flipping in a down market

[Jason Gutierrez]

Hi all,

I'm not sure if others are hearing/feeling the same, but it does seem like we are approaching a peak in the housing market. I have no idea if it's 6 months away, 12 months away, or 5 years away but I feel like some of the signs are starting to appear. 

I know that no one knows, and for all we know the peak is 10 years away or more, but just for discussion sake, let's assume that a peak is coming soon - like in the next 6 - 12 months. 

Here are my questions:

If this were true, what would it mean for all the rehabbers/flippers out there?

Does rehabbing and flipping all but go away in a declining market?

Are there flippers that are able to keep flipping successfully in any market?

Thanks for any comments you all might have.

[Chris Vaught]

Jason,

From my understanding, the last recession had a huge impact on some of the flippers here on BP.  For some, they realized they were being a little too careless when the market was hot and relying solely on appreciation - they realized they needed to sharpen their pencils a little more to ensure their numbers were on point.

Other people who are really good flippers here really got their start during the recession. Lots of houses at very low prices. Sellers understand slow markets mean not many offers, so they jump at any offer that comes through. While not many people can find quality deals on the MLS now, I understand they were almost plentiful during the recession.

While the numbers will be slower, there will still be people that need to move for various reasons and if you buy at the right price and sell at the right price to beat the competition, you can still do it.