I made this quick video to try to answer the question can you still flip a house in today’s mortgage market, and I believe you can, but in order to sell a house you need to have the best looking house at the most competitive price.
With the current mortgage market crisis there is a huge influx of foreclosures in the Dallas area, and you can get a foreclosed property with property values slashed way below current market values. For instance a friend of mine is in the process of purchasing a home for $82,000 that could has sold with no problems for $100,000 a year ago with no work done to the property. The seller did not want to fix up the property, so they are forced to lower the price because of the large amounts of Dallas Foreclosures. The banks know that if they do not negotiate the prices they will have to carry the cost of the property, and they do not want that. So, go in and offer a ridiculous price, and wait for the counter offer, and you might be surprised at how willing they will be to negotiate the price. Banks only see profits and losses, and right now they are in the red, so the will wholesale houses a lot cheaper than a year ago, and when values rise and the mortgage crunch is over you will have a house with ton’s of equity. Buying a Dallas foreclosure at the right price is very important, so be sure to do your home work and calculate all cost including repairs and improvements. For once you have a chance to take advantage of the position of the bank instead of the bank taking advantage over you. Dallas foreclosures are at an all time high, and that is why I say now is the time to buy if you are looking for a rental property or your own residence
So you’ve decided to buy a house, people who can afford to buy a house for cash are rare; most will need to finance the purchase of their home through a Dallas Mortgage Lender. A mortgage is a long-term loan contracted by the buyer to purchase a house, in return for the provision of the loan, the borrower (mortgagor) promises the lender (Dallas Mortgage Lender) Read the rest of this entry »