Flippers Coming Near You
Posted: October 19, 2009
When the Real Estate market was in its heyday, investors looking to purchase a home, make improvements, and resell the home at a greater value (more commonly referred to as "flippers") had flooded the market in an attempt to make huge profits. Once the Real Estate boom died, however, flipping a property was almost a thing of the past. Now that foreclosed properties are a driving force within the market, however, investors with disposable cash are creeping back onto the scene.
The obvious negative aspect of this trend is that investors are competing with the everyday consumer to buy a home, making it difficult for someone to compete with a cash-only offer on a property. The upside is that these investors are not the "cross your fingers and hope for the best type" - these are the nitty gritty, no-nonsense investors that know exactly what a property needs and how to do it effectively.
Additionally, properties in foreclosure may have extra costs associated with them, such as overdue HOA assessments, tax liens, etc. that a typical buyer may not have the resources to pay off. In this instance, real estate flippers can take on the financial burden and responsibility that a "regular" buyer may not want to hassle with.
While real estate flippers or investment companies may be looked down upon as trying to make a profit, others point out that they are taking on projects that the banks don't want to.
Information courtesy of Florida Realtors and The Palm Beach Post.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
Comments(0)
Post a comment
|
