Flipping Real Estate — Why Les Christie Needs To Shut His Face…
By Jeff Shiller, Esq.
A quote from Les Christie, a CNN Money reporter, the other day:
“Buy a home on the cheap and flip it for big profits? That dream is all but dead.”
All but dead?
Allllllrighty, then. Sorry guys, we’re shuttering the windows, locking the doors and heading out to save the Argentinian Pink Fairy Armadillo from extinction (a dream I’ve had for years).
This reporter tells us that sales of homes to investors have dropped by more than 50% over the past five years, and that the number of flippers has fallen even faster. As proof for his claims, he cites research indicating that this past July, investors flipped only 50% of their purchases, down from 75% a year earlier.
You can read the full article here: http://money.cnn.com/2011/09/29/real_estate/flip_this_house/index.htm
As with many mainstream reporters, he looks at a few statistics in a vacuum, makes some inflammatory statements, and walks away, leaving us all quivering at the thought of trying to flip real estate.
But is he right?
Residential investment in the second quarter of 2011 (money spent on building, adding to and maintaining homes) accounted for just 2.2% of GDP, which is the lowest level since 1945. Americans can’t spend money because they’re digging out from crushing debt. Banks have decided that they’re not in the business of lending anymore. We’re double-dipping into another recession.
And let’s not forget that we now face the most heavy-handed anti-flipping laws, rules and regulations in history!
Maybe Les is correct and we should wave the white flag. But before we do, let’s ask a few HMB clients about this:
Oh – wait – sorry, I couldn’t get a hold of anyone. They’re all too busy buying houses at H-U-G-E discounts and flipping them for H-U-G-E profits.
Les clearly didn’t do any investigation beyond reading a statistic. Is flipping tougher than it used to be? Yes. Has this economy forced some out of the real estate game? Yes.
But trust us Les, flipping is alive and well.
I’m guessing Les isn’t a real estate investor. He seemingly doesn’t understand that if you buy properties at the right price and have cash or financing (through a joint venture or hard money loan from Hard Money Bankers), you can still make a fortune flipping real estate.
What do you think? Is this reporter right? Comment below.
Til’ next time, Jeff.
Get hard money here: http://hardmoneybankers.com/loan-application/#
Interested in a real estate joint venture using our money? Apply here: www. HardMoneyBankers.com/JV