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Showing posts from April 11, 2012

BUYING FLIPPED PROPERTIES

by: Michael Wasserman

Here is a really great article from a blog over at Zillow detailing some of the potential pitfalls of buying recently rehabbed / "flip" properties. Flipping is a "term of art" used to describe an investor's quick sale following the purchase of a home or condo, (hopefully with a tidy profit earned in the process).  There have been many reports in the media these days about  "flipping" properties, mostly touting them as investment opportunities, and the massive profit potential they offer.

Six years ago, those flips would have started with  pre-construction condo purchases, resold shortly after the properties were completed. These days, almost all the flips I see involve the "rehabilitation" of foreclosed or otherwise distressed real estate. (Including, ironically enough, flips of those new-construction condos from years gone by).

From a Sellers' point of view, there are great opportunities for profit here. I have se…