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My 2 cents - Home flipping is fundamentally unscalable due to how convoluted and complex residential markets are. These companies need to scale in order for i
by bfeynman 4y ago
My 2 cents - Home flipping is fundamentally unscalable due to how convoluted and complex residential markets are. These companies need to scale in order for it be profitable. However you can't apply a logistic regression equation to sq footage and parameters on a listing because there are so many other factors not listed or require boots on the ground to find out (bad neighbors, sewer smells, poor construction quality, schools).
- markus_zhang 4y agoJust curious is there a possibility to build properties that are suitable for future flipping?
- neonnoodle 4y ago"Flipping" usually refers to buying older properties, doing upgrades and renovations, and then re-selling at a higher price. If you built the property new, it wouldn't become a good candidate for flipping until it passes into less-desirable status after some time has passed. If you're talking about building new homes, what you're describing is pretty much "real estate development," which is a profitable but risky business in the U.S. A real estate developer has to work with local authorities to site the project, which is itself highly politicized and can take years. Then they have to secure capital, hire architects, engineers, builders, and comply with environmental laws. Only once the project is mostly done can they market the homes to potential buyers.