by rcfaj7obqrkayhn on 8/13/21, 8:15 PM with 33 comments
by molyss on 8/13/21, 10:19 PM
One of my accountances is a professional house flipper. They claim to regularly make over 100k of profit on a single house in less that 3 months. Keep in mind they contract out all the manual labour.
The 1st step is obviously to find a house, preferably before it hits the market. Then, contact the seller’s agent and promise them that if they sell you the house for a good price you’ll go through them when you sell the house after having flipped it. At this point, the agent’s incentive is disconnected from the seller’s: If they can convince to sell off market, they’ll sell quicker, make the commission on a lower price but expects to make a much higher commission on the 2nd sale than what the 1st one would have fetched. The seller gets fucked.
Then, the flipper finds the cheapest contractor with immediate availability. cheap+available is usually a bad sign in term of quality. They have them do the minimal work to make the house “look good”. No deep electricity, certainly no plumbing, rooftop or foundations.
After a couple of months. Put on the market. At this point, you want to put it on the market at (original price paid+original agent’s fees+second sale agent’s fees+remodel cost+your sizeable margin) that ends up easily increasing the original pricd by 30%, sometimes more.
The buyer gets fucked too because they pay extra for shitty work. They’ll have to do more work on the house, both short term and long term.
But the ones who get really fucked are the other potential buyers : it’s super hard to find a house that wasn’t flipped, prices go up because everyone wants whatever the neighbors house got sold for, there’s even less contractors available
I’m convince flippers have a negative impact on society at large.
by flerovium on 8/13/21, 9:32 PM
"Homes are a place to live, not an investment"
The more things change, the more they stay the same.
by hamburgerwah on 8/14/21, 4:50 AM
by nullc on 8/14/21, 2:21 AM
But with extremely low interests rates, it's far from clear that a flipper wouldn't mind holding a property 3 years. Perhaps there needs to be a slowdown term when they don't occupy it.
by pontifier on 8/14/21, 10:20 AM
This currency would be based on algorithmic appraisals of the intrinsic objective and quantifiable qualities that a particular piece of real estate had. The algorithmic appraisal would be designed to appraise the property for the same value over time.
When a seller wants to sell a property, an amount of currency equal to the appraised value is generated, and given to the seller.
When a home is purchased, it must be purchased using this currency, which is then destroyed.
This allows for several key differences over traditional home buying and selling. It creates a sort of limbo in which a home does not have an owner.
The first is that as a seller, you can have your funds immediately without having to find a buyer.
Second is that it moves volatility in housing pricing to a single value: The exchange rate of this housing currency.
Third, because the outstanding currency equals the total of all the un-owned property, it is likely to be a way to invest in the idea of real estate without actually owning any specific property at the moment.
The un-owned properties could be rented out to fund the operation of the system, to help provide funds to stabilize the market and exchange rate, and take care of operational expenses.
I bought a domain a few years ago to act as the focus of this idea.
REITcoin.com
Is anyone interested in going forward with this? I'm willing to sell the domain for the right price, or an equity share in the business behind it. I haven't had a chance to execute on it yet because I have so many other things that are taking priority.
by sesuximo on 8/13/21, 9:18 PM
by gbronner on 8/14/21, 11:45 AM
by kory on 8/15/21, 12:26 AM
This is a great program. The ability to sell your current house and keep living in it while buying your new house is a game changer. It removes the need for contingent offers, which in many markets have 0 chance to get accepted.
by Overton-Window on 8/13/21, 8:29 PM
by jchonphoenix on 8/13/21, 9:34 PM