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Author Topic: 10 Mistakes flipping  (Read 9628 times)

Offline DFW_REI

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Re:10 Mistakes flipping
« Reply #15 on: November 17, 2006, 10:52:32 am »
I agree on what you saying, but there is always limits and cost to these implementation. I think -- I am pretty much sure-- they budget for foreclosure and defaults.  

One way to avoid completely defaults is to not to land at all... but just defeats the purpose on bankers.

DFW
Investor Looking for Single Family/Duplex and other small units at great discount. PM me for any good deal

Offline Rich_in_CT

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Re:10 Mistakes flipping
« Reply #16 on: November 17, 2006, 10:54:36 am »
Are u a banker Richct?? I agree that 20% of the fault lies with people that make mistakes and run into
legitimate issues when it comes to foreclosure. Divorce, job loss, illness, etc. These are all legitimate
reasons why a homeowner gets into a distressed situation. My point is that there is sooooooo much
fraud taking place that the Banks should be taking extreme precautions to protect itself from these
type of losses. Maybe they don't care because they are making soooo much $$$$ interest from the
people who are paying monthly. The Banks need to close the obvious loopholes in their lending system.
Do you disagree??
Not a banker but this is all very much like the cases where people blame gun makers when some idiot shoots another idiot.

Offline ericmedem

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Re:10 Mistakes flipping
« Reply #17 on: November 17, 2006, 12:13:38 pm »
This reminds me of a new investor in my market who decided it would be fun to flip a home in the historic distric. He forgot to check on the rules and regulations of the historic district and he decided to put around 50 vinyl windows in the house.  The problem was the area requires wood windows which would cost at least $30k not to mention the $12k he dumped into all the vinyl windows.  To make a long story short he lost the house to foreclosure because he couldnt afford the new windows and the payments.

Eric Medemar
http://www.InvestorsPlayground.com Now FREE!  Just type in your email so I know where to send your FREE 1471 Page Investors "Holy-Grail".  (It's NOT $97 anymore)

Offline alexk1100

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Re:10 Mistakes flipping
« Reply #18 on: November 18, 2006, 10:15:23 am »
Personally he went wrong by getting mortgages and using credit cards. He should have waited and saved up his own hard money to finance everything under a LLC. Of course the biggest mistake is underestimating repair costs and doing amateur work. Personally I think California is far over-rated for everything, he should have moved to Ohio.    ;)

 




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