Flipping homes has been a hot topic of conversation in recent years in the national press, television and especially Palm Springs. New reality shows feature charismatic real estate entrepreneurs that buy, remodel and flip homes in just 30 minutes (and that's with commercial breaks)! Unfortunately many of these home shows portray a false reality when it comes to speculative real estate flipping and can lead many into unrealistic hopes of making a quick profit. However, for smart investors, flipping homes can still be profitable.
Recent reports from housing data authority RealtyTrac detail a promising trend in flipping activity. Although U.S. home flipping saw its lowest level of movement in the third quarter of 2014, the average gross profits rocketed to record highs. Consider these facts:
• A total of 26,947 single family homes were flipped across the US in the third quarter of this year.
• The average profit on a flipped home was just over $75,000.
• Those making the most money are rehabbing older, outdated homes in what would be considered "established" neighborhoods.
• In the next 3 to 6 months, there is scheduled to be a significant increase in foreclosure auctions which will bring a larger inventory of homes that could be suitable for flipping.
Can you still flip a home in Palm Springs? Yes. We're a mecca for Mid-Century homes in Palm Springs, and many of them need some help. The greatest challenge to flipping a house here, though, is finding the right property to buy at the right price that has potential to make money after your renovations. With less then 5% of the Palm Springs' inventory being a distressed property (a foreclosure or a short sale), finding a good flip candidate can be like hunting for a needle in a hay stack.
Yet for those savvy investors and with the help of the right Realtor, some home flipping opportunities do exist. Often homes become available and are never advertised to the general public. By building a relationship with the a connected Realtor that is up on what’s going on around town, a buyer may have access to such deals that others never see. A seasoned "flip" Realtor can often offer advice to a flipper as to what design choices will result in the best return on investment too. Clay Baham of the Paul Kaplan Group, recently helped one of his long time investor clients sell a home that resulted in a profit of well over $100,000.
Paul Kaplan himself, has "flipped" many homes over the years in Palm Springs, and has direct hands on expertise. Additionally, many of our agents have worked with a variety of investors on flips throughout the Palm Springs area.
Whether you’re a "flip" investor or thinking about flipping a house for the first time, The Paul Kaplan Group has the knowledge and experienced agents to help guide you through the entire process from helping you find the right buy, to reselling your flipped home at the best possible profit.
Want to learn more? please contact Paul Kaplan Group for more info. or call us at 760-459-1396.
Written in part by: John White, of The Paul Kaplan Group, Inc.