[FlyersFan]

Originally Posted by las vegas drunk

They made money at first, but these are also the same people who had 4 or 5 properties at the end that they walked away from. As I said earlier, they were one of the main instigators of the current housing crisis.

If you think legitimate flippers........people who purchased homes with their own funds that need renovation and then renovated them and sold for a profit are the reason this country has financial problems.......you either don't know what your talking about and truly are a Las Vegas drunk or have your terminology mixed up.

[las vegas drunk]

Originally Posted by FlyersFan

If you think legitimate flippers........people who purchased homes with their own funds that need renovation and then renovated them and sold for a profit are the reason this country has financial problems.......you either don't know what your talking about and truly are a Las Vegas drunk or have your terminology mixed up.

A lot of flippers did not pay with cash, they financed. That is what I was referring too. I do not have a problem with a flipper who paid only in cash as they took all the risk. You did not say this (cash only) until now. What you are currently saying I agree with 100%.

[FlyersFan]

Originally Posted by movinmomma

It's the just buying it cheap and then selling it for a high mark up that makes me feel like it is a huge scam.

I hate to inform you but buying low and selling high is the way capitalism is supposed to work. No one buys high and sells low. Theres no use bashing the people who succeed in business just because you don't have the backbone to take the same risks they do ?

[lisa99]

Flippers don't get a mortgage. The goal is to find a house cheap, fix it up and resell it as quickly as possible (sometimes in less than a month).

Also please remember that the buyer of the renovated properties are protected in today's maket by the appraisal. In the old days appraisers could be told where to value the house...not so anymore. Strict rules govern appraisals, so if the flipper overprices the house he won't be able to sell it.

Real estate investing in the flipping segment is a tough business. It takes a lot of cash and nerves of steel because there is A LOT of risk involved.

And one last thing while I'm on my soapbox

Good, honest real estate investors provide a valuable service to a community. They go in and buy NASTY houses that the typical home buyer woudn't touch. They clean crap off the walls and floors (you don't usually want to know what the crap is), paint, carpet, fix holes...the list goes on. Once the house is up to the typical buyer's standards, they put it on the market, make their profit and move on to the next house.

[lisa99]

The other side of the real estate investor coin is the person who buys houses to hold and rent.

They do get a mortgage and plan to hold the property for a period of time to get the cash flow and appreciation of the property over time.

THESE are the investors that helped cause the housing bubble to detonate. People saw the escalating appreciation and jumped in with both feet (and little to no experience in the rental market). Many were able to get 4 and 5 loans with no money down, adjustable rate and/or interest only loans, no proof of income, no business plan, etc.

Once their rates started adjusting they couldn't refinance because the values had dropped so far...so they just started walking away. In Texas, 1/3 of all foreclosures are 'investors' who have walked away from their rental properites.

So for this type of investor I AGREE WHOLEHEARTEDLY that they helped get us all where we are today in this mess of an economy.

[FlyersFan]

Originally Posted by lisa99

Flippers don't get a mortgage. The goal is to find a house cheap, fix it up and resell it as quickly as possible (sometimes in less than a month).
Actually.....in many cases they do get a mortgage thus the reason that they renovate quickly because they don't wish to be making costly mortgage/interest payments.

Also please remember that the buyer of the renovated properties are protected in today's maket by the appraisal. In the old days appraisers could be told where to value the house...not so anymore. Strict rules govern appraisals, so if the flipper overprices the house he won't be able to sell it.

Real estate investing in the flipping segment is a tough business. It takes a lot of cash and nerves of steel because there is A LOT of risk involved.

And one last thing while I'm on my soapbox

Good, honest real estate investors provide a valuable service to a community. They go in and buy NASTY houses that the typical home buyer woudn't touch. They clean crap off the walls and floors (you don't usually want to know what the crap is), paint, carpet, fix holes...the list goes on. Once the house is up to the typical buyer's standards, they put it on the market, make their profit and move on to the next house.

I agree 100% but it still seems that many wish to bash those that take a risk and make a profile just because they don't have the backbone to take the risk themselves and begrudge those who do and are successful ?

[airics]

i disagree.. those who took a loan and then rented the homes caused this??? nope.. it was those who took a loan that shouldnt have been able to get a loan and then rented the homes that are part of this.. its a business decision.. the banks shouldn't have loaned the money in the first place.. but now they have made it extremely difficult for anyone to get a loan..

[dynimagelv]

I have abaolutely NO problem with those that take a risk and win,,,,I have no problem with those that take a risk and loose and then say...oh well I lost...

I have a MAJOR problem with those that take a risk, loose and then say to the government HELP ME....bail me out....

Ya pays yer money and ya takes yer chances.

[lisa99]

The investors we know don't get mortgages, but there could be a whole other segment that I'm not familiar with!

And I think the sentiment is simply because most don't understand what a flipper really does.

[FlyersFan]

Originally Posted by las vegas drunk

A lot of flippers did not pay with cash, they financed. That is what I was referring too. I do not have a problem with a flipper who paid only in cash as they took all the risk. You did not say this (cash only) until now. What you are currently saying I agree with 100%.

Whether you pay cash or finance its still a risk.....the amount of "flippers" involved in the real estate collapse compared to those who were sold mortgages they couldn't afford is so small its not even comparable.....the real culprit in all of this is the George Bush administration.....they told the banks to lower their loan standards to allow those with poor credit who couldn't normally qualify for a mortage to buy what they couldn't afford and all the lenders found ways to accomplish this.....you can thank George Bush for this mess.....not flippers.