23
Jul
2015
This reality TV star wants to teach you how to flip homes—for a $34,000 fee
The new rules of house flipping
Flippers are now back in force, it turns out–but the rules have changed. Lenders no longer issue flaky loans to suspect buyers with a tiny down payment, which has chased dabblers out of the market. Since home prices no longer defy gravity, the only real way to profit on a flip is to find a distressed property at a fire-sale price and quickly make improvements that add value. Then, pray for a buyer who’s able to qualify for a mortgage. The new rules favor cash buyers and institutional investors—usually able to negotiate the lowest prices—and established real-estate pros with intimate knowledge of local conditions.
