Posted by Karen McCall on October 13, 1998 at 14:00:06:
No Need to apologize, you just confirmed my feelings exactly, but I figurede it would be easier for her to hear it from a third party. You know what I mean?
$500,000+ Homes---- Investors? - Posted by Karen McCall
Posted by Karen McCall on October 13, 1998 at 07:26:27:
I have never seen anything on this type of investment homes, so I thought I’d pose the question to experts:
Is there anyone out there who invests in homes $500,000 and avove I have a friend who has a nack of finding them $50,000-$100,000 below market and she asked if I thought we could flip them. Can we?
Re: $500,000+ Homes---- Investors? - Posted by Michele(MI)
Posted by Michele(MI) on October 13, 1998 at 08:20:01:
Here is a true story from a group of investors in
our local REIA. Four investors found a $Million+
home they could get cheap. They purchased it for
~50 cents on the dollar.
Believing that they were going to make bundles,
they started marketing it. Marketing expenses
were very high, professional photo’s and brochures
were made up.
Reality sets in. There are very few people that
can afford a million dollar house! They had it
for months and months. Making payment, after
payment, after payment. They even said, well it
looks like four families will be living together
in this house soon.
At this writing I do not know if they have sold
it yet.
Discounting a $500,000+ home $50-$100K is only a
10-20% discount. If someone has a $90,000 home
and you buy it for $72K-81K are you REALLY getting
a great deal.
People in the $500K+ homes, are very savvy (sp???).
I dealt with a multimillionaire last year when we
had several $350,000 - $500,000 homes for rent.
He wanted to buy it dirt cheap!
Basically about the price that I had negotiated
for my option. Leaving no spread for me to make
a profit.
In this price range it is much safer to option the
big houses, than it is buy and try to flip, unless
you already have a very solid buyer.
Michele R. Eddy
Re: $500,000+ Homes---- Investors? - Posted by MichaelR (NoVA)
Posted by MichaelR (NoVA) on October 13, 1998 at 08:16:58:
I have never done one personally, but I know that
in the DC Metro area there are several people who
have made some wonderful profits from buying and
leasing $750-1M+ properties. I’m not sure if there
is so large a market for leasing properties on that
scale elsewhere, though. Ours is mainly from diplomats
and other VIP’s who are in town for a semi-temporary
stay.
Something to consider when looking to flip something
this large, however, is that you are severely
limiting your market which you can flip to. The
types of low end properties that are normally flipped
are desired by over 50% of the market. There may
be 50+ quality rehab investors who are looking
for them. High end properties may only have 2-3.
Limiting your options normally isn’t great…but
to each his own. 
Make some money…
Michael
Sorry…make that to each HER own. - Posted by MichaelR (NoVA)
Posted by MichaelR (NoVA) on October 13, 1998 at 08:18:10:
nt