Chewie, Both Buyer and Seller in Chicago, IL

Is this a good time to flip houses in Joliet, Illinois?

Asked by Chewie, Chicago, IL Mon Jul 2, 2007

Help the community by answering this question:

+ web reference
Web reference:

Answers

15
Jeff Link, , Asheville, NC
Tue Jul 10, 2007
I would also advise you to start getting some real estate knowledge. The best place I know is the millionaire systems site. (yes Keller Williams hosts it) Start listening to the interviews. You can even call in if you want. I would start exploring the site and get a feel for things to see if real estate investing is for you. I also recommend the book flip
2 votes
Joe Zekas, Other Pro, Chicago, IL
Fri Jul 6, 2007
No, it's not. The days of flipping are basically over for a while.

Also, when a Realtor suggests helping you out with a referral, be aware that Realtor may be getting a referral fee from the agent you're referred to. That often results in the agent having limited ability to negotiate with you on commission. If you're serious about flipping, you'll need to watch every nickel, and agent fees are more than nickels.
Web Reference:  http://yochicago.com
1 vote
Michael Sims, Agent, Joliet, IL
Tue Mar 26, 2013
When I hear someone use the term "flip" for a real estate investment it makes me wonder how well versed the person is regarding real estate investing. The term flip suggests fast quick money to be made by buying low and selling high in a relatively short period of time. The problem exists when investors have unrealistic expectations of time involved or potential profit. REAL ESTATE IS NOT A LIQUID INVESTMENT. The stock market is a liquid investment. You put money in, sell and take money out. In a real estate transaction you have to purchase the property which takes 30 to 60 days from the time of contract acceptance, then you have to fix it up, which can take 2 to 26 weeks. Then you have to sell it. That can take up to 90 days to get a contract then another 30 to 60 to close the deal. So total, you could be looking at 13 months for a "quick" turn around. I am not an accountant, but I think the short term capital gains laws have changed in 2013 and should be considered also before jumping into any real estate market.

If you intention is to buy low, fix and rent, then now is a very good time to do this in Joliet. The prices are low enough to support rents, vacancies and repairs and still walk away with a dollar or two.
0 votes
Get-smart, , Durham, NC
Thu Mar 17, 2011
if you can find a good deal that makes sense then it's always a good time to invest.
0 votes
Paul Scheufl…, Agent, Lemont, IL
Thu Mar 17, 2011
Are you kidding! It is a great time to lose money if you are selling.
0 votes
Donna Rudd, Agent, Joliet, IL
Wed Feb 9, 2011
Knowing current market prices can make it a good time to flip homes. Getting the best price possible, and knowing how much you will have to put into it, in order to turn around and sell it. You have to know your expenses. Rehabbers who do the work themselves are in a much better position then if you are paying someone else to do all the work.
0 votes
Sean Cochran, Mortgage Broker Or Lender, Naperville, IL
Thu Jun 19, 2008
I agree with Denise. Flipping homes in general is probably not a good idea. In Joliet, especially.
0 votes
Lee Throw De…, Agent, New Lenox, IL
Fri Jun 13, 2008
Absolutely not!! There are 709 properties currently on the market under $300,000 dollars. If your looking to buy in the area then you have a wonderful selection. If you are looking to flip in this area then you are one of many wonderful selections.
Web Reference:  http://www.leehomehunter.com
0 votes
Robert Durham, , Plainfield, IL
Tue Apr 22, 2008
It is a great time since it is a buyers market if you can get the house at a flippable price in which you will make money. You just have to be aware of your rehab construction cost and what the market is saying the neighborhood you are a buying in will bear.
Bottom line, is know your bottom line.
0 votes
Mark Roncone, , Naperville, IL
Thu Apr 10, 2008
I think doing a real estate flip anywhere at anytime is very tricky. Always leave extra room in your budget and stick to your plan. When it is all done you have to be able to get it sold fast. That means it would be best to price it a little below market to help get it sold fast!
Web Reference:  http://www.nilhomeseller.com
0 votes
John & There…, Agent, Mokena, IL
Tue Apr 8, 2008
It's always a good time to flip but just remember you must buy at the right price and sell it at the right price. If you get greedy the market will fight back. Also buy in area's that are desirable to buyers even if you pay a little more it is always worth it. Nothing ever is a bargain if no one wants to move there.
0 votes
Larry & Deni…, Both Buyer And Seller, Joliet/ Plainfield, Illinois
Wed Jan 9, 2008
Have you ever done this before or are you a newbie? Being a flipper or real estate investor takes some knowledge. The best sources of knowledge are reading up on the subject for a general understanding and seconly join a real estate investing club in the area. Meeting up with 20-300 investor in a night is invaluable. I've been attending local meetings for over 2 years and it's priceless.

Let me know if I can be of any help if you are looking to buy investment property or if you are a homeowner needing to sell. I ama local Joliet investor.
0 votes
Joe Zekas, Other Pro, Chicago, IL
Mon Jul 9, 2007
Buyers can negotiate their commission with agents. When the agent is paying a referral fee, the agent has less to negotiate with. Simple math.

The key is understanding that commissions are negotiable.
Web Reference:  http://yochicago.com/today
0 votes
Sara Provost, , 60137
Mon Jul 9, 2007
I don't agree at all that flipping is over for now. In fact, I see the right flips (location, materials, etc) as the houses that are going quickly as opposed to owner occupied homes that need lots of work. Buyers don't want to do a lot of work these days. So savvy flippers can buy a house, get it on par with buyers' expectations and ma a bit of profit for their "sweat equity". Now, it is true that flippers should not expect to buy a house, slap a little paint on and charge a huge mark-up.
Also, it is true that when a Realtor offers to help with a referral, they will likely get a referral fee from the referred agent. However, buyers do not pay their buyer's agent a commission, so the referred agent would have no ability to negotiate a commission with the buyer. The referred agent is paid whatever commission the listing agent offers on the house the buyer selects. The referred agent would just then share a small percentage of that set commission with the agent who gave the referral. Now, when the flipper has done the work and then chooses to list the house with the Realtor they were referred to, they then have the ability to negotiate a listing commission and the original agent who gave the referral is no longer due a referral fee. So in a nutshell, a referral in this situation does not limit a consumer's ability to negotiate with the other agent.
0 votes
Sara Provost, , 60137
Mon Jul 2, 2007
I wouldn't eliminate the idea entirely. But I would suggest that you be VERY picky about what and where you rehab. Location, Location, Location is particularly important in this market. It's no secret that the market is tipped in favor of buyers. There are a lot of homes available for sale and market times are longer than we've seen in years. However, houses that are priced right and in a desirable location are still selling. My advice is to speak with a local Joliet Realtor (I don't work in that area but would be happy to refer you to someone) about market conditions, what areas are selling and what price ranges are selling. With that information in hand, search for a house to flip. Be choosy about location, floor plan, yard etc. And be realistic about how much you can afford to put into the house, how much work is required to make it desirable for buyers (buyers are very savvy and shy away from shoddy rehabs) and how long you can afford to hold the property.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more