To all the flippers out there, what are you seeing in your markets?

[Alan Asriants]

I am always looking at flipping opportunities but have been really skiddish due to the uncertainties in the market right now. On the one hand, in my market (Phila), well rehabbed and well priced listings are selling at steady prices, in some cases for even more. I do feel like timing is extremely important because buyers are so sensitive to interest rate trends. You put your house up when rates dip - you win, you put it up when they spike - it cuts into your bottom line. I am making offers, but I would say they are offensive. I don't want to find myself in a position 6 moths later with no equity. What are you guys seeing? Are you accounting for more risk when making offers? 

[Scott E.]

There is WAY more inventory in my market... something like 4x the available homes compared to just 1 year ago.

But what I'm seeing is that there is very little quality inventory. A lot of people are throwing their homes up for sale to see if they can get those sky-high 2021 prices. But nobody is paying those prices anymore, because most of these homes are gross and dusty.

If a very nicely finished house flip or spec build hits the market in a prime location, those deals are still selling.

So now more than ever these 2 things are very important for house flippers:

1. Location, location, location

2. Hire a designer

[Bob Stevens]

Quote from @Alan Asriants:

I am always looking at flipping opportunities but have been really skiddish due to the uncertainties in the market right now. On the one hand, in my market (Phila), well rehabbed and well priced listings are selling at steady prices, in some cases for even more. I do feel like timing is extremely important because buyers are so sensitive to interest rate trends. You put your house up when rates dip - you win, you put it up when they spike - it cuts into your bottom line. I am making offers, but I would say they are offensive. I don't want to find myself in a position 6 moths later with no equity. What are you guys seeing? Are you accounting for more risk when making offers? 

 Well, you make your money when you buy. I picked up about 26  ( in contract) over the last 2 weeks. I already have them under contract with buyers. All are about 20- 30 % or so under the value. We will not get less than 10% ( these are all cash deals ) net caps. So when you buy in this scenario up or down in the market, 10- 15% is meaningless. I understand the volume I do is not the norm, ( I have a large network) .its better to do 4 for the right price then 20 where you overpaid, just buy right and all will be good. 

All the best to you 

BTW if your offer is not offensive you offered to much :) 

[Alan Asriants]

Quote from @Bob Stevens:

Quote from @Alan Asriants:

I am always looking at flipping opportunities but have been really skiddish due to the uncertainties in the market right now. On the one hand, in my market (Phila), well rehabbed and well priced listings are selling at steady prices, in some cases for even more. I do feel like timing is extremely important because buyers are so sensitive to interest rate trends. You put your house up when rates dip - you win, you put it up when they spike - it cuts into your bottom line. I am making offers, but I would say they are offensive. I don't want to find myself in a position 6 moths later with no equity. What are you guys seeing? Are you accounting for more risk when making offers? 

 Well, you make your money when you buy. I picked up about 26  ( in contract) over the last 2 weeks. I already have them under contract with buyers. All are about 20- 30 % or so under the value. We will not get less than 10% ( these are all cash deals ) net caps. So when you buy in this scenario up or down in the market, 10- 15% is meaningless. I understand the volume I do is not the norm, ( I have a large network) .its better to do 4 for the right price then 20 where you overpaid, just buy right and all will be good. 

All the best to you 

BTW if your offer is not offensive you offered to much :) 

 Thank you for the tip sir. Will continue giving offense lol

[Alan Asriants]

Quote from @Scott E.:

There is WAY more inventory in my market... something like 4x the available homes compared to just 1 year ago.

But what I'm seeing is that there is very little quality inventory. A lot of people are throwing their homes up for sale to see if they can get those sky-high 2021 prices. But nobody is paying those prices anymore, because most of these homes are gross and dusty.

If a very nicely finished house flip or spec build hits the market in a prime location, those deals are still selling.

So now more than ever these 2 things are very important for house flippers:

1. Location, location, location

2. Hire a designer

 I agree, Buyers are picky and sellers can no longer "throw it on the wall and see if it sticks"
Well priced and well done homes are flying

[Bob Stevens]

Quote from @Alan Asriants:

Quote from @Bob Stevens:

Quote from @Alan Asriants:

I am always looking at flipping opportunities but have been really skiddish due to the uncertainties in the market right now. On the one hand, in my market (Phila), well rehabbed and well priced listings are selling at steady prices, in some cases for even more. I do feel like timing is extremely important because buyers are so sensitive to interest rate trends. You put your house up when rates dip - you win, you put it up when they spike - it cuts into your bottom line. I am making offers, but I would say they are offensive. I don't want to find myself in a position 6 moths later with no equity. What are you guys seeing? Are you accounting for more risk when making offers? 

 Well, you make your money when you buy. I picked up about 26  ( in contract) over the last 2 weeks. I already have them under contract with buyers. All are about 20- 30 % or so under the value. We will not get less than 10% ( these are all cash deals ) net caps. So when you buy in this scenario up or down in the market, 10- 15% is meaningless. I understand the volume I do is not the norm, ( I have a large network) .its better to do 4 for the right price then 20 where you overpaid, just buy right and all will be good. 

All the best to you 

BTW if your offer is not offensive you offered to much :) 

 Thank you for the tip sir. Will continue giving offense lol

 Also NEVER listen to realtors, 

[Eliott Elias]

You either ride the wave or catch a falling knife. The key is to buy with cash flow, if the market turns and you are left in a position with no equity you want the option to rent it out. 

[Leo Kwok]

inventory is still pretty low in Chicagoland suburbs, especially homes that are nicely rehab.... anything that looks nice gets snatched up right away

I think if you present a nice product there should be no shortage of buyers for that!