Updates and Issues

FAR 067

Expected Air Date: 9/17/17

News:

  • Partners REIT announces distribution of $0.02083 per unit. 2 cents per unit. So my 1000 units would make me $20! There are 45,731,683 Units outstanding. Thus the payout is $952,591.
  • Billboard for Offerpad. We will buy your home. Sounds great. Another version of “if I can’t sell your home I’ll buy it for cash.” Offers appear to be 12% below current value, when all fees are factored in.
  • Article CNBC. Flipping on the decline as prices increase. 5.6% 2nd quarter, 6.9% 1st quarter.
    • According to NAR, 5M existing homes sold in the US in 2016.
    • 300,000 sold by investors or house flippers. (6%)
    • Avg price, 240,000.
    • RE Investors sold $72B in 2016. Not a trifling amount.

Scams:

  • Corey, from West Allis, WI “When is it OK to give my contractor money up front. All of the contractors I speak with want half the money before they will begin the work. What should I be doing to protect myself?”
  • Scam is where someone gets your money for nothing (or very little effort).
    • Pre-payment for loan
    • Pre-payment for remodeling

Emails:

Questions@flippingamericaradio.com Tell us where you’re from!

Freddie, from Cleveland, GA: I’m looking at buying a manufactured home as a rental. It’s only $3,000 and I can get $350/month for it. It’s in rentable condition now and it’s on a lot that comes with the purchase price. What else should I be considering?

  • I’ll take it!
  • What’s the value of the land?
  • Consider selling under an installment land contract.

Damon, from Akron, OH: “What is the most I should pay for my first flip?”

Andy, from Snellville, GA: “I cracked up when I heard your answer to the lady from Rhode Island asking if she could get all the information about flipping houses for free on the internet. Would you spend a little more time going over all those topics again? It sounds pretty complex.”