Raleigh area One of the Top place to flip houses.


House flipping’s status as an aspirational American pastime took hits during the recession but, like disco or SUVs, it has never gone extinct.

It is returning — with a vengeance. Cable TV shows glorify expert flippers and infomercials flog seminars for novice investors eager to dive into this risky market.

As many housing markets stage a recovery, there is a deep inventory of foreclosed or bank-owned properties that investors can tap at below-market prices.

House flippers have grossed an impressive $29,342 on average for each property in the first half of this year, according to RealtyTrac, a foreclosure industry data supplier. From purchase to sale, the average flipped home is turned in 106 days.

“A small player would have a better opportunity in a small town,” says Christopher Leinberger, a real estate professor at George Washington University’s School of Business.

And though small towns within large metro areas sport impressive gross profits, large housing markets, such as New York City, Washington, D.C., and San Jose, Calif., boast the most profitable average flipped home sales.

That’s why home buyers who dabble in flipping homes may vie against Wall Street-financed teams that turn over hundreds or even thousands of distressed properties in short periods.

Wall Street-backed home flippers enjoy the advantage of scale and cash purchases, says Leinberger. That is particularly true in large housing markets, such as Las Vegas or Phoenix, that have a bounty of bank-owned residences. But persevering smaller players can succeed.

Nearly two-thirds of the flipped homes are sold to first-time home buyers who seek a modest, 1,500 square-foot starter home — three bedrooms and two baths in a residential neighborhood, for example.

When it comes to house flipping, of course, location matters greatly. Once predominantly practiced in West Coast metro areas, such as Las Vegas, Phoenix and Los Angeles, house-flipping action is not restricted to those areas.

Daren Blomquist, a RealtyTrac vice president, says, “Investing seems to move from West to East and we’re seeing investors starting to move to East Coast markets.”

“If you’re looking to do a lot of flips, I would avoid overly crowded markets,” advises Blomquist. “But if you’re looking to do a flip or two a year or if you’re getting into it as a hobby or to make some income, my advice is stick to the market that you know well. There almost always will be a potential property and a prime opportunity that you can jump on when it (becomes available.)”

6. Raleigh, N.C.
–Avg. gross profit: $69,253
–Homes flipped through mid-2012: 455
–Avg. home price: $223,359 (78th highest)
–Avg. days to flip: 114

The greater Raleigh area has seen a 63% increase in the number of flipped home sales for the first half of 2012,compared to the first half of 2011, while the available inventory of foreclosed homes has remained constant.

And yet, in Raleigh, which is North Carolina’s second-largest housing market after Charlotte, median home prices declined by only 8.2% from pre-recession peak value. The U.S. median home price fell by more than 33% during the recession.

Source: USA TODAY

Great, now is their a catch? YES there are.

You must use CASH, YOUR CASH.

You must take title.

Contract assignments, Taking over payments, or lease option from seller and lease option to another buyer is NOT an option. These may even be illegal. Contact your Real Estate Attorney.

Seller financing is possible, if the seller owns the property out right with no mortgage.

And then there is your potential buyer? How do you sell your property properly so your buyer can get a loan? That is the big ticket item. Call me lets sit down and talk about this.

Need Help?

I have been flipping properties since 1993. I can find you the best deals, and avoid pitfalls.

I even have a transitional lender to help you purchase, as long as you have the cash for the rehad and sell within 12 months.

I am here to help

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About Raleigh Homes Info

Greetings, My name is Tom Bohlmann. I am Allen Tate Realtor / Broker in the Raleigh, Durham, Wake Forest, Cary North Carolina areas. Your Home Search starts here: http://www.allentate.com/tombohlmann I have been involved in the Raleigh area real estate investing since 1995. I know all the ins and outs of many many different area markets that the average or even above average Realtor does not know. Give me a call or email so we can talk about your Real Estate Needs. Tom 919-543-5714
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