Yes they are. I just did a deal with a property purchased for 700k and sold for 1.1 mil a couple months later. You just have to be smart about it. I still think buyers see value in done done houses especially on the higher end. There are a lot fo short sales and REOs on the market but a lot of them are junky!
However.. these are people with the financial resources to back them in case they need to wait for a period of time. If you do not have the financial backing to hold properties for at least 5 years I would not recommend trying this avenue of real estate investment. Successful flipping takes financial backing. If you are trying to do it on a shoestring budget you will probably be in trouble.
199k - original cost
8k -closing cost
50k - to fix
minus closing cost - 8k
commission @7% -26250
You have to have cash to buy or put a good downpayment for this type of deals. Make sure you don't get greedy when sell the property, and trick to make this work is to sell fast and price the property to sell. Most importantly, Pay a good commssion to attract agents who can help you sell the property fast :)
In this market the only way you can do it is to buy low and sell low.
1. I search for homes that have been on the market for over 100 days.
2. I do the comp to narrow down the ones are at least $50k below market value (if the the seller is already lowing the price that means they are motivated).
3. I use 90 percent of the market value as the after repair value (90% because the market is coming down too quickly, I need to be sure that my flip will sell. Since it is lower priced and remodeled it will stand a much better chance.
4. I figure out the maximum offering price by subtract these expenses: acquisition, repair, sales, holding from ARV
5. I offer with this maximum offering price.
You can search the MLS for free at my website http://reolicensedspecialist.com or email me and I can send you daily or weekly updates in the area you want to buy. All I need is your criteria: Price, area, features, etc.â€”and you will get daily or week updates directly from the MLS. I specialize in Foreclosures and I am a real estate broker for over 20 years.