Willing To Do The Job That Banks Aren’t
I came across an interesting report about real estate flipping last week. The Palm Beach Post writes, “… today’s flippers are erudite capitalists who could usher in positive change by buying dilapidated and abandoned homes, patching them up and selling them for a market-bearable price, experts say… Realtor Robert Littman, who represents Pudlit Joint Venture, said the company is made up of a “couple” of investors who are willing to do the job that banks aren’t – cleaning, re-roofing and replacing air condensers that disappear into the night… Even today, (an investor) and his sort are called “vultures” for picking at the bones of the real estate market.”
Buyer beware: along with the increase in activity, many flippers have gone bogus already. These are your investors who purchase a rundown house, but only have slapdash renovations done. And they seek out inflated house appraisals. Buyers, without enough market advice, remain vulnerable.
The majority of these newly purchased properties won’t be selling in the market anytime soon – most will actually hold them, and have them rented instead. It’s all about gauging how the market will fair in the next few months.