BiggerPockets

The market is already changing in Michigan. Going "shopping" on the MLS for the next best flip is all but behind us. The competition is more fierce and the deals aren't as lucrative.

As a result, I'm changing how I acquire properties. The REOs were good to me, but there are other avenues. Since I don't plan on changing markets, I have to change my acquisition strategies. (besides, in talking with several BP members at the Summit, I get the sense that these challenges are virtually nationwide).

The next best strategy, as I see it, is to direct market to private owners. These would be distressed owners who have building code violations, out of town landlords, driving neighborhoods to find vacant homes, owners who have filed for divorce (work with local divorce attorneys), Sheriff Sale properties which are in redemption with equity, and target homes which are tied up in probate.

These are just some of the ideas I've come up. As long as the rehabbers adapt to the new landscape, flipping will still be lucrative.

I agree with all the posts on here. In Colorado Springs, CO we are seeing almost no REO's on the MLS. And if there are any, they are getting bid up so high by owner occupants or investors paying too much! I used to do a full rehab where I replaced everything, I just did a test on a house and did a light rehab but have it on the market for less. So far it's working out and I'm getting showings and 2 interested in submitting an offer.

I think investors are going to have to change their strategies and adjust to the market. Direct mail is what I have been doing to accumulate short sale deals. This way I'm in full control of the deal and don't have any competition and no up bidding. My profits are much bigger.

There are always going to be deals out there, investors are around in a good market and bad market. We just need to adapt to the changes and change our acquisition strategies. Right now I'm trying to buy up as many cheap short sale's as possible for rentals before the short sale market disappears, but that won't happen for 3 more years or more.

It's tough out there. It seems like there is more competition out there than ever and less inventory. Shortsales and sheriff sales seems the most viable option.

Jon, a few weeks ago we tied up a lot in Lake Forest, CA, and put it in escrow (it's the ONLY lot available for sale) We drew up some preliminary plans, made up a brochure and put up a "take one" box, not even a sign, just to guage interest. We're now in contract to build a new house! REO's around here are for the most part all gone. Good deals are snapped up fast. Orange County CA is one of the most affluent in the country, and unemployment here is around 7%, with high median incomes, great educational system and every conceivable entertainment available, making it popular for investors, etc.

We will be building more spec buildings, from SFR to Office buildings in well located areas, should anyone be interested!

Are there certain areas in a city that you may think will be the next to rebound? Here in Charlotte I am doing that right now. Lot of old family homes that have just been passed down in a protected historic district that some of us are picking up and renovating.

The future of flipping is good! Flipping takes in a pretty big swath of strategies, IMO, anything that involves acquiring an interest (in whole or in part) and turning that inventory is flipping.

Regulatory constraints are attempting to slow the process, eliminate some strategies and provide more consumer safeguards. Disclosing a purchase price and time held is not that big of a deal when you are really adding value in the market.

I'm not a fan of specialization in any method to acquire inventory, like foreclosures, a good investor can acquire a quality property from any source in the market and buy properties that aren't really identified on the market, for example; from an aging landlord who you spot cleaning out a rental or a wharehouse that has been empty for years. You need to be able to hunt to eat well in RE!

I've never seen a property that could not be improved in some aspect that would increase value. Your future in flipping will be determined by your ability to see how a property can be acquired and changed or remarketed for a profit. Think outside the box!

In my opinion, there will always be plenty of deals to flip, no matter if we're in an up or a down market. Yes the amount of available deals will decrease as the housing market gets better and foreclosures decrease. However, there will always be an abundance of motivated sellers. People will always have situations where they need to sell their home quickly. Therefore, I believe flipping is a great short and long term strategy.

I'm seeing a whole bunch of shadow inventory that just won't come on the market..... Makes me sick seeing the homes just sit there deteriorating.... Overgrown shrubs, backed up gutters, etc, etc... Fortunately they will be outside the scope of owner occupants and that could lead to some great cash flow opportunities..

I'm trying to get lean and ready to soak up everything I can....

If it weren't for the wifey I would unload my personal home and live at my office/apartment in order to increase my borrowing ability...