Comments on: Is it Possible to Flip for Profit in Phoenix? http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/ Phoenix real estate | Search Phoenix Homes for sale | Real Estate Blog Sun, 21 Mar 2010 16:39:33 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: gturzahttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-59633 gturza Sun, 23 Aug 2009 11:55:01 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-59633 I heard that even if you do find a good buyer to flip it to that government regulation prohibits the sale. You have to wait six months. True? I heard that even if you do find a good buyer to flip it to that government regulation prohibits the sale. You have to wait six months. True?

]]> By: gturzahttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-58831 gturza Sun, 23 Aug 2009 09:55:01 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-58831 I heard that even if you do find a good buyer to flip it to that government regulation prohibits the sale. You have to wait six months. True? I heard that even if you do find a good buyer to flip it to that government regulation prohibits the sale. You have to wait six months. True?

]]> By: Fredhttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40526 Fred Tue, 14 Oct 2008 07:34:15 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40526 to all you Flippers out there, Is there a timeframe legally from buying a property at the courthouse at 130,000 and selling right away for 175,000 two days later, how long should the wait be? and will the buyer have any problems buying on a conventional loan 90LTV? Could this a problem for seller or buyer? Thank you to all you Flippers out there, Is there a timeframe legally from buying a property at the courthouse at 130,000 and selling right away for 175,000 two days later, how long should the wait be? and will the buyer have any problems buying on a conventional loan 90LTV? Could this a problem for seller or buyer?
Thank you

]]> By: bill@IT Governancehttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40295 bill@IT Governance Sat, 04 Oct 2008 12:33:46 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40295 Isn't it flipping for profit that got us into a lot of the housing mess we are currently in? Beware of catching falling knives as they say - while those deals look great now they aren't so good if we go into a great depression. Isn’t it flipping for profit that got us into a lot of the housing mess we are currently in? Beware of catching falling knives as they say – while those deals look great now they aren’t so good if we go into a great depression.

]]> By: Paul Slaybaughhttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40286 Paul Slaybaugh Fri, 03 Oct 2008 21:00:02 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40286 Excellent post, Jay. Flips should really be long term propositions in most instances right now. I like the strategy of finding something that is rentable with a little paint and carpet, while saving the major renovations for later. As long as the deal is sweet enough to pencil at a break-even (rent to mortgage), you can keep a tenant indefinitely. When market conditions turn around, then you can transition from rental to flip. Obviously not a great strategy for immediate income, but flipping for immediate profit is a fool's errand at present. Better to fill the pipeline with rentals that can become flips down the line.*<em>Paul Slaybaughs last blog post..<a href="http://www.scottsdalehousepeddler.com/blogsview/718196/Where-Should-You-Invest">Where Should You Invest Your Last Six Bucks?</a></em></abbr> Excellent post, Jay. Flips should really be long term propositions in most instances right now. I like the strategy of finding something that is rentable with a little paint and carpet, while saving the major renovations for later. As long as the deal is sweet enough to pencil at a break-even (rent to mortgage), you can keep a tenant indefinitely. When market conditions turn around, then you can transition from rental to flip. Obviously not a great strategy for immediate income, but flipping for immediate profit is a fool’s errand at present. Better to fill the pipeline with rentals that can become flips down the line.

*Paul Slaybaughs last blog post..Where Should You Invest Your Last Six Bucks?

]]> By: Tucson Michaelhttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40270 Tucson Michael Thu, 02 Oct 2008 20:19:38 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40270 I agree I think the buys are for sure out there but when it comes to selling its almost impossible. Plus there is a lot of buyer physiology if they look up the fact that you bought it for x and are selling for y the buyer may decide that they will try to really lowball you down. There's just way too much competition on the sell side right now for flipping to work out. I agree I think the buys are for sure out there but when it comes to selling its almost impossible. Plus there is a lot of buyer physiology if they look up the fact that you bought it for x and are selling for y the buyer may decide that they will try to really lowball you down. There’s just way too much competition on the sell side right now for flipping to work out.

]]> By: Edge@The Foreclosure and Credit Crisishttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40266 Edge@The Foreclosure and Credit Crisis Thu, 02 Oct 2008 17:15:33 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40266 Agree and disagree Jon. I think the term is put out there more to indirectly point to the fact that financing and timelines are tight and that should be kept in mind. I can see where the annoyance comes in, but with so many short sales not being approved now, it seems timing is of the essence.As far as flipping, as a huge fan of Property Ladder (my guilty pleasure), I often think about this, but as you mentioned, the work needed is usually the killer unless you were a general contractor in your past life.Even then, I don't see flipping as really possible given the market inventory as Jay mentioned. Finding a property that would easily cash flow and renting it out, now that's another story. Agree and disagree Jon. I think the term is put out there more to indirectly point to the fact that financing and timelines are tight and that should be kept in mind. I can see where the annoyance comes in, but with so many short sales not being approved now, it seems timing is of the essence.

As far as flipping, as a huge fan of Property Ladder (my guilty pleasure), I often think about this, but as you mentioned, the work needed is usually the killer unless you were a general contractor in your past life.

Even then, I don’t see flipping as really possible given the market inventory as Jay mentioned. Finding a property that would easily cash flow and renting it out, now that’s another story.

]]> By: Jon Griffithhttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40258 Jon Griffith Thu, 02 Oct 2008 06:30:47 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40258 One of the most frustrating things that I see today in the Phoenix market is the overuse of the term "Short Sale." When we as Realtors provide a BPO or Comparative Market Analysis, we typically use the Sold prices to determine the comparables. If there aren't enough solds, and the last sold was old enough, then we get stuck using active listings to determine the "comps."If I list a property for a seller who owes more than the home is worth, and I call it a short sale, aren't I saying that this home has been sold short? Aren't I assuming that the bank will approve my price opinion? Isn't it absolutely a disservice to the rest of the professional community to bill a listing as a "short sale" when the bank hasn't even approved the sale short of what's owed? I think we need to change this problem. Homes that are not approved are not short sales any more than the value of your home is the same as the asking price of the next door neighbor's exclusive listing. It drives me mad.If your listing isn't approved by the bank, then it's not a short sale. It's a "lender approval required." And, furthermore, I believe that pricing the property arbitrarily below obvious market value to attract offers is a total waste of everyone's time.There, I have vented now. I wonder how many of you agree or disagree. In fact, I'll post a poll on my site if you'd like to help me collect some useful data. Thanks Jay!!!! You're the best.http://www.realscottsdaleliving.com One of the most frustrating things that I see today in the Phoenix market is the overuse of the term “Short Sale.” When we as Realtors provide a BPO or Comparative Market Analysis, we typically use the Sold prices to determine the comparables. If there aren’t enough solds, and the last sold was old enough, then we get stuck using active listings to determine the “comps.”

If I list a property for a seller who owes more than the home is worth, and I call it a short sale, aren’t I saying that this home has been sold short? Aren’t I assuming that the bank will approve my price opinion? Isn’t it absolutely a disservice to the rest of the professional community to bill a listing as a “short sale” when the bank hasn’t even approved the sale short of what’s owed? I think we need to change this problem. Homes that are not approved are not short sales any more than the value of your home is the same as the asking price of the next door neighbor’s exclusive listing. It drives me mad.

If your listing isn’t approved by the bank, then it’s not a short sale. It’s a “lender approval required.” And, furthermore, I believe that pricing the property arbitrarily below obvious market value to attract offers is a total waste of everyone’s time.

There, I have vented now. I wonder how many of you agree or disagree. In fact, I’ll post a poll on my site if you’d like to help me collect some useful data. Thanks Jay!!!! You’re the best.

http://www.realscottsdaleliving.com

]]> By: Linseyhttp://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/#comment-40256 Linsey Thu, 02 Oct 2008 05:54:24 +0000 http://www.phoenixrealestateguy.com/is-it-possible-to-flip-for-profit-in-phoenix/1293#comment-40256 I might add one more element about that flipping process. When you buy low - you've just set the new bar for the neighborhood. In a declining market, buyers are looking at the last closed comps and looking for a 'deal' beyond that. I would be hard pressed to find a buyer that would be willing to pay significantly more than a seller paid only 3 months ago for the same property. In addition, an appraiser is going to struggle to bring in a much higher price than the comp that you just created in a 'bargain purchase'.*<em>Linseys last blog post..<a href="http://www.ocrealestatevoice.com/general/lower-our-property-taxes/">Honey, Can We Lower Our Property Taxes?</a></em></abbr> I might add one more element about that flipping process. When you buy low – you’ve just set the new bar for the neighborhood. In a declining market, buyers are looking at the last closed comps and looking for a ‘deal’ beyond that. I would be hard pressed to find a buyer that would be willing to pay significantly more than a seller paid only 3 months ago for the same property. In addition, an appraiser is going to struggle to bring in a much higher price than the comp that you just created in a ‘bargain purchase’.

*Linseys last blog post..Honey, Can We Lower Our Property Taxes?

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