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Science Forum Index » Economy Forum » House flippers in US...
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 Posted: Sun Jun 22, 2008 4:44 pm |
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Watched a tv show on house flippers.
A group of three guys thought they hit the jackpot when they bought a
run down home for a low cost. They talked about becoming millionaire
real estate flippers even while they worked on the project. With the
house complete, they planned for a 50K profit and put it on the market
for 350K expecting a quick sell.
Weeks go buy, but no sale. They slash prices. More weeks go by,
still no sale. Slash prices more aggressively. Each month meanwhile
they have to make morgage payments to the bank. More and more weeks
go by. Finally they begin to panic.
The show ends with them not having made the sale. So much for easy
money.
In another show, a couple with a new baby build a home costing 500K+
on a hill which they took a morgage on. This was at the time of the
real estate boom in 2007. The house once done looked like crap to
me. She worked as a nurse, he was struggling to get a small architect
firm started. It struck me that the family was going to end up dead
broke and the poor kid was going to end up for adoption. |
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| phil scott... |
| Posted: Sun Jun 22, 2008 6:35 pm |
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Guest
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On Jun 22, 7:44 pm, visualseep... at (no spam) yahoo.com wrote:
Quote: Watched a tv show on house flippers.
A group of three guys thought they hit the jackpot when they bought a
run down home for a low cost. They talked about becoming millionaire
real estate flippers even while they worked on the project. With the
house complete, they planned for a 50K profit and put it on the market
for 350K expecting a quick sell.
Weeks go buy, but no sale. They slash prices. More weeks go by,
still no sale. Slash prices more aggressively. Each month meanwhile
they have to make morgage payments to the bank. More and more weeks
go by. Finally they begin to panic.
The show ends with them not having made the sale. So much for easy
money.
In another show, a couple with a new baby build a home costing 500K+
on a hill which they took a morgage on. This was at the time of the
real estate boom in 2007. The house once done looked like crap to
me. She worked as a nurse, he was struggling to get a small architect
firm started. It struck me that the family was going to end up dead
broke and the poor kid was going to end up for adoption.
and this mess has not even gotten rollng yet... I saw it coming in
2000 as work was going offshore... the outcome was predictable... I
was wringing my hands as everyone else was seeing their ppty rise in
value and flippers were doing 2 or 3 at time and driving new cars.
meantime I was recovering from my years in corp america...finally
getting on my feet again... didnt buy a house though because they had
gotten so high. and a house would tie me to the local
business,,couldnt take jobs more than an hour away.. .. it all seemed
bogus to me... so i waited it out living in a motor home, with my
motorcycle on the back,,,
its not so bad... no rent, no ppty taxes,,,no mortgage.. I park near
my job sites and ride the bike,,,it gets 50 mpg.. I eat very well and
get a lot of rest...
propane for the frig costs me 30 dollars a month... wireless
broadband for going on line costs me 50 dolars a month... I make
pretty good money... its still not overrly easy for me... i drive the
motor home sparingly... cost about 250 dollars a month for gas.... I
built a hydraulic lift on the back for carrying the bike... that
works well.
I have no idea how most folks with kids, house payments, taxes, cars
with long commutes etc are making it.....santa barbara has opened 9
parking lots so people often entire families can sleep in their cars.
motor homes or tents and take minimum wage jobs or welfare to stay
afloat...
I think this mess will get 3x worse in the next 12 months ...and a lot
worse over the next few years.... many cities are gong bankrupt...no
way to pay the police and firemen nor their 150,000 dollar a year
retirements at age 51... about 50% of those will be retiring over the
next few years... no way in hell to fund that... or pay replacements.
I tell my clients to incorporate, stand clear of the debt,,and prepair
for bad news about the banks one of these monday mornings and all
projects cancelled.
Phil scott. age 67, and still hussling. |
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| ... |
| Posted: Tue Jun 24, 2008 6:02 pm |
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Guest
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On Jun 22, 9:44 pm, visualseep... at (no spam) yahoo.com wrote:
Quote: Watched a tv show on house flippers.
A group of three guys thought they hit the jackpot when they bought a
run down home for a low cost. They talked about becoming millionaire
real estate flippers even while they worked on the project. With the
house complete, they planned for a 50K profit and put it on the market
for 350K expecting a quick sell.
Weeks go buy, but no sale. They slash prices. More weeks go by,
still no sale. Slash prices more aggressively. Each month meanwhile
they have to make morgage payments to the bank. More and more weeks
go by. Finally they begin to panic.
The show ends with them not having made the sale. So much for easy
money.
In another show, a couple with a new baby build a home costing 500K+
on a hill which they took a morgage on. This was at the time of the
real estate boom in 2007. The house once done looked like crap to
me. She worked as a nurse, he was struggling to get a small architect
firm started. It struck me that the family was going to end up dead
broke and the poor kid was going to end up for adoption.
That's impossible. Everyone says you can't lose money in real estate. |
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