Jun 21, 2016
Most Dewey Beach house flipping veterans can look back on their successful projects and place them in either of two columns. Either they were intended to be quick flips—turnarounds where speed was a prime ingredient because of an original tactical decision—or they were not.
The quick flips depend on speedy, focused action in three of the four phases a house flipping project entails. In the opening phase— lining up the capital—speed is not important. Of course, nothing else will materialize unless financing for the Dewey Beach property is obtainable when needed—but there is no timer ticking away. Once it is likely that funding will be obtainable, that’s when the clock starts.
Phase Two—finding, negotiating, and closing on a suitable property—is a real foot race. A quick flip only materializes after a suitable property has been identified. “Suitable” in this context means a home that can be made attractive in the Dewey Beach market without requiring extensive and time-consuming rehabilitation—cosmetically challenged, but not structurally unsound. If it is already on the market, it’s probable that the present owner’s circumstances make them disinclined to oversee any turnaround work themselves. The need for speed is apparent: since the current asking price has to be low enough to allow sufficient profit upon its resale, other interested parties will be interested once they get wind of the opportunity. This kind of qualified house at a sensible price is certain to find a ready buyer quickly.
During the next fixup phase, speed and agility is equally important. The work of repairing and renovating calls for fixing underlying mechanical issues, then making everything cosmetically inviting and immaculately clean. Time really IS money: not just the time a project takes, during which the investment capital can’t be allocated elsewhere—but also the house flipper’s time. It’s why many are themselves experienced contractors—and why most of the others have a deep contact list of those they can rely upon. When a turnaround effort drags on for month after month during which the project is consuming rather than producing, the bottom line suffers. A quick flip’s success can be measured by its final net profit divided by the number of weeks it took, purchase to sale.
The end phase of house flipping is the sale—which calls for expediency for the same reasons. If all else has proceeded as planned, speed here is likely for one simple reason. If the first three house flipping phases have been professionally executed, that means that a profitable sale can happen with an asking price that’s a touch beneath comparable Dewey Beach properties. Nothing assures speedy success more than that!
Quick flips are not the only kind of Dewey Beach house flipping, either. Some properties need a lot more tender (and time-consuming) care before they can be profitably returned to market. But for either kind of buying and selling, being able to rely on an experienced Town Realtor® is a key asset. Whether your next real estate endeavor is in search of profit or simply a home that’s just right for your family, I hope to be answering your call! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Jun 21, 2016
Our town’s week starts off with a celestial milestone. Our grade school teachers told us to call this point in the calendar a “solstice.” There are two each year, and this is the summer one. If there had been one of those models of the solar system in the room, the teacher would have used it to illustrate the way Earth’s orbit…well, here it always got a little complicated. Especially if the teacher started explaining the difference between a solstice and an equinox. An equinox happens when the day and night are the same length: each exactly 12 hours. Monday’s solstice: well, it’s more complicated…
“Solstice” comes from Latin words for “the Sun” and “standing still”: it’s when the Sun’s position in the sky reaches as far north as it’s going to get. Up until then, every noontime, the sun kept creeping further and further northward. At the equinox, its progress stops cold. At noon the next day, it will reverse course. And keep dipping southward until the winter equinox…
Anyway, for Bethany Beachreal estate, this week is even more significant than an equinox, because the summer solstice is also the first day of summer—and that is exactly the midpoint of what is traditionally real estate’s busiest time of year: the spring-summer selling season. Take a look at our town’s listings and you’ll see both the new ones that weren’t there in May and those that are now under contract: the multiple comings and goings are why this season is so productive.
The same holds true just about everywhere else in the country, too; and with the start of summer came some additional welcome news (the kind of news that we had expected). First off, the Fed’s Janet Yellen confirmed that interest rates were not going to be going up yet. This was the opposite of what had been pre-announced in April, then back-pedaled last month. May’s weak jobs report was the culprit (or hero, if you are lucky enough to be applying for a mortgage any time soon).
So it may be merely a coincidence, but it does seem as if the Fed is observing its own kind of solstice. They’re not moving interest rates, no matter how much they’d like to. Rates are at a standstill. Maybe the Fed Governors will decide to take a break—get out of the office to enjoy summer like the rest of the nation…
Meantime, home loan rates continue to be thrillingly inexpensive—a boon for Bethany Beachreal estate in all quarters. Buyers and sellers all benefit when monthly mortgage payments look the way they do now. So for this year at least, the solstice marks a great time to give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.