By now everyone has probably seen one of these house flipping tv shows, where it appears to be regular people (with great big personalities) buying foreclosure homes, and flipping them for a 5 figure profit in 4-5 weeks…
They make it look so easy. It probably drives you a little nuts… making you think you are just watching the money train roll on by… but, is the business of buying and profiting from foreclosures really that easy for the every day person like you and I ???
My guess is a big “NO”!!! It is definitely NOT a money train that you just have to grab on to as it rolls on by…
First of all, did you know that many of the best foreclosure deals are sold on the county courthouse steps in an auction format ?
Did you know that at this auction, CASH is required ? No, you cannot bring a pre-qual letter 
The bottom line here… there is usually a select group of CASH RICH foreclosure buyers that are going to scoop up any REAL BARGAINS at this auction… and if you don’t have CASH, you can’t participate here. Do you have $175,000.00 in cash to buy that 3/2 SFR down the street at the courthouse auction ?
You do ? Great… ok then, now comes more good news… you have to buy that house without ever seeing the inside. In most cases, you will have to buy the house (with cash) without ever inspecting anything… anyone thinking about the CAT SMELLY HOUSE that Armando Montelongo bought and the house smelled like dead cats and feces ? How would you like to have paid $175k in cash for that house ? Last I heard… on comments from the blog: www.FlipThisLawsuit.com … was that the house still hasnt sold… how would you like to have your cash tied up in that smelly house… having to legally disclose that issue to any potential buyer…
Don’t get me wrong… I am not trying to discourage anyone from investing in real estate or investing in foreclosures… what I am trying to do… is point out some real issues that the average person can face when trying to survive in this business.
FLIP ON FLIPPERS!
28 Comments
hey this guy is finally speaking the truth to all us that need to see what is really going on with flipping houses. we need to know and i hope people will be honest and tell us what they have experienced. keep up the good work!
Man, I used to have that kind of cash. If I had only know I could have bought a smelly rat/cat invested money pit. That would have been a better investment :).
You are so right Tim…
lol.
I know of only real estate developers doing something like that. They have the cash on hand and the resources to buy a clunker and renovate it into a sell-able property!!
Very true. The saying goes… it takes money to make money…
it’s on the tv all the time here too, there’s more coverage of people getting in way over their heads though. thinking they can convert a barn into a farmhouse wonder in 6 weeks with a couple thousand!
great blog!
I’ve always found flipping of houses interesting and thank you for your site!</p>
I love those house flipping shows. Especially the one back east, that guy and the chick with the little dogs crack me up.
I work with realtor’s every day doing their marketing, they are a special breed. Love ‘em!
i love the simplicity of this site.
I always look at realty tips, for the future of course.
So true, and it’s a good thing someone out there is saying this. Too many people are seeing what they think is easy money in real estate and diving right in without knowing the risks.
Like you said, that’s not to discourage people from investing in property, it’s a great investment, but be sure you know what the risks are, as with any investments, before you throw your money away. It would be like buying a stock without doing research into the company.
Very nice blog, very niche topic, but I love your writing style. Although I don’t really cover Real Estate on my blog, it’s the sort of thing everyone’s interested in (including me) so I’d love for you to submit a piece for my regular Submission Sunday slot. Drop me an email if you’re keen.
You’ve got a fairly interesting site here too. Since I live in Australia, some of the details you talk about here are probably not very relavant to me, but the broader pictures could be.
Interesting info here. Last time I was visiting the folks in the UK I watched a Brit show where people got houses cheap then tried to do them up and turn them around for a profit. None of them made out like bandits.
I also must say that I love THIS blog. Very informative. I’m a real estate broker. You’re addressing issues no one really wants to talk about. Thanks.
Your site is very informative and I have bookmarked it for future returns.
I have to say that I love “Flip this house”, and I am always amazed at how much money they paid for the little run down shacks. You can’t get a roach motel in LA for under $350K. I have never seen a cheap house on that show. But I am inspired by the transformation of the homes.
Great info. I need to show this to my friend in Las Vegas. I keep telling her it is a dead end but she seems to sniff out scams and ripoffs quicker then anyone I have ever seen. A sucker is born every minute. She won’t listen to me maybe if she see this she will. Those stupid shows on T.V. mislead many.
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Hi Robert,
I was actually thinking of flipping houses, but in Singapore, the government doesn’t encourage speculation. It slaps heavy taxes for that. ^-^
I hope to learn more from you and use it to make big bucks. hehe…
Your blog is great.And I see a lot of comments too in your posts.
I would like to exchange links with you.
Do you agree on that?
Sure Yu Chan Kit, I just added you to my BLOGROLL
Looks like you have some interesting stuff here!
Hi Mr Mandrake. Nice blog you have here too… Good job! Have a nice day…
Thanks for stopping by and leaving such a nice comment!
Thanks…
AubreyJ………
The guys who bought our previous house a month ago tomorrow did so with the intentions of flipping it. Knowing the market they are more likely to lose money instead. OTOH while we bought that house with the intentions of living there for quite some time, we had the opportunity to move to a better location. After three days short of four years we made a tidy profit off the house! So flipping depends on house value, location and current housing market conditions.
Hi Robert - I live in England so when I saw your blog, it took me a while to work out what house flipping actually was. Slang terms from the States usually come across here pretty quickly these days so I’m surprised that this one hasn’t arrived yet. We just call it ‘doing up’ houses, which doesn’t sound anything like as slick. I guess my wife and I flip houses ourselves in our own small way. We buy them to live in but it usually turns out that the previous occupant’s fixing up skills didn’t extend beyond parcel tape, so by the time we’ve made them livable, they’re usually worth a bit more than we paid for them. Good luck with your blog and with your investments!
hello!
I just recently bought a house and am finding your blog very interesting. I hope to see you again soon!
Check it out, here’s a great article on what’s going on and what’s coming in the foreclosure market. The opportunity is coming but not here yet.
Can anyone say “Orange county 3bed 2ba for under 300k”
Probably here sooner than you know it.
http://biz.yahoo.com/cnnm/070813/061807_foreclosures_hardest_hit_zips.html?.v=7&.pf=loans
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Online Real Estate Appraisals…
I couldn’t understand some parts of this article, but it sounds interesting…
singapore stock exchange…
I Googled for something completely different, but found your page…and have to say thanks. nice read….
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