Shocking News? or not?

G

gld42_IHB

New member
Irvinerenter profiled one condo by the end of 2008. It was sold for $320,000 something two months after. The person who bought it is a flipper, he changed the floor and expanded the loft ( a little), after 4 months later it was sold around $380,000. Only 4 months, the owner made $40,000 after commissions. Is it shocking? are those good old days back? It is true " lot of people will be left without taking advantage of the last 2 years price drop like 2000 dot-com bubble burst?



http://www.redfin.com/CA/Irvine/61-Costero-Aisle-92614/unit-242/home/5588765
 
yes it's true that a lot of people will have missed being able to take advantage of huge price declines and record low interest rates.

it's also true that lots of people will have avoided missing future price declines, losings tons of money and filing for bankruptcy.

Some people win. Some people lose. Who knows which one you could have been.
 
There are plenty of investors out there capitalizing on the housing market. They are very selective about the properties they purchase and they are well-funded. This is really not a place for amateurs with little money but it is being done everyday. It's really not easy to purchase at an auction, let alone buy the right property that has earning potential in just a few months with only minimal repairs/upgrades. While it sounds good, it's pretty scary for the average person.



If you think you can easily do what the person in your example did, keep in mind that most of these people are buying multiple properties and taking somewhat of a gamble on each. If you buy one property and things don't turn out as planned, instead of being up 25K-50K, you could be out that much. They know that they'll most likely be able to make up any losses on other properties. The majority of these people are also contractors or have a group of contractors ready to go to work. It's definitely being done, but it can be more like putting your money on red at the casino, except you have to do a lot of work.
 
The risk is too big even for $40K. The stories of failure are greater than success. The margin of error is too big for amateurs. Even pros with extensive housing knowledge proceed with extreme caution.
 
If they had instead purchased stock of CitiBank or BofA, they would have tripled their money in 4 months, probably less, with no work.
 
[quote author="xoneinax" date=1251695386]If they had instead purchased stock of CitiBank or BofA, they would have tripled their money in 4 months, probably less, with no work.</blockquote>


If I had the superlotto numbers last week, I could take $1 and make it into $200M.
 
I think the message here was stick to what you know and dont try to be something you're not.

If they are property flippers, what would they be doing stock trading?



[quote author="xoneinax" date=1251695386]If they had instead purchased stock of CitiBank or BofA, they would have tripled their money in 4 months, probably less, with no work.</blockquote>
 
So if I gave you the MEGA numbers last week, you would have bought the SUPERLOTTO instead?



[quote author="no_vaseline" date=1251707385][quote author="xoneinax" date=1251695386]If they had instead purchased stock of CitiBank or BofA, they would have tripled their money in 4 months, probably less, with no work.</blockquote>


If I had the superlotto numbers last week, I could take $1 and make it into $200M.</blockquote>
 
You guys misunderstood what I mean. I personally don't think how much money I make by flipping a house or buy BOA /Citi. What I just want to say: It make me feel "the crazy 2004 came back" , like in Turtle Rock, every 4-5 months (maybe longer) in 2004, the housing price went up $50,000 more. You just sat in your house, money could pour in.....
 
Go to Jim the Realtor's site (bubbleinfo.com). He has a couple videos of a lady who is a client of his who did much better than that flipping properties in the past few months. I think one was something like purchasing a house for $150k, putting $40k of work in it, selling it for $306k.
 
The thing is the flipper might not put too much money into that house. lot of condos in that area sell much less than that one. What surprise me is someone bought it at such a high price for 1100 sf condo.
 
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