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Is that house you’re considering a flip? Here’s what to know
 Written by Zach Wichter Dec. 10, 20213 min read  Edited By Bill McGuire At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Not all houses are created equal. In any given price range, every property you’re going to look at will have its pros and cons. This applies even more so if you’re considering a home that was recently renovated by a flipper. You certainly don’t need to avoid properties that are being flipped, but there are some things to watch out for if you’re looking at one. What is house flipping? House flipping is hardly new — in fact, Bankrate wrote a whole guide on how to do it a few years ago. But as real estate prices skyrocketed over the last 12-18 months, many people saw an opportunity to earn a quick buck by buying property, fixing it up, and reselling as the market pushed the value ever higher. Experts warn that flipped houses can sometimes be more trouble for the post-flip buyers, however, especially at lower price points. “There’s always been an issue with fix and flips with the quality of them,” said Stephanie Fix, a Realtor with RE/MAX Professionals in Denver. “The margins are so slim these days with these investors that they’re really cutting a lot of corners.” That reality came to the forefront recently as Zillow exited the home flip market. The online real estate giant made a big push to boost its iBuying platform in the last year, but ultimately decided it overpaid for too many properties and went into loss-cutting mode. Flip warning signs to watch out for Fix said that a shoddy flip isn’t always obvious, but finishes that seem off can sometimes point to bigger construction quality problems. She said she recently toured a house that she could tell was flipped because a kitchen drawer was blocked by the refrigerator and the dishwasher wasn’t installed properly. “If those things are missing, cosmetic, on the surface that I mentioned, that tells me to be wary of what’s behind the walls,” Fix said. “Most of the things that are dangerous, you can’t always see with your eyes.” Alterations that seem rushed on the surface could indicate bigger problems, like electrical work that isn’t up to code or plumbing that wasn’t installed correctly. Addressing issues like that can become costly, especially if you haven’t factored them into your budget. What to do if you’re buying a flipped house It’s crucial to work with a knowledgeable Realtor if you’re considering a house that’s being flipped, Fix said. “An experienced agent is probably going to have a better eye than the buyer,” she said When she tours a house that she suspects is being flipped, she’ll check the title’s chain of custody to see who owned the home previously, and will reach out to other agents in her network to see if anyone has experience buying from the flippers. You can easily tell if the home is a flip by looking at the property records. If the home is back on the market just a few months after being purchased by a new owner, odds are it’s a flip. At the height of the pandemic real estate boom, many buyers were waiving inspections and other contingencies in their contracts to make their offers more attractive. Fix said that’s an especially bad idea on flipped properties. “These guys typically don’t permit things,” she said, so getting an experienced inspector to go take a thorough look at the property is crucial. “It’s going to be really important to do your sewer and separate roof inspections.” Bottom line Flipped houses may seem up-to-date on the surface, but shiny new finishes can sometimes mask shoddy work. If you’re looking at a property that is being flipped, you’ll want to be sure to get it thoroughly inspected before you close, and set aside money for any problems that may crop up as a result of renovations that were done on a tight budget. Learn more: First-time homebuyer guideHow to find the best real estate agent in your areaJumbo loan resources
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December 10, 2021

Getting Into House Flipping as a Senior
Photo by Pavel Danilyuk from Pexels Running a successful house flipping business requires someone with time on their hands and seniors have plenty of it. If you are looking for something to do after retirement that can give you a decent income, you should consider fixing and flipping houses. You do not have to be a pro to do it although some home improvement skills might give you an edge.  Getting in the house flipping business is a good way to diversify your portfolio and if done right it can provide you financial success in your golden years. VR Apartments shares a few considerations you should make before plunging into the business.  Choosing the right house You have to know which houses to pick. Your choice of house will determine the profitability of your business. There are several factors to consider when choosing the ideal property to flip. These include the neighborhood, nearby amenities, demographic, and school district. Put yourself in the shoes of a buyer and consider what gives the house value.  The best pick should be an up-and-coming neighborhood in a safe street with low crime and is in a nice school district. This kind of house is attractive to professionals and young families, meaning chances of a successful flip are very high.  Work to be done The less work you have to do, the better especially since you are a senior citizen. A fixer-upper may be attractive for its low purchase price but it may prove to be very costly in the long run. Renovations can take a lot of time and cost you a lot of money. Every day spent repairing the house means increased billable hours and loan interest. Avoid houses with foundational and structural issues. Instead choose properties that have a solid build, attractive layout, and character. You should transform the house through cosmetic updates and fixtures. If you have to flip a fixer-upper, you should get the right type of inspection done to give you an idea of the major components that need repair, how long the repairs will take, and how much it will cost. When pricing the major repairs like HVAC upgrades, electrical work, foundation problems, or issues with mold or asbestos, you should add 20% to your estimate      Financing expenses Starting a house-flipping business requires a sizable amount of start-up capital. If you do not have a huge sum stashed away, you will need a loan or an investor. Putting your life savings into a business is not a good idea so taking out a loan or getting an investor are the best ideas. Both have their advantages and drawbacks.  An investor is a business partner who wants you to succeed but this gives you less freedom than you would have operating the business by yourself. A loan on the other hand comes with restrictions. For example, it won’t cover auction purchases which give you access to excellent houses for cheap. Loans also come with steep interest rates and the interest mounts the longer you take to flip a house.  Managing payroll for employees and contractors Since you can’t carry out all the renovations yourself, you will need to delegate duties to professionals. You should find reliable employees and contractors to work with. You will need landscapers, painters, plumbers, general contractors, among other professionals, and you should have an efficient way to manage payroll. Payroll software can help you streamline payments and free up your time to focus on readying your property for sale.   Manage time and budget To run a profitable fix-and-flip business, it is critical that you finish your projects on time and on budget. Before you begin a project, you should estimate the time each contractor should take on a renovation and how much it should cost. Make sure that the project is never at a standstill and that you don’t exceed the budget for any area of the building.  Finally While it may seem like an overwhelming undertaking in retirement, with the right planning, house flipping can be a rewarding venture. 
VR1
September 28, 2021
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October 29, 2020

THE REAL DEAL: WHAT TO EXPECT AT ICSC IN LAS VEGAS IN 2019
Brokers told TRD that they 20-year flagship model is no longer attainable, and now are looking for innovative ways to fill retail space. By David Jeans | May 17, 2019 08:46 PM Almost 30,000 retail real estate professionals will descend on Las Vegas for ICSC. Here’s what they expect. Long gone are the days of the two-decade flagship lease. Now, brokers attending this year’s International Council of Shopping Centers conference in Las Vegas will be courting a new tenant: online companies seeking short, nimble leases. This year’s event, which will be held from May 19 to 22, comes at a time when shopping malls across the country are shuttering, and global clothing retailers can’t afford the rents charged on Fifth Avenue in Manhattan. Instead of the once-treasured 20-year retail lease, Robin Abrams, the vice chair of Compass’ commercial division in New York, said retail brokers this year will be chasing leases that that allow retailers to stick around for between one and three years. “There is no norm anymore,” Abrams said. “It’s taken five years for the industry to see this.” And as brokers and real estate professionals arrive from all corners of the country, and abroad, they are now targeting the same tenants: online companies. “The native digital retailers who haven’t even begun to get to vertical, that’s our future,” said Joanne Podell, an executive vice chairman of Cushman & Wakefield’s retail division in New York. “As they grow they’ll realize that they need a brick-and-mortar retail presence.” In Miami, Drew Schaul, a retail broker at CBRE, said he’s seeing online retailers actively pursuing lease deals in South Florida. “Digitally native retailers understand brick and mortar has to be apart of their growth strategy to be a true omni channel retailer … to maximize return on investment and expose the brand,” he said. Brokers in Chicago said that despite the negative effects of e-commerce on the brick-and-mortar retail landscape, the city has experienced an uptick in activity in the past 60 days, according to Austin Weisenbeck, senior vice president for retail investments in Marcus & Millichap’s Chicago office. “We’re going to be telling people that it’s still a great place to consider putting in money,” Weisenbeck said. The sentiment has been echoed in Los Angeles, where the retail industry has struggled to fill stores along its main corridors in Downtown LA and the Bloc, alongside the rise of e-commerce. “In the past couple of years, it was a bit of a shock as to what was happening,” said Jay Luchs, an executive vice chairman at Newmark Knight Frank’s Los Angeles office. “Now we’re kind of getting used to it.” But while online stores may draw the attention of most brokers, Peter Braus, the managing principal of Lee & Associates in New York, is confident that there are still some big fish. “There’s a high degree of confidence for an established brand,” he said. “If they are going to open, they will for 10 years.” This year’s schedule of panels also reflect a push from the industry to seek out innovative ways to fill retail space. One panel featuring Brendan Wallace, the founder of Fifth Wall Ventures, which backs real estate-focused technology startups, will discuss examples of digital-native brands that have transitioned to brick-and-mortar storefronts. Another panel featuring a Target executive will discuss how shopping malls are reinventing themselves, while a panel including leaders of fashion houses Tapestry Inc. and Guess, Inc. is expected to cover how retailers are using artificial intelligence to improve customer service. “In previous years there’s been panels about flagship retail and the vibrancy of malls,” said Braus, of Lee & Associates. “Now the conversation has turned to what the fuck do you do with a class B and C mall?” And, in line with the loosening of marijuana legislation, there is a growing demand for retail space to sell it. There’s a panel for that, too. Additional reporting by Natalie Hoberman, Katherine Kallergis and Alex Nitkin. Tags: Commercial Real Estate, ICSC, Real Estate Technology, Retail, Shopping Malls
VR1
May 17, 2019