Contractor Talk - Professional Construction and Remodeling Forum banner

21 - 33 of 33 Posts

·
John the Builder
Joined
·
16,993 Posts
Buy low, sell high.
 
  • Like
Reactions: Rio and Bull Trout

·
John the Builder
Joined
·
16,993 Posts
I think he was talking about selling while using the herb...
That works too.

I don't "partake", but admit like being close to those that do.

Do-dee-do-do-do.......dah do ron Rhonda.....hehehehe.........ah, what were we talking about?

You'll have to excuse me, just came from a meeting with my drywaller.
 

·
Registered
Joined
·
2,738 Posts
Question for OPer? What does a Hotel management website have to do with fixer-upper flipping...

"they aren't making more land...." kind of true, check out the PRChinese instant atolls in off the coasts of Vietnam, Indonesia, and Philippines Islands, most likely the site of the next big naval war...

But, in the USA we make tens of thousands of NEW home neighborhoods EVERY month.... Our tax codes and real estate taxes pull and push "New" construction in "greenfields" that don't have a hundred(s) years of crazy zoning laws and ordinances that increase building and rebuilding costs. At 3% population growth rate it will hundreds of years before the nation as a whole needs more space for RESIDENTIAL uses....

One stat sited was the "constant" monthly increase in R.E. values....You've forgot 2007-8 already?????:blink:
If that is your strategy, why sell, rent the gold mine.....

The one fact in the mini Power-point that made sense, the town your are in determines whether or not to enter into "flipping"
 

·
Hair Splitter
Joined
·
18,322 Posts
I have thought about this a few times. I've done it a couple times. Here is the problem, for me.
People know what type of quality work we do. When flipping a house, you can't afford to do quality work. You have to cut corners.
It's just not in me. The houses I flipped had good quality construction. That's not the way to make money in flipping.
Here is the other problem. There are so many people that see those TV shows and decide to flip houses. This means you are competing against people that have day jobs, to support themselves, or they are retired and living off of their retirement. They don't have a clue what it takes to remodel a house. They overpay for the property to begin with. Thinking they can remodel the bathroom for $1,000. New kitchen for $4,000. Some paint, clean the carpets, and then they expect to see those $50,000 checks come rolling in.
Those shows just aren't reality.

Having said that, I will still buy some property, if I see the value in it. Currently we picked up a small shopping center. I'm already at the point of regretting it. It's not the big things that are a problem. It's all the small things that are adding up. The only advantage here is that I'm just whiteboxing. I'm confident I'll get it fixed up and rented, then if I sell it, ok. If I have to hang on to it for a while, ok.

The last 3 properties I tried to buy, sold for double what I was willing to spend.

I don't consider myself a house flipper. More like property development.

I don't think that you have to lose quality or cut corners on a flip. We were the contractor on a flip. The property was sold for $55k. They put in about $150K for renovations (not all mine, only about $50k). The property is worth around $350-360k. Not a bad flip and we did all quality work.

Now begs the question, what do you consider quality? Are you putting three piece crown in every room on the first floor? Or just 1 piece in a few rooms (dining and living)?
 

·
Registered
Joined
·
1,131 Posts
I don't think that you have to lose quality or cut corners on a flip. We were the contractor on a flip. The property was sold for $55k. They put in about $150K for renovations (not all mine, only about $50k). The property is worth around $350-360k. Not a bad flip and we did all quality work.

Now begs the question, what do you consider quality? Are you putting three piece crown in every room on the first floor? Or just 1 piece in a few rooms (dining and living)?

some of the flips around here using paint that cost more than $20/gal would be quality :eek:
 
21 - 33 of 33 Posts
Top