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House flipping back in vogue
(Phoenix, AZ)

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darenjblomquist Posted: 31 Mar 2010 09:09 AM

Interesting article in BusinessWeek/Bloomberg this morning about the resurgence of house flipping by investors who purchase properties at rock-bottom prices at the foreclosure auction on the courthouse steps, do the necessary rehab and then turn around and resell the property for a tidy profit.

The article focuses on flippers in Phoenix, one of the hotbeds of the new brand of flipper.

"In Phoenix, 4,661 foreclosed homes changed hands within six months of being purchased in 2009, an increase of 81 percent from the year earlier, according to RealtyTrac Inc., which sells foreclosure data. Flips in the California counties of Riverside and San Bernardino rose 45 percent to 17,203. In Las Vegas, which has the highest foreclosure rate in the country, they climbed 38 percent to 8,042."

The lead story in the April Foreclosure News Report focuses on top real estate investor strategies for 2010, and goes in depth talking with some of the flippers in Phoenix as well as other areas. Here's an excerpt from that article:

In Arizona, a weak economy and an overbuilt housing market have combined to drive foreclosures up and prices down to the point where investors like Mirmelli are making fast money flipping properties sold at the Maricopa County courthouse steps. With Arizona’s unemployment rate at 9.2 percent in March, and 60 percent of all homeowners underwater, Mirmelli and other investors have over 900 auction properties a day to choose from.

In March, for example, Mirmelli bought a luxury condo for $628,000 (bidding started at $595,000). A couple days later he sold it to a cash buyer for $999,000. After expenses, he pocketed more than $300,000 on the flip.

“We move fast,” said Mirmelli, who has purchased 10 foreclosures at auction this year. “We’re on pace to close 50 this year. Everything we do is about timing and speed.”

The April issue with this article will be going to print on Thursday and should be mailed out in the next couple weeks. You can subscribe to the Foreclosure News Report now to make sure you receive a copy.

Any flippers out there who want to share their stories?

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darenb replied on 31 Mar 2010 09:12 AM

Here's a video to go with the article.

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