The End Of Rehabbing In Sight?
They say when your mother asks you about a stock because she heard about it is a signal to sell, sell sell!!!!!
Now TLC is coming out with a reality show in may 2005 about - rehabbing. Fix and flipping. 8 couples buying and trying to rehab and resell a property. Looks like the fix and flip world is just about to reach saturation and poised to be killed by those who once prospered off it and become a victim of its own success.
So may people out there that don't know what a screw driver is forget about the knowledge someone needs to have
to become a successful rehabber.
I have seen so many people chasing deals with no profit in them that I have been on the sidelines. I don't work for free.
I can make good money doing consulting so I have been doing that. (looking at a consulting project in Hong Kong right now). I have also been saving money and bilding my war chest.
I can afford to wait. And that's what us vultures do we wait until a good deal comes to us. I see no reason to work my butt off and risk my capital on a deal with no profit.
Good question. I have always asked this myself. With so many people getting into rehabbing, prices are sky high. In my city, every family has their house on their market. They do a little cosmetic work and immediately put their house on their market. This is a low-income neighborhood and the families have realized that their old,2 family house is worth a lot in the market. Supply is way too much. About 3 years ago, the MLS book was only 20 pages, now it is almost triple that. Rehab houses are hard to come by and when they do come by, there are about 20 people in line. I think by the end of next year, this bubble will burst. As soon as rehabbing becomes mainstream(the realty show), it has lost its niche. I hope I am wrong!
Personally, I think it's great. Nearly every house I've ever bought was from someone who thought they'd buy a run-down place, spend a few weekends fixing it up, and then sell it for huge profits. One-house wonders. It just adds to the stock of motivated sellers, I think.