I recently listened to a webinar given by Jeff Adams where he spoke of his system to getting properties at a discount and the strategies he has been using for the past little while. Through the many hours that I've spent in trainings, webinars, seminars, etc. I've seen a trend in fixing and flipping properties right now. My friend David Darling calls them "flixers" and people are making a good amount of money on this in the current market. It's funny to hear the people in these trainings talk about the ease of how it works, almost as if they forgot how hard it was to get their first deal done and the times they spent just barely scraping by to make ends meet. Don't get discouraged if things don't pan out right away. The gurus still have a low conversion rate based on the amount of people that call them saying they've got the deal of a lifetime for them.
The trend that I am seeing in the market is flipping, I would assume there is still a good 6-8 months of flipping that we are going to see. The recent suspension of FHAs 90 day flip rule is a big deal and it has opened up this flipping pattern to those that were on the fence about getting into this strategy to begin with. I'm just a little worried that it will turn into what I call the "punk pattern" where once something gets mainstream and everybody's doing it, the savvy investors will pull out and find the next new way to make money (my prediction... bulk REOs make a comback after this phase of investing has lost its sexiness).
So for the time being we'll see an increase in hard money loans and private investors looking to capitalize on this new phase of making money.
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