Flipping Looks Fun, But What If You Flop?
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A mediocre story about flippers in the LA Times today. It focuses on an experienced speculator, Eddie King, who's also a former USC football player and seeks to offer advice to those thinking about getting into flipping. Here's an excerpt:
Inspired by exuberant real estate pundits and late-night TV pitchmen, many homeowners who have watched prices appreciate by double digits for several years may now be convinced that home flipping is a better investment than the stock market. But advocates of the nothing-down, double-your-money-in-a-year strategy often fail to mention potential pitfalls. There are the obvious downsides — failing to budget properly and overspending on repairs — but the bigger hazards include market volatility and unforeseen tax consequences. As a result, brokers and accountants who work with flippers say that for every smart investor like King, there are dozens who lose their shirts or, worse, their savings.— The Boy in the Big Housing Bubble
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