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View Diary: On your mark, get set, flip your pancakes! IAN: Tuesday, 4th of March, 2014 (29 comments)

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  •  g'day all; somewhat irritated at real estate (12+ / 0-)

    reality shows as being unrealistic.  Couple with no food experience wants to buy a restaurant with $250K budget from parents' retirement.  Suggested site is $250K for business and $10K monthly rent.
    Then there are the flippers who would have you believe the market is glutted with underpriced properties which you can clean up and sell for a 25% profit  in a couple of months.
    Actually the market is glutted and there are good pick-ups if you can examine the property in detail before the sale (though I have bought land on internet auctions).  Right now there is no credit available and cash is king.  Locally there are about 100 properties ranging from $40K to $80K with the opportunity to pick up a property for 20% below FMV, if you whipsaw the property holders properly.  However, once you buy it, unless you are going to carry a mortgage yourself (and that is a whole 'nother can of worms), you are stuck with it.  Average time on market locally ranges from 9 months to 2 years.

    I am just irritated as I watch these flipper shows talk about paying $250K for a property, paying $25K down and flipping it within 2 months so you don't need a loan.  Nice work if you can get it but reality is that this rarely happens in real life.  Chances are you are going to lose your 10% down and wreck your credit.  Problem is that desperate people will believe anything as I note "Sovereign Citizen Seminars" which explain how you can supposedly take over abandoned properties by filing a "quiet claim" against the owner.  This gets the new real estate guy in hot water quickly as this guy is discovering:
    http://www.rawstory.com/...  

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