Today's Home section in the San Jose Mercury News had an article about the future of the growing segment of house flipping shows on TV. Will these tales of easy money disappear now that the market has changed?
I spent last evening with an associate who has been a close friend for a long time. Her pattern of investing over the years has been buying and flipping local properties, usually with a partner, and also taking private second mortgages at a generous interest rate. I would watch with fascination as she handled the complexities of remodeling and staging these houses...an exhausting, but invariably profitable enterprise. The time constraints were enormous, but she seemed to thrive on the pressure. I sat back, with my savings in safe but boring stock and bond funds, and watched with jealousy and admiration.
Last night, it seemed as though the "house of cards" might be wobbling. One of her properties is in foreclosure, and several borrowers are months behind in their payments. The Mercury News says it's all in the timing, but for the flippers, it looks as though times are changing.
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