Real Estate Flipping

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The housing market has long been the playground for the rich and famous, but now the average American is getting into the real-estate-buying craze.

A new survey by the National Association of Realtors estimates as many as 25 percent of all home buyers never intend to actually live in their new home.

Big Profit Potential

It's called "flipping," where people buy property, wait a few months for it to go up in value and then "flip it," or sell it for an instant profit — sometimes a huge instant profit.

Carlos Lidsky is a Florida attorney who "dabbles" in flipping real estate. In just two years, he and his wife Betti have dabbled their way to nearly $1 million in real-estate profits.

See the rest of this article at: http://abcnews.go.com/GMA/Business/story?id=553568

Flipping has come of age - This is a nice article "For a change".

I'd like to learn more about this. Can you tell me how I can learn to flip real estate?

You have come to the right place to learn. First of all you need to develope a strategy. Lots of people start by wholesaling. I jumped into rehabbing. What is your game plan?
Don

Based on the context of the article, it sounds like they're suggesting/talking about "flipping" as buying low and selling high.

"It's called "flipping," where people buy property, wait a few months for it to go up in value and then "flip it," or sell it for an instant profit -- sometimes a huge instant profit."

This bothers me as it is akin to buying/selling stocks or putting $100 on red or black at the casino. If you don't know what you're doing, it's a complete gamble. If you know what you're doing it leans the odds in your favor, but it's still a very risky short-term investment. In fact that type of mentality helped build and burst the housing bubble.

When I think of "flipping", I think of buying distressed properties and fixing them up for a profit. It involves a great deal of know-how and work, not just signing some documents and then listing/re-listing the property.

I hope there isn't a wave of wanna-be investor's cleaning out their life savings to go prospecting in an area of town they know nothing about. Although, on the bright side, this will create a great opportunity to clean up their mess(es).

Medium logoMichael Seeker MBA, Renting502 | http://www.Renting502.com | Podcast Guest on Show #94

Flipping...flipping...what is this flipping they are talking about . LOL

Originally posted by Michael Siekerka:
Based on the context of the article, it sounds like they're suggesting/talking about "flipping" as buying low and selling high.

"It's called "flipping," where people buy property, wait a few months for it to go up in value and then "flip it," or sell it for an instant profit -- sometimes a huge instant profit."

...

That was very appropriate to do when the entire market was rising to form the bubble - all houses went up in value eventually was the thinking (and that held up to be true for a while there); once the bubble burst, it is now more imperative that flippers actually know what they are doing.

So this is one of those "out of date" strategies that could get somebody into difficulties. As opposed to how flipping is done today, where you have to do improvements to the property in order to achieve the higher sell price.

Good reply, Steve. It's been 'way too many years, and 'way too many houses have come and gone from my portfolio for me to believe that there is much "instant profit" in most housing markets right now. Yes, it is possible, but just like any type of investment, it is dependent on getting a good deal when you buy, and finding the right buyer when you sell. Making a profit by buying and re-selling residential real estate is always risky, in any market, at any time, but especially right now. Just be careful out there...