wow $150K margin? I could not find any flippers with that much margin in the bay area, regardless its conditions… Besides, try to flip a $750k cost house is too risky on its own. I would not even think about it.
I am resigned to the fact that I have to start looking up in the $700k range because there is less competition. However, the % profit is low compared to purchase price. In other words, I have to spend $700k to buy something that will get me the same $$ profit as a $400k purchase would have several years ago. There is just too much competition for homes in the mid range and lower ranges. I know a few competitors that are in the high ranges - million dollar homes. They usually scrape off the house and build a brand new spec house.
And, I spend a lot of time doing diligent research to find something that has a strange situation that I can pounce on. Getting really hard to get properties that are just coming on the market… everyone is seeing those and pouncing all over them with offers.
The risk is much higher at higher price. Buy a 700K house and put in $150k and try to get a profit of $150k is not easy and with high risk. Ask dstark’s friend, who scraped the old and built from scratch, it is not worth the effort.
My friend did that in the top rated area when a 4000 sf house can command $3-4 million, that is worth the effort, in a medium rated area, to buy a $700k house and renovate it to sell for a Million is not worth the time. Better become a developer and build new homes.
Time to get out of the flipping business.
Well, since I cannot become a developer without some type of credentials !!! I have no choice but to slug along and hope there is a law of averages in the long run.
Property #17 - 5 bdrm in University City… Seller has come back asking for ‘highest and best’ from the top offers. I personally do not like to play that game, probably because I never win. So, I am just going to resubmit my same offer and move on. I have to be careful not to get caught up in emotions and try to ‘win’ just for the sake of winning. I know several competitors that get caught up in the ‘winning’.
Property #18 - completed a thorough inspection of the house. I personally feel that it needs a good retaining wall on the severe slope below the house to try to give a little ‘yard’ to the house. It is a very large lot for the neighborhood, quarter acre, but it is all steep slope down to the next street. One of the neighbors has spent a lot of time and money terracing their yard. I just couldn’t take my eyes off the views while there, which is a good indication of how buyers will react if I open up the house and showcase the views.
I had my roofing guy stop by and unfortunately he says it needs a new roof to the tune of about $7,500. And, I saw some minor foundation stem wall issues that need to get fixed. So, I had to lower my offer to accommodate these issues. Submitted my offer this evening and hinted that I was in a ‘highest and best’ situation on another property so I would appreciate a quick presentation to the Seller. The offer has already been forwarded to the Seller.
Previewed two other houses in La Mesa but they are not good candidates.
Property #17 - sent in my highest and best offer at exact same price as first offer. I will find out tonight who is the ‘winner’. I’m pretty sure it will not be me
Property #18 - The Seller sent back a counter offer. Currently, there are no other offers competing with mine. My agent and I just did an extremely thorough analysis of comparable sales, all the way back to 2000. I can see a pattern where the ‘perception’ is that the street is not that desireable. I don’t know why that is the perception since it is a quieter street than a heavier traffic street above it. However, this house is under the flight path which eliminates some buyers immediately, even though it has triple pane windows, and new AC (which is very rare in this area).
After careful analysis and further discussion with some contractors on the costs to build an internal staircase to the downstairs area and some other issues I have decided that I probably shouldn’t of even made my original offer. So, I have responded that I cannot go higher than my current offer and he has until this evening to accept it.
Well, fingers crossed that he doesn’t accept your offer.
Good morning. I did not get #17 in University City. They received a full price cash offer.
My agent and I spend a lot of time making sure that our listing photos are absolutely perfect and really nice. In the Internet age I know that a lot of potential buyers are previewing homes on the Internet and making decisions to go view a home based on the pictures. The photos are critical.
Sometimes we run across absolutely horrible listing photos and we will send them to each other. But these photos in the link below just take the cake!!! To provide a little levity in our search, I thought you might enjoy some of these excellent listing photos 
Warning… topless photo by an absolute idiot in the mix
http://realestate.aol.com/blog/gallery/terrible-listing-photos/#!fullscreen&slide=875968
I believe that this link technically went to a web address that had ‘blog’ in it, so it is on aol.com
Unfortunately CC bleeped the name of the site, and we’re not supposed to spell around the censoring.
But if you google “/blog/gallery/terrible-listing-photos” it will be the first item in your results.
My favorite is the office/bathroom combo, although this isn’t so much a horrible photo as it is a horrendous house. If the pic didn’t show what it shows, and I went to this house and discovered the office has a commode in it, I would feel mislead by the listing.
Geez a o l . c o m
Just to clarify… it’s not a ‘blog’, just a set of photos with descriptions
@coralbrook, I’m splitting my sides laughing at these photos!!
ETA: Also see terriblerealestateagentphotos.com
Can you believe a listing agent would take a picture of a shirtless slob sitting in an empty horrible living room on a dorm couch? That one is the absolute worst to me
But I’m rolling on the floor laughing looking at these pictures!
@VeryHappy, the site you posted in #351 is the funniest yet. Keep clicking older posts for even more hilarity. 
@Consolation: The guy’s captions for the photos are wonderful!!
Property #18 in Point Loma. The Seller has received a higher all cash offer, but it is contingent on inspections. His offer is $23,000 higher than mine. I was countered back but I am not budging off original price because I am really scared of future value - no comps to support what I am hoping to sell it for. But hey… Flip or Flop television show always seems to get their higher asking price
The listing agent (who I am submitting offer through and he gets both commissions) is really trying to make it work and I’m guessing he is pushing for my offer because there is no inspection contingency required.
So, we will see
Spent most of the day going through every single property for sale or pending in the MLS. But, I didn’t go out viewing properties. It is a danger in my business to get complacent and not get out driving and hunting. Can’t let it happen, I’ll have to get out tomorrow.
OMG, so many ugly toilets in the photos! I am rolling on the floor laughing! The captions are priceless.
Cb, fingers crossed!
The penis/testicles windows were priceless.