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Buying Flippers

April 26, 2012 | Comments: 0 | Views: 206

Everyone wants a good deal. Most buyers want a home that is in move in condition. So a home comes on the market, bought by an investor a few months earlier who went in rehabbed it and put back on market.... Great! Maybe? Maybe not?

In order to make a profit an investor flipper will find ways to spend the least money as possible. Sometimes this may mean covering up a potential defect that could come back and haunt a buyer months or a few years down the road.

EX: For the heck of it a few years back I went out and viewed homes with an investor. I was intrigued and wanted to see how this particular guy worked.

Walked into a home. The front door and frame came into the living room area. As you looked at the frame it was angled lateral a few inches. There was foundation movement that apparently caused the issue. Focus was not put on the foundation issue but how a technique could be used to put frame back in plumb at little or no cost.....a sledge hammer worked. Then paint.

As this guy moved through the home a bedroom wall was full of mold......water was coming in from somewhere and most likely water was the cause of the foundation issue and front door being misaligned.

Well, typically you need to find out what caused the it does not repeat...not this guy, perfect thing to do is cut out the mold, patch and paint and it will look good as new. Did not even mention or have the intention to repair any issues within the wall behind the damaged wall board and/or the cause of the mold.

By the way he was teaching new investors what to look for and the cheapest way to remedy things and make a profit.

It went downhill from there......took everything to keep my mouth shut. NO I did not help this guy or his group purchase homes.

Not all investors or contractors who do flippers work this way but it underscores the need for buyer to be aware and never assume. Remember this-----ALWAYS------- get an inspection. USE a licensed and bonded company preferably a licensed contractor who has gone through special training and certification in inspections etc. like CREIA or ASHI certified.

In California Realtors are required to do an Agent Visual Inspection, that is to report blemishes or broken items or cracks in the wall as examples or any defect as visibly seen but Agents are NOT licensed home inspectors.

Just remember, an investor flipper is all about profit, making a place look good to maximize an investors effort, not necessarily with work that is quality.

Why investors do not want real estate licenses....That is because in California a real estate licensee is held at a high standard and required to disclose any known material fact or defect as well as sellers who actually live in the home.

A non licensed person does not have to disclose or reveal issues with the home they have acquired specifically for intent to rehab and flip. They can play dumb.

Having stated the above, there are some really good deals on investor or contractor flips that were rehabbed the correct way. You just need to proceed with caution and never assume and get your inspections!

Terry Osburn, Broker Associate, Listing and Selling real estate in the SF Bay Area since 1999. Your Greater Walnut Creek, Ca area and surrounding communities source for Realty Services include listing, selling, relocation and consulting. Whether thinking of selling or buying or both please contact me to discuss your particular real estate needs and options. My website is For those seeking access to view available homes for sale please go to http://www.iSelleastbayRealEstate.NetServing but not limited to the Greater Walnut Creek area and surrounding communities in Contra Costa County. Also serve in Alameda County, Berkeley, Oakland, Albany. In Solano county Benicia. Represent Seller or Buyer in Single Family Homes, Condos and Townhomes, Lots and Land, Mobile Homes, Short Sales and REO's.

Source: EzineArticles
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Buying Flippers


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