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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (59874)	8/14/2006 11:17:19 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

"Amazing how expensive these renovations by first time flippers end up costing." First they seriously underestimate the cost of renovations. Then they pay full retail for all the materials. Then they screw up the job because they don't know what they are doing. Then they have to hire a contractor to fix it. The contractor is no fool and knows what happened. He charges through the nose. The trick on renovations is to think small because they always end up growing, especially in cost.

To: John Vosilla who wrote (59874)	8/14/2006 11:41:39 AM
From: Don Earl	Respond to of 306849

sec.gov Home Building owns property in Phoenix, Arizona; Albemarle, North Carolina; Plant City, Florida; Hesperia, California and Prosper, Texas. These properties consist of office and warehouse space used to support our builder supply business. For additional information on our operating leases, see Note (F), Commitments and Contingencies, of the Notes to Consolidated Financial Statements. NOTE F: The Company leases certain office facilities and other equipment under operating leases. Future minimum payments under the noncancelable leases are as follows: 2007 $66.7 million; 2008 - $59.7 million; 2009 $50.6 million; 2010 $42.8 million; 2011 $30.7 million and thereafter - $44.3 million. RE: "Ever watch the show Property Ladder?" No RE: "Amazing how expensive these renovations by first time flippers end up costing." No doubt. That's not what's being discussed though, is it? Remodeling is an entirely different can of worms. Fixer uppers are a good way to get into a whole lot of trouble - fast. Once upon a time a person could get good enough deals along those lines to make a profit. Most so called fixer uppers I've seen these days are priced so high it would be impossible under any circumstances to make the needed renovations and show a profit. And, yeah, I've seen the stories about someone putting a $40,000 kitchen in a $250,000 house. Someone goes to exotic retailers, for exotic items, at exotic prices, then hires a contractor who recognizes a sucker when he sees one. One would hope those who make such investments get a great deal of pleasure out of their new kitchen as they will never see a dime of profit on it. TANSTAFL (There ain't no such thing as a free lunch) I really don't have time to discuss theories along the lines of, "Major builders can buy a 50 pound box of nails and have it shipped next day air to the job site at a 250% discount to retail.". Anyone with an IQ above that of a potato knows that isn't true if they take 10 seconds to think about it.