I had a chit chat with a nice out of state all cash investor today. She has been led to believe that she can flip homes in this environment. Resale homes that is.
She has been looking for several months as I understand and she had been given some poor advise.
I wasn't willing to take her on!
Right now Las Vegas area listings are increasing with a rapid pace due to the first time buyer tax credit. "Sellable" inventory has increased also. I was right in my January article - the investors have been left holding the bag as I watch their overpriced inventory gather dust.
This stuff would have been snatched up in a New York Minute back in April (tax credit buyers) but with calculated price reductions by bank asset managers now it just seems to stand out like a sore thumb.
Even the true flippers (the ones that purchase at the actual foreclosure/trustee sale) are stating that their margins are tight these days.
I would never, in our volatile Las Vegas real estate environment advise someone that doing this is a walk in the park without checking with the customer/client to make sure they have the stomach & means to hold the property in the event of another decline (which could happen!)
Maybe this is my odd combo of altruistic/narcissistic side of me that assumes I will get a sale and then consequently a listing. Who needs another person pissed off at you because you can't sell their house at the margin they expect? Not even the best marketing machine in the world could do it..........in this environment.
It is possible to do this, just not highly probable to see the results you want.
You can see my Las Vegas Market Report Graphs right here if you don't believe me.