patrick.net

If it was easy money why would they give it to your friend instead of doing it themselves?

I was wondering about that also... Maybe the perception of a mogul of real estate agents gaming the foreclosure business would be bad PR? Maybe it is a wider strategy to get houses sold and keep the housing sales numbers up on those fancy charts I always see? Maybe somebody has to do the dirty work and they are happy making 3% on the loan and don't want to get their hands dirty?

I don't know. I just told him to save his money so he could purchase the foreclosures outright. I would rather get a flat flee going for the service they provide. He is taking all the risk in this case. He could take a loss.

Truthplease says

He says they make anywhere from 10K to 40K in the resale and haven't waited more than 4 months to sell a house

They would make more getting paid as a construction worker to work on those houses.

TOT. I guess that is probably true. He didn't tell me what the overhead was for fixing up those foreclosures. He might be pulling very little full profit. I guess it all depends on how deep of a discount you can get the property for at the auction and how much repair it may need. I was just wondering if he should be cautious of anything.

If you think about it, 10K to 40K profit in 4 months is nothing. It takes a lot of labor and materials, I put 9K into my kitchen not even trying. All I wanted to do was buy a new Fridge. That festered into cabinets and granite counter, and it took about 4 weeks to get it all done. Between shopping around and waiting for work to be done.

People are looking closely at the public records, if they see a foreclosed, read distressed house, that sold for 38K just a few short months ago, and now it's listed to match average resale on the market. They get very skeptical as to what is under the paint.

People are pissed at the Flippers and blame them for the bubble and collapse. Most serious buyers only want to offer not a penny over what they visibly justify the flipper has in to the house. "You paid 38K and it looks like you put 20K into it. I'll offer 58K"

While the comparable house that is a resale could easily get the 150K+ it was asking.

I was in the market for three years, I laughed and walked from hundreds of those houses.

FYI, making a 50's era 2br Rancher look like a mini McMansion with the stucco trimmed windows and racing stripe across the front, painted Turkey Shit green and trimmed in an even more horrid color, is not an Improvement, even if the house was a shell when you got it.

It's like the dumb ass flippers are setting out to make their investment look just like all of the empty houses that sitting with the affliction I described. Why don't they revitalize the original look, and try a unique color like White trimmed in any Primary color family? Like the damn thing looked for 40-60 years, before you went to Home Despot and opened up a can of "Fuck it up."

It's like in the eighties RE down turn, it was fashionable to paint houses Rental Yellow trimmed in Brown. Just no accounting for taste when the Lemmings are loose.