Fixing and Flipping Homes in Denver is Not for the Feint-Hearted

First of all, for a more realistic point of view, I would suggest watching TLC’s “Flip That House.” It follows everyday people, sometimes first-time “flippers,” as they endure the stress and financial stress of flipping a house. While flipping can be very rewarding, it can also be very difficult, especially for a novice. Some of the shows, including A&E’s “Flip this House” and TLC’s “The Real Estate Pro’s” feature real estate companies with large assets and enormous bargaining power with subcontractors.

The television shows take place in other markets including Los Angeles, San Antonio and Charleston, where local market conditions are completely different than Denver’s rather stagnant real estate market. Fixing and flipping is currently not a good idea in Denver since there is simply too much on the market in the "fix and flip" range.

In addition, Denver area lenders are so overwhelmed with the sheer number of foreclosures that it often takes six weeks to even get a "look see" on the offer.  We have several buyers lined up to come in within the next few weeks and they all need a quick answer due to their children’s school calendar. Pre-foreclosure or foreclosed homes are automatically out of the running if lenders can’t respond quickly.

For those who still want to take the risk and flip a house, there are great deals to be found on many of the Denver area’s foreclosed properties. The problem with this strategy is that many of the foreclosed homes are located in not-so-desirable neighborhoods so be careful. Also, it is crucial to carefully research the neighborhood’s property values and to develop a thorough plan prior to beginning any flip.

It is likely that next spring, when the lenders are still "holding the bag" on their inventory, home prices might be where buyers can really come into the game and turn a profit.  Overall, there is a good chance that flipping a house may turn out to be a flop although it certainly makes for great television!