House Flipping is Strong in Today’s Market

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 Just yesterday - almost literally, the news was that House Flipping is Down.  Now, the news is that House Flipping is strong! What gives? 

After reading an article published by Housing Wire, and written by Jessica Guerin, I want to share with you the statistics show that house flipping is strong again.  The number of homes flipped in America is approaching its high of 2006, just before the crash.

The latest data from CoreLogic reveals that 10.9% of all home sales in the fourth quarter of 2018 were flips, or homes that have been occupied for two years or less. This is the highest rate since the housing bubble days of 2006, when flips comprised 11.4% of home sales. (See chart below)

 

House Flipping accounts for close to 15% of the current home sales in America

The overzealous speculation of house flippers in the months leading up to the crisis is often cited as a contributing factor to the housing bubble. So should we be worried now that houses built on spec appear to be making a comeback?

No, says CoreLogic, citing evidence sugg
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Property Flipping Down 12%

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Property Flipping Down 12%

If you are a house flipper, you may be feeling the pull of a shift in the business. Then again, you may be rising above the challenges in the house flipping market.  Nation-wide, it appears, the house flipping market is getting tougher, not just in Eugene/Springfield Oregon.

According to ATTOM Data Solutions (a leading provider of property data - providing access to nationwide real estate and property data for more than 155 million U.S. properties), a total of 45,901 single family homes and condos were flipped in the 3rd quarter of 2018. Those numbers indicate that flipping was down 12% from a year ago Read More...



Multiple Offers Strategies

Minnesota Real Estate Investors Association, Inc.

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When it comes to making offers, most investors only know how to make one offer at a time.  They usually make an all cash offer, also known as the MAO (Maximum Allowable Offer) or they get a loan from a bank, hard money lender or a private investor.  This strategy has worked fine for investors and if you are only making offers on bank REOs on through the MLS, then a cash/MAO offer is really all you will be able to make.

The average number offers to get one accepted with this approach is 20-40 offers to get one accepted in today’s market for most of the country.  Some more experienced investors have been able to reduce that number down to about 5-10 offers to one acceptance by being very selective on what properties to make offers on.  In other words, they know from experience that certain properties from certain banks or listing agents simply will not accept their offers so they don’t even make the offers. 

The secret to success in the real estate business is making offers.  The problem is that most investors use the same offer process when dealing with sellers directly and they are missing some huge opportunities if they just knew how to create alternative offers that don’t require cashing out the seller.

Ask yourself these two questions:
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