So a friend of mine just came into a bit of $$$ and wants to get into the business of buying distressed properties, remodeling them, and then selling them 3-6 mo's later. My opinion is that the real estate market is at best stalled, worst could see a appreciable dip (we live in CA-Bay Area). Because of this I think such a venture has a pretty poor risk/reward ratio. He tends to think that b/c he's putting extensive work into each property, even in a rough mkt he could make money. Anyone out there have experience in trading houses? It seems to me if it were that easy larger players would have taken out the house arb some time ago, but perhaps there is still room for a lone buyer to make 10% on a house in a few months. Thoughts?
well he's got me sold, I'm calling right now! Yah I've seen a million of those, course I've seen a million shady trading infomercials and I know it's possible to make a decent living prop trading, so I dunno.
PM me, for more info. Take it first hand, it is not as easy as it looks. If your friend is serious, message me. gordo
I'm reminded of a thread where someone said he was going to become a real estate day trader. That term still makes me smile from time to time.