I Bought a Flip House and It Hasn't Sold!

[@ghost307]

If flipping houses was such a guaranteed moneymaker, the Contractors would be the ones buying the houses and renovating them at cost and making a ton of money.

[@jayc4715]

Nah...you'd think that .but they lack the mentality

[@patrickchilds5486]

Here in Florida they have been doing just that. Made a lot of money but a couple near us they got stuck holding.

[@diytacoma5758]

The contractors are making money from things like this but their is just not that many houses to do this with

[@tgtongue]

Contractors have waaaaayyy too much on their plate to deal with flipping. It’s one thing when the customer is paying but another when the contractor has to fork out cash for the property, expenses, materials, and their own employees. That’s extreme capital to put at risk!

[@mr.isaiah1275]

@@patrickchilds5486Yeah flipping in South Florida is as easy as ever. No inventory at all down here, which helps sell nice houses fast

[@aaronalquiza9680]

you know... i think these people might be part of the reason why home prices have spiked more than expected.

[@midlifecrisis7888]

Speculators drive up prices. Blackrock is the biggest culprit though. Buying up whole neighborhoods

[@aaronalquiza9680]

@@midlifecrisis7888 in a way, house flipping is kinda speculative, isn't it? you buy a house that, when you touch it up a bit, you expect it to sell for more, giving you profit. And Blackrock is a scaled up (by many orders of magnitude) version of it. and then yeah, there's the interest rates as well.

[@TheTricky44]

More so companies like Blackrock

[@Chiefbadbruuuuuh]

Scarcity drives up prices, not enough houses have been built since the Great Recession.

[@jwlsngold5026]

Funny you should say that. My dad sold (streetcsign buyer) his house (circa 1952) way under market because he wanted a quick sale. His house was then sold less than 30 days later for +$170k, then it was flipped, put on the market for $949k, listing removed, put back on the market for $999k sold for $949,027, it is now back on the market for $989k, all of this in the span of 13 months. From the pictures it was modernized and added on to, but still has no garage, sqft 2048.

[@arga400]

If nobody is buying the product you're selling at the price you're selling it at, you're overvaluing your product.

[@llcross04]

Bingo. The housing market has shifted and unfortunately he is behind the 8 ball

[@mattschmitt9924]

Very true. The buyer determines the price. They set the market.

[@Vydio]

Or your produce is junk.

[@obie1coby]

This is always the truth

[@cherrypieforbreakfast1499]

Most common flipper mistakes; 1. Paid too much for the house. You make your money on the buy, not the sell. 2. Over personalizing the house. For flipping, the most generic popular fixtures and colors work best. 3. Poor workmanship is rampant in flips. House probably looks like crap.

[@amgooder]

You forgot location location location...

[@thebastardgift]

I agree other than the colors. New homeowners will paint to their preference, so for staging keep it neutral and add sparks of color in towels, pillows, a bowl of fruit, a small accent wall. If every room is painted and potential homebuyers hate it, they will consider painting a burden but if just left neutral painting it, as the new owners, becomes an adventure.

[@amgooder]

@@thebastardgift Most flippers got the memo...use ONLY 2 colors...white and gray...(the new beige)

[@SparkeyCox]

@@amgooder - I am not most flippers - but LOL

[@DMoney505]

Number one is key!!! That’s the question what did he buy this house for? Probably overpaid with hopes of selling high….

[@Julian-zc9vm]

You often see these flips sit on the market for long periods of time. Usually they have a fatal flaw, like only having one bathroom, or an awkwardly laid out very small kitchen, or all of the bedrooms are be way too small. They are basically situations where any reasonable person would need to basically finish the job and blow out a wall or two to reconfigure the floor plan in a better way, and the clientele of homebuyers who are interested in flips don’t want to do that, they want a move in ready house.

[@DB-bw5fz]

Spot on. Why would I as a buyer pay more for a “flipped” house that I ultimately will have to put more work into, when I could skip the middle man, buy a home that is in obvious need of some work for less, and then spend the extra money on doing things the way I want. I know where the mentality of a flipper lies…and it’s not on ensuring the best work possible is done to the building….

[@ghost307]

@@DB-bw5fz Especially when buying it involves being stuck with someone else's design. Repainting is easy, but why should I get stuck with a newly remodeled kitchen that I wish had been done differently. Much better to buy a fixer-upper and spend the money to fix it up exactly the way that you want it.

[@treasurethetime2463]

100. There is something weird that he didn't address. A newly renovated home at a solid price will sell easily.

[@llcross04]

All great points.... Why pay 225k + $$$$ for something you have to remodel when you can pay 250k and be done

[@DB-bw5fz]

@@treasurethetime2463 I agree. The problem though is that most flipped homes don’t have well though out and executed renovations done to them. They are done with the sole intent of getting a good return on their investment, so appearance and cost outlay will have a large effect on the work that is being done. Buying a turn key, fully renovated house is likely the better way to go…but buying a house in obvious need of work and paying to do the work is likely to be the better way to go over buying a “flip”.

[@too-da-loo]

Many flippers who appear successful on TV have their own construction crews who appear to be available anytime. If you are an independent needing quotes and being scheduled you are already on a losing path.

[@RaleighLink]

I’m glad people like this guy are having a hard time. Fix and flips are a part of why housing prices are out of control. This guy most likely did cheap work and expected a high return, don’t buy a house unless you intend to keep it for a while.

[@tarheel181]

There are a lot more knuckleheads out there....wait until Q4, hasn't even started yet.....Roll Tide!

[@johanvanstaden2408]

Prices are determined by what buyers are willing to pay; not by what sellers want to ask. Edit: And what buyers are willing to pay, are most closely related to finance terms. If interest rates go down again, and loan terms are extended to 40 years, most people will not tame their desires for more, and will willingly enslave themselves even more - house prices will rise greatly.

[@abark]

No people like this have no impact on the market whatsoever. This guy isn't even a drop in the bucket compared to hedge funds, and institutional buyers like Berkshire Hathaway and Blackrock. You really think someone flipping 1 house is driving market prices and not Zillow buying houses unseen?

[@tarheel181]

@@abark Berkshire Hathaway does not buy houses Brother, they just take a fee for selling them. Over 80% of the SFR bidness is small landlords, not Blackrock and other institutional owners, especially 40 miles outside of Austin! Bwaha

[@zachpierce641]

I disagree …I’m not a house flipper nor know one , but if the flipper is coming, and redoing a house, making it nicer, and then selling it it’s not driving up prices for other houses. What would drive up prices is the fact you have 100 people looking for a house and there’s 20 available It’s all supply and demand. They help the market by making more supply honestly . I don’t see how it hurts

[@ghost307]

I had prospective buyers tell me that they didn't like the kitchen, hated the layout, thought the garage was too small, etc. The realtor is saying what they are because they don't want to lose you as a seller. You need to find out why the people who didn't make an offer why they walked away.

[@pingedpongball]

Yep… not getting honest feedback. Surprised he hasn’t gathered more data and objectively critiqued his property

[@zesolodar]

yep i flip/ rent houses and my realtor follows up with every single person who looks at the house and asks every agent what they liked and didnt like

[@bc_usa]

You can't handle the truth!!!

[@AmazingChinaToday]

No offers means overpriced.

[@adamseidel9780]

“I don’t know why it’s not selling.” Another reason why it’s dangerous to do this. You took a risky bet in an industry that you don’t have experience in and clearly don’t understand well. You didn’t know about contracting, how to sell a house, etc. like Buffet says, the most important thing in making an investment is UNDERSTANDING THE BUSINESS.

[@laneyluneva]

That's what especially struck me too. He got into flipping and has no knowledge of why it's not selling??? what?! Why take such a risk if he didn't understand the business at all....baffling.

[@joshuatree28]

Dave should just do his own real estate show like Delaney does for relationships. Let people call in with their real estate questions and issues.

[@randomized4266]

his girl knew this was out of his ballpark

[@blackstar4686]

In 2020, I sold a couple of properties and now I'm patiently waiting for a potential decrease in housing prices so that I can purchase a property at a more affordable price. In the meantime, I have been considering investing in stocks as an alternative. Do you have any thoughts on whether it is a favorable time to make a purchase? I often hear people describe the current situation as chaotic and unpredictable. However, I also come across articles where individuals claim to have made over $225k in trades within a week. I'm curious to understand how this is possible.

[@ancientfrankia5779]

I sold a couple of homes in the Tampa area for pretty good cash and I'm thinking to just leave it in stocks while waiting for a house crash to happen and as well avoid inflation, but is this really a good time to buy stocks? I hear it's a madhouse right now and I still hear folks are raking in huge 6figure profits by the weeks and I'd love to know how.

[@Natalieneptune469]

look at it this way, while some folks are waiting to make minimal profits when stocks recover, some others folks already know where to look and what to do to make hefty gains in these times, so yea, it all boils down to knowledge to risk mitigation.

[@p.for_peaches7397]

True, I was in dilemma myself due to this chaotic market, wasn't sure if to sell or just wait a little longer, 75% of my portfolio was tanking and in the red and the economy isn’t looking promising, but I began gaining clarity and have more confidence in my investment through an investment adviser, I know most DlY investors like me would say advisors aren't essential, but come to think of it, they're better trained and equipped at this and if I have to give just a little amount in fees for me to be able to net $650K in less than 8months like I did this year, I truly don't mind.

[@flaviobaku-jk5hc]

@@p.for_peaches7397 Omg 650K this year? that’s neat, I was actually reading an articles this morning on Bloomberg about techniques to gain in this dip, but I’m just a noob so i don't understand most of it, who is this adviser that guides you, I’m having serious troubles with my portfolio

[@p.for_peaches7397]

Sharon Kay Hanna is actually the one that guides me, she’s a highly-sought out adviser, so I’m not certain she’s accepting new intakes, but you can give it a shot. It wouldn’t be proper to just Leave her number Lying around, but she has a webpage you can look at if you google her name.

[@melanieb2132]

I read an article that Austin Texas housing market is about to burst. Airbnb's are down 50%. Yikes.

[@curiouscat3384]

I'd say having new houses nearby is a detriment, not an advantage for comparing prices. A LOT of people would rather have a NEW house regardless of the quality of the renovation. If the builder is offering financing that's very appealing for first time buyers.

[@Matt-cr4vv]

Agreed. A lot of people will pay more to get a brand new house versus a rebuild if the prices are in the same universe. If I can get a new home for let’s say $260K like the price he mentioned versus $217K for his I’m going for the new one I’d guess. In my area that mortgage would be around $300 different and I think a lot of people are going to spend that $300 more every month to have brand new over the rebuild. It would need to be significantly cheaper I think to be worth passing up on the new house or at least it would need to be for me. The same reason why I didn’t buy a condo a number of years ago and bought an older home with some improvements made to it instead. I liked the idea of a condo and having all new everything at a price I could manage but someone quickly pointed out to me that there is no resale market here for them and often you’re lucky to get out even because they build condo complexes so often that there’s almost always a brand new one near whatever yours costs and when the costs are close more people will elect to go for new. This dude dived into something he didn’t have a clue about and it blew up on him.

[@michaelhurley545]

As a Realtor here in Florida i see all the time these flippers get a great deal a house then cut every corner and go cheap on the fix then ask 10 to15% higher then every other house in he neighborhood. Be careful buying from flipper investors most are out for the quick buck at the buyers expense.

[@Thrakerzog]

I'm a contractor, I can tell from this fellow that he cheaped out on EVERYTHING! He lost contractors because he was constantly trying to do the absolute minimum in spite of professional recommendations. I imagine the people who come to see the house bring their own inspectors who tell them STAY AWAY. Like Dave said, he saw people on TikTok or any HGTV show making tons of money and he thought that he could do that too.

[@mikesmith-wk7vy]

My brother just bought a house and the homes he looked at you can tell a flipper was involved because all the materials the floors counters etc have this trendy modern cheap junk look to it nothing is quality material

[@genxx2724]

They do a cheap job on those shows and make it look fast and easy. I would never buy a flip. I want quality, not a cheap job and problems they slapped a band-aid on.

[@xlerb2286]

We looked at a house like that. It was a run down house in a high priced neighborhood and we'd looked at it when it was for sale before being flipped. It needed work but the structure was good and it still had all the original woodwork, stained glass lighting fixtures, etc. We looked at it again after a flipper bought it and fixed it up. Woodwork ripped out, poor job of sheetrocking, cheapest possible fixtures, all work poorly done. Hardwood floors (if they were still there) covered up with cheap carpet. House was on the market for ages and I suspect it sold for way less than the initial price.

[@genxx2724]

@@xlerb2286 That’s heartbreaking. It’s criminal to rip out woodwork and replace it with cheap, trendy stuff, because the craftsmanship to build such a house no longer exists.

[@karlabritfeld7104]

Never mind flippers, I've bought houses from regular people who lived in their places for years and never bothered to maintain them. Utter garbage and the real estate agents advertised then as "immaculately maintained." Absolute lies.

[@benskeen9793]

Jade nailed it. This guy is hearing it from his wife every day this thing sits on the market. 😂

[@ghost307]

Being able to say "I told you so" is one of the major benefits of being married. Remember that marriage means finding that one special person who you want to annoy for the rest of your life.

[@jasonrodgers9063]

TRUE! !!!

[@chrisestes2383]

She'll be saying it till one of them dies lol

[@TheSubmissionChannel]

Jade is a dime piece!

[@nmalele0909]

A whole damn year and a half😂

[@EmilyAllan]

Nobody wants to buy from a greedy flipper, especially if that flip is not A+ executed. People read the sale history. They see greed and walk away.

[@danettewelborn5577]

*sale history not sell

[@justincrasi4638]

sorry this is not true. I'm a contractor and i've literally seen tons of houses sell way over asking and they were done by flippers. if the product is good, and the value is there, the buyer couldn't care less. same on the other side. sellers sell their homes to flippers all the time bc they have cash, even when other buyers will write the sellers personal letters about their family and children and their future life, sellers don't care. 90% time is about money and value, period.

[@EmilyAllan]

@@danettewelborn5577 - Ah yes. Thank you. Corrected.

[@EmilyAllan]

@@justincrasi4638 - I've watched a lot of Mike Holmes on Make It Right and its scared me a lot. That's why I mentioned A+ flippers. It someone paints some walls and retiles a floor but doesn't address structural or internal issues such as mold, asbestos, board rot, pests, foundational issues, sewer, flooding, etc... the flipper can do a lot of damage by not disclosing and literally painting over the problems. 2 houses on my block were flipped. BOTH houses had to have very expensive repairs done by the new owners in the first year. Flipper made 200k + on the sales, but likely didn't disclose the structural issues. Home owners should sue, but often don't. I like the GOOD flippers, and what I'm trying to say is that people don't want to buy from flippers that are greedily flipping junk houses and not disclosing the problems they taped and painted over. It has to be a quality A+ job, otherwise buyers are walking away if they see a recent flip. Too much of a gamble to buy a these prices.

[@firefly9838]

@@justincrasi4638rich people don't care about the clear greed. Most normies do

[@TheFlyingZulu]

Good! I hope this happens more often... we need the supply to go much higher. The prices of houses are way overinflated.

[@rickdunn3863]

HOW SAD, hoping other people misery. WHAT TYPE OF PERSON WISHES ANOTHER HUMAN HARM?

[@TheFlyingZulu]

@@rickdunn3863 People like this guy who is trying to jump onto the train of SCREWING OVER OTHER people with highly inflated house prices. They're screwing over OTHER people trying to buy a house as a reasonable and fair price.

[@random-nz7dy]

​@@rickdunn3863I don't think they are wishing misfortune. But it's been frustrating over the last few years for people trying to buy homes to see people coming in flipping homes by basically putting lipstick on a pig and then jacking the price way the hell up. Then everyone with a lot of money thought "Hey I'm going to buy some piece of crap and then flip it x3 it's current value". I'm sorry for this person unfortunate situation. But as somebody trying to buy a home I can see where you would see it promising to see situations like this that could contribute to a better supply vs demand situation for the buyers

[@TheFlyingZulu]

@@rickdunn3863 This guy was going for a quick buck and got screwed. Good for him. Even Dave said he has no patience for it.

[@brett4932]

I mean - caller is actively adding to supply with this listing. The problem is they are in at a bad time and went way over budget. Frankly, the country is in desperate need of more companies looking to fix up deteriorating inventory for residential use. But there’s a huge shortage of people able and willing to take on that risk right now as well.

[@trebmaster]

Overconfidence and ignorance are brothers to each other.

[@random-nz7dy]

So glad Dave took this call. This guy needed to be scolded hardcore to avoid further financially daming mistakes. And this is Dave's area of expertise so he's able to facilitate explaining the failure really well. Even with getting to the point on the guy comping a renovate with a nww build.

[@livinthedream4479]

I don’t think he needs a scolding . He is also aware that he’s losing money

[@jimroscovius]

He needs to be scolded so much that he never does this again.

[@thebastardgift]

I don't think Dave scolded him. Dave speaks with a reality tone and people today are so soft that they perceive an honest conversation without flowers as harsh.

[@jimroscovius]

@@thebastardgift That's a good point. Too many people today are soft and weak. Look at "safe spaces" at schools. People have gotten wimpy.

[@zachgreen759]

@@thebastardgift that was a scolding tone their at the end.

[@todd2456]

Man, that poor guy got roasted to a crisp by Dave.

[@RandomVids519]

This happened to a house around the corner from me they fixed it all up and just missed the market as interest rates sky rocketed. Nobody wanted to buy this overpriced small house so now 3 years later they rented it out i kinda feel bad for the person that owned it they left it empty for over a year hoping it would sell what a time to be alive😅

[@neilsmith9066]

They rented it out went to the bank the next day the bank gave them a ton of money the renter pays the mortgage and the flipper went and flipped another house happens every day!

[@supershrpy]

Renting is where the money is anyhow. Who wants to pay capital gains??? Knock knock

[@ifronnin]

A house around here listed for 365K in September of last year. It's a good place, but outrageously priced for the area. A couple of weeks ago I saw the price reduced to 200K. It still won't sell. It's a small farmhouse and barn but half an hour away from any jobs. Nobody wants to go 200K in debt at 9% interest when they can rent an apartment close to work for the same monthly payment. In a way, the housing market is crashing due to inflation.

[@KatieBellino]

In my state, people drive a 1/2 hour to work on the regular. A house for the same monthly payment as a rent would be snapped up in a heartbeat.

[@ifronnin]

@@KatieBellino Around here the problem is the distance, not so much the time. A 30 minute drive is thirty miles, which in the winter might mean a two hour drive or not making it at all.

[@KatieBellino]

@@ifronnin Ah, yes, we're pretty rural in Maine too, but 30 minutes is closer to 15 miles, so an hour if it's a bad winter day. A lot of people go ahead and do it.

[@Agingcowboy92]

The problem with flips is people skip corners and have so many issues. I got a client under contract right now and the inspection came back with foundation issues 😂😂😂

[@adrianmechelle3784]

I consistently find that the floors are done poorly. It’s rather insulting.

[@Agingcowboy92]

@adrianmechelle3784 they did really good on the surface but once they got an inspector about 20k worth of issues came up. See flipping works if you do it the right way

[@mattschmitt9924]

​@@Agingcowboy92was there no inspection done by the flippers? Negotiate it into the contract.

[@mr.isaiah1275]

100”% !!!! People cut corners when flipping houses because they don’t care about the quality, they just want a quick buck. But good quality houses will sell. Especially in South Florida.

[@terminaterjohn]

dayum!

[@adamseidel9780]

I’m not sure I understand the concept of flipping houses if you aren’t able to personally do a sizable share of the contractor work. The whole point is converting that sweat equity into cash dollars. That also lowers your risk. You’re gonna have additional labor and materials costs, and you probably can’t do everything, but if you’re ENTIRELY going outside, that co tractor margin is just gonna take so much of the profit.

[@marlonyoutube3496]

If you have to work to fix the house ,you are not investing, you are working to get pay for your labor job

[@adamseidel9780]

@@marlonyoutube3496 tell me you don’t know anything about small businesses without telling me you don’t know anything about small businesses

[@marlonyoutube3496]

@adamseidel9780 🤣🤣 I have 2 small business, I'm a contractor with 18 workers, we make a lot of money from people like you ,and you ended up broke

[@adamseidel9780]

@@marlonyoutube3496 people like me? I don’t flip houses and I just wrote how it doesn’t make sense to flip houses if you’re just going to pay contractors instead of do much of it yourself. Did you learn to read?

[@Fishouta]

Most people have no clue how to do the work, even with instructions. Many even think they do, when they really don't. Even working as your own general contractor, which I have done, takes experience and knowledge including people skills.

[@MrMustangrick]

Poor location, poor planning and estimates. Stupid hurts.

[@this_time_imperfect]

People forget that with “Risk Vs. Reward” sometimes there is no reward, that’s the reality of taking a risk.

[@isaacraze4301]

I used to flip houses, it's definitely not as easy of a market nowadays. With the way the economy is going I'm glad I stopped when I did.

[@djsausagebiscuits]

Oh man that last 20 seconds was gold

[@thomaslucio5374]

Wait for it....sales pitch. Just go to Ramsey solutions. 😂😂😂

[@charlescron1454]

Yup. That and a Bible verse.

[@midlifecrisis7888]

That house is out in the sticks. Nobody wants to drive 1 hour outside of town. 😂

[@sanitary103]

Location is king in real estate.

[@llcross04]

Austin is relatively small. 1 hour away in any direction is no longer Austin

[@blackworldtraveler3711]

Yes people do. It's what FIRE and working from home is all about.

[@zesolodar]

not necessarily true. i do the same thing and all my properties (rentals) are in the sticks about an hour away from the closest major area and i can rent/ sell them all day long. huge market for property 1 hour outside of a place like austin, the prob his he prob overvalued the property when he bought it

[@noshrinkingviolet007]

​@@blackworldtraveler3711Idk abt "FIRE" but I agree with you on wfh. Been homebased since 2014, foubd a small, less expensive town, and stockpiling cash. The idea that people can't work "real" jobs from home is bunk.

[@belenpg7688]

I can guarantee this guy got a house in the worst part of town, painted some walls, got the cheapest deals he could get with the contractors, and now he wants to sell a piece of dog 💩 for 217 when it’s worth 100k less than that. People know, people tell. Buyers aren’t stupid, that’s why it ain’t selling. He thought he could do the bare minimum, but that’s not how it works, dude. These are places folks are gonna live in. Also, wife here is not without fault, she went in just as much as he did. She should have said no if she “told him so”

[@DMoney505]

And overpaid! He should be able to dump it and not lose much. Worst case break even, He’s in bad shape with this property.

[@LAZERZ-OP]

Nobody wants the house probably because the flipper did a terrible job on fixing things up. A tale as old as time

[@AmericanWears]

It’s location if anything, he said he’s an hour outside of Austin probably with nothing much around, people don’t want to do that commute. Houses near me with mold and turds on the ground are gone within days especially if it’s listed in the 200k range.

[@mr.isaiah1275]

Maybe if them rush for a quick buck. It has to be done right in order for them to sell quickly.

[@mr.isaiah1275]

Also if he hired 3 different contractors, with 3 different work styles…something ain’t right

[@nohemivasquez4909]

I read an add for a 1 bed 1 bath for rent in Austin. I had to do a doble take browsing the pictures of the house. One wall had such a bad repair, you could see that there is a huge hole, most likely will need a new sheet rock. They just plastered tape and more tape, about 10 rows on the hole and painted over it. Asking for 1400 in rent. I wonder what other problems the owner tried to cover . God bless the poor tenant that gets into that property.

[@tduck828]

Yep. Its not as easy as the shows make it out to be. Most DO NOT make money

[@BridgeStamford]

Tic tac people doing seminars 😂

[@devdhaliwal6152]

😂 Tic Tac. Dave is so funny when he says this.

[@terminaterjohn]

those tic tacers

[@OTOWN2STOCKTOWN]

He did say correctly at one point at least bless his heart 🤓

[@genxx2724]

@@devdhaliwal6152 Tic Tac is the perfect name for them.

[@Caliabra]

Those tic tac-ers are really the worst though 😂

[@cato451]

Ah yes the house flipper nimrods. Here’s a clue: it’s way over priced.

[@kathleenhazy6126]

😂😂😂

[@troyspears6470]

These flippers will paints the cabinets and put in some new vinyl flooring and think they deserve $100k in profit

[@midlifecrisis7888]

Too many amateurs out there. 😂. They got lucky during Covid that’s it.

[@ghost307]

Or it's way too customized. Or if all the other houses have Corian and you have granite for example.

[@jillgott6567]

Flipping / renovating houses makes for good television.

[@consumerdebtchitchat]

Oooooo. Papa Dave speakin' now !!!!! All better listen up!!!!

[@shouse5110]

so, you borrowed on your home to buy a flip, and now the housing market turns,,,,great move there.

[@michaellenahan9830]

The importance of estimating renovation time. He did it when the market was trending up which was ideal for flipping but the time of construction really set him back. Prob would’ve made a profit after 3 months. I prefer the idea of doing it yourself too. No need to make it an LA mansion, just have to make it appealing and marketable.

[@terrybumpass4799]

Using a real estate agent as a financial advisor is not a good idea.

[@MyLifeThai371]

I remember in 2018 so many of us around the U.S.A. could not find buyers for our homes. My house, as well as most other people I talked to had our houses on the market for 2 years, even though homes were very affordable at that time.

[@collin9085]

That was not an issue here in florida in 2018. Houses were affordable, but also being sold reasonably quickly.

[@amgooder]

In the 80's houses in our area were put on sealed auctions ..for 5k or less...them homes today go for 400k plus...

[@MyLifeThai371]

@@amgooder In my area homes were put on auction in 2018 as well. The homes sold for $7000-$15,000. The highest one went for $60,000 because it had a new basement. Now homes are $400,000-$500,000 here.

[@dacokc]

I bought my home in 2017. Was a good time to be a buyer. Low interest rates and in my area prices had not yet spiked.

[@katysudlow7334]

Where was this? We bought our first home in 2018 and there were open houses hours after a house went on market and many offers by the end of that night. It wasn't quite the bidding wars of the next years (particularly with the cash offers and bidding going $70k above asking etc), but it wasn't a buyer's market in our area, not at all, and especially in the first time homebuyers price range. Twin Cities, MN.

[@josepha9061]

Market slowed up in town. Even more an hour out of town.

[@bruh_hahaha]

zero sympathy.

[@fauxbro1983]

lol the HGTV crowd.

[@Mike-pj1kv]

If you have extra money to "burn" you can try a house flip, I suppose. Otherwise - bad idea!

[@amylee6038]

it seems to me that flipping a house would do a lot of damage to it.

[@abhadoriya]

Just open redfin and see it for yourself. In Austin, so many houses are sitting for months at all kind of pricea

[@kuffkitten]

And the wife will NEVER let him forget.

[@BlueprintCA]

This is exactly what I was wondering when I saw everyone and their mother getting in on house flipping and rentals , my family did this in 1980s and they’d buy perfect properties and the profit margin would be around 20% nowadays people buy anything and they go on TikTok and tell people they made millions , sooner or later they’re gonna start undercutting each other because there are millions of them with zero experience and until they learn they gonna ruin the market

[@ryanwolf4101]

He bought in the peak of the bubble (at least in the Austin area) and now selling when values have dropped significantly (in the Austin area).

[@fhuber7507]

Flip houses only work if the market is exploding and you do most of the renovations yourself.

[@fhuber7507]

He could go into being a landlord... mitigate the damage by holding on until the market is better. Rental income paying most of the mortgage. Not the ideal solution and it violates the Ramsey plan of getting out of debt ASAP.

[@Vydio]

Thing is, half the population thinks they can do the renovations themselves. Most can not.

[@alexlopez5800]

Flipping 101

[@blackspiderman1887]

New houses today are bad. You get in then a year later issues. I rather have a home with some years to it to see if there is any problems

[@thebastardgift]

I would never buy a new built. They are attractive but cheaply made and located in a HOA is the same as having a silent partner as an owner given they can foreclose.

[@milesralls7972]

I’m 20, bought a house to flip and I’m getting absolutely dicked down lol, it really isn’t as easy as these people online make it seem.

[@GefilteFish.]

A lot of those videos are mainly doing those type of videos to get views and get paid via KZbin/tiktok

[@mr.isaiah1275]

I’m 21 and doing pretty well. What specifically are you struggling with, maybe I can give some insight?

[@amgooder]

😬 people usually say its all about location and workmanship...some "flipped" homes look like they been cleaned...freshly painted old kitchen cabinets and 70's wall panels...pop corn ceilings...wall to wall carpeting to cover squeaky damaged floors...paint color thru out house...white and gray..the new beige..

[@noshrinkingviolet007]

I have no idea what dicked down means but your post was hilarious! 😂

[@JakeStewart1343]

@@noshrinkingviolet007 "Flacid"

[@YourChicGeek]

Ive flipped several houses and its not for the faint of heart. Sounds like there may be some are some workmanship issues with this property. The huge price reduction is a red flag unless they are trying to use that strategy to drive up the price and get multiple offers. Either way he may be better off renting it out for a while and try to refinance or something to recover some $$$.

[@willfishing5605]

Going through 2 contractors, you got a bad contractor, going through 3, you're the problem

[@mariposavioleta9007]

The only time I've seen flips work out well is when it's someone who knows how to properly do the work themselves, get the sales on the items for the renos and sell themselves but they have to be good at all of that which is rare. I know someone who has done this with amazing design talent and did 90-95% of the work herself and flip 1-2 houses/year and make $100k+ doing so. This is very rare to see this though so just like Dave talks about with the Airbnb stuff unless you're gonna put the work in yourself the cost of hiring someone is not worth it to do it

[@SparkeyCox]

I do it that way - aaaannnd last flip Passed a VA inspection for a VA loan. You have to do the work correctly.

[@obie1coby]

Sounds like you don't know many professional flippers

[@ericwalker8382]

"I went into debt on a speculative investment. What should I do?". Don't go into debt on a speculative investment.

[@kensmart1976]

He bought high at the housing peak and now selling in a down market.

[@dacokc]

I thought that’s what they always say… “but high, sell low”…

[@AliciaMcIntire]

You can always tell a crappy flip. That's why no one even wants to do a walk-through. Also, Austin is a terrible market for flipping. Demand is too high there to get a good enough deal to make any margin on a flip

[@JA-zh5xi]

House flippers - always the last to know when the market has turned south.

[@jeanqbxx]

Don't do things you don't understand.

[@dacokc]

What sucks is if he invested $50,000 in s&p 500 right now he would have been way in the green..

[@waflletoast11]

@@wordsalad01 low risk low return, s%p is a mediocre investment for a 2 year period.

[@dacokc]

Way in the green is an overstatement… but most things I own are recovered from 2021 crash. I only threw out SP because it’s a name most people recognize. RECOVERED is better than a loss it sounds like this guy is gonna take.. However, if you continued to dollar cost average and continue to invest through the recession you bought in at some nice low points and have had a good run in the last year. FSELX is one of my favorites. Goes on some nice streaks.

[@coniccinoc]

@@dacokc Using an online investment calculator, I found out that $50k invested in SnP back in 2021 would be worth over $58k today, roughly 5% a year. The money would be easy to get at and you would not lose 6% to a real estate agent, money to a title company, loan interest, taxes... Basically, I am agreeing with you, you would be way in the green when compared with flipping.

[@jimroscovius]

I have mutual funds and they are making money.

[@blackspiderman1887]

That's about to drop soon

[@KungPowEnterFist]

The truth is that under normal circumstances (>85% of the time within the cycle), ordinary folks do not make money on flips. The only money being made is from being a realtor, contractor, etc., in your flip. In other words, you need to be the realtor and the contractor (at least some of the trades). The flip itself makes no or very little money. Outside of some incredibly lucky circumstance - inheriting property, etc. - you will never get the house cheap enough, understand/time/budget the renovation/repairs properly, and sell the house for high enough. No one does, not even the so-called pro's. What the pro's do different is that they get their real estate license, contractors license, etc., and make their "profit" that way. Its not actually "profit," however. Its just you being compensated for your time and effort just as if you had a normal job. That other 15% or so of the time in the cycle, everyone including the pro's just straight up lose money on flips. We are in that part of the cycle now. This is why inventory is so short. Selling now means you realize losses for basically anyone who has bought a house in the last 18 months. It doesn't matter if you made mistakes, didn't understand, blah, blah, blah. Even if you did everything perfect as can be done you are almost certainly be in the red if you sold right now. Ordinary folks and pro's alike.

[@tamsterscott5957]

May also be the location? Commuting for an hour can become 2 hours till at rush hour. It's an hour outside of Austin. There are no 200k houses in Austin worth living in.

[@chrisgouger9299]

This is called being a bag holder

[@kellyinfanger9192]

He is relying on real estate agents to tell him the value. If he doesn't know the value based upon knowledge he personally has; he shouldn't be doing this at all. When I sold my first home (over 40 years ago), a listing agent told me it was worth $55,000. I sold it "by owner" for $65,000. This saved me half of the commission too (I split the commission with the buyer's agent).

[@mikesmith-wk7vy]

Flipped homes suck, cheap particle board renovations for new home prices

[@jonathantaylor6926]

This guy probably listened to the Dave Ramsey episode several months ago where he said real estate prices only go up lol. Flipping is a get rich or get poor scheme.

[@CaptainUnconventional]

Flip mistakes -1 - taking out walls for " open concept " . Original design rarely accomodates it. -2- Granite every surface. Granite takes a crew and $$$. There are other great options. -3- Gutting good kitchen cabinets. New doors or new stain could be all that is needed.

[@zekemontgomery6678]

Yeah. It’s a bubble. People wanting to retire by flipping a house. Works for a min. But eventually the cost of borrowing money is not worth is anymore.

[@railtonfeagus8539]

Sounds like the wife is the brains of the outfit. In future he should trust her judgement and ignore his own.

[@elizabethblane201]

Wait! Dave has been saying that the market was not doing to come down . . .

[@coniccinoc]

I know new home builders that only remodel now because of low housing demand.

[@CG-ss4jm]

If you took a risk and made a bad investment on the house, that’s on you! Your loss!

[@blaze376192]

Now is the worse possible time to buy a investment property

[@johncameron4194]

sounds like he went cheap

[@Korok96]

Good. I'm tired of people flipping stuff and keeping people from living the American dream

[@Roxality]

Maybe rent it out at this point ?

[@kennethwers]

He can then find out renters trash houses, don't more out and don't pay.

[@swannyriver75]

Like my mama used to say " Something in the milk ain't clean what's wrong with it how many beds, how many bath, inspector evaluation

[@philipgerry5228]

On TV the flips are fixed and sold in an hour show. Nothing works as well as “as seen on TV”.

[@amgooder]

They are not sold in an hour...🙄 Try half hour...😂gotta subtract commercials.

[@clarifyingquestions]

Wife knew he did not put the work in.

[@Lon1001]

If it needs major construction the only people flipping homes are those with the skills to do the majority of the construction work themselves. If you contract the work the only one that profits is the contractor. Otherwise the value would be reflected in the original selling price.

[@DMoney505]

Not buying right, And not understanding the true cost of a rehab has him in a hole. No due diligence, And lack of experience.

[@erikcampbell4806]

If home 2 won’t sell, maybe he needs to downscale and sell home 1!

[@Caliabra]

There’s this house near me that is listed at $1.3 million that’s been on the market for a month. I had some neighbors 2 months ago saying the construction for expansion was unsafe and not permitted (codes were being violated left and right). The city came out and forced him to take down the “expansion”, so he had to turn the concrete slab into “outdoor pergola area”. We went in their as nosey neighbors and the construction is awful and so is the layout. It looks like quite a bit was invested though. So now I am just laughing as week after week no one is buying. I really despise flipping…homes should be homes and not investments; also give me a home that has Ben loved and has some character

[@jamesjackalone5486]

Remember not so long ago when Dave said the housing market doesn't go down?

[@gottasay1157]

who the hell would by a house from a flipper. The flipper buys a piece of junk and turns into a worse piece of junk and want " what for it" who's the idiot.

[@ElectricBlueIX]

Wow…this dude REALLLLY screwed up. He needed this scolding from Dave.

[@JakeStewart1343]

He needs to hire a Ramsey approved agent 😂

[@hansonallie]

Why rubies though??? Lovely, but my god - so many cooler gemstones out there!

[@mycaddigo]

Yes Dave flipping houses is hard.

[@amireallythatgrumpy6508]

And asinine.

[@LABoyko]

No one knows for sure what this investor did wrong. Probably a little of everything, but here's what stood out to me. His basis for setting the price came entirely from agent advisement. Agents have access to great information, but they are an unreliable source. Some will want to price aggressively so it sells quick. Others will over-value the property in a sharp-elbow bid to get the listing. You have to do your own research and understand the comparables thoroughly before submitting an offer. A house a block away might be 60 years newer or have two more bedrooms or three more bathrooms or a new roof or a new HVAC or a two-car garage or a pool or all of the above. A house a block away lists for $260k, but he can't sell his for $217k. The market is never wrong. Stop wasting your time calling radio shows, figure it out and move onto the next one if there is a next one.

[@mikesawyer4707]

You make money when you buy something. Not when you sell it. Think about it. I made all of the mistakes the facts are, you learn from them. Good luck.

[@ithinkigottalent4047]

Don't give up Nate! It's a learning experience, and a lot of flippers learn that way.

[@too-da-loo]

Not sure his wife will allow him to do another. By the time he gets out of this deal, all his cash will be gone..

[@aaronmurphy8796]

I think he has a shoddy renovation and his realtor doesn’t want to tell him that or he doesn’t want to believe that.

[@johncameron4194]

people thunk its easy money

[@7318ify]

This guy sounds like one of those flippers who use the cheapest labor and try to sell a pig with lipstick. I recently bought a home early 1950s, solid bones and priced way undermarket.

[@stevenlong5817]

Surprised Dave didn’t chew him out on the HELOC. They are very dangerous because the bank can call those loans anytime even if you pay on time. Too risky. Stick with index mutual funds. Out of sight and out of mind.