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Flippers in Houston?

2,079 Views | 13 Replies | Last: 5 yr ago by jagvocate
87IE
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AG
My mom has moved out of her house and is getting ready to sell it. There are some conflicting ideas on what she will get for it and I told her to listen to her real estate agent.

We buy ugly offered her 101k for it. It's a 1 story 2300+/- sq foot house in southwest houston (77031 zip).

My limited knowledge of the we buy ugly comes from Austin and I've seen them turn around and sell it as is to another investor without touching it.

The house needs work but the high point of it is that in the 43 yrs they've lived in it there has never been any flood water in the house. Harvey blew some flashing up around the chimney and water got in but that has been fixed.

Does anyone know someone who would be interested in flipping a house in that area?

Thanks
It's Laken Riley, not Lincoln you idiot
JamesBREI06
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AG
PM Sent
Whoop!
JamesBREI06
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AG
Whoop!
jjdavis85
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AG
email me at my Texags username @gmail.com
87IE
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I'll reply when I get home.. work has blocked personal email websites

Thanks
It's Laken Riley, not Lincoln you idiot
jmazz
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AG
PM sent.
springagg
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I can take a look and possibly buy it and if that does not work we can look into listing it on market for her

kyle@maximinsure.com

aw08
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I work for one of the larger house flipping outfits here in town. I can take a look and have a few different options available to you!

Alex at SennaHouseBuyers dot com
gig em 02
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Get a reputable realtor off this board and list it on the mls. Unless you are in a financial bind and need cash for the house tomorrow or the house is in terrible condition these "flippers" are just going to be working you over.

What you will also run in to is "wholesalers" who act like they are flippers or end buyers who then sell the contract to someone else. These are typically people that would have been telemarketers 20 years ago. Great to have working for you, maybe 1 out of 1,000 deals they make are helpful for the seller, but the vast majority are looking to prey off ignorance.
itsyourboypookie
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gig em 02 said:

Get a reputable realtor off this board and list it on the mls. Unless you are in a financial bind and need cash for the house tomorrow or the house is in terrible condition these "flippers" are just going to be working you over.

What you will also run in to is "wholesalers" who act like they are flippers or end buyers who then sell the contract to someone else. These are typically people that would have been telemarketers 20 years ago. Great to have working for you, maybe 1 out of 1,000 deals they make are helpful for the seller, but the vast majority are looking to prey off ignorance.


My homie
JamesBREI06
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AG
gig em 02 said:

Get a reputable realtor off this board and list it on the mls. Unless you are in a financial bind and need cash for the house tomorrow or the house is in terrible condition these "flippers" are just going to be working you over.

What you will also run in to is "wholesalers" who act like they are flippers or end buyers who then sell the contract to someone else. These are typically people that would have been telemarketers 20 years ago. Great to have working for you, maybe 1 out of 1,000 deals they make are helpful for the seller, but the vast majority are looking to prey off ignorance.


This is one way of looking at it, but if the house needs updates and is in a "flippers" neighborhood it's just going to sit on the market if priced too high. What looks like taking advantage of someone is often a buyer looking for reward on his risk. Especially right now with how contractors are in the post Harvey economy. If a buyer isn't paying 75% of the post flipped value minus repairs that buyer is not making enough profit to justify the risk. that 25% gross margin gets eaten up quickly when considering ~8% goes to closing costs, between 5-10% goes to cost of capital even if everything goes right, another 2% can easily go to taxes, insurance, utilities.

You can quickly see how 25% gross margin becomes 8% net....
Whoop!
gig em 02
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inoffensive username said:

gig em 02 said:

Get a reputable realtor off this board and list it on the mls. Unless you are in a financial bind and need cash for the house tomorrow or the house is in terrible condition these "flippers" are just going to be working you over.

What you will also run in to is "wholesalers" who act like they are flippers or end buyers who then sell the contract to someone else. These are typically people that would have been telemarketers 20 years ago. Great to have working for you, maybe 1 out of 1,000 deals they make are helpful for the seller, but the vast majority are looking to prey off ignorance.


This is one way of looking at it, but if the house needs updates and is in a "flippers" neighborhood it's just going to sit on the market if priced too high. What looks like taking advantage of someone is often a buyer looking for reward on his risk. Especially right now with how contractors are in the post Harvey economy. If a buyer isn't paying 75% of the post flipped value minus repairs that buyer is not making enough profit to justify the risk. that 25% gross margin gets eaten up quickly when considering ~8% goes to closing costs, between 5-10% goes to cost of capital even if everything goes right, another 2% can easily go to taxes, insurance, utilities.

You can quickly see how 25% gross margin becomes 8% net....
If you get a reputable Aggie realtor all of these issues will be addressed.

I'm not opposed to flippers or wholesalers, I'm just opposed to them when friends, family, and Aggies are trying to get maximum value for their home.
jagvocate
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Probably not much to worry about, because flippers and wholesalers are looking for motivated sellers, not folks looking for top of market retail cash sales.
gig em 02
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jagvocate said:

Probably not much to worry about, because flippers and wholesalers are looking for motivated sellers, not folks looking for top of market retail cash sales.
Flippers and wholesalers are looking for deals. The large majority of them don't care how they get that deal or who they screw over in the process. At least that is my experience with flippers and particularly wholesalers in the United States, I am not sure what country you are in where you aren't seeing a similar trend.
jagvocate
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Flippers typically work with cash offers ... I'd love to hear how someone gets screwed over by accepting a cash offer they willingly accept.
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