has received the added benefit of a free remodel.

Thanks for your comments.

By: June Constable

June Constable — Mon, 27 Aug 2012 14:19:11 +0000

The Investor stratagies of Buying-holding-renting works particularly well in my area of Table Rock Lake Missouri. There is always room for more rentals here – for several reasons which may be another comment in the future. Another tack they are using is buying, holding and selling contract-for-deed for those who cannot, yet, qualify for a bank loan. Investors still have the security, have income from the property and many times the buyer will go ahead with re-furbishing or remodeling.

By: - Real Estate Startups

- Real Estate Startups — Sun, 26 Aug 2012 04:26:04 +0000

[...] JT Foxx Announces Mega Partnering VI to Feature Kathy Ireland » Latest Real Estate Investors News Are We Facing The End Of The Fix And Flip Market? I have a real estate investor client who buys, fixes and resells single family homes. He has been regularly buying twenty to thirty foreclosure auctions every month for the past two years. However, over the past three months he has averaged closer to … Read more on RealtyBizNews [...]