Alternative titles could be, “Be careful when buying a house on a slope”, or “Flippers can be good guys too”. I saw this at Tom Tarrant’s feed because they used one of his Texas-flip photos in the beginning, though he isn’t featured:
Category Archive: ‘Flips’
This was the former mayor’s house, sold as a short sale in 2010 for $2,400,000.
It was (re)listed for $12,980,000 three weeks ago, and is now marked pending. It was probably assisted by the two La Jolla oceanfront listings that hit the market this week – both over $20,000,000. Or by Romney living next door? Maybe he picked up another piece!
This comment was left at the cnbc site about high-end flipping – I’m seeing the same thing around San Diego:
Article is behind, this is already slowing down here in Orange County – a lot of the properties are starting to sit on the market for awhile.
Thanks to daytrip for sending this in:
Markets with the best return on flips in the second quarter included Pittsburgh (106 percent), New Orleans (76 percent), Baltimore (73 percent), Virginia Beach, Virginia, (66 percent) and Daytona Beach, Florida (63 percent). Metro areas with the highest dollar amount of average gross profit on home flips included San Jose, California, Washington, D.C., San Diego, Los Angeles and Seattle, all of which had an average gross profit of more than $100,000 per flip, according to RealtyTrac.
In areas with fewer new-home tracts, the flippers are helping to fill the void by providing a like-new product – expect them to stick around!
The Valley of the Sun looks like the flipping capital of the USA, but considering the population differences, Douglas County has about 5x more flips per person.
The list of counties with the most flips over the last year (April to March):
Hat tip to reader Just Some Guy for sending in this article:
With home values recovering from the Great Recession and the fix-and-flip market drying up, what’s a real-estate investor to do?
In Southern California, American Coastal Properties is going for the high end.
Instead of focusing on buying bank-owned homes from auction, fixing them and selling them for a gain, the five-partner group formed in 2012 buys older homes in affluent areas like La Jolla, Del Mar and Solana Beach, guts them, adds square footage and hopes to sell them for a gain. It’s a risky business that can reap hundreds of thousands of dollars in rewards, but also can bring unwelcome surprises that take a chunk out of any profit.
The MLS shows that 11% of the 1Q14 residential sales in SD County were REO and short sales, and this article shows 7.1% flips (hat tip to SD Squatter):
Realty Trac, the nation’s leading source for comprehensive housing data, today released its Q1 2014 U.S. Home Flipping Report, which shows 3.7 percent of all U.S. single family home sales were flips — where a home is purchased and subsequently sold again within six months — in the first quarter of 2014, down from 4.1 percent in the fourth quarter of 2013 and down from 6.5 percent in the first quarter of 2013.
Among metro areas with a population of at least 1 million and at least 25 single family homes flipped in the first quarter, those with the highest share of flips in the first quarter were New York (10.2 percent), Jacksonville, Fla., (10.0 percent), San Diego (7.1 percent), Las Vegas (6.7 percent) and Miami (5.9 percent).
Eighty-two percent of all properties flipped in the first quarter were sold to owner-occupants; 18 percent to buyers with a different mailing address than the property. Forty-three percent of all properties flipped in the first quarter were all-cash sales to the new buyer.
How is your sense of value? Can you correctly guess the list price of a home after a three-minute tour? I have t-shirts for those who guess the LP.
Extra note on the video: You’ll hear me say ‘bathroom’ when discussing the deconstruction. The garage used to be its own living unit, with bathroom and kitchen – these owners took it out and made it back into a garage.
Richard just uploaded his new La Costa listing this morning at 8:45am, and three offers are already in hand. It’s going to be a wild 2014!
This typifies today’s flipper – get a deal on a lazy short-sale, add lipstick, boast of the improvements (“completely remodeled from top to bottom’), and shoot for outrageous profit. What a country!
This had been on the MLS for less than 24 hours when I went by around lunchtime today, and people were already all over it. Compared to the rest of the recent offerings around La Jolla, it looks like a deal: