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they pile into the market,
Pushing out people looking for a place to live and driving prices beyond a point of affordability. No surprise then that it does eventually go wrong. It defies logic.
Days of short term flipping are gone for sure. The game was over pretty much once banks decided not to foreclose anymore.
The game was over pretty much once banks decided not to foreclose anymore.
I would suggest the opposite.
Once they closed the tap, getting a cheap home became impossible. Flippers had all cash, and someone bringing a mortgage couldn't match because it couldn't get appraised at the price the flippers offered in cash.
If all homes were forclosed, there would be so many, flippers would find opportunities and provide them to those who wanted a newly skinned home, and modest entry level buyers could also get thiers with a mortgage and put thier own equity in.
The shortage eliminated the latter.
I would suggest the opposite.
I disagree. Buying with cash @ auctions was the best bang for the buck investors can ever get, while it lasted.
http://investmentwatchblog.com/the-home-flipping-bubble-implodes/
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