Flipping by the numbers
A study recently released by First American Real Estate Solutions titled Real Estate Flipping, Goldmine, Mistake or Fraud reveals that flippers are beating the overall market appreciation increases with their investments.
The study analyzes flipper activity since 1999 in three hot markets, Orange County, CA, Las Vegas and Miami. The study concluded that holding time sweet spot for maximizing returns was 3-6 months.
Another study conclusion was that flippers exercised a level of intelligence and savvy above that of the general market. Strategies utilized by flippers beat the market include: investing in the hottest areas; investing in distressed properties; identifying below market asking prices and capitalizing on hyped market psychology.
Real Estate Flipping, Goldmine, Mistake or Fraud [First American Real Estate Solutions]