Flipping through Real Estate Financing Pain

How has the current US Real Estate financing market affected your flipping? It seems that pain in the money market is unevenly spread, and hitting some markets pretty hard.

Thomas Lawler of Lawler Economic and Housing Consulting has outlined the following issues:

Recent drastic tightening is worst in California, Nevada, Florida, Hawaii, Arizona, Rhode Island, and New York.
Risky loans are increasingly harder to get and are becoming available only to strong buyers at higher rates.

How does this impact flipping? Well the labor day kick off of our autumn home shopping season hasn't been as strong as other years. People buying before the holidays are feeling the crunch as money becomes tight.

US Lenders have been cautious with the subprimes, sticking to conforming loans under $417,000 USD. Even then, buyers need good credit and enough savings for either conforming or subprime (which are now few and far between). Jumbos are terrible, as rates are jacked up.

Flipping in these conditions can beg the question, where are the ideal places to flip right now? We know they're out there, and possible avoiding some of this real estate financing pain.

Flip and Grow Rich in this Economy?

Some may be asking themselves, can I really flip and grow rich in this economy? Well it's not an easy question to answer. While there is lots of money to be made in this current climate. There is certainly lots of money to be lost as well. In a recent Wall Street Journal article, mortgage rates are reportedly declining, a prime time to buy property. Money is cheap! However, it would also seem than banks are being more difficult to get money out of, so what's a flipper to do? Even Donald Trump is having difficulty in this market, with his Chicago condos, buyers are not following through on contracts. Remember to do your homework, look at every deal carefully, and ensure contracts are in order. Look for the best deal, for example RealtyTrac offers a nice forclosure search on their website.

Can you flip a house faster than cooking a turkey?

One of the things I often think about during thanksgiving is how long it takes to cook a turkey. Not just the time in the oven (usually 6 hours for a 20 pound bird), but also the time it takes to buy it, brine it, prepare it for cooking, cooking it, and finally carving it up. Think about what the average turkey costs. I'd pin the price down to between $20 and $50 for a 20 pounder. Price will often depend on quality, for the sake of argument, lets say $20 for a 20 pound bird, that will yield enough for about 20 people (a pound per person). So essentially we are cooking for $1 per person. Thats a pretty good economic deal considering how much beef and other meats cost. Now if we were flipping that turkey, I'm sure we could get at least $2 per person for the meal. But wait, what about all the prep time and cook time? Let's back up... what if we factor in the following: Total Turkey Time Buying the turkey 1 hour Brining the turkey 1 hour Prepping for Cook 1 hour Cooking...

Moving Lips Speakerphone keeps your hands free

How do you market a metallic mouth that moves its lips in sync with a speakerphone? "Hands free desk lips" free up your hands and clip to your phone for a hands free conversation. Could this be just what you've been looking for, to make those boring calls more fun and exciting? Now I ask myself, is this a product that has no real market, or is there a niche market out there who have been saying to themselves, I wish my phone had lips? Maybe you should pre-order now?

Flip and Grow Rich | Can It Really Happen?

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