This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "Flipping Houses In A Downturn ! Make PROFIT During A Recession" (published 2022-12-06) consisting of a monologue by Joe Homs 949-625-4533. Joe — a Southern California broker/investor/mentor with ~40 years of experience — explains how to flip houses profitably in a market downturn: treat flipping as a numbers game, buy well below ARV (aiming ~60% or less), target foreclosures and distressed sellers, educate sellers about current market realities, be patient, and size deals to survive further market declines. He discusses buyer behavior, rising interest rates, layoffs driving potential foreclosures, and includes calls to action (like/subscribe, related video link, and scheduling one-on-one help).
Chapters
In today's video, we're going to talk about how to flip houses in a downturn, coming up next. Flipping properties can be an intimidating prospect during a market downturn. Ultimately, if an investor buys and fixes a property and isn't able to sell it, they've spent a lot of money and made no return on their investment. That being said, it can be possible To continue to flip houses and making a profit even in a market downturn. Welcome back, I'm Joe Homs. I've flipped hundreds of homes in Southern California. I have over 40 years of experience as a broker, investor, and mentor. I've been through a few of these downturns, so make sure that you like, subscribe, and share this with your friends. How to flip properties in a downturn. Flipping is really a numbers game, so you need to seek out properties That are lower than what you were used to buying them for. So we were at 75% to 80% here in Orange County. We're down to 60% and 65%. There may be some deals out there, there may not be. We're kind of right in the middle of this crest and downturn, and the sellers are still stuck on the prices of 6 and 7 months ago. So now you have to kind of bring them into reality, let them know that the market has turned, the interest rates are higher, all these things. So if they have a distressed property, something going on with that property, or something going on there in their lives that they need to sell this property, then they're going to end up getting less for this property at the end of the day. So it's a matter of just educating them. And again, in this market or any market, flipping is literally a numbers game. So make sure that you do your numbers correctly so that you don't get burned on the end. Foreclosures are a great place to find deals. They went away because the market was so hot. They're now starting to come back. You can see as of, we're in the end of November here, Massive layoffs from different companies. Twitter, Facebook, Microsoft, all these big organizations are literally laying off thousands of people. If you don't have a job, it's very difficult to make your mortgage payment. So these may be opportunities where these home buyers are not able to afford their home anymore, and then they're going to maybe jump into that foreclosure process. Not jump in, but be forced in by the bank. So those are great opportunities. Make sure that you're out there looking for those opportunities, and they are available. Patience is key, and especially in this type of market, you don't want to jump on a deal that you thought was great at the price 6 months ago, 7 months ago, only to find out that the market is going to continue to go down, interest rates are going to continue to go up, So right now we are buying fantastic deals. I mean, deals that are at least 60% ARV or even under that. And those are the type of deals that we're buying so that we know if the market continues to go down, by the time we finish rehabbing that property, we'll have enough room to at least make a decent profit at the end of the day. So patience is a virtue. If you're intending to flip homes during a downturn, It's useful to have some knowledge about buyer behavior, as well as how to make properties appealing when the market isn't thriving. If you're new to flipping, click on this video right here. I give you some solid advice on how to make the most profit on your next rehab. If you're looking for some more one-on-one help, make sure that you schedule some time with me. As always, I'm always here to help.
