Real Estate Investors Online

The blame game is being played for the damage caused by the housing bubble bust. The local version of the New York Times has painted both legal and illegal house flippers with the same broad brush. Technically, there was a distinction made (about one small paragraph) between the good guys and the evil doers. I'm certain that most readers missed the distinction so I thought I'd point out how legal flips provide both quality product, provide jobs, generate revenue for the county government and stimulate the economy.

My most recent flip took 5 months of work, approximately 900 man hours and 2 months of marketing, totaling another 100 hours. My buyer purchased a beautiful home that a building inspector found no flaws in, a termite inspector found no bugs in and a septic tank inspector found no.... (well you know where this is going). When I purchased the home it was a blight on an otherwise beautiful neighborhood so the neighborhood improved. That sale generated revenue to the county government from doc stamps and recording fees so the local government made money and the homeowners association and building and zoning department received their unpaid fees and fines. Two realtors made commissions on the sale and wholesaler made an assignment fee. I hired a roofer and a window company who each pulled permits (more money for the County) and employed several workers (put some food on a few tables and helped some hard working guys pay some bills). These two items also allowed the homebuyer to pass a wind mitigation inspection that ultimately made the cost of insuring the home more affordable as well as improving the home's energy efficiency and reducing it's carbon footprint. I also hired an air conditioning professional and two flooring contractors (one for carpet one for tile) all were small business owners who are struggling in this economic slowdown. I spent well over $25,000.00 at the local home improvement stores buying supplies that benefit the owners and employees of the retailers, shareholders and Chinese and Mexican sweatshop workers that produce the goods. I also paid sales tax on all items even though everything was bought for resale and should have probably been considered tax exempt but I like to pay a little more than my fair share.

I even made some charitable donations during the course of the flip (I say donations because if I were to gamble a guess these guys didn't claim the income). A guy trimmed some palm trees for me. Another guy hauled away about $500.00 worth of cement blocks I offered for FREE on Craigslist.org. The guys who cruise the neighborhoods on trash day went out of their way to make sure my house was on their route each week. They got lots of copper, aluminum, steel, junk appliances and even useable furniture resulting in less load on the local landfill and a few bucks for some other independent businessmen willing to work instead of just sucking off the system.

My marketing efforts enriched the local branch of the New York Times. I spent money every weekend on newspaper advertising for my Open House promotions. The home was sold by another Realtor who made a sales commission to be split between her and her firm. The Title Company who closed the sale made money off the Title Insurance and Closing fee. The county got its doc stamps and recording fees again and the property tax assessor will certainly re-value the home upward for additional revenue. And most importantly to me even with all this philanthropy, my company turned a profit on the deal and will happily pay every cent that we can't shelter when April 15th rolls around. I'm damn proud to call myself a HOUSE FLIPPER.