Flipping Houses in a Down Market

Flipping Houses in a Down Market

My team and I flip houses in Michigan, where the housing market is currently experiencing a significant slump. Wherever these dips in the market occur, they often discourage investors, particularly novice investors, from flipping, but you don’t need to get discouraged. With the right adjustments, you can flip houses profitably in a depressed market. I suggest three strategies for successfully flipping houses in a down market:

* Focus on foreclosures.

* Look for deeper discounts.

* Buy and hold.

In the following sections, I describe these strategies in a little more detail.

Sides in $300 million land deal head to arbitration [South Florida]

Sides in $300 million land deal head to arbitration [South Florida]

Palm Beach Aggregates’ $300 million deal to sell 1,210 acres west of the village to Lennar Homes could be in trouble.

And one of the key individuals who made the deal possible – convicted former County Commissioner Tony Masilotti – might have to testify in the dispute.

Neither mega-home builder Lennar Homes nor rock mining operator Palm Beach Aggregates would comment about the matter. But both have a pending case set to go before an arbitration board, a process that is more expedient and secretive than a civil court proceeding.

Palm Beach Aggregates’ claims against the home builder are unclear. Lennar Homes, however, is seeking reams of paper in its defense relating to the series of once-secret land deals that netted the former commissioner and his brother, Paul Masilotti, a $7.7 million land parcel in Brevard County from Palm Beach Aggregates.

Is peace finally at hand on Fisher Island? [South Florida]

Is peace finally at hand on Fisher Island? [South Florida]

After 10 years, a testy — and sometimes comical — court battle between Fisher Island’s developer and its wealthy residents is slated to end.

Is there peace on the island?

The pitched legal battle waged for a decade between posh Fisher Island’s haves and haves is about to be settled, according to the private enclave’s developer and a lawyer representing disgruntled residents.

Later this month the once-unhappy residents, who filed multiple lawsuits over everything from new condos to the ferry schedule, are slated to sign off on a global settlement with builder Fisher Island Holdings. If all sides go through with it, the move will end a testy — and sometimes comical — legal fight that consumed one of the wealthiest communities in the country.

Converters Leaving Market Without Much Pain

Converters Leaving Market Without Much Pain

Eighteen months ago, apartment complexes were being snapped up at record pace by condominium converters. But in less than two years, the news focuses on what local experts have dubbed “reversions”–condo conversion complexes being brought to the sales block as income-producing properties.

Unlike other markets experiencing condo retreats, local experts say Phoenix converters aren’t losing too much in the process. Just recently, the 272-unit Laguna Hills at 4800 S. Alma School Rd. in Chandler brought in $38.5 million or $2.6 million more than SunVest Communities LLC had paid in early 2006. The Hallandale, FL-based company had invested $1 million into conversion upgrades when it decided to back down on the plan.

“We haven’t seen one sale that has yet traded for less than what was paid for it,” says Brad Goff, principal with Apartment Realty Advisors’ Phoenix office, who partnered with colleague Bret Zinn to negotiate the Laguna Hills transaction. “The rental market is bailing out the condo converter.”

Collapse of lender taints Lee builder [South Florida]

Collapse of lender taints Lee builder [South Florida]

Some first home buyers sue for fraud

A Michigan credit union has collapsed following hundreds of questionable loans to people buying First Home Builder houses in Lee County.

Meanwhile, some buyers have filed suit against First Home, the credit union and others — alleging fraud and conspiracy in the marketing, sale and financing of the homes.

The National Credit Union Administration on Feb. 16 assumed control of the Ann Arbor-based Huron River Area Credit Union, which has 39,000 members and $348 million in assets.

Taxes, debt shadow Extreme Home Makeover family

Taxes, debt shadow Extreme Home Makeover family

They struggle with higher bills, IRS rules, mortgage on their former house.

Their house is brand new, five times bigger than the old one, and the furnishings inside are deluxe — all for free.

Troubles appeared to be over for Jesus and Michelle Jacobo and their extended family of 12 when volunteers built them a new home for ABC television’s “Extreme Makeover: Home Edition.”

But old debt and new tax bills could cast shadows over their joy.