I don’t think so.

And this is not a post against “flippers” and it’s not a post against “flipping”!  Some of my best clients are real estate flippers.

But THEY are professionals.  And if you are reading this you know who you are.  Your full time job is real estate investing.   The model you use is that you know the area, you know the product, you know the numbers, you know how to do a pro-forma, you know how to use a cap rate, and you have experience in this market.

I would warn against the casual real estate buyer who has the gleam in his or her eye to buy on the cheap, spend $15 in caulk and bailing wire, and then put the asset back on the market and make $50,000 in a month.

It’s not happening that way.

There are too many unseen landmines.

Many of these investors call me AFTER they have bought the property they are going to flip.  They have already locked in their numbers and then they discover the . . . a: mold problem in the basement, b: the mold problem in the roof, c: the Rumsfeldian unknown unknowables, or what is worse is d: a + b + c + d.

And it’s too late to do anything but lose your money at this point.

My advice in this market it to buy to hold UNLESS you are a professional (see above).

Buy and hold.  Buy for cash flow.

These values are incredible today!   And lots and lots of people are looking for houses to rent.

Buy and hold – that is real estate investing.  And it’s a much safer thing to do than invest in stocks!!

This market rewards prudent investors.   And it rewards professional flippers.  But you have to choose who you are and not delude yourself.