Monday, October 30, 2023

😀Are Home Flippers Get Burned In The Housing Market?😊

Are Home Flippers Get Burned In The Housing Market?

By Dennis Dahlberg Broker/RI 623-582-4444
M NMLS 1018071 AZMB 0923961
August 29, 2023

After an abrupt end to the US housing boom, home flippers who were winning big just months ago are now racing to stem losses.

Since January, the doubling of mortgage rates has crushed buyer demand and depressed values in investors' most favored locations, from Phoenix and Las Vegas to Jacksonville, Florida. It's a swift turnabout for flippers such as those stuck with homes to sell and loans to pay.

Investors say, "It's a high-risk, high-reward business — and now we're facing the high risk, and I'm just praying for break even."

Flippers with loans must repay them, and rising interest rates make carrying costs even more significant. Their troubles can reverberate across the market: Just as investors bid prices higher on the way up, they can accelerate the move downward.

For most fix and flippers, the focus will be on selling, and the faster, the better. A small number will keep buying even though finding truly undervalued homes is near impossible and a guessing game of how far the market will drop.

Home-flipping activity reached a record at the start of the year, making up one in 10 transactions, surpassing the levels in the last bubble, according to Attom, an Irvine, California-based data provider, which tracked sales of properties that previously sold within the last 12 months. While the share remains elevated, it fell to 8.2% in the second quarter of 2023.

Conditions have deteriorated more since then, with mortgage rates near the highest level in 20 years. Demand has cooled particularly fast in Sun Belt markets such as Phoenix, Jacksonville, and Atlanta, pandemic boom areas where affordability has been strained. Fix and Flippers made up about 14% of transactions in those regions in the second quarter, but those shares sank in July and August, according to more recent monthly data provided by Attom.

Phoenix property investors have had to slash prices after the slowdown caught investors. A lot of investors are getting hammered.

Losses will grow, but even thin margins are a big problem when you're a full-time flipper.

We have hard-money loans with 10% to 14% interest rates. It's a constant dance — do I wait it out, or does the price drop? Both cost money.

For the most part, investors are paying back their loans, said Matt Prosory RI/Broker at Level 4 Funding, a hard-money lender in Phoenix, Colorado, and Texas. The default rate was 1.25%, which has climbed to 2.5% in the past two months. But it remains below pre-pandemic norms.

Matt said fix and flippers with nicely renovated turn-key properties will stand out in this market. But it will be painful for those who overpaid, counting on rapid appreciation to make them money, he said.

"Lots of them, in hindsight, were making bad buys. Anybody fix and flipping right now must look closely at the property pricing: Price it to sell. Today is not the time to get greedy.

Phoenix flippers are trying to put things in perspective. Flippers have purchased much more over the last two years than they will likely lose. Fix and Flippers are giving back the money they made.

I ask my flippers if flipping is dead or at least dying. Here in the Phoenix, Arizona, metro area, I have watched the margin on deals become slimmer and slimmer. During the past few years, television shows and seminars have flooded the flipping market with people who believe flipping homes is an easy way to riches. Trustee auction prices are near MLS prices (retail), and I cannot believe what people are paying.

I recommend that flippers take an extended vacation and return later to see how the market is going.

Matt Prosory RI/MLO/Broker

NCO Enterprises LLC
Dba Setabay Private Hard Money
26731 N 90th Drive
Peoria AZ 85383
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate nor a Guarantee to lend and should not be considered as such. Costs, rates, estimates, and terms can only be determined after completing an application. Actual payments will vary based on your situation and current rates. APR for loans ranges from 7.99 - 29.5% and is based on Credit Score, Down Payment, LTV, and Income. Mortgage rates could change daily. For more accurate and personalized results, please call 623 582 4444 to talk to a licensed mortgage expert. Terms and conditions of all loan programs are subject to change without notice. NCO Enterprises LLC Dba Setabay Private Hard Money 26731 N 90th Drive Peoria AZ 85383 Telephone: 623-582-4444 NMLS 2062278 NMLS 1118493 This email is for the exclusive use of the intended recipients and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the email from your computer, and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this email nor any attachments establish a client relationship, constitute an electronic signature, or provide consent to contract electronically unless expressed by Matt Prosory RI/CEO, in this email or an attachment. To the extent this message includes any tax or legal advice. This message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This email is an advertisement.

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Level 4 Funding LLC · 26601 N 19th Ave Suite 112 · Phoenix, AZ 85027 · USA

Saturday, October 28, 2023

😁Get Ready for Halloween with this Quick and Easy DIY Wooden Jack O'Lantern Craft 😉

Get Ready for Halloween with this Quick and Easy DIY Wooden Jack O'Lantern Craft

Make DIY wooden Jack-o'-lanterns, simple wooden blocks made to look like Jack-o-lanterns.

These little wooden jack-o-lanterns will delight and add spooky decor to your house this Halloween.

Are you looking to create a spooky fall atmosphere in your home? This easy DIY wooden Jack-o'-lantern is the perfect way to do just that! With just a few simple wooden blocks, you can create a Halloween masterpiece that will make everyone's eyes light up! In this video, we'll show you how to make these creepy wooden Jack-o'-lanterns in just a few easy steps. We'll also provide a step-by-step tutorial on creating the perfect fall atmosphere in your home! Whether you want to add a little Halloween cheer to your home or create a creepy atmosphere for trick-or-treating, this DIY wooden Jack-o'-lantern is the perfect project.

Quick Link
https://youtu.be/gZrbJukHCiM

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Thank you for joining Lucy and me today. Hope to see you next time.

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Friday, October 27, 2023

😁How to Make DIY Cute and Easy DIY Halloween Candy Corn Craft😉

How to Make DIY Cute and Easy DIY Halloween Candy Corn Craft

Here are some fun candy corn crafts for the kids to make.

Halloween is just around the corner, and what better way to celebrate than by making some DIY candy corn? This craft is easy to do and can be completed in just a few minutes. After watching this video, you'll have everything to make your cute and easy Halloween candy corn!

In this accessible and cute DIY Halloween candy corn craft, you'll learn how to make a fun and festive decoration in just a few easy steps!

This candy corn craft is simple to make and requires just a few supplies. You can create it in less than an hour, and it's the perfect way to add a personal touch to your Halloween decorations. Watch the video and then get started on this fun Halloween project!

Quick Link
https://youtu.be/laf8o570aDM