An article this past week at CNNMoney.com was titled “Vulture investors flipping their way to profits.” While some of us may not be thrilled with the reference to this less-than-revered bird, there are profits to be made in a market drowning in foreclosures and short sales.
In the article, one real estate agent and investor in Austin, Texas gave an example of one of his investor clients buying a 3 BR, 2 BA REO for $138,000, putting $10,000 into rehab, and selling it for $188,000. Even after transaction costs, this investor pocketed around $20,000 in just a few weeks.
However, it’s not just in Texas, where employment is improving and home prices have done better than in many states. Believe it or not, Florida is a market that is yielding profits for flip investors as well. Dealing mostly in inner city properties selling at deep discounts, investors are buying properties that sold for $200,000 in better days for as little as $30,000 today.
Real estate investors are finding opportunities in just about every market area in the country. It’s just a matter of understanding the local market and carefully selecting the properties to purchase. Quotes from a couple of these successful vulture investors share their strategies:
“I prefer ugly, beat-up homes that have sat on the market or old houses that somebody’s grandma lived in for 40 years and never did any improvements. Now she’s passed away, and her family wants to sell quickly.” OR
“Flipping doesn’t describe what we do. We buy the biggest eyesore on the block and turn it into the best looking house there. We’re helping pull up values in the neighborhood.”
These quotes and the number of investors profiting in today’s market clearly show that real estate investment can be profitable in any market at any time. It’s not where you are, it’s what you know.
You Can Flip in This Market
May 5th, 2011 | posted by dgmod
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I would 100% agree with that!!!! Its also about all The Remarkable people you meet along the way.
My husband and I have been following Dean for quite some time now. And we would have to honestly say that he has helped build our confedience to get to the point that we are today.Thank You Dean!!! And all of the inspiration we have gotten from everyone... Id like to share a bit of our story with all of the readers that doubt you can do it,too. We took a Leap of faith and negotiated a very low down,Used a $1.00 down and lock the contract strategy...It didnt work but it gave us that push we needed to wet our feet and get in the game.It also helped us to break the ice with a very powerful investor in our local area. So he laughed about it said he would get back with me and did he!!! The next day he calls me up and says how he would like to work with us on many more projects. Said he needed someone like us on his side. Meeting the next morning to sign a contract with $1000.00 dn. From $15,000 dn. We were more then excited.So we went to another individual who had just hired us to buy properties for him...So we used someone elses money locking up the contract and on the way to reassigning it....Day 2 of locking deal and have interested buyers for rehabing the place. Since we are splitting the profits 50/50 our profit is going to be around $7500.00. On our first....WOW!!!!!!!!!!!!!! I cant wait to move to the next.......OH by the way today...he calls me up and says hes got two apartment complexes he wants us to take off his hands..Then we get contacted by another who has a network of investors that would like to work with us!..Not sure if we'll catch any ZZZZ's tonight..I'm still pinching myself saying is this really happening..to us?!..WOW!!!!!
There is many Remarkable people out there...as one we work great...but multiplied by many....Its UNSTOPPABLE!!!! Take that Leap of Faith in yourself just go out and do it!!!!
There,s room for everyone at the top!!!