Asset Management & Recovery: Flipping for BIG Profit ??? Really ???

When I watch these shows, I tell my wife the same things you pointed out. The only guy I really like is the guy from South Carolina who has his rehab deadline(usually at 10 days, not the 6-8 weeks).

The individual part -time investors fall prey to time, overhead and carry expenses and also lack of contractor knowledge. Sometimes I laugh because I see greed in their eyes, over-confidence in their voice, lack of business knowledge and amazement in their faces when their project isn't selling. 

It kind of reminds me of kids, fresh out of college, getting a job and thinking they will be vice-president within the year.

No doubt!  My dad does this in an area of the country where you wouldn't believe he makes a substantial profit.  When you do it on a regular basis you need to have all of your "team"  (contractors, mtg (if necessary), accountant, 1031 intermediary, liquid funds, etc) lined up and drawn in a simple business plan.  You need to be prepared to hold longer than planned and have more money than planned.

I love how "flip this house" has the agent walk in, compliment them on all the work, say "here are the comps" and then "here is how much your house is worth".

Blah, let's talk about the hard reality of what is the average days on market, what concessions you need to be prepared to give (which subtracts from the bottom line) , etc etc etc

Hard reality isn't so nice, simple, easy and copasthetic.

Nice post Rich! Flipping for dollars is not easy. It's a lot of work and cost and it is imperative to know your market. Don't purchase property in Dayton if you are living in and thinking of the market in San Francisco. It ain't the same patch of land!  We regularly get calls from folks who got in over their heads on a flip, or didnt' know the market, and now they are facing foreclosure. And it's sad.

Peter- I agree. about those shows the few times I've seen those shows, the dude from SC is fun- because he knows what he is doing. He is a pro at work.

Have you noticed, the homeowners in order to compensate for their mistakes, compound it by going for sale by owner and as the weeks roll along, they lower the price and then finally realize they need to hire an agent.

Attn. Wannabes: This is a business, conduct it as one

Here we go again with more on: The Dumbing Down of the Population!

If it's too good to be true....................  Then most people will fall for it.

What a pity.

i leatrned to wee out the carlton sheets flippers from my business.

 

Rich, It's the new math, man. Closing costs, carrying costs are all part of the PROFIT. I need to try this strategy:)

I noticed the same thing the first time I watched one of those shows.  No holding costs, commissions, taxes, etc.  It makes those people look like they are profitable.  We all know better....  ;)

I wish more people would spend the time and energy to learn what all is involved before spending money on these different "Proven strategies" they see advertised. I get calls all the time from people who see my REO properties advertised and want to know just how much it'll be worth all fixed-up. They'll ask, "Can I flip it?" Someother Realtors are part of the problem, too. I had one under contract, the buyer talked to a Realtor friend who told her what a great deal she was getting, and told her that with minimal work, he could sell it fast at $20k more. said he wished he had seen it before she did. Okay, so why, when her financing fell apart, didn't he jump on it? Because he was lying to her, telling her what she wanted to hear. Now she is actively seeking financing just so she can jump on these deals, rehab 'em, and make a fortune. I wish her well, but I ain't holding my breath!