Thinking of flipping Daytona condos?
We used to go and participate in foreclosure auctions at the courthouse.
In all these years watching and participating in the foreclosure and Tax Deed auctions, I couldn’t believe how many eager participants were jumping into flipping without being able to say “yes” to any of these issue.
Jumping in with very limited financial resources, so that even a small setback was turning into a disaster. They did not have marketable skills and could not really do the work, and trying to do it themselves, were running into problems with the municipality, and you could see those Seize and Desist yellow slips on the doors. They did not understand that selling was coming with a cost, and at the end of the day they were not in the black. Too often they were loosing money. In the sequence you buy, fix, sell and get the money, they heavily concentrated on the last part. Too often they were losing.
And then there were the guys that were making money.
Usually they formed groups with a real estate agent, an owner of a title company, a builder, and one or two go getter guys, who were driving around, talking to neighbors, peeking in the windows, getting in if the could… They were dong investigations.
These teams, if they were not getting too greedy, were doing fine. The business model was that they were counting on winning on 9 properties out of ten they were buying and flipping. If they operated within a similar priced properties, this formula worked for them. We have seen how just a little push could result in winning on 8 properties out of 10, and they were going down and disappearing from the radar in no time.
Their forte was in a great sense of the market, the ability to work fast and minimizing the expenses. Buying, fixing, renovating, beautifying, bringing up to codes, and then selling. The saving is because the agent was part of the team, no commissions, they participated in the profits.
The builder was also building at cost, because he too was participating in the profit. Everybody were working on the same principal – making money on the sale and splitting the profit.
If not, there very easily may not be any profit whatsoever.
Is flipping Daytona condos a great thing?
It sure might be…
Image by julie via Flickr.com/creativecommons