Are people who buy foreclosed homes paying for minor fixes and reselling the property for profit?

June 18th, 2010 | by admin |

If so, what is the usual timeline for such a transaction? Are people really paying outside vendors for the renovations? I know this is dependent on the property itself but is it really that good of a business idea to do such things?

I am in the CA market and there isn’t much flipping going on here. The 90 hold on selling has put a damper on that. Most are being bought and held.

  1. 3 Responses to “Are people who buy foreclosed homes paying for minor fixes and reselling the property for profit?”

  2. By JBS on Jun 18, 2010 | Reply

    Not for the people who bought at the height of the housing market – I think we have some ways to go at least 5-7 years before prices reach where they were. If you have the extra money it can be a good decision – but you better know what you are doing.

    You should already know contractors – have them lined up the last thing you want to do is drag out the renovation process = mortgage payments = less profit. If you have never attempted a flip then don’t do it.
    References :

  3. By Anthony on Jun 18, 2010 | Reply

    You can buy a foreclosure, fix it up and resell for a nice profit, but it’s not as easy as it may sound or look. Time-lines vary from house to house, but the sooner you are done, the less holding costs you have and the more profit you make.

    If you are going to jump into this, you need to have everything planned out from begining to end. You need to know what type of financing you will get and your exit strategy. You need to figure out how much repairs are needed and much the home will sell once it is fixed up. This helps in determining your offer to purchase.

    As for hiring outside vendors…yes. Many towns require that the work be performed by a licensed professional. Check with your construction code official on what’s needed besides the proper permits.

    You can always look for local investors that can help you with the process and work something out with them.
    References :
    Real Estate Proefessional

  4. By Landlord on Jun 18, 2010 | Reply

    I am in the CA market and there isn’t much flipping going on here. The 90 hold on selling has put a damper on that. Most are being bought and held.
    References :

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