Ivy Coppo's Foreclosure Flip in Phoenix - Part 3 - Interview

http://www.AccessWealthStrategies.com
David Overfield interviews Ivy Coppo, flipper and realtor at Trilogy Investments and Real Estate, about flipping properties bought at Maricopa County (Phoenix) foreclosure auctions (through bidding service firm www.BidAZForeclosures.com)

Ivy answers David's questions about:
- how many properties she flipped in 2009
- what kind of properties were flipped: price range, type, locations
- typical timeline for a flip?
- % REO / short sale properties vs. flipper resales on the market
- what kind of buyers are there for these properties?
- her best vs. worst cases for a flip
- how to increase chance of successful closing?
- what's the typical return for her flip?
- what about risks?
- tenants/owner occupied properties
- hard money lender costs
- due diligence
- her advice to newbies?

Ivy's contact info:
ivyshomes@gmail.com
Cell: 602-561-5510
www.ivyshomes.com
Trilogy Investments and Real Estate

Category:

Education

Tags:

• Mesa Arizona
• Phoenix
• phoenix foreclosure auction
• flipper
• Ivy Coppo
• David Overfield
• Access Wealth Strategies

[Michshnly]

$200K for a house in Phoenix? Not anymore. That same house is selling for $79K. Even if you bought the house for $50K you’ll still loose. Simple renovations carpet, paint, appliances, sheetrock repair, lighting fixtures/fans, kitchen cabinet refacing or purchase new, right there is $20K without labor cost. Then the realtor takes 6% that’s $5K. Closing cost $2K the home sits on the market for 7 months more income lost.

[DavidKOverfield]

@Michshnly Yes, many houses are selling for under $100k, especially those built in the last 10 years in newer areas with under 2000 s/f. There is no room to flip on those types of homes.

On the selling side, I usually count on 10% transaction cost (Realtor 6% plus other closing costs/concessions).

It is hard to flip these days, that's why it comes down to individual markets and select properties. It isn't like the bubble years where anyone could do it with any property.

[Michshnly]

Flipping is suicide in 2011.

[DavidKOverfield]

@Michshnly The individual property makes the difference between a successful flip and a non-successful one. It is all in the margin of safety.

For example. If the comps support a price of $200,000 and the investors basis (acquisition, fix-up, holding, and disposition costs) leave a 20% profit margin then the flip will work.

Most markets don't support these margins and most properties won't work.

There a profession firms moving tons of properties. Google Jon Mann in SD.

[Michshnly]

Whatever you put into a property in 2011 you will get out even. 2006 is gone. Flipping is long gone for years to come. And the worst part is banks are not lending so who will buy in 2011?