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‘Home Flipping’ May Lead To Quick Returns In Real Estate Market

August 25, 2010 by  

'Home flipping' may lead to quick returns in real estate marketThe economy may be improving, but it turns out there may still be opportunities to multiply one’s wealth and assets in the field of real estate.

Across the county, including in California, foreclosed homes are being sold at public auctions held daily on the steps of local courthouses. Attracted by opportunities to make significant profit, individuals as well as professional investors stake out these auctions to snatch eligible properties, according to The Los Angeles Times.

They then renovate the houses and hope to quickly sell them, a practice known as "flipping."

"In crisis there’s opportunity," said Rick Hudson, president of investment firm Prosperity Group Real Estate in Irvine, Calif., quoted by the news provider. "Right now there’s huge opportunity with flipping houses."

Recent national statistics suggest that this trend may continue for some time to come. According to Foreclosure Data Bank, some 2.8 million property owners in the United States had to foreclose this year. In April alone property mortgage lenders served defaults on more than 100,000 households, although this was down 27 percent from the year before.ADNFCR-1961-ID-19928805-ADNFCR

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  • http://PersonalLibertyDigest Jerry Johnson

    Better flip that house quick before:
    - the healthcare bill’s mandated 3.8% tax on all real estate transactions comes into play,
    - and before the healthcare bill’s 3.8% tax on investment income over $200K for individuals and $250K for families comes into play,
    - and before the capital gains tax increase that the nonrenewal of the Bush tax cuts takes hold,
    - and before the healthcare bill’s consideration of employer paid portion of healthcare premiums gets added to your gross income.
    These taxes will cause real estate prices to continue to decline for a generation or more and will destroy the real estate brokerage business as more sellers will market their properties themselves.

    • Norm

      Jerry Johnson
      When you borrow a trillion dollars to lose a war, somebody’s got to pay the piper.
      Life wasn’t that unbearable before the Bush tax cuts, and we almost balanced the budget for a change.
      As far as the housing crisis, it is a man made disaster. Some people will lose but others will win.

  • http://gmail i41

    With a 27% down turn of prices, are you trying to deplete your accounts. Sound like the socialist democrat plan, spend lots of money to say, with out creating something, to say nothing of maintaining the purchased property. People don’t think our ecomony is turning around, it is more like going off a ski jump, we dropped some elevation, we are on the sail off point now, then grab you ankles when you hit the air and free fall. It will not stop until the values are barely 1/3 of prices today in 2 years, then values will stabilize. So in 7-8 years at the earlist, before values will inch up a little maybe, but most owners are going to be broke and living in bed bug roosts in government housing. The socialist democrats will have their EU styled government and complete government control of any business sector , it might even take 2 decades to recover or it may never. Because government will own everything and people will be government employees and some desk jockey will tell you hw much money you need..

  • Brenda Swan

    your comments are the reason to make sure and vote out all libal and rinos in Nov. if you have not been paying attention to politics now is the time. I follow Mark Levin, Rush, and watch Fox news. I knew before the last election what and who our pres. was…

  • eddie47d

    The flippers are like those who play the stock market.Some make a bundle and some loose their butts.Either one can help or hurt the economy.

  • http://gmail i41

    Brenda, yes I agree with you, one of my Senator’s who speaks glowingly of the Freak Franks/ Dribbling Dodd bill as being a wonderful bill. I asked his office, if he was infected with canverous, or just brain dead and on life support. I still don’t get an answer, of course as a socialist democrat he votes for any thing Omoron wants. I see McNutt got back in, what a rino. But at least Spector the spook will be gone. Home flipping is just a ponsi scheme to really screw the followers of the overeducate clowns like pay no taxes socialist democrats. Wonder if the tried making money on ostriches, the prefect bird meat?

  • Chuck

    I have not checked this recently, but, at one time, the average interval between home resales was three to five years. With a 7% resale commissin and broker fee, resale prices had to increase to cover the cost of the sale. Was this the real driver behind the inflated cost of housing? Were banks and mortgage companies complacent in this inflationary spiral? We apparently learned nothing from the S&L debacle as a precursor to the current housing bubble rupture and now the financial sector is promoting another bubble in the form of Cap and Trade. As Earl Pitts would say, “Wake up America!”

    I believe that any of us who raise to the government bait of Cash for Clunkers, FEMA assistance, energy tax credits, ecess unemployment benefits, etc. are a part of the problem. If we turned our collective backs on these cook book plans that drain the treasury, we might be better off.

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