Many investors have been buying up
short sales and REO properties after the 2008 financial meltdown. Some investors are holding on the real estate
for long term investment. However, we’ve
also seen more and more houses that had been bought, fixed up or rebuilt and
sold shortly for relatively high profits.
This is called house flipping (purchasing a revenue-generating
asset and quickly reselling it for profit, according to Wikipedia).
Typically houses that require some
work would attract less buyers. But for
those into house flipping, the worse the condition of the property, the better
buy it is. Many of them have made so
much profit that even some of the movie stars are into house flipping in a
glamorous style. Just check out the
photos and the following article from Los Angeles Times:
Sometimes I wish I could have talked
my clients into the understanding that you can only change the conditions of
the house, but not the location. If time
and money allow, people can always remodel or even rebuild a house. See, some famous movie stars are doing that.
