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dryrot

Young Real Estate Flippers Get Their First Taste of Losing

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Hi

Courtesy Bloomberg (from the US but we usually follow...) comes this piece:

https://www.bloomberg.com/news/articles/2019-05-09/young-real-estate-flippers-get-their-first-taste-of-losing?cmpid=BBD051019_WKND&utm_medium=email&utm_source=newsletter&utm_term=190510&utm_campaign=weekendreading

"Sean Pan wanted to be rich, and his day job as an aeronautical engineer wasn’t cutting it. So at 27 he started a side gig flipping houses in the booming San Francisco Bay Area. He was hooked after making $300,000 on his first deal. That was two years ago. Now home sales are plunging. One property in Sunnyvale, near Apple Inc.’s headquarters, left Pan and his partners with a $400,000 loss. “I ate it so hard,” he says. A new crop of flippers, inspired by HGTV reality shows, real estate meetup groups, and get-rich gurus, piled into the market in recent years as rapid price gains helped the last property crash fade from memory. Many newbie investors are encountering their first slowdown and facing losses from houses that take too long to sell."  <read on!>

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I've always wondered how many of these "flippers" are actually adding value and how much of their profits can simply be attributed to riding a rising market/providing liquidity to the original vendors. 

I notice they are borrowing almost all the funds they are using for the flips with only a tiny deposit. Then using the profits to do multiple properties at the same time at the same high LTV. 

"Many flippers are professionals who’ve been in the business for years. But the latest boom has also lured people such as Rachelle Boyer in Seattle, who got into property investing after attending a $25,000 real estate coaching program. The course taught her to think big, stay positive, and never quit." Hahahaha. $25k for some woo woo don't give up speech, I'm in the wrong business.

 

Edited by Council estate capitalist

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48 minutes ago, Council estate capitalist said:

I've always wondered how many of these "flippers" are actually adding value and how much of their profits can simply be attributed to riding a rising market/providing liquidity to the original vendors. 

I notice they are borrowing almost all the funds they are using for the flips with only a tiny deposit. Then using the profits to do multiple properties at the same time at the same high LTV. 

"Many flippers are professionals who’ve been in the business for years. But the latest boom has also lured people such as Rachelle Boyer in Seattle, who got into property investing after attending a $25,000 real estate coaching program. The course taught her to think big, stay positive, and never quit." Hahahaha. $25k for some woo woo don't give up speech, I'm in the wrong business.

 

I think you are getting confused between flippers and developers. Developers buy and add value. Flippers simply buy stuff that is well priced and sell it on higher at a profit. A bit like share dealers.

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1 hour ago, Council estate capitalist said:

I've always wondered how many of these "flippers" are actually adding value and how much of their profits can simply be attributed to riding a rising market/providing liquidity to the original vendors. 

I notice they are borrowing almost all the funds they are using for the flips with only a tiny deposit. Then using the profits to do multiple properties at the same time at the same high LTV. 

"Many flippers are professionals who’ve been in the business for years. But the latest boom has also lured people such as Rachelle Boyer in Seattle, who got into property investing after attending a $25,000 real estate coaching program. The course taught her to think big, stay positive, and never quit." Hahahaha. $25k for some woo woo don't give up speech, I'm in the wrong business.

 

Sounds like a Samuel Leeds course ;(

 

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2 hours ago, dryrot said:

Hi

Courtesy Bloomberg (from the US but we usually follow...) comes this piece:

https://www.bloomberg.com/news/articles/2019-05-09/young-real-estate-flippers-get-their-first-taste-of-losing?cmpid=BBD051019_WKND&utm_medium=email&utm_source=newsletter&utm_term=190510&utm_campaign=weekendreading

"Sean Pan wanted to be rich, and his day job as an aeronautical engineer wasn’t cutting it. So at 27 he started a side gig flipping houses in the booming San Francisco Bay Area. He was hooked after making $300,000 on his first deal. That was two years ago. Now home sales are plunging. One property in Sunnyvale, near Apple Inc.’s headquarters, left Pan and his partners with a $400,000 loss. “I ate it so hard,” he says. A new crop of flippers, inspired by HGTV reality shows, real estate meetup groups, and get-rich gurus, piled into the market in recent years as rapid price gains helped the last property crash fade from memory. Many newbie investors are encountering their first slowdown and facing losses from houses that take too long to sell."  <read on!>

Should have just bought Bitcoin and Hodl

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18 hours ago, Council estate capitalist said:

Speak of the devil. This just came up on facebook, When I saw the title I thought it was a joke. It is not a joke.

https://www.justgiving.com/crowdfunding/galina-astakhova

He's a nasty piece of work. Pretends he's a Christian but was booted out of his church. His "Charity" isn't registered with the Charities commission. Google his name + Property Tribes for a very long thread there of people getting burned and losing large amount of money on his "courses". And of his acolytes then posting in his defence. They are out in force on YouTube and Facebook - if you ever question anything about him, you're "a hater". :rolleyes:. He pays people to post positive comments on his Amazon book reviews too (if you want a laugh, yes he's written things which he describes as "books".)

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4 hours ago, mrtickle said:

He's a nasty piece of work. Pretends he's a Christian but was booted out of his church. His "Charity" isn't registered with the Charities commission. Google his name + Property Tribes for a very long thread there of people getting burned and losing large amount of money on his "courses". And of his acolytes then posting in his defence. They are out in force on YouTube and Facebook - if you ever question anything about him, you're "a hater". :rolleyes:. He pays people to post positive comments on his Amazon book reviews too (if you want a laugh, yes he's written things which he describes as "books".)

I didn't realise he claims to be a Christian, But reading his about page I see he studied "Biblical Economics" which I didn't realise was a thing. 

I've read the PT thread, I can't believe how many people waste their money on these courses. 

Quote

 

"Samuel is the CEO of six successful companies as well as owning over £1M of property throughout the UK" - His website

I'm surprised by how little he claims to own. Assuming 50% mortgages (generous) that would mean his actual wealth is only £500k. 

 

Maybe actually owning the property is for muppets, Maybe the money is in all the lease-option, rent-to-rent "strategies" I've been hearing about. 

Also: Samuel and his "free" book, 

 

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Edited by Council estate capitalist

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On 11/05/2019 at 16:06, Gigantic Purple Slug said:

I think you are getting confused between flippers and developers. Developers buy and add value. Flippers simply buy stuff that is well priced and sell it on higher at a profit. A bit like share dealers.

I think I'm right in saying that flipping, at least in the USA, did originally mean buying a tired place and sprucing it up to sell.
Then some genius thought of skipping the middle bit, and many greedy c**ts did likewise.
The music has stopped.

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23 hours ago, NuBrit said:

Anyone remember this guy?

https://en.wikipedia.org/wiki/Casey_Serin

It seems like this was only yesterday.

 

cheers. forgot about him

https://en.wikipedia.org/wiki/Casey_Serin

 

Quote

On July 11, 2007, Serin disclosed that he was under investigation by the FBI. In an interview conducted by ABC News, his attorney reported that Casey Serin was under investigation by the FBI, but that "no charges have been brought against Mr. Serin. However, based upon conversations with the U.S. Attorney's office in California, federal charges related to Mr. Serin's real estate transactions are expected to be brought against him".[29] Shortly thereafter, Serin said in a mass e-mailing that he would be closing the blog and getting a "regular W-2 job," citing the stress his family has experienced.[30]

Serin's final blog entry on July 28, 2007 was dedicated to his wife. The blog was purchased by the owner of ml-implode.com. Serin says he used proceeds from the sale to pay off $35,000 of consumer credit debt in his wife's name.

Although Serin retained an attorney in July 2007 and stated that he was under investigation by the FBI, Serin has never been officially charged with any crime.[citation needed]

Legal change of name[edit]

In 2016, Serin legally changed his name to Casey Constantine. In Facebook comments, he stated that the name change is a sort of rebranding for the next chapter of his career/business in real estate, and that it will allow him much more control over his search results online, somewhat of a clean slate

 

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On 15/05/2019 at 10:59, NuBrit said:

Anyone remember this guy?

https://en.wikipedia.org/wiki/Casey_Serin

It seems like this was only yesterday.

Why was he never charged?

I like this bit

Quote

Regarding his multiple mortgages, Serin acknowledged to the Sydney Morning Herald that "the stuff I did is technically mortgage fraud, but it's not officially called that until someone prosecutes me and proves that that is indeed mortgage fraud,"[26] asserting a presumption of innocence. 

 

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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