Flipping slowing down in Chicago? cook / dupage county

Flipping slowing down in Chicago? cook / dupage county

Investor · Madison, WI · Member since 2015 · 128 posts · 33 votes

Hey everyone,

I hope this discussion will reach people in the Chicago land area.

As the title states my question is if in the general area of chicago, is flipping getting more difficult?  

I want to ask this in 2 ways. 

1. Have you noticed a lacking number of deals out there since this past winter? I understand the deals are 'always out there' but to the not-so-well-connected, it appears as if the deals out there arent deals at all. Which kind of leads to my next question..

2. Ive noticed that not only the number of foreclosures is down (which is good in the big picture of the American people and economy) but those that are out there have such a small margin for asking foreclosure price and regular sale price. Is the ARV increasing to compensate?

How many others ave noticed this? 

Or maybe that I have shifted my focus to getting my broker license for the past few months that im just 'out of the loop'

The real reason I ask this is because im kind of in a personal dilema of where do I shift my focus to at this specific time? Im of the mind that I can use my working time to  search, contact, analyze, etc properties for flips or I can use that time and energy for networking, finding leads, establishing my brand, etc

--I do expect this to be somewhat biased as this is a real estate investors website.

Look forward to hearing some input on this!

Cheers!

0Reply
15 views

5 Replies

Jump to latestLatest
  • Contractor · Woodridge, IL · Member since 2014 · 176 posts · 10 votes
    10y
    I am a DuPage/cook county flipper. In my opinion there are plenty of deals for all of us out there. Spend most of your time searching and making direct contact with the source. You will find the best deals this way with the largest margins. Most of my deals are off market. Just my opinion. Good luck!
  • Investor · Chicago, IL - Illinois · Member since 2015 · 33 posts · 13 votes
    10y

    We buy apartment buildings, renovate, lease and hold or sell.  We used to be longer term hold guys but have recently started flipping everything.  Yes, the acquisitions for a cash yield are getting harder.  However, the flips are still there b/c back end sale prices are really high.  To the point where that is actually making me a bit nervous.  How high can this market get?  We buy most of our buildings on the North and Northwest sides of Chicago.  

  • Real Estate Entrepreneur · Vero Beach, FL · Member since 2015 · 39 posts · 6 votes
    10y

    "most deals are off market" Thats why you need to focus on networking, finding leads, establishing your brand. When you succeed in that, you will succeed in finding deal off market. then you will have opportunities to flip, if you choose....

  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Robert Obniski:

    Hey everyone,

    I hope this discussion will reach people in the Chicago land area.

    As the title states my question is if in the general area of chicago, is flipping getting more difficult?  

    1. Have you noticed a lacking number of deals out there since this past winter? 

    2. Is the ARV increasing to compensate?

    We've noted a significant reduction in the number of HUD foreclosures available for investors to bid on in Cook & the surrounding counties. W/ respect to the rest of the market segments there's a reduction but there are still quite a few deals.

    Regarding increasing ARV? Location, location, location. In the more attractive locations the ARV's are higher. Others the ARV are just about the same which means margins are tighter. The ARVs will also go up as we move into summer.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.