House flippers are back

The strengthening real estate market has flipper coming back in as home prices increase. Today's investors are more cautious than the speculators in the run up period of 2005-2007. Today's investor is looking to add value and resell at a reasonable return. One school of thought is to now have more than 65% of expected sales price invested in a flip candidate. You must also be able to carry the property in case it takes time to resell it. One of the real challenges in today's market is getting to a listed property before one of the large investment companies find it. The low inventory situation makes this a real challenge and adds to upwards price pressure as bidding takes place on very desirable properties.