Is there still a market for flipping?

Question

Hello everyone,

Is there still a market for flipping in the Los Angeles area? I’ve been reading negative articles saying that profits have dropped from flip projects. Now I know it’s a case-by-case situation, but is it still profitable to buy houses cheap and flip them? If you’ve noticed a substantial decrease, what would you attribute it to? Thank you!

Geordy Rostad · Answer

@Sarkis Gezalyan

The profits drop when there is such a massive amount of competition. Flippers are overpaying for FOMO (fear of missing out).

Do you want to make money or follow the crowd? If you want to make money, you might want to consider doing something different or somewhere different.

Eric M. · Answer

There is no "article" you will read in the media that has any accurate information or statistics about the business of flipping as it occurs in the real world.

There will be better times, there will be worse times, but there will always be a market for buying a rundown house and fixing it up to resell it.

Greg Dickerson · Answer

@Sarkis Gezalyan real estate is hyper local. There will always be deals in every market during every cycle. It’s all about knowing the market and buying right. You can chase a market down just same as chasing it up.

Cornelius Charles · Answer

@Sarkis Gezalyan

I don't think i'm experienced enough to give you a good answer.  I still don't see how anyone is going to find enough inventory in Southern California. My guess is they will find that the money they are making is not going to be worth their while or worth the risk.

Sarkis Gezalyan · Answer

@Cornelius Charles I read that Zillow is starting to flip houses in the area as well. Being from California, do you see them wiping everyone out or will the “mom and pop” flipper still be able to participate?

Cornelius Charles · Answer

@Sarkis Gezalyan

I think the issue you're going to run into in Southern California is the "buy houses cheap" part.  Not really much reason for a homeowner to sell at a discount in this market when they can most likely get the most money by listing their home.

Is there still a market for flipping?

Most Popular Reply