I know there are lots of us that have thought about flipping homes. For most of us it’s the initial cash to start the process, but for those of you that have the cash then perhaps all you need to know are the three golden rules below. If you are looking for an experienced Tampa area Realtor who previously owned a home inspection franchise for 7 years to help you, I would love to help you make wise real estate decisions. Give Rich Kemper a call at 813-777-5332.


• Don’t buy with the expectation that the home will shoot up in value. During the housing boom, too many flippers got burned by counting on fast price appreciation. When the market tanked, so did they.
“If you buy only hoping that prices are going up, it’s the same as going to (Las) Vegas,” Levinrad said.

Flippers must buy at enough of a discount that gives them instant equity in the home, Levinrad said. That allows them to turn around and sell without having to wait for prices to rise.

Without instant equity, it’s best to hold off – unless investors are willing to become a landlord, he said.

Levinrad and David Dweck, founder of the Boca Real Estate Investment Club in Coconut Creek, Fla., say flippers should buy a home for no more than 65 percent of the market value after repairs. If a house is worth $100,000 after it’s renovated, and it requires $10,000 in work, the maximum price an investor should pay is about $55,000.

Dweck’s advice: Don’t skimp on renovations and save the receipts to show appraisers.

“The biggest challenge right now is appraisals,” Dweck said. “The more ammunition you have to give appraisers, the better. But there is absolutely no guarantee.”

Maher Hanna, a student of Levinrad’s seminars who started investing full-time this year, said flippers – particularly beginners – may have to be satisfied with modest profits.

“There’s a saying: Bulls make money, bears make money, but pigs gets slaughtered,” Hanna said.

• Do your own due diligence. Investors should know the true value of a house without relying solely on outside sources.

Too many novice investors take a real estate agent’s word, Levinrad said. Even appraisals may offer only a ballpark figure, he said.

The best way to determine value: Travel to the neighborhood, attend open houses and see what similar-size homes are selling for.

Also find out how many other homes in the area are listed and for what prices. Flippers should price their renovated properties slightly below market value to attract interest. That will ensure they don’t have to keep the home any longer than necessary, Levinrad said.

• Know your exit strategy. If an investor is planning to buy, renovate and resell, stick to the plan.

Some investors change course and end up regretting it. They may realize they’ll make less money on the deal than originally expected, so they hold the home and rent it instead.

But then they discover they aren’t prepared to be landlords – from the hassles of dealing with problem tenants to the high cost of maintaining the homes.

“Something that was supposed to be a profitable and enjoyable experience turns into a nightmare,” Levinrad said. “If your profit is less than you anticipated, consider it a lesson learned and move on to another property.”

Copyright © 2013 Sun Sentinel (Fort Lauderdale, Fla.) Distributed by MCT Information Services.



Here is what Florida Realtor news just reported…

July pending home sales slip a bit

 WASHINGTON – Aug. 28, 2013 – Pending home sales were down in July with higher mortgage interest rates slowing the market, according to the National Association of Realtors® (NAR) monthly Pending Home Sales Index (PHSI).

The PHSI, a forward-looking indicator based on contract signings, declined 1.3 percent to 109.5 in July from 110.9 in June, but it’s 6.7 percent above July 2012 when it was 102.6. Pending sales numbers have risen in year-to-year comparisons for the past 27 months.

I was actually concerned about this several months ago when all the area builders took 3 price increases in a matter of a few months. I had a conversation with a builder rep where I told him I didn’t think the market could sustain what amounts to a 26k price increase. Then interest rates started to rise. Rising prices and interest rates causes several issues for home sales. First is some of the first time home buyers find themselves priced out of the market because there is now very little available in there price range coupled with what they can afford to purchase is now a smaller number because of higher interest rates. The other issue is consumer confidence. People feel uncomfortable with prices and interest rates rising so quickly here in the Tampa market and may sit back from purchasing a home as the last thing people want is a repeat of the past with people upside down a few years from now.

Well, none of us has a crystal ball, but the home sale stats don’t lie and that is to say homes sales dropped in July. As a Realtor, I would still encourage buyers not to be hesitant to purchase a home here in the Tampa area. While on the rise, interest rates are still at an all time low for my life time!

As always, I welcome your comments. If you know of anyone in the Tampa area that is thinking of purchasing a home, please have them contact me, Richard Kemper at 813-777-5332.

Make it a great day!     


I don’t know if you noticed, but interest rates have gone up almost 1% in the last several months. Like so many other things, interest rates are like our weight. It really easy to add weight, but much more difficult to lose some! I know, as I am 10 lbs overweight and it just seems so hard to drop it.

At any rate my point is that interest rates have been artificially low for the past several years and now that the economy seems to be recovering, the government is talking about slowing down the bond purchases which means supply and demand of the market will start to reset the interest rates. I am guessing that we are headed back toward 6%.

Why do I say all of this? It’s time folks. If you have been thinking of buying a bigger home, downsizing, or are a first time buyer just wondering should I buy a house right now, the answer is yes. I am 55 years old and these are the lowest interest rates in my lifetime, which means they probably won’t be back around for a while. When I got out of college the interest rate was 9% and that didn’t let me buy much house. All you young people out there please hear me. Buy now and buy as much house as you can afford; it will probably never as cheap to borrow as it is now. As always feel free to give me your comments. Rich Kemper RE/MAX Realty Unlimited 813-777-5332