Sunday, September 27, 2009
Flippers are back
Anyone else noticing the resurgence of flipping? I've been running across quite a few lately. They obviously picked up the properties at the trustee sale. They seem to be slapping a coat of paint on them and pricing them about $100k more than they paid. Ive seen a few of these in Lake hills, Norco Hills, South Corona and most of the other areas I'm looking at.
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Yup, definitely seen quite a few (because they list with disclaimer that can't use FHA due to 90 day flip rule). I hope these flippers eat it hard. A lot of these flippers aren't even individuals but rather corporations to which taxpayers have bailed out by lending money to. We get fucked going in and fucked coming out of this debacle. For example, Countrywide's ex-cronies left that company when it imploded, to create a new company that borrows from the bank (ala TARP money) and buys up distressed home to resell to true homeowners who need a place to actually live, at a markup. Companies like that would've never been able to do so, had we let the credit dry up and not give it to failed banks. Massive collusion.
Now only I read about it through your post.
Best Home Mortgage Rates
I just found one yesterday. Its a house we put a bid on in Moreno Valley in August. We bid 115,000. It needed alot of work. They accepted an offer for $101,900. Its back on the market "NEWLY REMODELED" for $179,900. Its so frustrating.
Melody, I feel your pain. It's sick that our government stands in the way of its hard working citizens after all this wait, only to see that they are pandering to the finance industry. To me, this is no different than in the Great Depression when govt plowed under crops despite the vast number of hungry citizens, to prop up agriculture prices in attempt to bail out the same industry. History DOES repeat itself.
We never left!
been doing this for yrs,
picking were good, but now thinning out some, but some of you will wait til prices drop ( LOL)
keep waiting!
no fed $$ here, just savings and investment $$$
I think the nation's housing market is facing new downward pressure as holders of subprime-mortgage bonds inundate the market with foreclosed homes at prices that are much lower than where many banks are willing to sell.
Read More: http://www.housingnewslive.com
"Prospective buyers get locked out as dumb lenders, deadbeat borrowers and the government all collude to keep the price of the house artificially inflated. And taxpayers have to spend $75 billion (the budget of HUD's Making Home Affordable program) for the privilege of making it all happen. The best option for all concerned would be to get the deadbeat out of the house as quickly as possible, but nobody is doing that. "
http://reason.com/blog/show/136304.html
The home next to one of my rentals in Fontana was bought by one of the bus loads of people Armondo Montelongo is bringing out here on his flippers program.
In speaking with his Realtor she stated that he brings about 40 cash buyers/flippers out here a quarter.
They did a real hatchet job on the house and then listed it for $169, look at 8935 Laurel. They bought it for $112k sunk $16k in it. Made a quick $30k if it holds together.
Ruh-Roh!!!
Federal Reserve Buys More Than 100% of Mortgages Issued in 2009
What I've found and present below is that the Federal Reserve is not just supporting the housing market, it is the housing market.
Armondo Montelongo....man I can't stand that guy. I couldn't even what that stupid show if his team was on it. That dude is the king of cheeze!
I am with You! Dude has no sense of what RE is, total scum!
Here's a great clip of Armando falling into a rancid swimming pool and throwing up...doesn't look staged to me:
http://www.youtube.com/watch?v=QpPjxnWA_hA&feature=related
I love how some of you civilians hate R/E investors simply because.
I don't hate R/E investors, you people are trying to earn a profit and a living and have chosen a field of work that is not illegal. Great, and the better among you could even tout that you improve neighborhoods by renovating the properties before selling them for what the market will bear; so it is a good and fair deal because nobody will buy unless they willingly accept the price.
Understand also that you compete with many regular buyers who would enjoy getting a deal and fixing up their own home as funds and time are available. That used to be an American tradition. When investors fix and flip properties it makes far fewer homes available to the weekend handyman to choose from, and it pushes the prices of the average home upwards. Professional R/E investors trample on the dreams of these people, making it very difficult/unlikely that they can get their own home cheap enough to do a remodel that makes $ sense. You trample a dream, you earn some neg-karma, kapish?
Is this a joke? 'Civilians?'
Seems a little touchy from both sides of the fence.
I am an investor and a home owner. I provide high grade rentals in low end working class neighborhoods. I educate and help the people I come in contact with and help increase the value in the areas I work.
As long as I can beat my investment goals and keep to my personal values intact it is a win win. I have helped many tenants repair their lives and buy their own homes.
We need investors and we need homeowners, can't we all just get along?
It's not the amateur individual "investors" I'm concerned about. It's the big bank "investors" that are getting TARP money to buy up these homes and reselling at a profit, when they're the same "investors" that got us fucked up to begin with.
Amateur individual investors can only scoop up whatever they can put out in what limited cash and loans they can get. It's small so nobody cares about that.
It's these scum: http://www.nytimes.com/2009/03/04/business/04penny.html
I'm not sure the amateur investor ranks are as small as you think. A large percentage of the sales at the low end are going to these small investors.
couple things. first, no touchy'ness on my end. I simply find it funny that the average person thinks investor is a bad word.
Second, investors only capture a small percentage of the overall inventory and currently the general public is only seeing the REO activity which is also a fraction of the homes purchased by investors. See, in normal times us investors go door to door, or door knock NOD/NTS or send mailers. It just so happens the low hanging fruit has been REO's the past year. Frankly even that game is getting very tough due to a lack of inventory currently in Riverside County. The last house I purchased was from a mailer not a bank owned home. Door knocking NOD/NTS is slow simply because the majority of foreclosure activity currently has no equity. However, a successful investor will always find the deals one way or the other.
I'm absolutely a small fry in the big picture. It looks like I will do 17 start to finish flips this year and keep one rental. I kept seven rentals last year and am looking for ten next year.
I live in Mountain House, CA, the #1 underwater town in America, and a realtor that has a house listed next door to me said he buys homes in bulk from the banks (5 to 8 at a time) then puts the appliances back and re-lists the house for a profit. Not sure how he negotiates directly with the bank but many are willing to pay a little more to get into a house because they won't be dealing with REO or short sale which are in abundance here.
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