Question of the Day- Can I flip properites?

[George Roddy, Jr.]

see question I received today-

Hi There,
I went online for answers about real estate investing, and came across your site, so i saved it in my favorite file. First place, i wanted to invest in foreclosures, and sought the advice of a well seasoned real estate agent. She told me that another real estate agent she works with has invested in foreclosures, but at the moment has stopped looking until the job market improves. My agent told me if i buy foreclosures to fix up and flip, the problem is, if other people in that neighborhood lose their jobs, and have to foreclose on their homes it will force down the price of the house i paid cash for and trying to sell to make a profit. Also, i don't want to be a landlord or pay a property management company to collect rent. I just want to buy and flip properties. I have explored all avenues of this business, and have found that this business isn't as easy as some tv real estate investing shows have made it out to be . Do you have any other input on this subject? If so, let me know.

Thank You Very Much,
Deborah S.

[George Roddy, Jr.]

Deborah,

Currently, investing in real estate is a moving target. What worked in the past needs to be modified to produce successful results. I agree with your agent that foreclosures in a subdivision can dramatically effect the prices. We do believe that you can "flip" homes in this market but you will not make as much money as you would in the past. The reason is due to an over supply of homes on the market and reduction in buyer demand (there are fewer qualified buyers). If you use sound systems to find, rehab and liquidate your properties, you can have a profitable business, but again it's not going to be as profitable (you're fighting the market).

One idea would be to "WHOLESALE" your deals instead of REHABBING. You will make less profits but you don't have to pick up a hammer and nails! Your profits are more timely than if you rehab the property AND there is less of a chance for the values to decline because you are selling the property in 30 days instead of 6 months. If you need a great database of hungry "cash-rich" investors to shop your deals to, Roddy.com would be an excellent place to start. We have alot of "Millionaires" that seek quality investment-grade properties in Texas but don't have the time to find them. Roddy.com can connect you with these Millionaires to strike a quick conclusion and put immediate cash in your pocket.


Food for thought!


George Roddy, Jr.
CEO of Roddy.com