They say that J. Paul Getty knew it was time to get out of the market when his shoe-shine boy started giving him stock tips.
I should have known the real estate market would implode when I overheard the night stock guy at the grocery store talking to his fellow stocker about how he was securing financing on the house he was 'flipping'.
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*snort* Ain't that the truth.
That, or the deluge of "reality" shows called "Flip This House" or some equally disgusting variant.
There are a lot of folks here in Charlotte getting into the whole house flipping thing. (Also many folks who couldn't possibly afford grand expensive housing getting foreclosed as mentioned in your previous posting, but that's a tale for another time.)
Most of those folks I've encountered of the breed do seem to be the types who assume it will be quick, fun, easy, relatively cheap, and probably finished in 30 minutes to an hour just like the shows they've watched. Then sold for huge profits.
2 thoughts here, one, after helping a friend and his wife- along with help from other friends- do some fixer upper stuff to the house they could afford to purchase, I wish some of the flippers could have joined us for just the first day. The work was not quick, nor easy, nor fun and certainly wasn't finished in 30 minutes to an hour. Lots of help from friends did make it relatively cheaper than say hiring, um, professional help. And the results were favorable in the end.
Thought number two, I don't assume I would have been a World War Two air combat ace just because I've watched the History Channel so folks don't assume you're Bob Vila because you've watched a show or two like JT mentioned.
Just my rambling 2 cents.
*Purchased for themselves and to live in, not to flip. Just wanted to clear that up.
If you're flipping houses now, you're the sucker that's going to be left holding the bag.
As someone in the construction industry I'm often asked to help friends with stuff around the house. If it's the house they live in and they're in a bind financially I don't mind a bit. If it's to make a profit, then they'll find themselves with one less friend shortly.
My problem is I see the catastrophe coming too far in advance and don't get in and make the money when I should. Oh well, I may never be rich, but I'll never be poor either.
HGTV with all those house flip how-to shows are opium for the Mrs. Only an unstudied person would think that's an easy fast buck. There are lots of factors to weigh, and the market has gotten tight enough that there are sore few bargains that merit the improvements and price increases.
Here is another saying to take to the bank. "The time to make money, is when blood is running in the street." Baron Rothschild.
We aren't quite there, but almost.
If you have a hankerin' to do any RE investing the time may be here (or it is coming soon.)
Not flipping. Buy, Hold, Rent.
I built my own house, therefore have never been tempted to "flip."
1. When you build your own house, you are never done. 2. When you are finished, you are qualified to begin. 3. 20 years later, people who used to work for you will still ask "Still working on that house?" Correct answer: No, I quit working on it.
BOB VILA? Bob "What are we doing today, Norm?" Vila? Never saw him do a lick of work.
Now, a Yuppie Flipper: they don't actually work on houses. They buy a *new* house, wait for the market to go up, and sell to gain the down payment for the next new house. In the early Clinton years there was a brief hiccup, and a bubble-rider I knew strategized that he might have to buy a cheaper new house. I gagged.
Blood in the streets.
Yep. The time to buy your dream home is after this speculation bubble completely craters at the end of its mach 3 nose dive.
And now a moment with Bob Vila from "This Old Houseparty" :
"Let's see what my homeboy Norm is up to in his crib."
"Oh, hi, Bob. I'm just done reinforcing this miniature stage to withstand the rigors of your stompin' thumpin' hip hop DJ. And, in case you get a mega star come by like a Flava Flav, I've added this hidden box for that big clock which I think is a nice detail."
"Def, Norm."
"Word, Bob."
"If you're flipping houses now, you're the sucker that's going to be left holding the bag."
Truer words were never spoken. Honestly, Tam hit it right on the money with the "Stock tip" comment, that if anything understates the matter - I knew the "flipping" game was done the first time I heard mention of it on television. Why? Because every schmuck with a get rich quick dream is now going to be doing it. I actually thought about doing it almost 6 years ago, with a house that was GREATLY undervalued(by like half of what it should have been) at the time, with an oversized lot. The idea was to buy the house, subdivide the lot, and sell the other lot to a builder, thus getting a house for free. Unfortunately, I didn't have the money at the time.
My mother sold three investment/rental properties last year, and bought herself a new home ... a quarter of the 11th floor of a 12 story condo tower in downtown PDX ... literally a million dollar view. Paid for it in cash.
She will probably be able to buy back those rental properties for 10 cents on the dollar later this year.
Being a sheep can be ( and should be ) painful.
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