Have not been able to sell my 2 flips?

Question

So I started these last 2 flips and finished the renovations within 45 days. We put both houses in the MLS and have had to reduce the price by more than 14% and still no offers. I am getting a little scared as my wife is an experienced realtor and is experiencing the same across all her listings in central FL. Our business real estate coach has also shared that the entire US is like that in almost all the markets.

This is the first time this has happened to me.

What are the recommendations?

1. continue to sell

2. DSCR loan

3. other?

Both houses were financed via Hard Money at 11.99%.

This is the first time this has happened to me.

What are the recommendations?

1. continue to sell

2. DSCR loan

3. other?

Both houses were financed via Hard Money at 11.99%.

Travis Main · Answer

Awesome, I'm glad you were able to resolve the problem.

Travis Main · Answer

Hey Carlos,

I'm following up on this, were you able to sell the properties off or refinance out?

Dan H. · Answer

I have been watching the emerald coast RE for over a year.  Not sure if all of these thoughts are relevant to your market.  The market has slowed significantly.   Insurance and the structural inspection and associated repairs resulting from the fallen seaside condos has resulted in huge HOA cost increases.  The condo values have not fallen close to enough to compensate for the increased HOA costs but sellers are reluctant to discount appropriate for the HOA cost increases.

The rising insurance cost coupled with falling condo prices are affecting the non-condo residential RE.

End result is the market price has fallen but more significant the number of units being sold has stagnated.

The reality is prices need to drop significantly before properties will start selling at a significant rate.   This is especially true of condos where the HOA costs have risen so significantly.  Note even an additional 20% price reduction would not compensate in costs for the increased HOA costs.

I suspect you are going to have to cut your profit expectations significantly.

Good luck

Katie Smith · Answer

Hi Carlos! If you are planning to refi I highly recommend not doing any more price drops. When you go to refinance, the lenders will have to base the value on the lowest listed price..

Julie Muse · Answer

I had a few listings sitting around too. This helped me...  I actually pulled off the market for 5 days and re listed them again.  On one, I had an offer within 3 days and the other one a week.  I am not quite sure how to explain why but it worked for me several times.

Caleb Brown · Answer

What's the numbers at? List price, what you have into it, appraised value, potential rent? This will help. FL(what I have seen) has cooled off so DOM would be higher than before. In my area it's hit or miss but there is still many pockets that are moving fast

Carlos Garcia · Answer

I sold one of them and the other one refinance

Scott Esmail · Answer

Keep dropping price and hopefully you sell before you break even. If your going to loose you can take a loss or re fi into 7-8 percent dscr loan and hold for 5 years or so that is what I am seeing with the prepayment. I am in the same boat I have a flip that I thought would sell for $459k I am now down to $419 and will have to drop until it sells. Its best to get out and use the money for something else that you can do better on. The bad news is were in the summer slow down time now and less buyers then last couple months. There is not much buyers out there buying, on the flip side I have been able to buy 4 properties this month that were really good deals.

Jacob Sherman · Answer

I would rent and DSCR start cash flowing and worry about it a few years down the line

Have not been able to sell my 2 flips?

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