Investors Flipping to Make Quick Profits

Author:	Lucas Jones
Source:	Homes Discovered
Date:	April 6, 2006

For certain investors, the Washington D.C. real estate market is a good place to make quick cash.  It is not far fetched to make $10,000 in 6 days, and that is only one story.  Many people are buying condos, sometimes before they are built, and selling them in a short time to make a quick profit.  In the Washington D.C. area, home prices are growing at more than twice the rate of the national average and selling for close to $1,000 a square foot. The housing area in Washington D.C. area is moving very quickly.  Many new housing complexes are selling units before construction is completed.   With the red hot market combined with low interest rates and creative ways to borrow money, some feel that investors are inflating the housing bubble by creating a false demand. To counteract all these speculators, most newly-built condos require a buyer to occupy the property for at least six months and many will not sell if they believe a potential buyer is an investor.The reason is investors are only looking to flip a property, or sell quickly to turn a profit.  Most of the time these speculators are only puting down a small deposit that they would be willing to lose if the market drops.  This would leave the developer with a property that he could have sold to an actual homebuyer for much more money, and they now have to sell for much less.

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