patrick.net

They are the primary reason that as soon as the tax incentive dries up come tax day, "ALL" real estate is going to fall %20 or more across the board, by August. Yes even the 22?K houses I'm looking at and either may or may not purchase by then.

That's why I'm shopping for best sq footage to dollar ratio I can find, and I'm bidding under that.

These flipper Clowns are only fooling them selves. The hundreds of 35, 40 and 50K crap hole ranches they've been buying up in mass quantities, to stave off March '09 falling prices. Then listed them back as 180K-225K are now listing for 70K-90K, seems people aren't as dumb as they thought. As it turns out, these new batch of flippers have been taking the mini bus.

So back the question:

What profit margin at the min are these flippers looking to make on their investment?

Anyone have experience buying from these types of sellers?

I've just started watching certain homes on Redfin so I'll have a better understanding on their final sales prices soon.

Thanks

Not sure about the %'s but if you are a flipper that requires a rep, then you're looking at probably 6-9% in realtors fees, and the carrying cost of holding these places for several months (100% interest payments essentially). Not including the reno costs.

I'm guessing the 15-25% range seems reasonable.

Take a look at the purchase history of this property.

http://www.redfin.com/VA/Alexandria/6547-Riefton-Ct-22310/home/9782680

Interesting, isn't it?
This certainly is a flipper, and very interesting one in very strange loaction.

I'm guessing some flippers are like mechanics who sell used cars. When they don't have work to perform for others, they buy cars that need work and then resell them once they've been fixed. For a contractor, it's probably much the same, if they've got no jobs, but time to burn, why not pick up a place where they can add value with their work.

the REwhore flippers are the ones that pushed for the removal of the time between sales that FHA used to want to see. They got their wish, so now they can flip to FHA buyers.

But, here in central mexifornia, the new bubble support tool is the USDA 0% down loan for hispanics. It's a real gem. Welcome to Bubble 2.0, the flat spot before the next drop.

"we have multiple buyers, all cash, and above asking" is what they are saying.
"we need these gov handout programs to help buyers" is also what they are saying.
lol ... REwhores is sooo stuuupid.

Seaside, that's a very similar post to what I'm seeing in the BayArea and in Sacramento.

So the question I have for this board is the flipper bought at $280K and is listing at $424K, a 51% profit on his investment.

The guy has put in:

New appliances
New hardwood
New Carpet
Granite Counter tops
New Paint

I'm going to guess (PLEASE correct me) that they put $35,000 into the home to satisfy all the upgrades and work done.

Total commitment: $315K, listed at $424K, profit of 34%.

What sort of profit % is this guy looking to make on his investment at a MINIMUM?

The board seems to think that at a min he is looking to make between 10% and 15%.

So an offer like $354,375 (12.5% over cost) would most likely be this guys floor price.

*Note I didn't take into consideration comps, holding time, etc., just trying to see what sort of min % profit flippers are looking to take on average. I know every flipper is different.

Thanks

I think holding time, and general closing costs should be considered in there, as they could chew through quite a few % points in your estimates. If they end up with the place on the market for 2-4 months, the holding costs could be significant for them.

I think a minimum holding time of 1 month to reno, 1 month to sell would be minimum to add in there.

If the reno includes replacing cabinets and what not in the kitchen, the reno number could be significantly higher.