“When the task is really challenging – that’s when you know the reward is not just a hand-out.”
If you do rehab or upgrades, you may recoup about double your outlay. That’s a profit margin, but not much of one. There are no more sucker-bait buyers, so you can’t sell high. So the big bucks come from buying low.
I expect there are very few homeowners who sold to flippers – or to iBuyers, who actually should be called eFlippers – in 2021 who do not regret their choice, having watched their neighbors do so much better by listing.
The good news is that ordinary flippers and eFlippers have to pay more and more, just to be able to buy anything. The eFlippers, in particular, have convinced themselves that they are suddenly good at real estate, because they can actually move inventory in a whirlwind of demand.
Has that whirlwind died down? We’ll see. But if it has, real flippers will find it easier to buy low – while the eFlippers will find out what it’s like to work in real estate.
In other news:
Redfin.com: iBuyer Home Purchases Inch Back Toward Pre-Pandemic Levels.
Housing Wire: Mortgage rates jump back up to 3.02%.
Redfin.com: Housing Market Update: Homebuying Demand Slipped Below 2020 Levels for the First Time This Year.
City Journal: Stop Extending the Eviction Moratorium: It’s a heavy burden both for landlords and for tenants who play by the rules.
Housing Wire: Biden renews foreclosure ban.
Julie Kelly: Deprogramming of January 6 Defendants Is Underway.
Christopher Rufo: Exposed: The Washington Post’s attempt to smear me and my work on critical race theory fails spectacularly.
