Comments on: Flipping / flopping?

By: AJC

AJC — Thu, 24 Jul 2008 16:28:13 +0000

@ Nedege – even builders who used to buy a block, tear down the old and put up a new ‘spec. home’ (then look for a buyer) are forced to simply bid on contracts … or, buy a block and wait for a buyer before they even start to build (this still carries holding cost, so is risky in the current market).

By: Nadege

Nadege — Thu, 24 Jul 2008 10:24:41 +0000

This market correcting is “forcing” real estate investors to think of buying and flipping more like a true business instead of a get rich quick opportunity.

Great article.

By: AJC

AJC — Mon, 21 Jul 2008 16:10:40 +0000

@ Josh – Provided that you have a backup/exit plan IF timing catches you short … one of my employees did a flip JUST as the market turned; cost him $40k++ His mistake: he didn’t check that the association rules in the subdivision precluded renting.

By: Josh

Josh — Mon, 21 Jul 2008 14:20:42 +0000

I guess thats why I like the idea of flipping. It’s a constant enter and exit, so if you can turn a house over in a matter of months, the risk of a downward market correction is diverted.

By: AJC

AJC — Fri, 18 Jul 2008 22:17:29 +0000

@ Diane – Good advice in your last line! Thanks.

By: Diane Eats the Elephant

Diane Eats the Elephant — Fri, 18 Jul 2008 21:14:35 +0000

Nice easy-to-read description of the basic pitfalls to avoid. I know my ex-fil, an ENT & surgeon, made his money in real estate and even lost $1M one year and recovered. Not sure how they are faring now as I think most is out of real estate and ranching/orchards and more into stocks, but they didn’t confide in me before, so I could be wrong about that even. Worst advice I ever followed was his. WHen I asked about Microsoft (then selling about $42 and not yet discovered), he advised GM and Ford and DRIPs, nice conservative things. But I was 30 and he was 60-ish, so the opposite applied. Yet, when he and his brother bought MS and Intel (another I’d asked his opinion about), he didn’t bother to tell me. I am glad to read this no-nonsense and business-like analysis of what can happen when one tries to deal with growth and other contingencies many may be prone to treat as “when/if I get there.” Every plan should have an exit strategy.