Posted on Thursday, January 05, 2012
I am not sure how I feel about “flippers” in general. I tend to come down on the side of “good for them.” If the market is there go for it Flippers. In their prime Naples real estate Flippers were quite a force. Buying and selling – sometimes selling before closing, or selling before new construction or just selling to the next guy in a flurry of real estate appreciation not seen in these parts for some time. Oh yes, and do not forget the leverage angle and if you could not afford to engage in this activity as an individual you could join consortiums of other flippers and team up. You know how the movie ended. Some of our good friends were left out there hanging in highly leveraged positions as the market curtain came down and held properties with declining values, with lots of debt, with no or little market to sell into. Ouch.
Today the Flippers may be helping Naples real estate a great deal. I think these Flippers are typically among the most aggressive risk takers around. In a market rebound these folks are likely to be at the forefront. Market rebounds not only help Realtors thank you, they create jobs (think construction for example) and a rebound may allow price appreciation and give some relief to those underwater in their mortgages.
The Flippers may also be a positive force in removing foreclosed properties from the market – wading in to buy, rehab and return these properties to the market. All at a profit? Why not, good for them. These flippers, combined with the buy-to-rent group and Habitat for Humanity’s efforts to buy up and rehab foreclosed properties all are helping the market along in Naples real estate.
So it is no wonder leaders in government are looking to extend the flippers a break. According to Florida Realtors in a January 2, 2012 article “Acting Federal Housing Administration Commissioner Carol J. Galante … extended a temporary waiver of FHA’s anti-flipping regulations through 2012. Read FHA’s anti-flipping waiver. ‘This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,’ said Galante.”
Anything to help jobs and the market is ok with us – especially if the Flipper’s financing is up to snuff – is ok with us.
Anyway, good news for the flippers today and hopefully continued good news for the market.
No legal or investment advice or suggestions are being given in this Blog. Actual real estate price and sales results are subject to market forces and are not completely predictable. Please consult a lawyer or investment advisor for such legal and investment advice. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
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