Friday, July 14, 2006

Flipping

I've been reading a blog by an ex-banker here in New York City that just purchased a house in New Jersey and is trying to fix and flip it. The blog started out interesting, he posted the details of the financing, talked about the realtor, the mortgage broker and the attorneys involved in the closing. Now he's gotten into a quandry about what to fix, what to save and how much of the home's orginal "charm" should be saved. Many of the comments cheer him on to save as much as he can to the possible detriment of the project itself.

Flipping is a type of real estate investment strategy in which an investor purchases properties with the goal of reselling them for a profit. Profit is generated either through the price appreciation that occurs as a result of a hot housing market and/or from renovations and capital improvements. Investors that employ these strategies face the risk of price depreciation in bad housing markets.

Flipping is anyone's call most of the time. It's not home restoration, though that could be a part of it. It's not gentrification, though that also could be a byproduct. Flipping is buying a house for less than one thinks it can be sold.

I'm having a good time reading this blog, all the thoughts that can go through a person's head while spending a day sanding the floor, or scraping the walls are interesting, and of course not all of them are suited to be posted anywhere. The blog is www.fliperati.com.

2 comments:

Kyle said...

His blog is rather interesting. I have been dying to get out of banking myself and I have always considered getting involved in real estate investment. I enjoy how he is taking readers through the ENTIRE flipping process. It seems like a great resource for anyone considering flipping houses (or even those that are experienced with the process).

FiveMZNYC said...

I enjoy how open he is about his inexperience at the beginning and how he is making his decisions. Also he seems to be taking the middle ground approach to flipping. He's trying to reproduce a Turn-of-the-Century gem, nor is he just trying to slap it together and get out before the paint dries. I've done some investing, learning many things the hard (and expensive way), so I'm very happy to see blogs of others and read their viewpoint.