Page 2 of 2 Previous

Continued: Home 'flipping' takes on high stakes

  • Article by: KIM PALMER , Star Tribune
  • Last update: November 16, 2013 - 10:29 AM

Real estate investors made an average gross profit of $54,927 on single-family home flips in the third quarter, up 12 percent from 2012, according to RealtyTrac. In Minnesota, the average gross profit was $31,207, and the average flipped price was $206,801.

Picky buyers

“The sharp rise in high-end flipping indicates there is still good money to be made for flippers willing and able to take on the additional risk of buying and rehabbing more expensive homes,” said Daren Blomquist, vice president at RealtyTrac, in a release.

But upper-bracket flips are risky because upper-bracket buyers can afford to be picky, said O’Neill. “When people are buying that kind of property, a lot of them say, ‘I’d like new construction, to pick it out myself.’ ”

O’Neill, who teaches classes on flipping, said investors need to arm themselves with data and seek unvarnished advice from a real estate professional.

“It can be a losing proposition if a person doesn’t understand the three rules,” he said. “No 1. Buy it right. No. 2. Know how much you need to put into it. And No. 3, know what it will sell for.” The last rule is especially tricky because sale price is a moving target. “The market is continually shifting.”

 

Kim Palmer • 612-673-4784





 

  • related content

  • Greg and Janet Lawrence of Home Avenue renovated this million-plus property in Minnetonka for resale.

  • A remodeled house in Minnetonka includes a tranquil pool.

  • Provided photo Before the makeover, lower-level family room

  • Before and after: A remodeled family room in Minnetonka.

  • The new kitchen of a house in Minnetonka that has been remodeled and updated for resale. Location is a strong factor in which houses are bought for flipping.

  • 34 percent

    rise in high-end flipping (homes priced at $750,000 or more) between third quarter 2012 and 2013

    One broker’s rules

    1. Buy it right.

    2. Know how much you need to put into it.

    3. Know what it will sell for.

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

 
Close