Home Flippers: Giving Albuquerque’s uncared for homes another chance

Home Flippers: Giving Albuquerque’s uncared for homes another chance

(Transcript Snippet): “Tego:

Tracy a couple headlines this week. I just wanted to hit on because you know, you know what happens as, as all of us do, right? We, we kind of, we kind of browse the news, right. And we might see real estate stories pop up. Of course I do. Of course, I’ve got my, my your radar on my radar on for any real estate stories, your reticulated activator. Exactly. I was gonna say that the Raz, but the couple things that came out there was a bunch of headlines about, you know, a number of housing starts, meaning, you know, new construction, right? How much new constructions of pipeline it’s actually less than, than people were we’re expecting. And, and that’s really just supply chain issues. Home builders, aren’t able to build as fast as a lot of people would like them to another story that came out got a lot of play on a lot of different media outlets was home flipping business. That home flipping businesses actually been challenged really, you know, so people and, and so just define the home flipping business.

Tracy:

Somebody buys a house plans to just resell it. Yeah. Whether it needs fixing up or not. Correct.

Tego:

And most, and most

Tracy:

Of ’em need

Tego:

Something. Yeah. When we think about flipping, generally, we’re talking about homes that have been, let’s just say less love than others need some attention. And, and, you know, the flipper air quote, flipper adds, you know, fixes up the home and adds value to it and then sells it at a profit. I mean, it’s basically that simple. So

Tracy:

Think about it Tego. I didn’t see all these headlines like you did, but I see headline in front of us now for beings more competitive and less profitable. Of course. Think about the supply chain issues I could have told

Tego:

You that a year ago, think about,

Tracy:

About how much prices have gone up on the supplies and you know, and the timelines you can’t count on. I’m gonna have this back on the market in 30 days, you know, the holding time for a flipper has gotten a lot long because suddenly you can’t get the window you need, or you can’t get the cabinet. Or the counter of the

Tego:

Is interesting though, when you talk about 10 to 15, maybe 20% just natural appreciation over the last year, you know, it’s like, well, you should be more just, you just gotta wait. Right. But,

Tracy:

But think about how many people call it us regularly. And they say, I’m an investor. And I wanna find a house at a good deal. And those good deals, if you can find them, which is rare, right. Because people are willing to pay top dollar, have a lot of competition. So it’s still not, you’re not gonna get, you know, rock bottom price.

Tego:

Yeah. No, it’s, it’s very challenging. And it, it does take a lot of work and a lot of education to be good. And, and there’s a lot of people that are very good in that business, do a really good job taking homes that, that, like I said, you know, have not been loved that need some attention and bringing ’em back up to, you know, their former glory or maybe even more. And, and that’s pretty satisfying too. You know, I’ve done a fair number of those over the years, and it’s great to take these homes that have been wait, you’re doing two right now, but you’re not flipping ’em right. No, no. But you know, they’ve been, em, totally trashed out and not taking care of and, and bringing them back to, you know, something that’s a, a great product for the market. Another interesting story I saw this week, Tracy had to do with crime data.

Tego:

It started with I think it was realtor.com stopped publishing crime data on their home search website. So, you know, you’ve got all these different home search websites out there, you know, realtor.com, Trulia Zillow. Those are the big three welcome home abq.com. Oh yeah. Locally welcome home. Abq.Com homes.com. You know, those are kind of the big national ones, those, those four, but a lot of ’em, you know, they try to add features and they try to add, you know, extra neighborhood, extra, extra stats. Yeah. Extra content and stuff. And it’s interesting. They’re all phasing out crime data, which I found interesting. And I’m not, what did they say? Did you read the stories or just the headline? Yeah. So I’m not sure why the logic, but I know that like, in, in our realtor community, Tracy, we know that that’s one of those areas that you’re very head hesitant to talk about. Because you don’t want to be perceived as steering people to a certain neighbor or not a certain neighborhood, you know, let them do their own research. There’s there are, you know, great resources for that data through the, the state, or excuse me through the city or the county right there is, and there’s good info out there, but it’s just interesting. I just, on that, an interesting thing that they’re, that they’re pulling back on that crime data mm-hmm <affirmative> on their websites as part of the home searches.